filoil expansion program4
TRANSCRIPT
2
Goals
To come up with a business plan that
would allow FILOIL to penetrate the
existing petroleum distribution market in
the province of Palawan.
To set-up a viable supply and distribution
channel that would sustain FILOIL’s
petroleum distribution efforts in the
province.
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Description
The Plan involves setting-up FOUR (4)
Supply Depots (with 300 kl storage
capacity) and at least TWENTY EIGHT
(28) PORTAGAS Stations strategically
dispersed within the province to ensure
FILOIL’ competitiveness in the market.
FOR MORE INFO...
Complete Profile of the PROVINCE OF PALAWAN
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WHAT IS A PORTAGAS STATION?
The FILOIL PORTAGAS Station is a fully
transportable, single or multi-component
PORTABLE GASOLINE STATION designed for
easy installation. It is made of 100% fabricated
steel materials welded and bolted together,
complete with a cashier’s office, a service
platform with digital fuel dispensing pump
equipment. The PORTAGAS Station comes in
three (3) designs that can be adopted with the
area. Its steel canopy is conveniently foldable and
detachable for transporting purposes. The
PORTAGAS over-all design features its significant
economy, not only in its construction/ installation
phase, but more so in its operational stage.
However, the materials and dimensions of the
PORTAGAS Station fully complies with the
Department of Energy specifications and
standards.
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Competitive Analysis
The Palawan Petroleum Market is dominated by the Oil Majors: PETRON, SHELL, and CALTEX. There are no Independent or Small Players in the province competing with the Oil Majors. Although, there are small “Takal Operators” that buy their fuel products from the Oil Majors in their small time retail operations
PETRON – Operates an all-products depot, with an LPG refilling plant
and lubricants warehouse in Puerto Princesa City
– Is considered a major force in the retail and wholesale fuel distribution industry, with at least one (1) gasoline retail station operating in almost all towns of the province
– Has an established number of dealers and distributors
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Competitive Analysis
SHELL – Have product borrowing arrangement with
PETRON Depot in Puerto Princesa City for its fuel withdrawals.
– Is also considered a major force in the retail and wholesale fuel distribution industry in Palawan, with at least one (1) gasoline retail station operating in almost all towns of the province
– Has an established number of dealers and distributors also.
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Competitive Analysis
CALTEX – Also has product borrowing arrangement
with PETRON Depot in Puerto Princesa City for its fuel withdrawals.
– Through its appointed Distributor, Mr. William Tan, is also a major force to contend with in the retail and wholesale fuel distribution industry in Palawan.
– Has an established number of dealers and distributors in the province.
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Competitive Analysis
PETRON SHELL CALTEX FILOIL
SUPPLY
ADVANTAGE
Has Own All-
Products Depot in
Puerto Princesa
City
With Supply
Arrangement with
Petron
With Supply
Arrangement
with Petron
With OWN Supply
Depots ( 300 KL
capacity ) to be set-
up in four strategic
areas
LOGISTICAL
ADVANTAGE
With Fleet of
Haulers
With Fleet of
Haulers
With Fleet of
Haulers
With ready Fleet of
Haulers
RETAIL
MARKET
PRESENCE
Has a retail station
in almost every
town
Has retail station
in almost every
town
Has retail
station in
almost every
town
Will still set up retail
stations through
Business Partners
BRAND
ACCEPTANCE
Nationwide
Coverage
Nationwide
Coverage
Nationwide
Coverage
Via Market Niche
strategy to attain
province wide
coverage
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Market Strategy
The Market strategy will involve the following course of action
FILOIL will divide the Palawan market into FOUR (4) MARKET TERRITORIES:
– UPPER NORTH will include the municipalities of Busuanga, Coron, Culion, Cuyo, Linapacan, Agutaya, Magsaysay
– NORTH will be El Nido, Taytay, San Vicente, Roxas, Dumararan, and Araceli
– CENTRAL will be Puerto Princesa City, Aborlan, Kalayaan, and Cagayancillo
– SOUTH will be Espanola, Narra, Quezon, Rizal, Brooke’s Point, Balabac, and Bataraza
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Market Strategy
The Market strategy will involve the following course of action
FILOIL to set-up at least ONE (1) PORTAGAS Station per Town:
Upper North: 7 PORTAGAS Stations
North: 6 PORTAGAS Stations
Central: 7 PORTAGAS Stations
South: 8 PORTAGAS Stations
28 PORTAGAS Stations
FILOIL to strategically locate and set-up a SUPPLY DEPOT within the
FOUR (4) MARKET TERRITORIES (with a storage capacity of 300 kl per
Depot)
Upper North: Coron town
North: Roxas town
Central: Puerto Princesa City
South: Narra town
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Market Territory PROFILE FILOIL Expansion Program for Palawan Province
UPPER NORTH TERRITORY: Busuanga, Coron, Culion, Cuyo, Linapacan,
Agutaya, Magsaysay
NORTH TERRITORY: El Nido, Dumaran, Roxas, Taytay, San
Vicente, Araceli
CENTRAL TERRITORY: Puerto Princesa City, Kalayaan,
Aborlan, Cagayancillo
SOUTH TERRITORY:
Espanola, Narra, Brookes Point,
Rizal, Quezon, Bataraza, Balabac
LEGEND:
SUPPLY DEPOT FACILITIES
(Coron, Roxas, Puerto Princesa
City, Narra)
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Market Strategy
FILOIL to SELECT and APPOINT FOUR (4) BUSINESS
PARTNERS who will each manage and operate an
assigned Market Territory. Scope of responsibilities
include the following:
– Operate and Manage the Supply Depot
– Operate their own PORTAGAS STATION
– Recruit and Appoint PORTAGAS STATION
OPERATORS in each town within the assigned
market territory
– Supervise and Assist the PORTAGAS STATION
OPERATORS in their retail operations
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Market Strategy
FILOIL’s FOUR (4) BUSINESS PARTNERS will
focus on the PORTAGAS STATION RETAIL
OPERATIONS AND SUPPLY DEPOT
OPERATIONS ONLY.
