AC Logistics, an emerging business unit of the Ayala Group, is on track to meet its target of delivering a positive EBIT (earnings before interest and taxes) this year, following a strategic shift to a light-asset logistics model aimed at facilitating trade and improving customer experience.
Erry Hardianto, President and CEO of AC Logistics, said in an interview with LogisticsNews.Ph that while the company remains in its early stages, performance is improving and growth is on track.
“From the bottom line perspective, we are improving. We are on track of meeting our target. And we made a commitment, that we will be delivering a positive EBIT this year and we’re on track of meeting them,” said Hardianto, who joined the Ayala Group less than two years ago to steer the logistics business amid global supply chain disruptions.
This anticipated growth marks a turnaround following the company’s exit from its last-mile delivery operations, previously handled under Entrego.
On the revenue side, Hardianto noted mixed signals, as the shift away from last-mile delivery model has altered the company’s revenue composition.
For the past two years, AC Logistics pivoted toward contract logistics and national distribution, focusing on tailored, high-value supply chain solutions rather than general courier services. The company is now emphasizing upstream logistics, including warehouse management and fulfillment. Although primarily a B2B solutions provider, AC Logistics can support B2C requirements upon customer request.
The changed in its business model to asset light allows them to sell its assets and leas it back from suppliers, enabling them flexibility and at the same time having access to the asset that they previously owned.
Following its strategic pivot over the past two years, AC Logistics has aligned its core offerings—international freight forwarding, contract logistics, national distribution, air cargo handling, and cold chain services—into a unified product portfolio.
The company transitioned from a holding and subsidiary structure to a more conventional logistics model organized by product lines.
Growth drivers
Growth is expected to be driven by a rebalanced customer mix, particularly through cross-border freight forwarding and cargo handling, which contribute significantly to revenue. Contract logistics and national distribution are also key growth segments.
To improve operational efficiency, the company integrated its systems between late 2024 and 2025 into a unified platform. This included standardizing warehouse management systems across all facilities, including cargo handling, and implementing a transport management system (TMS) across its operations. The integration enables seamless connectivity between warehouse management and transport functions, including last-mile coordination.
Prior to integration, the company operated on multiple disconnected platforms. “We fixed the process, and then we end up into this system, and the efficiency is basically the outcome,” Hardianto said.
While AC Logistics is expanding its role within the broader Ayala ecosystem, Hardianto acknowledged that it remains a relatively small player compared to the group’s scale, alongside other emerging units such as AC Mobility and AC Health.
“AC Logistics is infant stage. It’s very small and very insignificant in the entire ecosystem. Well the opportunities are enormous, but it’s a journey,” he said.
Synergies and partnerships
As part of its expansion, AC Logistics has partnered with FLS Group, a regional firm specializing in project logistics. “We go together, we do the commercial activity with them,” Hardianto said, noting FLS’s technical expertise in handling complex, project-based cargo such as factory relocations, wind turbines, and automotive shipments.
In cold chain logistics, AC Logistics holds a majority stake of up to 84 percent in Glacier Megafridge, Inc., a key player in the country’s cold storage sector. The company recently opened a new cold storage facility in Davao, expanding capacity in Southern Mindanao and strengthening temperature-controlled logistics to reduce food loss and preserve product quality.
With 11,798 pallet positions, the facility is among the largest and most advanced in the region, serving agriculture, aquaculture, food processing, retail, and manufacturing sectors. Pending approval from the Philippine Competition Commission, Glacier Megafridge will be fully integrated into AC Logistics’ operations.
Meanwhile, its Cargo Haus plays a critical role beyond infrastructure as a customs-bonded warehouse. It supports export and import processes by working closely with authorities and guiding customers through customs clearance requirements.
Cargo Haus has facilities in Manila, Clark, Cebu, and Davao—key international air cargo hubs—as well as in 12 additional domestic airports. “Through the infrastructure, we are supporting the export-import of the country,” Hardianto said.
Cost pressures and resilience
Geopolitical tensions, including the war in Iran, have not significantly disrupted operations but have led to increased costs, particularly fuel. Air cargo traffic has slowed due to flight cancellations over the past two months. But, he said, it is still too early to assess the impact on growth targets.
Fuel accounts for approximately 30 percent to 35 percent of trucking costs, prompting more deliberate investment decisions. But by operating a light-asset model—without heavy ownership of trucks, aircraft, or ships—AC Logistics maintains flexibility and agility in responding to supply chain disruptions.
A former executive at Maersk, Hardianto emphasized a customer-centric approach. “If there is a disruption in this particular leg, we walk with them to find an alternative supplier,” he said.
Customers, he added, are also better prepared for disruptions, having developed resilience and adaptive strategies during the COVID-19 pandemic.
