The Current Plight of 2GO Now, Its History and What Could Be Done

According to their released Financial Statement in its Annual Report, 2GO had a Net Loss of PhP 1.349 billion (or a Total Comprehensive Loss of PhP 1.351 billion) in 2018.  In the previous year 2017, they also had a Net Loss of PhP 311 million(or a Total Comprehensive Loss of PhP 296 million) whereas in 2016 the only liner company left in the Philippines still had a Total Comprehensive Profit of PhP 387 million.  The combined losses of 2017 and 2018  were enough for the company to lose a lot in equity and now the only remaining equity of the company is PhP 2.248 billion.

https://www.2go.com.ph/IR/financials.asp

The two years of losses were roughly the period wherein Chelsea Shipping of Dennis Uy and the SM Investment Corporation of the Henry Sy family were already in charge of 2GO after the Sulficio Tagud group of Negros Navigation sold out to them for something like in the tune of PhP 6 billion.

The most likely reason for the losses was the resurgence in the price of fuel. 2GO under former helmsman, Sulficio Tagud also suffered losses (after buying out the most of the shares of Aboitiz Transport System [ATS] and combining it with Negros Navigation) when the price of fuel was high. They only crept back into the black when the world oil price slumped a few years ago.

People and even the more knowledgeable ship spotters were a little surprised when they heard that the SuperCat fleet of 2GO seems to have reliability problems because that did not happen before. Lately, they announced that they were suspending SuperCat trips to Tagbilaran for three months from May 16 to August 16. 2019. Today which is summer is peak season of travel to Bohol and for SuperCat to do that means only one thing — they are in trouble.

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News of unreliability of the SuperCats has been around already this year when apparently for no obvious reason SuperCat has been canceling voyages to Tagbilaran. For that to happen there must be maintenance and availability issues on their High Speed Crafts (fastcrafts and catamarans). It seems they are just concentrating all their available crafts in the Cebu-Ormoc route.

From what I heard, it seems St. Jhudiel and St. Braquiel are out of action because of engine and propeller problems. St. Nuriel, an older craft is also not in good shape as far as passenger accommodations are concerned. And so it seems it is only the new St. Sariel and St. Camael that are available for them and I even heard one of the two cannot reach its design speed. One engine is down?

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St. Nuriel had its last trip yesterday as it is going into the shipyard. It is already using just evaporative coolers and fans for its Tourist Class. Now, that is horrible  for a High Speed Craft which is supposed to be comfortable. How did that happen? They are sinking to the level of the old Kinswell?

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St. Nuriel after her last trip. Photo by Mark Edelson Ocul/PSSS

I heard it had become difficult to requisition parts for the SuperCats and a lot of papers had to be signed. 2GO is now run by non-shipping people from the rank of President/CEO who is also an SM top dog and so he wears many hats. Can he really hack it? The Board of Directors is also full of non-shipping people.

The SuperCats run from just before 6 AM up to 10 PM at times, especially in the Cebu-Tagbilaran route. There are only a few hours to make checks and small repairs before the crafts head out to sea again. If the crew report a problem while sailing and asks for parts and outside service, the paperwork can wait. It is the craft that cannot wait actually. Otherwise, upon company orders, the crafts will sail out again the next day and for sure the small problem will get bigger up to the point where a major service is needed and/or the craft will already be unable to sail. It seems this is what happened to SuperCat, at least in Cebu when cancellations became a li’l bit regular and now the crafts have to head out for major servicing.

Was that rigor in paperwork an acquired culture from SM? It seems that there the level of trust is not what is healthy in the shipping world where a company must pay heed to what the engineers are saying especially in a craft that runs like a bus (maybe in a freighter the parts can wait for coz anyway they don’t sail daily and a reduction in speed or a delay in voyage is not felt by the public).

If rigor is needed I think it should be in the proper servicing of the crafts which need to run safe daily. I just hope that that rigor is not a reflection of the cash position of the company which is losing equity and also cash flow. 2GO is in trouble. It either needs capital infusion or new money in terms of loans. I do not know if their plan to sell the container ships from Negros Navigation is an indication of this problem.

I have also heard that 2GO liners run slower compared to before. Was there an order to reduce the MCR to save fuel and parts and to lengthen the life of the engines and avoid breakdowns? What was that incident I heard about St. Pope John Paul II?

2GO is a little pompous in its Annual Report. Of course, they can boast how much they of the passengers from Manila as they are the only liner left in the country. Or boast too of their share of the container market. They are No. 1 after all in capacity. But almost everybody who knows shipping says their market share is falling for the have the highest cargo rates in the country.

These high container rates are not entirely of their own making but unfortunately for them, the public does not know the reasons or the history. Actually, sometime in the 1980’s MARINA, our maritime regulatory agency decided that passenger-cargo liners can charge more for cargo. After all, it is express cargo because liners are faster than the container ships which can even have more ports of call and higher in-port hours. But the bigger rationale was that in truth container/cargo shipping was actually subsidizing the passenger rates. In the 1990s, I think this policy was reaffirmed during the Ramos regime when rates were adjusted.

That policy was okay when the liner companies were also the main operators of the container ships. Sulpicio Lines, William Lines, Aboitiz Shipping, Negros Navigation, Gothong Lines and Sweet Lines dominated not only liner shipping then but also container shipping. There were very few shipping companies before which were into pure container shipping and they were all weak then. Those were basically the original Lorenzo Shipping of Jose Go (before it was sold to the Magsaysay Group), Escano Lines (which still had passenger ships in the 1980s), Sea Transport Company (which then folded up) and Solid Lines which was just small then.

But the “Great Merger” of 1996 came but then it ultimately failed. Along with its carcass, only Aboitiz Transport System remained. The great and fabled William Lines disappeared and for Gothong Lines, only Gothong  Southern Shipping and Carlos A. Gothong Lines Inc. remained although the latter is much smaller than the first and in the recent decade, they were no longer in passenger shipping. The family of Jose Go reincarnated as Oceanic Container Lines and Lorenzo Shipping is still around plus the Magsaysay Group re-established the National Maritime Corporation which they acquired from the Government and it became NMC Container Lines. All the named three are not into passenger shipping. And, of course, MARINA drove out Sulpicio Lines (now Philippine Span Asia Carrier Corporation) from liner shipping after the sinking of the Princess of the Stars.

A host of new container lines also emerged. One was formerly in passenger shipping but when this business of theirs was already losing they reinvented themselves in container shipping and this is the Moreta Shipping. Ocean Transport, a new shipping company also became a player and they are notable for using LCTs in carrying container vans. Among other new players in container shipping are Meridian Shipping, Seaborne Shipping and Seaview Cargo Shipping Corporation (the shipping company that uses the name “Fiesta” in their container vans). Asian Shipping Corporation is also chartering their LCTs to others to carry container vans.

General Romulo

Where before we have about 60 liners, now that is the number of our container ships almost a decade ago. And 2GO is the only liner company left. They might have good offices and service but they will always lose to these container shipping companies which can always offer lower cargo rates for they do not carry passengers. In passenger shipping, a motley of personnel is needed to service the passengers especially in hotel services (mainly feeding and cleaning services).

2GO simply cannot compete in this uneven field. But I don’t think MARINA realizes the field is uneven. The current people there might not even realize the wherefores and if they have old decisions and policies. They might not even realize that their decision to chop Sulpicio Lines in passenger shipping was a mistake. The medicine was simply too strong that the horse died, so goes the American saying.

If we have to have more liners it is not enough to encourage new players in the liner field as MARINA and the Department of Transportation tried to do in recent years. These container shipping companies existing now knows they are better off just moving cargo (not much people to hire, not that high cleanliness required, not much insurance to buy, limited food to stock too and they can be un-prompt in departures and arrivals). But of course, they won’t admit to that.

Maybe what is needed is to require these companies to operate liners too if they want to continue container operations. A certain ratio to container ships could be found and the size of the liner could be defined too. That is the only way to level the playing field for 2GO and for the country to have liners again. If not, I wonder how 2GO can exist in the long run with the high price of fuel of which nobody has control of. I will not be surprised if the day without liners will come.

A comprehensive study of our shipping must be done (but do we have true experts on shipping?) and this is a piece in that direction.

 

 

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The Biggest Shipping Company Based in Mindanao (Part 2)

If the Aleson Shipping Lines was investing in ferries, it was also investing in cargo ships matching what the No. 1 shipping company then of Mindanao, the Sampaguita Shipping Corporation was doing. Maybe there was a need for Aleson Shipping to move and push their own cargo as they are traders and distributors after all. Additionally, in Western Mindanao and the islands (this refers to the Tawi-tawi group, Sulu, Basilan and the associated small islands)  the barter goods trade was strong then, the reason why Zamboanga ships reached as far as Singapore like the cargo ships then of the Aleson Shipping. In those times there was wide leeway for trading in the southern backdoor because then-President Marcos wanted to blow steam from the Muslim rebellion support by letting leading Muslim clans earn from these trading activities. And another reason is that the rice trade of Western Mindanao and the islands is also strong as the region is a rice-deficit area and rice from even outside the country is being in and traded.

The next ship actually acquired by Aleson Shipping Lines after their first ferry Estrella del Mar was the freighter Aleson or Aleson I which supported the commercial activity of Aleson Trading, the business arm of the Tan family which are actually regional distributor of goods. This cargo ship ranged as far as Singapore using the southern backdoor when there was no BIMP-EAGA concept yet.

Along the way, Aleson Shipping Lines acquired other small general-purpose cargo ships before the their acquisition of the Aleson Con Carrier (ACC) series of ships which are mainly containerized (the first cargo ships were not containerized and the company was not yet then in container shipping). Among these early are the Honduras, Honor and Alexander which mainly sailed as trampers and that means they have no fixed routes or schedules. These early freighters of Aleson Shipping are all gone now, disposed when the Aleson Con Carrier series began expanding and the company began to stress container shipping.

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Honduras. Photo by Mike Baylon of PSSS.

However, the company knew they cannot stand still especially when they have already disposed of some crafts and so they went back to the mode of acquiring a vessel each year using the profit in the operations of the fleet. And so in 2002, they purchased the first Ciara Joie. This vessel is a basic, short-distance ferry-RORO including in the form (single passenger deck, bow ramps) although its length already touched 40 meters at 40.8 meters (there are only a few vessels of this type that reach 40 meters in length). The first Ciara Joie was built by the Kawamoto Zosensho in Higashino, Japan in 1982. This ferry was first known as the Habu Maru No. 15 and she has the permanent ID IMO 8221129. The engine of the ship was small with only 700 horsepower on tap from her single Daihatsu marine engine. This first Ciara Joie was used by the Aleson Shipping in its expansion Bacolod-Iloilo route. Unluckily, she did not live long because in 2003, after only a year of sailing, she became unbalanced while handling cargo and she capsized right in BREDCO port in Bacolod City and was lost.