FILOIL to Solely HANDLE the WHOLESALE,
COMMERCIAL & INDUSTRIAL FUEL SALES
OPERATIONS through its designated Palawan
Business Representative.
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Market Strategy Overview
FILOIL
RETAIL MARKET WHOLESALE, COMMERCIAL,
INDUSTRIAL MARKET
BUSINESS PARTNER PALAWAN BUSINESS
REPRESENTATIVE
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Market Strategy Overview
RETAIL MARKET
Tricycle
Multicabs & Jeepneys
Trucks
Buses
Motorcycle
Cars & SUVs
Small & Medium
Marine Transport
Units
WHOLESALE, COMMERCIAL,
INDUSTRIAL MARKET
Wholesalers/Traders
Mining Companies
Shipping Companies
PALECO & NAPOCOR
Multinational/ Big Companies
with Distribution (Warehouse)
& motorpool facilities
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Project Viability
Capital Investment for SUPPLY DEPOT
Land Development & Construction Cost: Php 10 M (including piping, lighting & electrical, and concreting & other
structures)
Storage Tanks (30,000 Liters capacity x 10): Php 5 M
(Fabrication Cost/Tank: Php 500,000 x 10 units)
ESTD TOTAL COST FOR FOUR (4) SUPPLY DEPOTS:
Php 15M x 4 = Php 60 M
Land dev’t & constn cost Php 40M
Storage TanK Fabrication Php 20M
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Project Viability
Capital Investment for PORTAGAS STATIONS
Complete set-up including structures, pavement, pump and tanks,
pipings, signages, and lightings: Php 5 M
ESTD TOTAL COST FOR TWENTY EIGHT (28) PORTAGAS
STATIONS: Php 5M x 28 units = PHP 140 M
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Project Viability
ESTD TOTAL COST FOR FOUR (4) SUPPLY
DEPOTS: Php 15M x 4 = PHP 60 M
ESTD TOTAL COST FOR TWENTY EIGHT (28)
PORTAGAS STATIONS: Php 5M x 28 units
= PHP 140 M
TOTAL INVESTMENT COST = PHP 200 MILLION
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Projected Volume
ESTD TOTAL VOLUME FOR TWENTY EIGHT (28) PORTAGAS STATIONS:
Average Daily Volume: 3,500 Liters per PORTAGAS STATION
Average Monthly Volume: 105,000 Liters per PORTAGAS STATION
Estd Total Volume per Month for 28 PORTAGAS STATIONS: 28 X 105,000 Liters = 2,940,000 Liters per Month
ESTD TOTAL VOLUME FOR COMMERCIAL/ INDUSTRIAL SALES: 1,000,000 Liters per Month
ESTD COMBINED VOLUME PER MONTH:
3,940,000 Liters per Month
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Resources
FILOIL has a dedicated Self propelled Motorized Fuel Barge with a storage capacity of 1,000,000 liters per voyage.
FILOIL has a team of personnel that would handle the entire business operations.
FILOIL has a standing Supply Arrangement with TOTAL PHILS. that may be explored to sustain the project.
FILOIL was already able to identify and appoint the FOUR (4) Business Partners for Palawan, although contract finalization is still up for the three (3) Business Partners.
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Schedule
Construction & Operational schedule milestones
for Supply Depot Facilities
Jan Feb Mar Apr May Jun July Sep Oct Nov Dec
Central Depot Const’n
South Depot Const’n
North Depot Const’n
Central Depot Operational phase
South Depot Operational phase
North Depot Operational phase
Upper North Depot Const’n Upper North Depot Operational phase
2013
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Current Status
High-level overview of progress against schedule
– Central Depot already in permitting and documentation stage. The site is ready for construction
– South Depot is finalizing its contract with Business Partner. The site is ready and identified.
– North Depot is identified and contract is still up for finalizing with Business Partner
Overview of PORTAGAS STATION progress
We have one (1) PORTAGAS Station already in its operational phase, located at North Road, Tiniguiban, Puerto Princesa City. It is situated on the Central Depot site. Construction of ONE (1) PORTAGAS Station each for the South and North Territory will commence at the same time the South and North Depot Facilities are begun.