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FILOIL EXPANSION FILOIL EXPANSION PROGRAMPROGRAM
FOR THE PROVINCE OF PALAWAN
FILOIL
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GoalsGoals
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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DescriptionDescription
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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The Competitive SceneThe Competitive Scene
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Competitive AnalysisCompetitive 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 AnalysisCompetitive 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 AnalysisCompetitive 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 AnalysisCompetitive 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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The Market StrategyThe Market Strategy
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Market StrategyMarket 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 StrategyMarket 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 townCentral: Puerto Princesa CitySouth: 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 StrategyMarket 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 StrategyMarket 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 OverviewMarket Strategy Overview
FILOIL
RETAIL MARKET WHOLESALE, COMMERCIAL, INDUSTRIAL MARKET
BUSINESS PARTNERPALAWAN BUSINESS REPRESENTATIVE
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Market Strategy OverviewMarket 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 ViabilityProject Viability
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Project ViabilityProject Viability
Capital Investment for SUPPLY DEPOT Land Development & Construction Cost: Php 7.5M (including piping, lighting & electrical, and concreting & other structures)
Storage Tanks (30,000 Liters capacity x 10): Php 3 M
(Fabrication Cost/Tank: Php 300,000 x 10 units) ESTD TOTAL COST FOR FOUR (4) SUPPLY DEPOTS:
Php 10.5M x 4 = Php 42 M
Land dev’t & constn cost Php 30M
Storage Tan Fabrication Php 12M
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Project ViabilityProject Viability
Capital Investment for PORTAGAS STATIONS Complete set-up including structures, pavement, pump and tanks,
pipings, signages, and lightings: Php 2.5 M
ESTD TOTAL COST FOR TWENTY EIGHT (28) PORTAGAS STATIONS: Php 2.5M x 28 units = PHP 70 M
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Projected VolumeProjected Volume
ESTD TOTAL VOLUME FOR TWENTY EIGHT (28) PORTAGAS STATIONS:
Average Daily Volume: 2,000 Liters per PORTAGAS STATION
Average Monthly Volume: 60,000 Liters per PORTAGAS STATION
Estd Total Volume per Month for 28 PORTAGAS STATIONS: 28 X 60,000 Liters = 1,680,0000 Liters per Month
ESTD TOTAL VOLUME FOR COMMERCIAL/ INDUSTRIAL SALES: 1,000,000 Liters per Month
ESTD COMBINED VOLUME PER MONTH: 2,680,000 Liters per Month
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ResourcesResources
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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ScheduleSchedule
Construction & Operational schedule milestones for Supply Depot Facilities
Jan Feb Mar Apr May Jun July Sep Oct Nov Dec
Central Depot Const’nCentral Depot Const’n
South Depot Const’nSouth Depot Const’n
North Depot Const’nNorth 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
2008
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Current StatusCurrent 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.
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