2GO Group Inc., the Philippines’ largest integrated transportation and logistics provider, will give its travel business a significant push this year, expanding its reach and services, to increase its contribution to overall earnings. At present, the company’s logistics operations are largely driven by its robust freight business.
Frederic DyBuncio, president and CEO of SM Investments Corporation, the parent company of 2GO, said during a press conference on Monday, March 2, that the travel segment has been performing well since it was separated from the freight business. However, he noted that freight remains the main growth driver of the logistics unit.
“The travel business has basically been an add-on. But this year, we plan to really push it and become more involved in group tours,” DyBuncio said.
For 2025, 2GO is promoting trips to Siargao, increasing voyages to the popular island destination.
Monopoly position
DyBuncio also pointed out that 2GO is currently the only shipping company transporting passengers from Manila to destinations in the Visayas and Mindanao.
“That’s quite a monopoly for us,” he quipped.
On the freight side, DyBuncio said the company has been gaining significant business from third-party logistics providers, particularly those serving the e-commerce sector.
He added that 2GO’s forwarding business has broken its own performance records due to strong demand. “It seems like other logistics companies have shut down their forwarding operations,” he said, noting that 2GO has been capturing additional market share.
“Overall, 2GO has been very profitable. Our expansion will now focus more on the Visayas and Mindanao. We want to strengthen our presence in the Visayas, which we believe is a market we can effectively serve and grow,” he said.
Ecosystem
The logistics business remains one of the brightest spots in the broader SM ecosystem, alongside its renewable energy (RE) ventures. The group aims to further expand its logistics footprint across the Visayas and Mindanao.
Both logistics and renewable energy align with the government’s development priorities. The Department of Energy has set targets to increase the share of renewable energy in the power generation mix to 35 percent by 2030 and 50 percent by 2040.
DyBuncio emphasized that all of 2GO’s business segments are profitable.
Portfolio investments, which include 2GO, account for 6 percent of the conglomerate’s financial performance in 2025. This segment’s results were largely driven by Philippine Geothermal Production Company and NEO buildings, which together contributed 56 percent of total portfolio income. 2GO and Goldilocks followed with a combined 20 percent contribution.
