WHO WE ARE

AC Infra improves the 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 investments in logistics.

Our PPP projects in the toll road, rail, and payments sectors continue to improve on established efficiencies and provide reliable service for hundreds of thousands of commuters and motorists daily. AC Infra entered logistics and fulfilment services 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, we build on Ayala’s reputation and track record of excellence in developing and sustainably managing large scale projects.

MARKET OUTLOOK

The COVID-19 pandemic accelerated the growth of the e-commerce industry and underscored the need for an integrated, efficient, and reliable logistics network across the country. Online shopping behavior is expected to continue growing even when quarantine restrictions are relaxed. Expansion of warehousing facilities and transportation network capacities are needed to support the anticipated volume growth in the next few years.

Alongside the shift to online purchasing is a growing need and preference for contactless, convenient, and secure payment modes. Current financial infrastructure systems require an upgrade and new platforms must be developed to enable secure transactions across multiple financial channels.

The evolving infrastructure needs of these industries and the opportunities emerging in logistics and financial solutions has become increasingly intertwined – both areas are what AC Infrastructure is well-suited to address. The company intends to invest in high-yielding, scalable, and high-growth businesses to expand the capabilities and range of services offered by its logistics and financial infrastructure businesses.

Partnerships within and outside the Ayala group allows the company to improve operating efficiencies and build on the performance of its existing and emerging businesses.

With billions of pesos lost each day due to poor infrastructure, 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 recover from current economic setbacks.

CAPITALS

Financial
A strong balance sheet and strategic capex investments funded by Ayala Corporation

Manufactured
Continued improvement in the operating efficiencies of LRT-1, MCX, and beepTM

Human
An innovative, collaborative, and agile organization with a wide range of skills and experiences

Intellectual
Extensive project management capability and track record in preparing successful PPP project proposals for toll road, rail, and financial technology

Social and Relationship
Wide spectrum of local and foreign partners with complementary knowledge and expertise. Mutually supportive partnerships with project stakeholders

Entrego’s logistics capabilities and facilities played a vital role in delivering food packs at the height of the quarantine.

HOW WE CREATE VALUE


We invest in businesses that improve movement of people, goods, and services in an efficient, safe, secure, innovative, and sustainable manner.

Project Development
We look for scalable and high-growth opportunities in the mass transportation, toll road, logistics, and financial services sectors.

We forge partnerships and synergies within the Ayala group to grow existing and future business.

Implementation and Business Start-Up
Our team manages the implementation of projects and executes plans in a timely and cost-efficient manner.

Efficient Operations
Our business units ensure plans are executed in a precise manner and processes are efficient to consistently meet desired key performance indicators.

Talent and Leadership Development
Our talents have opportunities to grow through challenging assignments, personalized learning programs, and rewards.

BUSINESS REVIEW

Entrego Fulfilment Solutions, Inc.
Entrego is AC Infrastructure’s first investment in the logistics industry. The company provides last-mile delivery, contract logistics, warehousing, and domestic freight forwarding services for a range of B2B and B2C clients.

The growth of e-commerce spurred by the Covid-19 pandemic benefited Entrego significantly in 2020. Despite limited operations for the months of March to May due to the nationwide Enhanced Community Quarantine, Entrego’s courier and express parcel deliveries quickly grew from June to December as more consumers purchased products online and more businesses introduced online retail channels.

Full year 2020 CEP volume increased by 70.3% from 2019. Entrego ended 2020 with revenues of ₱1.9 billion, 62% higher from 2019 and 10x greater since starting in 2018.

The company is focused on sustaining its growth trajectory in 2021 by further improving on operational efficiencies and strengthening its service offerings to broaden its client base.

Light Rail Manila Corp. has shortened the average train interval to 3.5 minutes from 5 minutes in 2015.

Light Rail Manila Corporation
Since assuming operations and maintenance functions in 2015, Light Rail Manila Corporation has invested ₱11.6 billion for the rehabilitation, restoration, and upgrade of LRT line 1, resulting in a more comfortable, safer, and reliable commute for its 450,000 average daily passengers before the COVID-19 pandemic.

With 116 working light rail vehicles at present (from 77 in 2015), LRMC provided the public with more trips per day, expanded operating hours, and shortened headway from a 5-minute average interval in 2015 to the

current 3.5-minute average. Various renovation, re-layout, and accessibility improvement works have likewise been implemented to improve passenger safety and operational efficiency. In 2020, LRT-1 operations were suspended for three months when Metro Manila was placed under ECQ. During this period, preventive and corrective maintenance works for the line were undertaken to ensure improved service when operations resume.

LRT-1 resumed operations on June 1, 2020 under the General Community Quarantine period at 12% allowed passenger capacity. This was increased to 30% in October 2020 in support of the gradual reopening of the country’s economy. LRMC strictly observes and implements above-minimum health and safety measures to ensure passenger and employee safety on a continuing basis.

The pandemic also accelerated the company’s plans on digitalization and innovation. LRMC’s Automated Train Operations Management Systems enabled the company to efficiently manage its resources. This led to more scheduled trips, shorter queuing time, and faster rides.