In 2003, Aleson Shipping Lines decided to join the fastcraft (FC) race and so the company acquired the Sea Jet which is however propelled by screws. This craft was acquired brand-new and she was built by the Far East Shipyard Co. in Sibu, Sarawak, Malaysia. The vessel follows the Malaysian riverboat design and she has a length of 38.7 meters. But then like most Malaysia-built fastcrafts she has no IMO Number. Powered by two Mitsubishi engines of 3,200 horsepower total, this fastcraft has a sustained top speed of 30 knots when new making her a true High Speed Craft (HSC). Later, Sea Jet was brought to Cebu (from Sibu to Cebu, pun intended) when fastcrafts lost favor in Western Mindanao but now she is back in Zamboanga again. This is the only High Speed Craft (HSC) ever purchased by the company and maybe it was good Aleson Shipping did not purchase many fastcrafts as the Malaysian fastcrafts really did not come to be favorites of most of the sailing public.

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Sea Jet. Photo by Albritz Salih of PSSS.

The next year, in 2004, the Aleson Shipping Lines purchased the Kristel Jane 3. This vessel was the former Ferry Izena of the Izena Ferry of Japan. Izena is an island in the Okinawa Prefecture of Japan and this island chain is known for high waves and maybe this is the reason why this ferry has high sides which means the Depth is high. The vessel was built by the Usuki Shipyard Co. in Usuki, Japan in 1983 and she has the permanent ID of IMO 8313489. The Kristel Jane 3 is not that big at 57.3 meters in length which means she is medium-sized for an overnight ferry and she has one-and-a half passenger decks only, a little smaller than most common in our overnight ferries which have two passenger decks. However, she looks tall because of the ship’s high sides. As an overnight ferry equipped with bunks, the passenger capacity is 512 persons which is about the average of her counterparts in Cebu. When still new her maximum speed was rather high at 16 knots because she has a total of 3,240 horsepower from a pair of Niigata engines.

Kristel Jane 3

Photo by Albritz Salih of PSSS

Aleson Shipping Lines did not purchase a ship in 2005 but in 2006 they acquired the Trisha Kerstin 1. In Japan this ferry was known as the Wakashio of the Shodoshima Ferry which serves the Shodo Island in the Inland Sea of Japan. She was built in 1986 by Fujiwara Shipbuilding in Omishima, Japan and she possessed the permanent ID IMO 8608509. This is not a big ship at only 43.8 meters length and only onepassenger deck. She is almost like a basic, short-distance RORO equipped with seats and with the usual single bow ramp that also serves as the ingress and of passengers. Underpowered with only 1,300 horsepower from her single Yanmar engine, her design speed was only at 12.5 knots but that is better than the average basic, short-distance ferry-RORO. Her passenger capacity is rather high at 695 persons (sometimes I take the ratio of the passenger capacity to the engine horsepower and the higher the decimal means it should be more profitable, theoretically, at least on the passenger side).

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Photo by Albritz Salih of PSSS.

In 2007, the company acquired a replacement for the capsized first Ciara Joie and gave her the same exact name which produced confusion to many. This second Ciara Joie is also a basic, short-distance ferry-RORO with the classical design of that type. This ship was built in 1979 which means she was even older than the ferry she replaced (however, she proved to be very sturdy and reliable as she is running well until now). The builder is Imamura Shipbuilding Co. in Kure, Japan and her name in Japan was the Kamagiri No. 3. Her IMO Number is 7824778 and her length is 38.2 meters, among the bigger of basic, short-distance ferry-ROROs. This second Ciara Joie is equipped with a single 900-horsepower Daihatsu engine which gave her a sustained speed of 10 knots (well that is still her top speed). She was used by Aleson Shipping Lines in opening their new Dapitan-Dumaguete route which was a new route then under the Strong Republic Nautical Highway (SRNH) of then-President Gloria Macapagal Arroyo. The route is again a new route for Aleson Shipping not using Zamboanga as a base. This time, however, their off-base route stuck and they are still serving the route (and it even extended to Siquijor later).

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Photo by Mark Edelson Ocul of PSSS.

The next year of 2008, Aleson Shipping Lines acquired another ferry from Japan. This was the former Geiyo of Takehara Namikatakan which became the Trisha Kerstin 2 in the fleet of the company. This ferry was built by Fujiwara Shipbuilding in Omishima, Japan in 1989 and her permanent ID is IMO 8824373. When she was acquired she became the youngest ship in the company by Date Of Build (DOB) with the exception of the the fastcraft Sea Jet which was acquired new. This ferry has two passenger decks and was refitted to be an overnight ferry equipped with bunks. She has a length of 59.5 meters which is almost equal to the Kristel Jane 3. Like the Danica Joy and the Stephanie Marie the ship has box-like structure covering the car deck at the bow area and that is actually an additional protective structure for the ship. The Trisha Kerstin 2 has a top speed of 14.5 knots when new from a two Daihatsu engines developing 3,000 horsepower, combined. The sister ship of the Trisha Kerstin 2  in the country is the Reina de los Angeles of Marina Ferries, the legal-fiction company of Montenegro Shipping Lines, Inc. (MSLI).

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Trisha Kerstin 2 by Mike Baylon of PSSS.

In 2009, Aleson Shipping Lines tried a new type of ship, a Medium Speed Craft (MSC) which resembles a High Speed Craft and so many were fooled at the start thinking she was a fast ferry. This craft was the former Victoria in Japan which became the Anika Gayle 1 in the company. The ferry is small with just a Gross Tonnage of 86 and actually she is slow as she has only one engine and just runs at 12 knots when new. She was acquired by Aleson Shipping as a small day ferry for Basilan passengers with no cars to load and was designed to compete with the successful Bounty Ferry of Evenesser Shipping (which is gone now) which had good seats and like Anika Gayle 1 did not carry cars. This ferry which its unique cropped bow is basically an air-conditioned vessel unlike her competitor which has more Economy seats than Tourist seats. This vessel was built in 1992 and she has no IMO Number. Her sister ships in the country is the Anika Gayle 2 and the Leopards Dos (the former Anstephen). The Anika Gayle 1 has a passenger capacity of 336.

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Anika Gayle 1 by Mike Baylon.

Come the succeeding year, 2010, the former Camellia 2 of Kure Matsuyama Ferry of Japan came to Aleson Shipping Lines. She was actually first acquired by DBP Leasing Corporation, a government corporation that leases ships and she was briefly known as DLC RORO I. In the fleet of Aleson Shipping she became the Trisha Kerstin 3 and she was refitted as an overnight ferry with bunks on two decks. This ferry was built by the Wakamatsu Shipbuilding in Kitakyushu, Japan in 1995 (and so she is much newer than Trisha Kerstin 2) with the IMO Number 9125516. She also has a box-like structure in the bow but in length she is a little short at just 47.9 meters. The power plant of Trisha Kerstin 3  is also a little small with only 2,600 horsepower from two Daihatsu marine engines. However, she has decent speed for her size at 14 knots unlike the Nikel Princely (the Trisha Kerstin 3 was her replacement ship). The Trisha Kerstin 3 has a sister ship in the country, the Reina de Luna of Marina Ferries which was the former Virgen de Penafrancia VII of the Starhorse Shipping Lines (and also as DLC RORO II and VG RORO I before).

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Trisha Kerstin 3 by Mark Edelson Ocul of PSSS.

The particular size of ferries with bunks for 500+ persons in two passenger decks was used by Aleson Shipping Lines in the farther overnight routes to Jolo, Sulu and Bongao, Tawi-tawi. Among these are the Trisha Kerstin 2, Kristel Jane 3, Danica Joy 2, Trisha Kerstin 3 and the Danica Joy (before she was shunted into the Dapitan-Dumaguete route with the arrival of more ferries). With this line-up of five ships of this type (and earlier with the displaced Nikel Princely as reserve ship), Aleson Shipping Lines was now capable of nightly trips to Jolo and Bongao even if the ships don’t sail on their 7th day because one of the five, the Sandakan ship is capable of sailing the 7th day to Jolo. Well, even before this set was completed Aleson Shipping was already able of doing this when their liners were still around. But this time the size of their ships for the overnight routes was just perfect, not to big nor too small.

Meanwhile, on the Basilan front Aleson Shipping Lines also had enough ships already for the two destinations of Isabela City and Lamitan City. The company still had their old Estrella del Mar, the Neveen, the Anika Gayle and the big Stephanie Marie which dominated the rolling cargo to the island (an understatement because at that time there was no other RORO ship to Basilan) and the four was sufficient to fend off all the challengers in this area as being a short route of just about an hour and a half, all can do two round trips in a day.

This development was a watershed for the company. With that and with the earlier collapse of Sampaguita Shipping Corp., the Aleson Shipping Lines began dominating the important Western Mindanao (the context is geographical and not the political subdivision) routes to Basilan, Jolo and Bongao which all represented provincial capitals. All was left to their competition were the secondary routes to Sibutu, Siasi, Olutanga and Margosatubig. Gone already were the routes to Pagadian. Malangas and the “3S” (Sibuco, Sirawai, Siocon towns in Zamboanga del Norte). The first and third lost to the buses and trucks while the second lost to rampant piracy and brigandage (well, its buses and trucks also lost to brigandage and stopped rolling to the town). That is probably the situation why the remaining main competitors of the company, the Magnolia Shipping Corporation and Ever Lines did not grow anymore. And that was probably also the reason why the KST (Kong San Teo) Shipping Lines, the reborn SKT Shipping Corporation collapsed again.

To complete the round-up, Aleson Shipping Lines lost three basic, short-distance ferry-ROROs in their failed Visayas and Luzon expansion, the Alex Craig, the first Ciara Joie and the Kristel Jane 2. They sent ships (one and then two) to the new but successful Dapitan-Dumaguete route (mainly the second Ciara Joie and the Danica Joy). Still they had enough passenger ships to dominate the primary Western Mindanao shipping routes. And to think that at the same time they also have many cargo ships already which I will discuss in “Part 3” of this article. That was how big and great Aleson Shipping Line was way back in 2010. And yet, ironically, they were practically unknown outside Western Mindanao. Now, if anyone was expecting that Aleson Shipping Lines will rest on its laurels, they will be in for a surprise — the acquisitions of this company even accelerated this decade, enough for them to overtake the bigger Cebu overnight ferries. Even me was among those surprised.

