AC Infrastructure

“Recent events in our country have shown just how critical transport, logistics, and financial infrastructure are to keep services for Filipinos going—especially during times of crisis. AC Infra remains committed to keep people, goods, and services moving, even during the most challenging times.”

- Jose Rene Gregory D. Almendras, President and CEO, AC Infrastructure Entrego’s new12,000 square meter sorting and distribution hub in Laguna Technopark is able to sort 12,000 packages an hour.

WHO WE ARE
AC Infra improves movement of people, goods, and services in an efficient, safe, innovative, and sustainable manner. We develop and invest in businesses to address urgent infrastructure needs in the mass transportation, mobility, logistics, and financial services sectors. Our portfolio consists of projects operating under a government concession and businesses outside the Public Private Partnership (PPP) mode.

 

Our PPP projects in the toll road, rail, and cashless payments sectors continue to improve on established efficiencies and provide reliable service for hundreds of thousands of commuters and motorists daily. AC Infra entered the logistics and fulfilment services space in 2018 with the launch of Entrego and intends to expand its portfolio in this sector in the coming years.

 

Our ability to steward and lead projects from its development, implementation, operations and maintenance is our key advantage. As a wholly owned subsidiary of Ayala Corporation, we build on Ayala’s reputation and track record of excellence in developing and sustainably managing large scale projects.

MARKET OUTLOOK
With billions of pesos lost each day due to poor infrastructure, the need to invest in solutions to improve movement of people and goods remain a top priority. Investments in long term solutions are urgently needed to cut the cost of doing business, attract more investments, enhance productivity outside urban areas, and enable the Philippines to further its competitiveness globally and in the ASEAN region.

 

The Philippine government, for its part, has increased public infrastructure investment from an average of 3 percent of GDP during 2011–16 to over 5 percent in 2018 with its Build Build Build program. The National Economic Development Authority has prioritized implementation of several large projects that aim to address major gaps in mass transportation, airports, water resources, and energy. AC Infra continually assesses available opportunities to participate in addressing infrastructure bottlenecks as more government-led infrastructure projects are opened for private sector involvement.

The need for efficient and reliable logistics is expected to grow as the ecommerce market expands across the country. A growing preference for more convenient and cashless modes of financial transactions will likewise require investments in systems and platforms to support the growth of the financial services and technology sector.

The company intends to pursue new investments in scalable, high-growth, innovative infrastructure solutions that will serve the needs of the e-commerce, financial services, and telco sectors to balance its current portfolio composed mostly of PPP projects.

We forge partnerships and synergies within and outside the Ayala group to grow existing and future businesses without compromise to the efficiency and performance standards of our operating businesses.

 

BUSINESS REVIEW
Entrego Fulfilment Solutions, Inc.
Entrego is AC Infrastructure’s vehicle for its investment in the fulfilment and logistics sector. In 2019, it ramped up significantly posting a compounded monthly growth of 14 percent in volume throughout the year. This growth was underpinned by the rising demands of the e-commerce and retail sectors for B-to-B and B-to-C logistics services. During the year, Entrego gained a foothold serving the major e-commerce players in the country, leveraging on its nationwide reach. It also launched an automated sorting center to drive operational efficiencies and processes.

 

As the company moves towards growing its business, it has started to tap other market segments to broaden its customer base and is gradually preparing for market entry into contract logistics, warehousing, and domestic freight forwarding services.

 

AC Infra has committed up to ₱580 million over the next few years to support Entrego’s planned growth and expansion.

AC Infrastructure is working to add eight new stations to the existing LRT line, which should effectively cut down travel between Baclaran to Bacoor to just 25 minutes.

Light Rail Manila Corporation
Since assuming operations and maintenance functions in 2015, Light Rail Manila Corporation has invested ₱10.7 billion for the rehabilitation, restoration, and upgrade of LRT line 1, resulting to a more comfortable, safer, and reliable commute for its 450,000 daily passengers.

 

With 116 working light rail vehicles at present (from an initial 77 units in 2015), LRMC was able to provide the public more trips per day, expand operating hours, and shorten headway from 5-minute average interval in 2015 to the current 3.5-minute average. LRMC inaugurated its expanded EDSA Station last October 2019, providing a wider space for ticketing, queuing, and additional PWD facilities. Various renovation, re-layout, and accessibility improvement works have likewise been implemented in other existing stations to improve passenger safety and operational efficiency. LRMC also launched the ikotMNL app to cater to the evolving needs of its passengers.

LRMC started its Cavite Extension project in May 2019, investing over ₱10 billion worth of engineering, procurement, and construction works to-date. The project will add eight new stations–Redemptorist, MIA, Asiaworld, Ninoy Aquino, Dr. Santos, Las Piñas, Zapote, and Niog, to the existing line. When fully operational, the entire 28-station LRT 1 line will cater to 800,000 passengers daily and will cut travel time between Baclaran and Bacoor from over an hour to just 25 minutes.

 

In anticipation of an increase in ridership, LRMC is expecting the delivery of the new Generation 4 trains by the third quarter of 2020.

 

Muntinlupa Cavite Expressway
Average annual daily traffic at the Muntinlupa-Cavite Expressway for 2019 was at 35,630 vehicles, a 10 percent increase from a year ago. This growth in vehicular traffic is expected to grow steadily in the coming years as more establishments and lifestyle centers rise in the vicinity of the four-kilometer toll road.

In addition to the public transport partners that beep™ serves, it has expanded to cater to tourist passes for popular attractions in Intramuros and Palawan.

AF Payments, Inc.
beep™ continued to grow its network of transport partners and expand the application of beep™ solutions beyond the rail market segment.

 

By the end of 2019, beep™ non-rail partners include 15 bus operators with 370 units, and 14 modern PUVs and e-tricycle operators with 351 units. beep™ is present in Cebu through Topline Marina and Cebu Peoples Multipurpose, in Isabela province through First Isabela Transport Service, and in Iloilo through the Iloilo Alliance Trans. Coop. The company also serves tourist zones through beep™-enabled tourist passes used by visitors to access popular attractions in Intramuros and Palawan.

 

In October 2019, beep™ launched the Philippine’s first public transport QR ticketing system for BGC Bus and Topline Marina. All these developments have grown beep™ card usage from an average of 600,000 taps in 2018 to an average of 700,000 taps for 2019.

NAIA Rehabilitation
The proposal to rehabilitate, expand, operate, maintain, and transform the Ninoy Aquino International Airport was approved by the NEDA Board last November 27, 2019. The approval paved the way for the NAIA consortium to commence negotiations with the Manila International Airport Authority.

 

Government is targeting to complete the swiss challenge phase and sign the concession agreement with the project proponent by the second quarter of 2020.