LRMC also introduced two new features for its ikotMNL mobile app to address the pressing needs of the commuters: 1) contact tracing via Bluetooth LE technology, and 2) integration with Sakay.ph app for better planning and commute directions

Project completion for LRMC’s Cavite Extension project reached 48% by end of 2020. With an investment of ₱13.2 billion , the project will add eight new stations to the existing line. LRMC welcome the arrival of the new Generation 4 train sets in January 2021 and is preparing to utilize it on the existing line.

The infrastructure needs of the logistics and financial solutions industries have become increasingly intertwined—both areas are what AC Infrastructure is well-suited to address.

Muntinlupa Cavite Expressway
Average annual daily traffic at the Muntinlupa- Cavite Expressway for 2020 was at 26,387 vehicles. While the pandemic caused a decrease in vehicular traffic, the number is expected to grow steadily as the economy reopens and more establishments and lifestyle centers rise in the vicinity of the four-kilometer toll road.

AF Payments, Inc.
AF Payments, Inc. expanded its network of transport partners and solutions beyond the rail market segment, supporting the national direction of encouraging cashless payments across different industries. In 2020, the beepTM system was deployed in the EDSA Busway to upgrade the fare collection process to a safer, more reliable system based on contactless cards and QR technology.

AF Payments, Inc. developed a QR ticketing system that allows passengers to use QR codes on mobile phones and on paper as transport tickets. BPI launched a QR Ticket sales function in its mobile banking application and passengers can expect an even more convenient contactless commute with the addition of new beepTM QR ticket issuers such as GCash and PayMaya.

AF Payments, Inc. also enabled loading of beepTM cards from mobile wallets and mobile banking applications by installing Stored Value Updaters in all LRT1, LRT2, and MRT3 stations and 65 new Card Loading kiosks.

STRATEGY 2020 PERFORMANCE 2021 PRIORITIES
Ensure high levels of efficiency for operating companies under government concessions
Deliver consistent level of service and continue to exceed key performance indicators for operating toll, rail, and payment companies Muntinlupa Cavite Expressway

  • Average daily traffic at 26,387 vehicles
  

  • Annual average daily traffic to recover to pre-COVID level and improve RFID toll collection experience.
Light Rail Manila Corporation

  • 116 functioning Light Rail Vehicles (LRVs) at the end of 2020 (from an initial 77 in 2015).
  • 186,000 average daily ridership
  • Maintained average headway at 3.5 minutes between trains
  • Cavite Extension project at 48% progress by end 2020
  

  • Ensure health safety protocols and government capacity guidelines are observed.
  • Complete installation of new signaling system for the entire fleet/ legacy trains
  • Continuous construction of the LRT-1 Cavite Extension project
AF Payments Inc.

  • Increased number of activated AFCS non-rail units (buses, jeepneys) from 699 to 1733 (+148% vs 2019)
  • Secured 130 bus and jeepney contracts including EDSA Carousel and connecting routes
  • Completed 60% of the LRT2 East Extension Project
  

  • Increase network of transport operators on the beepTM fare collection system.
  • Onboard new partners for beepTM QR Ticket system and increase utilization
  • Implement a robust cashless system for EDSA Busway
Expand portfolio of infrastructure related businesses
Develop end to end logistics supply chain portfolio with planned market entry into contract logistics and freight forwarding. Entrego

  • CEP deliveries increased by 70.3% from 2019.
  • Number of clients tripled during pandemic as more retailers/brands are selling online
  

  • Improve operating efficiencies 
  • Introduce contactless and “payment on delivery” options
  • Onboard contract logistics clients
Identify opportunities to support growth of evolving and disruptive business models Commenced operations of MCX E-Commerce Center

Financial Infrastructure

  • Pilot tested Transakto with Entrego and BPI
 Expand portfolio of partner fund sources (banks), logistics providers, and merchants
THE VALUE WE CREATE
Movement of People
  • Travel time is reduced for motorists and train passengers.
  • An average of 35,624 motorists use the Muntinlupa Cavite Expressway daily, saving them valuable travel time to and from the South Luzon Expressway.
  • Light Rail Manila Corporation gives its daily passengers a safe, reliable, fast, and inexpensive mode of transport to reach many areas in Metro Manila. With an average headway of 3.5 minutes between trains, LRT 1 transports more people per trip compared to other public transportation modes.
  • Continuous construction of the LRT-1 Cavite Extension project
Movement of Goods Entrego facilitates deliveries of parcels nationwide, supporting the growth of B2C clients from a broad range of industries.
Movement of Services AF Payments’ beep card pioneered cashless transactions for the public transportation sector, helping operators adapt to the pandemic and providing partners with 99.9% reporting accuracy.
National Development Our country can grow at a faster pace when infrastructure moves people, goods, and services reliably and efficiently. Continued improvements in operations and maintenance are translated into benefits in the form of better quality of life and service to citizens.

32F Tower One
Ayala Triangle and Exchange Plaza
Ayala Ave., Makati 1226 Philippines
  +63 2 7 908 3032
  +63 2 7 759 4881
  www.acinfra.com.ph

Sustainability
  quesada.jam@acinfra.com.ph

Learn more about AC Infrastructure’s
SDG initiatives

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