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Photo by Albritz Salih of PSSS.

Not content with this line-up, in 2011 Aleson Shipping Lines acquired the former Daito of Daito Kaiun, a ferry to a small island in the Okinawa chain of islands. This ferry was eventually used initially in the Jolo route after refitting but the difference is this vessel is not a RORO ship but a is cruiser ship with a transom stern (well, actually there is not much rolling cargo to Jolo; a RORO ship is easier to load and unload, however). The Daito became the Lady Mary Joy 3 in the Aleson fleet. She is rather long at 73.0 meters but not being a RORO ship her Beam is smaller. However, she is rather fast at 17 knots when new as she is powered by twin Niigata engines with a total of 4,000 horsepower. This vessel was built by Yamanaka Shipbuilding Co. in Namitaka, Japan in 1990 and she possesses the ID IMO 9006760. She is an overnight ferry-cruiser and to increase her passenger capacity part of the cargo deck was converted into a Tourist accommodations. However, most of her Japan passenger accommodations were retained including the passenger lounge. And for the Economy class, accommodations were built at the stern of the ferry. Now her passenger capacity is about 500 persons.

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Ciara Joie 2 by Albritz Salih.

In 2012, the company bought not one but two small ferries. This was meant to strengthen their Dapitan and Basilan routes as their long routes (Jolo and Bongao) already had enough ferries already by then. One that came to the company was the Ciara Joie 2 which is a sister ship of the second Ciara Joie. In Japan, she was known as the Kamagiri No. 7 indicating she and her sister ship came from same shipping company. On the other hand, the Ciara Joie 2 was built later, in 1982, but by the same shipbuilder and yard (Imamura Shipbuiding Co. in Kure, Japan). In length though she is a little shorter at 36.1 meters and thus her Gross Tonnage and Net Tonnage are smaller. Quizzically, her passenger capacity is much larger than her sister ship at 386 persons. Her engine is a little smaller too at 750 horsepower, not a Daihatsu like the second Ciara Joie but a Niigata. At any rate, they have the same top speed of 10 knots. On the outside the two sister ships look very similar thus she also has the structure of a basic, short-distance ferry-RORO.

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Anika Gayle 2 by Albritz Salih of PSSS.

What Aleson Shipping Lines purchased in 2012 was actually a pair of sister ships as the other small ship acquired was the Anika Gayle 2, the sister ship of the earlier Anika Gayle 1. One difference of the two is this craft has no chopped bow but she is a true Medium Speed Craft (MSC) with 17 knots maximum sustained speed when still new. The reason for this is she has twin engines and screws compared to the single engine and screw of her sister ship. In Japan, she was known as the Yamabiko. However, this MSC was built earlier than the sister as she was built in 1990. Anika Gayle 2 has a length of just 27.1 meters and the Gross Tonnage is 116. That shows she is a little bigger than Anika Gayle 1 but her passenger capacity is smaller at 235 passengers. Like the Anika Gayle 1, she is basically an air-conditioned vessel. The two both look beautiful and impressive.

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Lady Mary Joy 1 by Petersen Lim of PSSS.

In a further expansion mood the company acquired another cruiser in 2013 which was meant to challenge remaining major competitors Magnolia Shipping Corporation and Ever Lines in their remaining stronghold of Siasi. The vessel is the Funakawa Maru which is a converted fishing vessel and thus not a RORO ship but a cruiser. In the Aleson fleet she became the Lady Mary Joy 1, a nomenclature that will bring confusion to some since there was a previous Lady Mary Joy without a number and this usually indicates the first in a series. This vessel was built by the Niigata Shipbuiding & Repair, Inc. in Niigata, Japan in 1994 and she has the IMO Number 9088081. Her Length Over-all is 57.0 meters, about the length of the Aleson ferries to its longer routes of Jolo and Bongao. She is built too as an overnight ferry and she has two passenger decks with a cargo boom at the bow. The Lady Mary Joy 1 has a design speed of 13.5 knots from her single Niigata engine of 1,800 horsepower.

If Aleson Shipping Lines was adding one ferry per year, the year 2014 was again a big acquisition year for them when the company acquired multiple ferries like in 1994 and 1998. In this year Aleson acquired two basic, short-distance ferry-ROROS, the Ciara Joie 3 and the Ciara Joie 5 to further consolidate their Basilan (and especially the Lamitan route which is growing fast) and the routes from Dumaguete which soon extended to Siquijor. Aleson Shipping Lines also acquired the Stephanie Marie 2, a 50-meter class RORO ship. So if anybody will think the Lite Ferries of Cebu is the champion in adding ships in the current decade (Montenegro Lines vacated their title of that last decade when someone left Malacanang), well, there might be a need for a count-off between them and Aleson Shipping Lines. One edge though of the latter is they have plenty of small cargo/container ships.

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Photo by Albritz Salih of PSSS.

The Ciara Joie 3 was the former Ferry Yumutsu of the Miyako Ferry KK, an intra-Okinawa ferry company in Japan. She is a basic, short-distance ferry-RORO built in 1995 by the Izutsu Shipyard Co., a small shipbuilder known for building small ships in Nagasaki, Japan. This vessel with the IMO Number 9118862 has a Registered Length (RL) of 33.0 meters with a Beam of 9.5 meters and a Gross Tonnage of 191. One thing I noticed about this craft is its very low DWT (Deadweight Tons) which means she is not really designed for carrying trucks. The Ciara Joie 3 is capable of 10 knots, the normal speed for this type of ferry.

CJ5

Photo by Albritz Salih of PSSS.

Meanwhile, the Ciara Joie 5 was the former Kofuji No. 8 in Japan. She was built by Imamura Shipbuilding Company in Kure, Japan in 1987 with the permanent ship ID IMO 8615734. But although older in Date of Build she looks more modern and impressive (maybe because of her structure that looks muscular and aggressive) than the Ciara Joie 3 (which looks thin and lightweight) and she is slightly bigger with a length is 36.3 meters. One notable metric of the ferry is her Beam of 10.5 inches which is larger than usual for her size and so she looks bigger than she actually is. She is capable of 11 knots from her single Daihatsu marine engine of 1,000 horsepower. The Ciara Joie 5 is a basic, short-distance ferry-RORO with seats for passengers that are mainly original with a few additions at the stern. She does the Basilan route for Aleson Shipping through the port of Lamitan.

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Stephanie Marie 2 by Albritz Salih.

The Stephanie Marie 2 is almost like the earlier Stephanie Marie in size and is also refitted as a short-distance ferry with seats. Like her namesake, this ferry also has a Tourist accommodation built on the former lounge of the ship and thus tables and seats like in a lounge are still present. But the better part of the ship consists of Economy sections with seats and one noteworthy data on this ship is the passenger capacity of 1,073 persons and so in the fleet of Aleson Shipping she is now the ferry with the highest passenger capacity (but not the ship with the highest capacity ever because that distinction belongs to the liner Lady Mary Joy 2).  The Stephanie Marie 2 was built as the ferry Otagawa by the Kanda Shipbuiding Co. in Japan in 1986 with the IMO Number 8602062. She first went abroad to South Korea and became the Onbada 1 in 2000. Later, in 2008, she went to Hanil Express Co. (a company that has already sent a few ships in the Philippines) as the Hanil Carferry No. 3.  The Stephanie Marie 2 has a length of 55.9 meters and her permanent ID is IMO 860206. Like the Stephanie Marie, she has a box-like structure at the bow.  Her design speed is 15.5 knots from two Daihatsu marine engines.  And like her namesake she was also fielded in the Basilan route.

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Photo by Britz Salih of PSSS.

In 2015, Aleson Shipping Lines did not acquire any ferry but to make up for that they purchased two ferries in 2016. These are the Antonia 1 and the Kristel Jane 5 and neither of the two are basic, short-distance ferry-ROROs. The first of the two to be acquired was the Kristel Jane 5 which was first named as the Lady Mary Joy 4 (and maybe she was renamed as “4” is supposed to be “unlucky” in Chinese belief). The Kristel Jane 5 was built by Yamanaka Shipbuilding Co. in Namitaka, Japan in 1998 and she was given the permanent ID IMO 9199505. She was initially known as the Ferry Zamima owned by a city in Okinawa prefecture. This ferry is 61.0 meters in Length Over-all and in refitting a passenger deck with seats was added (visually that made her seem a little short for her actual length) and now she has two passenger decks. The Kristel Jane 5, a short-distance ferry-RORO is a speedy ship for her size at 17 knots top speed and that comes from a pair of Niigata engines with a total of 4,000 horsepower. This vessel has all the modern navigational and safety devices that can be required for a coastal ship of her size.

The other ship purchased by Aleson Shipping Lines in 2016 was the Antonia 1. This was an unusual purchase for the company as this was a former Vehicle Carrier, the first time they purchased such a type of ship (and probably there were only a dozen times we ever purchased a former Vehicle Carrier for conversion into a passenger-cargo RORO ship and that started with the third Don Carlos of Sulpicio Lines in 1977). Vehicle Carriers that are not ocean-going are usually big for regional operations. These are usually tall with high sides but powered with one engine only and that is what Antonia 1 is. This vessel is 103.6 meters in length with a Depth of 11.5 meters which indicates how high her sides is. As such she is now the biggest ferry in the fleet of Aleson Shipping and her declared Gross Tonnage of 3,471 is probably accurate (and that is even higher than the GT of the liner Lady Mary Joy 2). She was acquired by the company to serve their Sandakan route where a big cargo capacity might be needed depending on the political climate (she wouldn’t be oversized if and when unimpeded rice importation is finally allowed). The Antonia 1 started life as the Ariake Maru No. 18 of the Daisan Kaiun KK of Tokyo, Japan. She was built by Honda Shipbuilding Co. in Saiki, Japan. She is powered by a single Akasaka-Mitsubishi engine with 4,000 horsepower and her top speed when new was 15 knots. Of course, she is provided with bunks on the passenger accommodations that were hacked out of a former vehicle deck and metal was chopped from her sides to provide ventilation and viewing decks.

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Antonia 1 by Britz Salih.

