NEPTUNE Orient Lines (NOL) will set up a joint-venture company to provide a container cargo service between Manila and Cebu.
The new company, Neptune Philippines Alpha Inc, was approved in December by the Board of Investment (BOI), according to Singapore's Business Times.
Initially, NOL will take a 30 per cent equity in the joint-venture company and later raise it to 40 per cent.
The other 60 per cent will be owned by Mr Julio Sy, a Filipino-Chinese shipping magnate.
Mr Sy is a board director of Jurong Engineering Philippines.
Based on plans submitted to BOI, Neptune Philippines will operate a small cargo vessel that will ply the Manila-Cebu route starting in July.
The firm's start-up, including the acquisition of a 10-year-old cargo vessel, is estimated to cost US$6.4 million.