The Ciara Joie 6 was acquired by Aleson Shipping Lines just two months after the arrival of the Kristel Jane 5 and so actually the company purchased three ships in a period of just three months, another acquisition burst for the company and maybe that is also part of the reason why they did not purchaser any ferry in 2018. The Ciara Joie 6 is another basic, short-distance ferry-RORO, the fifth in the current fleet of the company. This ferry was built by Kawamoto Zosensho in Higashino, Japan in the year 1981 for the Mihara Sea Land Transport as the Kohun Maru (also spelled as Koun Maru) and she carries the permanent ID IMO 8035829. Later, she was owned by the Osaki Kisen Company, Ltd. This ferry is rather fast for a basic, short-distance ferry-RORO as she can do 11.5 knots when new. And the curious thing is her power plant is only a single 900-horsepower marine engine (actually the transmission matters too). And the length of this ferry is a little remarkable as she hit the 40-meter mark at 40.8 meters. Ciara Joie 6 arrived in the country in a little battered state being an old ferry already but Aleson Shipping refurbished her. But like in most short-distance ferry-ROROs the superstructure is no longer changed.

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Photo by Khrayl Mangiliman.

The last ferry acquired by Aleson Shipping Lines was the Ciara Joie 7,  a passenger-cargo LCT (Landing Craft Transport) acquired second-hand from South Korea in 2017, the first time the company acquired a ferry from that country. The vessel has no IMO Number (South Korea as well as China and the Philippines are not too fond of that) but she can be identified through AIS (Automatic Identification System), the transponder of ships. Vessels with AIS are identified by their MMSI Number and Ciara Joie 7‘s Number is 548154500 and so she can be always checked in her assigned Dumaguete-Dapitan route. This Korean-designed LCT was built in a South Korean yard and she was formerly known as the Bo Seong 3 and as the Se Jong No. 3. Korean-designed LCTs usually aren’t flat bottomed and some even have bulbous stems. The dimensions of the vessel is 51 meters by 13 meters in Length x Breadth. The design speed of Ciara Joie 7 was 10.5 knots but she is now struggling in speed with just an average of 7.5 knots currently and so unfortunately she is outgunned by the competition in that department (well, LCTs are outgunned in speed by conventional RORO ships as they are not built for speed).

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Ciara Joie 7 by Albritz Salih.

I can surmise of two reasons why Aleson Shipping Lines has a pause in their acquisition of ferries (and also container ships for that matter). One is they already have enough vessels at of the moment and they are not dispatching their old ferries as those are still reliable. They have a total of 20 ferries as of the moment (April 2019) and unless they expand to other routes they will have no good use for more ferries. And expansion of routes, should they go for it will mean competing out of their Zamboanga base but it might not be in the Damaguete-Dapitan and Dumaguete-Siquijor routes as those routes are already getting saturated (and they have four ships there already). If ever, the company might have now probe for other routes and that has a bearing for the second reason why the company is not expanding at the moment.

The second probable reason is Aleson Shipping Lines now has new competitors in their own turf of Zamboanga,. Montenegro Shipping Lines Inc. (MSLI) “invaded” their home grounds and did the prime Zamboanga-Jolo route. Recently that company from Batangas even added a second ship to the route so it now has a nightly voyage like Aleson Shipping. Aside from Montenegro Lines there is also a new competitor in the route in the form of Theresian Stars (this is a shipping company and not the active ferry with the same name) which fielded the Asian Stars II which was the formerly the Filipinas Surigao and the Sacred Stars in Cebu. It’s impossible that these new ships in the route is not giving pressure or pause to Aleson Shipping and actually the company should take this threat to them seriously. Will Aleson go for a tit-or-tat and expand to other places in the country? Now, that remains to be seen.

 

(To be continued….)

The Biggest Shipping Company Based in Mindanao (Part 1)

Many people will think that the biggest shipping company in Mindanao is 2GO, the only liner company left in the country with its big ships with large Gross Tonnages, one of the measures of a shipping company’s size. Maybe some will also argue that it has to be the Chelsea Logistics Corp. which controls a slew of shipping companies now including 2GO but I disagree because those shipping companies are not necessarily based in Mindanao. How can one argue that Starlite Ferries or Trans-Asia Shipping Lines, Inc. are Mindanao shipping companies? That argument will be more absurd for 2GO itself as it mainly operates out of Manila and Cebu. It just happened that the 2GO and Chelsea Logistics Chairman, the now very prominent Dennis Uy happens to be from Davao where the current President also happens to hail from.

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The biggest shipping company of Mindanao is actually the Aleson Shipping Lines of Zamboanga City founded by Feliciano N. Tan Sr. Now, they happen to be very low-key, one of the reasons why only a few has heard of them except in their own turf. Another key reason is actually very few especially from Luzon and Visayas have ever been to Zamboanga City because of inordinate fear of reported violence, jihadis or even plain Muslims that was inculcated by their families and exacerbated by the media. Actually, many Christians will rather fly to Hongkong than go to Zamboanga (well, many local Christians even fear going to Zamboanga Port). And lastly, most people when thinking of shipping do not bother to understand that shipping is not only about ferries. Shipping is actually about all kinds of crafts including freighters of which Aleson Shipping Lines has many and so the company seems smaller to not-a-few. And those are the reasons why this particular shipping line skips the public consciousness even though it is actually bigger than the Cebu-based overnight ferry companies.

The first vessel acknowledged by Aleson Shipping Corporation was the Estrella del Mar which was a cruiser ship with a clipper stem (sadly, she was recently gone) and was given the IMO Number 8945220. She was a local-built vessel in 1975 by the Varadero de Recodo in Zamboanga City and she was 38.1 meters in length and 230 in Gross Tonnage (a measure I am loathe to use because there are a lot of under-declarations for “considerations” in the country and so I emphasize the length more which is almost always true and people can relate more to that than the Gross Tonnage or GT). The Estrella del Mar originally sailed at 10.5 knots derived from her single Yanmar engine of 850 horsepower.

Estrella del Mar

Photo by Mike Baylon of PSSS

The Estrella del Mar was originally owned by and registered to Feliciano N. Tan, Sr. and was later transferred when the company came into existence. The Aleson Shipping Lines is owned and controlled by the Tan family of Zamboanga City and officially they declare their founding to be October 1, 1976. It was a saying in the Port of Zamboanga that the Tan family will never let go of the Estrella del Mar as it was their ”lucky” ship but it seems obsolescence finally caught up with her as it is hard to sail now without a respectable amount of cargo because fuel prices is high and the design of the vessel as a cruiser does not afford much cargo. The Estrella del Mar was the only local-built ferry of the Aleson Shipping Lines.

The Tan family was already in the goods trading and distribution business even before they got involved in the shipping business that it seems that the latter was an adjunct to the former when they started. In the process of their growth they overtook many Zamboanga shipping companies which started way before them like the Sampaguita Shipping Corporation which was once the biggest in Zamboanga and Mindanao (it is gone now, a victim of over-expansion), the shipping company of the Atilano family which later moved to Cebu and became more known as the Rose Shipping Company (it lost there and is gone now too), the Magnolia Shipping Corporation, the Ever Lines and the Basilan Shipping/Basilan Lines (which is also gone now). It also had contemporaries like the SKT Shipping Lines and the A. Sakaluran Shipping Corp. (this company had fastcrafts as well as traditional ships and Moro boats) which are also both gone now too. Those are just among the most prominent ones as there are many more small and less-prominent shipping companies in Zamboanga and that includes the operators of the many Moro boats (the Mindanao version of the motor boats or lancha/batel of Luzon and the Visayas) which are patterned after the Arab dhow.

Many of those big and small Zamboanga shipping companies are gone now, victims of the surplus of bottoms in the late 1990’s when the incentives of President Fidel V. Ramos on shipping plus the business optimism after the RAM coups were over resulted in overcapacity and brutal fare wars. Additionally, the barter trade of Zamboanga was already down and restricted. The Asian Crisis of 1997 also resulted in lower growth and soon the disastrous “Erap” presidency came. Among the prominent Zamboanga shipping companies, it is only the Magnolia Shipping Corporation and Ever Lines that are still in existence but they are no longer growing. Meanwhile, the Aleson Shipping Lines continued its growth  and acquisitions although they had missteps too like when they acquired big ferries (the Lady Mary Joy and Lady Mary Joy 2) and when they ventured in Luzon and the Visayas which came to naught (as there was also a surplus of bottoms there).

I have noticed that in shipping the companies that exhibit continuous growth are those whose families are not dependent on shipping but have solid core businesses elsewhere. This is true for the Lua family of Cebu which controls Oceanjet but have many other businesses including their famed bottled water business (the “Nature Spring” brand). That is also true for the Sta. Clara Shipping Corporation/Penafrancia Shipping Corporation combine of Bicol where the principal partner happens to have the biggest trading firm in the region and the other partners have their owns businesses too. The Poseidon LCTs of Concrete Solutions, Inc. and Primary Trident Marine Solutions Inc. of the Liu family from Cebu is also another example of one into shipping but the core businesses are elsewhere.

One notable thing I noticed about Mindanao is the other regions were not able to nurture big shipping concerns. Look at the row of Highly Urbanized Cities (HUCs or cities with a population of over 200,000) in the island. Cagayan de Oro has no big shipping corporation and the same is also true for Butuan. Ditto for Cotabato City and Iligan City. General Santos City is only big in fishing fleets and shipyards and that is understandable because of their access to the Celebes Sea fishing grounds. If Davao City was able to produce any, it is only the Chelsea Shipping Corp. which followed and supplied its pioneering sister company, the Phoenix Petroleum. Even the key gateway of Surigao City has no big shipping company either and Ozamis City was only able to produce Daima Shipping Corporation with its fleet of small double-ended ferries in Panguil Bay. Now, Zamboanga City is a gateway too and there are many islands that she supplies, the reason why there are many shipping lines in the city. The need for connection to these islands, Aleson Shipping Lines was able to exploit successfully and for a long time now.

The second ferry of Aleson Shipping Lines came in 1984 when they purchased from Carlos A. Gothong Lines Inc. (CAGLI) the second Dona Conchita (as differentiated from the original lengthened ex-“F”ship Dona Conchita which was the original flagship of the company). This was a cruiser passenger-cargo ship which they renamed into the Aleson Zamboanga and later as the Aleson 3. This was a ship built in 1963 (the same year as Dona Paz (when ROROs – Roll-on, Roll-off ships — were not yet in vogue) by Mitsubishi Heavy Industries as the Taishu Maru with IMO Number 6402420. She had a Length Over-all (LOA) of 59.3 meters, about the same size of the cruiser ships of Trans-Asia Shipping Lines Inc. when it was just starting, to put the size in context. This ship literally has longer legs (and for that her 14 knots from a single Hitachi engine of 1,500 horsepower comes handy). It can go to places that the Estrella del Mar can’t and also carry more cargo. Moreover,the passengers have more comfort as the ship is air-conditioned. Carlos A. Gothong Lines Inc. sold this cruiser ship because they were already converting then into a pure RORO fleet, the first local shipping company to do so. Later, Aleson Shipping sold this ferry to Indonesia.

It is understandable if for a time after acquiring the Aleson Zamboanga that Aleson Shipping Lines did not invest yet in additional ferries. The period of the 1980’s was an very unsettled one as financial and political crises were dominant in the national and economic life of the country. That was the fact of life in the country in that decade when many businesses even doubted if they will even survive. And I would even say that the purchase of Aleson Shipping Lines of their next ferry in 1990 was still a continuation of the 1980’s business malaise and the general conservatism then in investments.

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Photo by Hans Schaefer

The ship, the first Kristel Jane was just a small but beautiful ferry at 33.0 meters LOA (Length Over-all) with a design speed of 11 knots from a single Hanshin engine. She was built by Shin Kochi Jyuko in Kochi, Japan in 1979 as the Orange No. 2 with the IMO Number 7926980. A short-distance ferry which looks like a fastcraft or a Medium Speed Craft (MSC), this vessel had a passenger capacity of 386 and was mainly used for the Basilan route of the company.  However, Aleson Shipping did not keep her very long because in 2000 this first Kristel Jane was sold to Indonesia and became the Indomas 3 (by that year it also appeared that Aleson Shipping already had a small excess of ferries already).

It was only in 1994 when there were already incentives from the Fidel V. Ramos administration (actually in Cory Aquino’s administration we had a shortage of ships brought about by the financial crisis of the closing years of the Ferdinand E. Marcos administration when inflation was rampant) when Aleson Shipping Lines made a big move in the ferry business. This was also about the same time when other shipping companies nationwide made their moves too as business optimism was already rising then as the “Gringo” coups and the paralyzing black-outs were already over. In this year, Aleson Shipping Lines acquired two ferries and that suddenly doubled their then-small ferry fleet.

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Photo by Mike Baylon of PSSS

This ferry duo was led by the Danica Joy which seemed to have been named after a granddaughter of the founder who has a hand in the company now. The Danica Joy was built as the Nakajima in Japan in 1972 by the Nakamura Shipbuilding & Engineering Works in Yanai, Japan and she had the IMO Number 7852414. This ferry is bigger than the basic, short-distance ferry-RORO at 48.0 meters LOA and so she has two passenger decks and two engines. She was the ship used by Aleson Shipping Lines in opening their Sandakan, Malaysia route. For a time her twin Daihatsu engines of 2,000 horsepower which was sufficient for 14 knots when new became unreliable but Aleson Shipping Lines opened the checkbooks and now she is a reliable ship again. Right now, the Danica Joy is already the oldest ship remaining in the fleet of Aleson Shipping Lines by age (both ferries and container ships) and date of acquisition as the older ship by acquisition Aleson 3 and Kristel Jane are already gone from the fleet as were the older cargo ships of the company. The Danica Joy is the long-distance ferry replacement for the Aleson III which foundered in Cebu in 1994. She has a sister ship in the country which is the Lite Ferry 6 of Lite Ferries and she was also the former Salve Juliana of the MBRS Lines of Romblon.

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Photo by Albritz Salih of PSSS

The other ferry acquisition by Aleson Shipping Lines in 1994 was the Neveen which was smaller than the Danica Joy. The Neveen was a cruiser ship and she was built by Maebata Shipbuilding in Sasebo, Japan in 1975. This small ferry with the IMO Number 7509976 which was originally the Mishima Maru No.3 had a length of only 35.0 meters and was also used for the short Basilan route. A basic, short-distance ferry, Neveen has only one passenger deck and a single 1,000-horsepower Daihatsu engine which was good for 13 knots when new (with a “thinner” Breadth or Beam a cruiser will be faster than a RORO of the same length and engine). In the last few years of her life, the Neveen‘s engine had been sickly and she spent most of her time laid up in Varadero de Recodo and for sale. She is gone now from the fleet of Aleson Shipping and maybe they no longer re-engined her as she was obsolescent already as she is a cruiser ship.

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Photo by Karl Sabuga of PSSS

In 1995, the company bought a small RORO of 32.3 meters length and she was unusual for a basic, short-distance ferry-RORO as she had stern ramps (versus the normal bow ramp). This was the Alex Craig which was built in 1972 by the Izumi Shipbuiding in Moji, Japan as the Himeshima Maru No. 1, a ferry to a small island off the Japanese main island of Kyushu. This ferry was the smallest of Aleson Shipping up to that date with Gross Tonnage of only 197. She was also the smallest in passenger capacity in the fleet as she was only good for 154 persons. Besides, the Alex Craig also had the smallest engine in the fleet with only 750 horsepower from its single Yanmar Marine engine. However, she was not the slowest in the fleet as her design speed is 12 knots. This small ferry was one of the ships brought by Aleson in its expansion outside of Mindanao, specifically in Marinduque. When they lost there, they sold the Alex Craig and she was acquired by the Davemyr Shipping of Camiguin where she is now sailing as the Dona Pepita. Her sister in the country is also sailing in Camiguin, the ferry Yuhum of Philstone Shipping.

1996 was the year when Aleson Shipping Lines acquired a rather-big RORO for multi-day voyages that is not confined to Mindanao. This is the 84.3-meter Lady Mary Joy with a Gross Tonnage of 2,300 , the first ship of the company which is over 1,000 GT and the biggest ship of the company up to that time. This ship was used by Aleson Shipping in their long Cebu-Dumaguete-Dapitan-Zamboanga-Sandakan route, the longest route of the company ever. Supposedly, this route gives Central Visayas an access to the Sabah market in Malaysia. I thought this was part of the BIMP-EAGA concept being pushed then by the President Ramos in preparation for the ASEAN Free Trade Area. However, the President failed to define correctly what is “free trade” and it just remained as “restricted trade” and so the route was not successful in the long run. This ferry was also used by Aleson Shipping in their Zamboanga-Manila route.

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Photo by Chief Ray Smith of PSSS

The first Lady Mary Joy was a ship built by Taguma Shipbuilding in Innoshima, Japan in 1971 as the Freesia Maru of the ferry company Tosai Kisen KK of Japan and she was given the IMO Number 7101786. In 1986, she became the Happiness No. 2 of the Bright Eagle International Inc. of Panama. In the Philippines the ship was refitted to be a multi-day liner, the first ship of Aleson Shipping in that classification. The Lady Mary Joy was the first ship of the company with a Net Tonnage (NT) of over 1,000 (at 1,213) and the first ferry of the company with a passenger capacity of over 1,000 (at 1,116 persons). She was also the fastest ferry of Aleson Shipping then with a design speed of 17 knots coming from a pair of Niigata engines with a total of 6,000 horsepower. Sadly, this remarkable ship is gone now.

In 1997, Aleson Shipping Lines acquired a ship they will use to battle Sampaguita Shipping Company and SKT Shipping in what was thought of then as a premier route in Western Mindanao, the Zamboanga-Pagadian route which offered an alternative to bumpy, dusty and sometimes dangerous land route. This was the Ferry Taiko which they then renamed into the Nikel Princely. This ship is actually a RORO with just a small stern ramp. She was built by Kanda Shipbuilding Company in their Hiroshima yard in Japan in 1979 with the IMO Number 7900455 with an original 12.5 knots top speed from a pair of Daihatsu engines with a total of only 2,000 horsepower, the reason why she became a slow ship in the future. Nikel Princely is only 49.0 meters in length and she has two passenger decks. She had a passenger capacity of 400 which was accommodated in bunks as the route is an overnight ferry route of about eight hours sailing time.

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Taken from pagadian.com

The Zamboanga-Pagadian route had the best Zamboanga ferries in the late 1990’s as the Nikel Princely battled the Sampaguita Ferry 1 (the former Tacloban City of William Lines) and Sampaguita Ferry 2 (the former Iligan City of  William Lines) of the Sampaguita Shipping Lines and the Pagadian City (the former Madrigal Masbate of Madrigal Shipping) of SKT Shipping. However, in due time, the ferries in the Zamboanga-Pagadian route all lost when the Zamboanga-Pagadian highway was finally paved. I was not surprised by this development as it has been shown in the past and everywhere in the country that in parallel routes the ship cannot compete with the ubiquitous buses and trucks which depart at all times of the day and night, could even be cheaper and it can be hailed right or deliver goods at the gates of the homes of the passengers or shippers. For a time, the Nikel Princely was laid up or was serving as a reliever until the Roble Shipping Corp. of Cebu purchased her in 2009 and she became the Blessed Stars. Later, she was passed on to the new shipping company Theresian Stars and she tried to come back to Zamboanga as the Asian Stars in 2016 doing the Jolo route until she was acquired back by Roble Shipping and she became the Ocean Stars. The sister ship in the Philippines of the Nikel Princely was the former Filipinas Surigao of Cokaliong Shipping Lines Inc. which became the Asian Stars II of the new shipping company Theresians Stars that is plying the Zamboanga-Jolo route.

1998 was a big year for Aleson Shipping Linesas they made their biggest-ever expansion in their history when the acquired four (!) ferries. By this year, it seems that the Aleson Shipping was already the biggest shipping company in Mindanao, arguably, displacing the old Number 1, the Sampaguita Shipping Company. Both companies had many ferries now as well as cargo ships (as both operated cargo ships) but one purchase made Aleson Shipping Lines and that was the acquisition of the Lady Mary Joy 2, the biggest ferry the company has ever acquired and which was as big as some of the smaller liners plying the Manila-Cebu route. Sampaguita Shipping had no ship to match this new flagship of Aleson Shipping which was mainly used for the Zamboanga-Manila route of the company where it battled the liners of WG&A, Sulpicio Lines and Negros Navigation Company.

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Photo by Toshihiko Mikami of PSSS

The Lady Mary Joy 2 was a full-pledged liner and so Aleson Shipping became one of the handful of shipping companies in modern times to operate liners from Manila (and Cebu overnight ferries can’t claim that distinction nor did they have ferries of this size). This ship was not small (she is even bigger than some Manila liners) as she really liner-sized at 122.0 meters length with a Gross Tonnage of 3,330 with a passenger capacity of 850 persons. In size and external lines she was much like the heralded Sweet RORO of Sweet Lines (but she was actually marginally longer). The Lady Mary Joy 2 by built by Fukuoka Zosen in Fukuoka, Japan in 1974 as the Akitsu Maru of Kyodo Kisen KK and she possessed the IMO Number 7402025. Her design speed is a match for liners of her size at 18.5 knots as she had 12,000 horsepower from a pair of Niigata engines. This liner is gone now, broken up, as Aleson Shipping was not able to hold on to their Manila route as there were plenty of liners during her time.

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Stephanie Marie by Mike Baylon of PSSS

Another acquisition in 1998 was a ship that firmed up the position of the company in Western Mindanao shipping and is still a great asset to the company until today. This is the Stephanie Marie which was the former Marima III in Japan. This ship was built in Japan by tne Kanda Shipbuiding Company in their Kure yard. The length of the ship is 63.2 meters, not unlike many Cebu overnight ferries but she is built as a short-distance ferry with seats which means she has a lot of space and capacity and before the coming of Stephanie Marie 2 she dwarfed then all the ferries going to Basilan. This vessel has two-and-a-half passenger decks with a Tourist Class in the former lounge of the ship which even houses a small a small office. The Stephanie Marie was built in 1979 with the IMO Number 8427278 and she is powered by a pair of Daihatsu engines with a total of 3,200 horsepower giving her design speed was 15 knots. By acquisition she is now the second oldest extant ferry in the fleet of Aleson Shipping Lines. For a long time now this ferry is the mainstay of the company in the Isabela, Basilan route.

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Photo by Mike Baylon of PSSS

Another vessel that was also not small was the Danica Joy 2 which was refitted as an overnight ferry and which can also do longer voyages as in as far as Sandakan, Malaysia and as such she has the accommodations similar to a multi-day liner (she did that route when the liners of Aleson Shipping were already gone). This vessel is about the same size as the Stephanie Marie at 67.2 meters length and she had two passenger decks equipped with bunks. The Danica Joy 2 was built by Nakamura Shipbuilding & Engineering Works in Yanai, Japan in 1982. She was formerly the Orange Hope of the Shikoku Ferry in Japan and she had the permanent ID IMO 8135253. This ferry had a sustained speed of 16 knots when coming from two Daihatsu engines with a total of 4,000 horsepower. In 201-, she became unbalanced while unloading and she capsized while docked in Zamboanga port and now she is already gone from the fleet of Aleson Shipping Lines. She has a sister ship in the country, the Asia Philippines of Trans-Asia Shipping Lines of Cebu which was now sold to George & Peter Lines, also of Cebu.

Not all of Aleson Shipping Lines acquisitions in 1998 were big or relatively big ships. One was a basic, short-distance ferry-RORO of only 32.0 meters in Length Over-all (LOA) which is the Kristel Jane 2. This ferry was built by the Nagasaki Shipyard & Machinery Works in Nagasaki, Japan as the Himawari in 1974 with the IMO Number 7396020.  When Kristel Jane 2 was acquired, she one of the five small ferries in the fleet of the Aleson Shipping Lines with the second-smallest passenger capacity at 188 persons, next only to the Alex Craig. However, this ferry had the slowest design speed in the fleet at only 10 knots. But unlike other short-distance ferry-ROROs, the Kristel Jane 2 had two engines and two screws. She had a total of 800 horsepower from her Mitsubishi engines.

After these big acquisitions, Aleson Shipping Lines went into a relative hiatus of four years as far as ferry additions are concerned. Acquiring the four previously mentioned ferries might have brought financial pressure to the company but it seems there is more than to that. In this period there was obviously a surplus of bottoms already in the country plus the acquisition of liner ferries was not panning out well for the company. Moreover, the Luzon and Visayas forays of Aleson Shipping Lines were not doing well also. The emergence of SRN Fastcrafts which is better known as Weesam Express plus the acquisition of fastcrafts by the A. Sakaluran Shipping Corp. (which also possessed conventional crafts) also put pressure on the company until most of these fastcrafts were moved into the Visayas and also Luzon in the case of A. Sakaluran.

(To be continued….)

 

 

 

 

 

 

 

 

 

 

 

Was It Choking Or Indigestion For Starlite Ferries?

Almost since its establishment I tried to monitor the Starlite Ferries which was founded by Alfonso Cusi who has Mindoro origins. Starlite Ferries was easier to track since unlike her pair Montenegro Shipping Lines Inc. which is related in a way to them in patronship, Starlite Ferries did not expand beyond Mindoro unlike the other one which can be found practically all over the Philippines (and so it has the distinction of being a national shipping line without being a liner company). Starlite Ferries, meanwhile, remained a short-distance ferry company and in this segment they basically carry rolling cargo or in layman’s term we call that as vehicles and passengers, of course.

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Starlite Pioneer by Raymond A. Lapus

Over the years of its existence, Starlite consistently added ferries to its fleet (although they had sales and disposals too) until they reached some 11 passenger ships in 2013, to wit, the Starlite Jupiter, Starlite Phoenix (a fastcraft), Starlite Juno (a fastcraft), Starlite Neptune, Starlite Polaris, Starlite Annapolis, Starlite Atlantic, Starlite Navigator, Starlite Ferry, Starlite Pacific and the Starlite Nautica. In their track record, aside from surplus ships acquired from Japan they were not anathema to buying the discards of other local shipping company like when the Shipshape/Safeship ferry dual ferry companies quit operations and they took over its fleet (but not the routes to Romblon). And from Cebu they got a ferry from the defunct FJP Lines which is better known as Palacio Lines. Actually, the first three ships of Starlite Ferries which are no longer existing now were from other local shipping companies.

However, over the years, what I noticed with Starlite Ferries is although their fleet is already relatively big by local standards they did not get out of the confines of Mindoro where they were just serving four routes. These are the Batangas-Calapan, Batangas-Puerto Galera, Batangas-Abra de Ilog and Roxas-Caticlan routes. The longest of this route is the last named that takes four hours of sailing time while the other routes take two to two-and-a-half hours depending on the ship. With such length of sailing time it can be gleaned that actually their 11 ferries is  a little bit over already than their need for the four routes.

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Starlite Reliance by Carl Jakosalem

So it came as a bombshell for me and many others that they will be getting 10 new ferries from Japan through a loan with a government loan window (and the first one, the Starlite Pioneer arrived in 2015). They were too proud of the coup and acquisition, of course, and they crowed about it in the media with all the jeers about the old ferries but I was skeptical. My first question is where will they put it. It is easy to apply for new routes but the approval is another matter. They do not own MARINA (Maritime Industry Authority), the maritime regulatory agency, it is no longer the reign of the nina bonita Maria Elena Bautista who did a lot for her patron and its pet Montenegro Lines. And I was sure the players that will be affected by their planned entry will fight tooth and nail (who wouldn’t?) and the approval process for franchises goes through public hearings anyway and if there is real opposition then it will be difficult to rig it (what are lawyers for anyway?). Getting route franchises is not as easy as getting it from a grocery shelf unless it is a missionary route which no shipping company has plied before except for motor bancas. And there is no more possibility now that a program like the “Strong Republic Nautical Highway” of Gloria which created new routes (and made it appear that old routes are “new routes”). It was the time of Noynoy when their new ferries came and Al Cusi who is identified with Gloria was out of power.

It is obvious that they can only absorb the new ferries well if they can dispose all their old ferries. But regarding the price it will be, “Are they buying or are they selling?”. That means forced selling will not gain them a good price and with the ferry structure in the country and their fleet size I am not even sure if there will be enough buyers especially when banks are averse to extending loans to shipping companies. Pinoys are averse to the breaking of still-good ships unless one’s name is starts with “A” and ends with “z” or maybe connected to 2GO (well, Negros Navigation’s case then was different as there was force majeure in it).

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Starlite Eagle by Carl Jakosalem

And they might be forced to sell their old ships if they have honor because after all the owner Al Cusi is one of the hecklers of our old ferries and pushing for their forced retirement (and the sauce for the goose should also be the sauce for the gander but then Al Cusi was not selling old ferries until his end in shipping). I thought those in government should lead by example? By 2016, with the ascension of Digong, Al Cusi was back in power and my fears of an administrative fiat to phase out old ships intensified.

Then a news item came out that they will enter the prime Ormoc route. My immediate thought was of a dogfight not only in sailing but also in the approval process of a franchise. The Ormoc route from Cebu has a lot of parallel routes competing with it (like Palompon, Baybay, Hilongos, Bato and Albuera routes) and all of them will raise a howl against the entry of an outsider especially one with good ships, naturally. I was even titillated how that will play out (it could have been a good boxing match or worse an MMA fight). But then nothing came out of that news. Well, certainly Al Cusi knows how to pick a good route, I thought, but he might have underestimated the opposition (of course, the better the route, the fiercer will be the opposition).

And then another news item was published that Starlite Ferries will go into Southeast Asia routes. Well, really? That was my thought as I had doubts again. It is Indonesia that is the most archipelagic in our region but I knew the rates there are too cheap and sometimes as ROROs there is practically no fare charged in the old ships if patrons don’t want to pay (and so I remember the problem of some of our operators in our ARMM Region where collection of fares can be a problem and rates are really so low). They wanna go there with brand-new ships, I thought? Won’t there be demand for reciprocity? Oh, well, I would welcome Indonesian ferries in our waters especially if they are liners, why not? Now, what a way of upsetting the cart, I mused. But then nothing came out of that too.

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Starlite Saturn by Raymond A. Lapus

The logical is actually to phase out his old ferries immediately as there is no way to create a bonanza of new routes given how difficult it is to secure new routes in the country and actually the situation is the feasibility of routes are limited as it is dictated by people and goods movements and not by wish, simple geography as in nearness or MARINA inducement. They can try the Pilar-Aroroy route that was validated by three titled international experts on shipping with all the feasibility study calculations but then as known by the locals it wouldn’t last and they were proven right as the route lasted only a few months (Archipelago Philippine Ferries tried it). Plus they might have to dredge Pilar port as that is shallow for their ships (the government will pass on to them their dredging responsibilities and they will be lucky to earn a thank you). MARINA has actually a lot of routes that they were promoting like the Pasacao to Burias route, the Cataingan to Maripipi route, et cetera but shipping operators not biting as they are not fools unlike some sitting in some MARINA chairs. With Starlite Ferries obliged to pay the bank amortization they cannot simply let their ships gather barnacles in Batangas Bay.

But where will he sell his old ferries? Many of the ships of Starlite Ferries are not fit to be small short-distance ferry-ROROs, the type most needed and most flexible to field (that will survive better in low-density routes) and now the problem is that is being supplanted now in many cases by the passenger-cargo LCTs and RORO Cargo LCTs which may be slow but are cheap to operate (and so many of these are arriving from China brand-new and not surplus with good terms). The reinforcements that entered San Bernardino Strait and Surigao Strait were actually LCTs (the former are operated by SulitFerry, a 2GO enterprise) and there are LCTs that are new arrivals in Tablas Strait that belong to Orange Navigation, a sister company of Besta Shipping.

Cebu won’t buy it as what is mainly needed there are overnight ships and generally bigger than what Starlite Ferries have. The actual direction of ferry sales is from Cebu to Batangas and not the other way around. It is also hard to sell the Starlite ferries to Zamboanga as only one shipping line has the capability there to buy (Aleson Shipping Line) and they have enough ships already and they can afford to buy direct from Japan. It won’t be Manila as there are no more overnight ships there remaining to Mindoro and Romblon (Starlite Ferries helped sank Moreta Shipping Lines, MBRS Lines and its successor Romblon Shipping Lines). The operators to Coron and Cuyo are not that big and the Starlite ships are too big for those routes. It is really hard to dispose of 11 ferries unless Starlite gives it on a lay-away plan but then they have to pay the bank for their new acquisitions.

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Starlite Archer by John Edmund

I feared Al Cusi with his Malacanang clout and political clout (he is vice-president of the ruling party now) will resort to administrative fiat through the Department of Transportation. But that will be bloody and when the old operators feared something was afoot with the Tugade trial balloons they were ready with deep questions like if there is a study that shows old ferries are unsafe (good question) and MARINA was put on the defensive. These old operators are not patsies, they can hire good lawyers and they have congressmen as padrinos that Tugade and Cusi cannot just push around.

And so came the announcement that there will be no phase-out of old ferries (which is nonsense anyway as phase-out should be based on technical evaluations and not on age). It seems that was a big blow to Starlite Ferries which by that time was already shouldering the burden and amortizing five new ferries with five more on the pipeline and their old ferries still around and unsold (their other new ferries are Starlite Reliance, Starlite Eagle, Starlite Saturn and Starlite Archer). Trying to force their old ferries in some near routes might just mean competing with their sister Montenegro Lines and their shared patron saint will look askance to that.

I guess the financial burden of the new ships were getting heavier by the day for Starlite Ferries. With a surplus of ferries they were even able to send Starlite Annapolis to Mandaue just to get some new engines if what I heard was true. There is really no way to cram 15 ferries (as Starlite Atlantic was lost maneuvering in a typhoon) in just four short-distance routes. I just don’t know, should have they converted some of their new ships into overnight ferries and competed in the longer Batangas to Caticlan route? But the accommodations of the former Cebu Ferries ship of 2GO are superior to them. How about the Batangas to Roxas City route that is irregularly served by Asian Marine Transport Corporation?

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The most senior now in the fleet of Starlite Ferries

But instead of fighting to resolve their problem, Al Cusi took the easy way and sold out. Well, it is never easy to finance five new ferries with five more still on the way with no new routes coming. They might drown in debt and default. Or end up just helping the bank make their living (in Tagalog, “ipinaghahanapbuhay na lang ang bangko”).

I wonder why Al Cusi did not just get two or three units for testing and evaluation and proceed slowly. With that they might have known with less pain and pressure that although their ferries are new it does not have a technological edge nor an advance over the old ferries unlike the new FastCats. They knew already that intermodal vehicles are mainly locked like the Dimple Star buses are locked to them and so newness of the ship will not easily sell and not even to private car owners whose main concern is what RORO is leaving first (and that is also the main concern of the passengers who do not even have a free choice if they are bus passengers).

It looks to me the 10 new ROROS ordered by Starlite Ferries was a simple case of indigestion or worse a choking. It looks like more of the latter and so Al Cusi spit it out and settled for a half billion pesos as consolation for the sale of Starlite Ferries to the Udenna group, the new hotshot in shipping which also owns Trans-Asia Shipping Lines of Cebu now. That might be a good decision for Udenna as their Trans-Asia Shipping Lines lacks ferries now whereas Starlite Ferries has a surplus and so it might be a good match. Converting the ships into overnight ferries is not difficult nor would it cost much although the ships of Starlite Ferries is a little small than what Trans-Asia Shipping Lines was accustomed to (but then it is also possible to lengthen the upcoming ferries).

Now I don’t really know exactly where Starlite Ferries is headed and it will not be as easy to guess that but in all likelihood a Starlite and Trans-Asia marriage might work out especially since the Udenna group has the money to smoothen out the kinks.

Nice experiment but it seems the 10 new ships was too much for Starlite Ferries to chew.

The Result of the Losses of the MV Leyte, MV Guimaras and MV Dadiangas and the Scrapping of the MV Mindanao of Compania Maritima

Nowadays, those four liners of the defunct but once great Compania Maritima will no longer ring a bell to most people. Even in the years when the four were still sailing those were not among the best or the primary liners of the said shipping line except for the MV Mindanao which was actually the second ship to carry that name in Compania Maritima. And so what was the significance then of their losses? This I will try to explain.

The shipping company Compania Maritima of the Philippines (as there were other shipping companies of that name abroad and even in Spain, the country of origin of our Compania Maritima) was the biggest in local passenger shipping from probably  the late Spanish era and until just before the company folded sometime in 1984 at the peak of the political and economic crisis besetting the country then. And so, the company had a run at the top of our passenger shipping field for nearly a century and that is probably a record that can no longer be broken. Compania Maritima in English means “Maritime Company”.

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The logo of Compania Maritima (Credits to Lindsay Bridge)

When the Pacific War ended and the shipping companies were still struggling to get back on its feet they were dependent on the war surplus ships that were being handed down by the Americans. Although Compania Maritima was also a recipient of these kind of ships their rise was not dependent on it as they were capable of acquiring surplus ships from Europe using their Spanish connections (the owners of the company, the Fernandez Hermanos were dual Filipino and Spanish citizens). Their contemporaries Madrigal Shipping and Manila Steamship (the Elizalde shipping company) were also capable of that (now who remembers those two shipping companies?) but their acquisitions were old ships that I suspect were castoffs from convoy duty during the war. In comparison, Compania Maritima’s ships from Europe were just a few years old.

Right off the bat, Compania Maritima had the biggest passenger fleet in local shipping after the war and their best ships were the biggest ferries in the Liberation and post-Liberation years. Aside from their war-surplus ex-”C1-M-AV1” ships which were refrigerated cargo ships during the war, Compania Maritima had ships whose origins were as liners in Europe and it definitely has a difference over passenger ships whose origins were as cargo ships. Among the ships from Europe was their first flagship, the MV Cebu and the sister ships MV Panay and MV Jolo. The latter two were fast cruiser ships of that early Republic shipping years.

Locally, it was almost always that Compania Maritima will have the best and biggest ships and the biggest fleet. They were also among the first to order brand-new liners like the MV Luzon in 1959, the MV Visayas in 1963 and the MV Filipinas in 1968. When the three were fielded those ships were not only the biggest but also the best (as compared to the ex-”C1-M-AV1” and the ex-”C1A” types which were big but not really that luxurious). Not included in this comparison were liners whose main function were as oceangoing liners. Among these are the brand-new ships of De la Rama Steamship which were leased from the government that later will become the subject of a dispute in court.

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Credits to Philippine Herald and Gorio Belen

A ship bigger than the three mentioned was the MV Mindanao of the company which came in 1970 from Europe but was not a brand-new ship having been built in 1959. But her distinction when she was fielded was she was the biggest liner sailing then and even bigger than the flagship MV Filipinas. It was only in December 1979 when her record length will be broken when the MV Dona Virginia came to William Lines.

The MV Mindanao was the last-ever passenger-cargo ship acquired by Compania Maritima and the 1970’s was the decade when they will lose a lot of ships as casualties of typhoons. Some will sink, some will capsize and some will be wrecked. Now those three categories are all different in the determination of the loss of a ship. Not all ship losses actually result in the disappearance of the ship below water. In “wrecking” the ship will still be above water in some beach. In “capsizing”, there are many cases when part of the ship can still be above water or just below the waterline, visible and accessible. But many times also the ship will be in deep waters and so that is called “capsizing and sinking”. If the hull is holed or broke into two it will simply be “sinking”.

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Credits to Gorio Belen

The MV Leyte was a small passenger-cargo ship, technically a multi-day liner but by no means a luxury liner as she was just a former “FS” cargo ship during the war which was converted for passenger-cargo use. As a passenger-cargo ship, her career evolved mainly in serving her namesake island and province through the port of Tacloban in a route extending up to Butuan and Nasipit. There are times though when she also substituted in other routes outside Leyte. The ship was originally known as USS FS-386 in the US Army.

This small ship came to Compania Maritima in 1947. Although 53.9 meters in length over-all and 560 gross register tons this ship was lengthened to 66.2 meters with a gross register tonnage of 730 tons. Lengthening of ex-”FS” ships was common then (most were actually lengthened) in order to increase their passenger and cargo capacities. The speed of this type of ship was between 10 and 11 knots and their accommodations were rather spartan.

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Credits to Philippine Herald and Gorio Belen

The MV Guimaras was not a small liner for her time with a length over-all of 98.6 meters, a gross register tonnage of 3,555 tons and a net register of 1,868 tons. Translated to more modern measurements that is approximately the dimensions of the fast cruiser liners of William Lines of the 1970’s. She actually had the dimensions of the sank MV Cebu City and MV Don Juan which were both flagships but her breadth was one meter wider. It is hard to compare her with the ROPAXes of today as this type have greater beams than the cruiser ships of old and these are generally taller. The “fatter” MV Don Claudio is actually a nearer match but still the breadth of the MV Guimaras was bigger. The MV Guimaras was actually bigger than the flagships of the other shipping companies of her era.

The MV Guimaras was one of the former liners from Europe that came here in the 1960’s to bolster our fleets when surplus ships from the war were no longer available in the market. It was not only Compania Maritima which took this route but also Carlos A. Gothong & Company (the yet-undivided company), William Lines and Sweet Lines. These ferries from Europe actually averaged 100 meters in length over-all and that will give an approximate idea of their size (gross register tonnage is sometimes a subjective measure). On the average their speed was about 15 knots but the speed of the MV Guimaras tops that at 16.5 knots.

The MV Guimaras was the former refrigerated cargo ship Sidi-Aich of the Societe Generale des Transports Maritimes a Vapeur (SGTM) of Marseilles, France and she was completed in 1957 and so when she came she was not yet an old ship. The route of the MV Guimaras from the time she was fielded until she lost was the Manila-Iloilo-Cotabato route although at times she also dropped anchor too in Zamboanga port which was just on the way.

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The Kitala (Credits to Jean Pierre Le Fustec)

The MV Dadiangas was a bigger ship than the MV Guimaras but built in the same year and also in France where she was known as the Kitala of the Compagnie Maritime des Chargeurs Reunis. Like the MV Guimaras she was also a refrigerated cargo ship with passengers and the advantage of this type is air-conditioning and refrigeration is available from the start and so they can be refitted as luxury liners.

This ship was 109.5 meters in length over-all with a gross register tonnage, the cubic volume of 4,143 tons and a net register tonnage of 3,240 tons. For comparison, this ship is already the size of the MV Dipolog Princess and MV Iloilo Princess, both of which reached the new millennium. She came to Compania Maritima in 1969 and her first name in the company was MV Isla Verde. She was subsequently renamed to MV Dadiangas in 1976.

Like the biggest ships of Compania Maritima, the MV Isla Verde also spent part of her career on overseas routes. When she was sailing the local seas her route was to Dadiangas (a.k.a. General Santos City) and Davao. In the later part of her career she was paired with the MV Leyte Gulf of the company in the same route. She is also a relatively fast ship for her time at 16 knots.

A summer Signal No. 3 typhoon of 150-kph center wind strength, the Typhoon “Atang” caught the MV Leyte on a voyage from Manila and she was wrecked in the southwestern portion of Sibuyan island trying to reach shelter, the usual predicament then of ships without radars during the storms of those times. The MV Leyte was almost on a collision course with the oncoming typhoon and so she actually preceded the fate of the MV Princess of the Stars in almost the same area 30 years later. The ship met her sad fate on April 20, 1978.

Meanwhile, the MV Guimaras was caught by the twin storms Typhoon “Etang” and Typhoon “Gening” which intensified the habagat waves and created a storm surge. The MV Guimaras was driven ashore on July 7, 1979 a kilometer south of Turtle Island in Campomanes Bay in Sipalay, Negros Occidental. She could have been trying to reach port as Sipalay has a port or she might have been trying to seek shelter in the bay. And on July 18 of that same year she was officially abandoned. The wreck of MV Guimaras is still there today in shallow waters of about 20 feet and is already a dive site. According to a website, the wreck of the MV Guimaras is already broken now.

In studying maritime losses one lesson that can be gained is it is not a good idea to try to outrun a typhoon or even a tropical storm (the modern terminology if the center wind is below 120kph). This is what MV Dadiangas tried to do when she passed the eastern seaboard of Mindanao on the way back to Manila from Davao. A tropical storm, the Typhoon “Huaning” was also on its way to Surigao and Leyte but was still then at some distance and still weak. But sea disturbance is not confined to within the walls of the typhoon and so the MV Dadiangas ran aground and was wrecked in Siargao island and to think the maximum strength of the typhoon as it was called then was only 95kph. MV Dadiangas was wrecked on June 23, 1980 and was broken up in 1981.

Three lost ships that at first look do not have that much significance. But then the big MV Mindanao of the company was also broken up in 1980. What does it matter here now in the annals of Philippine passenger shipping?

In the closing years of the 1970’s especially in 1978, Compania Maritima, William Lines and Sulpicio Lines were already at near-parity with each other in fleet size and quality especially after the slew of purchases of fast cruisers liners of William Lines and Sulpicio Lines. Meanwhile, Compania Maritima was no longer buying ferries after 1970 and in the 1970’s the company had a lot of ship losses. That means a net decrease for their passenger-cargo fleet while the passenger fleets of her main competitors were getting bigger.

It has long been my wonder if Compania Maritima was ever overtaken as the local Number 1 before their demise. Upon further peering it seems with the consecutive losses of the MV Leyte, MV Guimaras and MV Dadiangas and the scrapping of the MV Mindanao was the tipping point in the relative parity of the three companies. After that the two Chinoy shipping companies were already ahead by a little. The acquisition of William Lines of their new flagship MV Dona Virginia in December 1979 and of the MV Philippine Princess by Sulpicio Lines in 1981 plus their good salvage job on the burned MV Don Sulpicio which became the MV Dona Paz in 1981 were the final additions that pushed William Lines and Sulpicio Lines clearly ahead of Compania Maritima and that was epoch-making as the run on the top of Compania Maritima after nearly a century was finally broken. And to think Sulpicio Lines also lost their MV Dona Paulina in a wrecking in Canigao Island on May 21, 1980 and their old MV Don Manuel had a non-fatal collision on the same year.

By 1981 Compania Maritima only had 3 original liners (the MV Filipinas, MV Luzon and MV Visayas) plus one former refrigerated cargo ship from Europe (the MV Leyte Gulf) and one former ”C1-M-AV1” ship (the MV Samar) plus a few ex-”FS” ships that were not all in passenger service. By that year, William Lines had 6 fast cruiser liners already (the MV Cebu City, MV Misamis Occidental, MV Manila City, MV Cagayan de Oro City, MV Ozamis City and the MV Tacloban City) plus a former refrigerated ship from Europe (the MV Davao City) and 10 ex-”FS” ships in liner and overnight routes. Meanwhile, Sulpicio Lines had 5 fast cruiser liners already (the MV Philippine Princess, MV Don Enrique, Don MV Don Eusebio, MV Dona Paz and MV Dona Marilyn) plus 2 former refrigerated cargo ships from Europe (the MV Dona Angelina and MV Dona Helene), 4 other ships from Europe (the MV Dona Vicenta, MV Don Camilo, MV Dona Gloria and the MV Dona Julieta), the Don Ricardo and MV Don Carlos which were from Japan, the ex-”FS” ships Don Victoriano I and the MV Don Alfredo, the MV Dona Lily from Australia which was the size of an “FS” ship plus the local builds MV Ethel and MV Jeanette. On the balance, in 1981 Sulpicio Lines might already have a very slight pull over William Lines which was a very great comeback from the split of Carlos A. Gothong & Co. in 1972.

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The remains of Compania Maritima in Cebu

To repeat, even without the MV Dona Virginia and the MV Philippine Princess, the two Chinoy shipping lines were already ahead of Compania Maritima. And if the Compania Maritima, William Lines and Sulpicio Lines had rough parity in 1978 what probably tipped the balance were the three lost ships of Compania Maritima and the breaking-up of MV Mindanao in 1980. Four lost liners without replacements. And that is the problem of losing ships and not buying replacements.

From 1981 it was no longer just a matter of passenger-cargo ships as container ships were already taking a large chunk of the liner business (and in this type William Lines and Sulpicio Lines joined the race against early pacesetter Aboitiz Shipping Corporation while Compania Maritima did not). So actually by 1983, William Lines and Sulpicio Lines were running even less liners as some old and small ships were either laid up, sold or converted to just carrying cargo.

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MINTERBRO Port, the remains of Compania Maritima in Davao

In 1982, the MV Samar was broken up and in 1983 the MV Luzon was also broken up. Compania Maritima was already near extinction then. It was just the dying dance and after that it was already a battle between William Lines and Sulpicio Lines which is Number 1.

Roble Shipping Is Finally Sailing To Mindanao

Last month, September of 2017, Roble Shipping has finally sailed to Oroquieta, the capital of the small Mindanao province of Misamis Occidental (which actually hosts a lot of ports and among them are Ozamis and Plaridel ports). It is maybe the first port of call in Mindanao ever for Roble Shipping and it is actually a long-delayed move already for Roble Shipping as their namesake-to-the-city Oroquieta Stars has long been in the news that she will sail for that city and port since late last year (but since then although the ship is already ready she was just sailing for Hilongos in Leyte).

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Source: Oroquieta City LGU FB account

I have been observing Roble Shipping for long already and watched its consistent growth both in passenger shipping and cargo and even in cargo RORO LCTs in the recent years. But I am puzzled with their moves or more accurately their lack of moves in developing new passenger routes that their cousin shipping company and Johnny-come-lately Medallion Transport which with their courageous moves in developing new routes seems to have already overtaken them in passenger shipping (it even reached Mindanao ahead of them when Medallion’s Lady of Good Voyage plied a route to Dipolog).

Roble Shipping is actually one shipping company that has more ferries than routes, the exact opposite of another shipping company I am also observing which is Trans-Asia Shipping Lines Inc. (TASLI) which in their tepidness in acquiring replacement ferries has more routes than ferries now. Does that mean the two shipping companies needed a merger? Just a naughty thought but that is actually impossible now as Trans-Asia Shipping Lines took the easy way out of their troubles which is selling themselves to the Udenna group of new shipping king Dennis Uy which is flush in money nowadays and might not need any help.

I remember that before Roble Shipping has an approved franchise to Nasipit but they never got about serving that route from Cebu. To think they had the big and good Heaven Stars then, a former cruiseferry in Japan then which should have been perfect for that route. However, that beautiful ship soon caught unreliability in her Pielstick engines and I thought maybe that was the reason why Roble Shipping was not sailing the Nasipit route (which actually had the tough Cebu Ferries and Sulpicio Lines serving it then and might really be the reason why Roble Shipping was hesitant).

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But then calamitous fate befell Sulpicio Lines when they got themselves suspended after the horrific capsizing of their flagship Princess of the Storm, sorry, I mean the Princess of the Stars in a Signal No. 3 typhoon in Romblon. In the aftermath of that Sulpicio Lines sold for cheap their Cebu Princess and Cagayan Princess to Roble Shipping in order to generate some immediate cash and anyway the two ships were suspended from sailing and were of no use to them.

With the acquisition of the two, suddenly Roble Shipping had some serious overnight ships after the Heaven Stars which was then not already capable of sailing regularly especially when the good Wonderful Stars already arrived for them to compete in the Ormoc route. And one of the two was even a former pocket liner, the Cebu Princess. One of the two is actually a veteran of the Nasipit route, the Cagayan Princess which was fielded there when Sulpicio Lines already had a better ship for the Cebu-Cagayan de Oro route (the ship was named after that city actually as it was the original route of that ship) and their Naval, Biliran route bombed.

But no, the two ships just collected barnacles in the Pier 7 wharf of Roble Shipping, not sailing. I thought maybe there were still ghosts prowling the ships as they were used in the retrieval efforts on the capsized Princess of the Stars. Or maybe they wanted people to forget first as denying the two ferries came from Sulpicio Lines is difficult anyway.

The Cebu Princess and Cagayan Princess finally sailed as the Joyful Stars and the Theresian Stars but not to Nasipit but to Leyte (again!). I thought maybe Roble Shipping got cold feet in exploring Mindanao. And to think the service of the once-powerful and proud Cebu Ferries was already tottering then and everybody knows Gothong Southern Shipping Lines won’t last long in the Nasipit route with their Dona Rita Sr. (they eventually quit and sold their passenger ships).

With a surplus of ferries in their only routes which are all to Leyte (Hilongos and Ormoc), eventually their legendary cruiser Ormoc Star rotted in Pier 7. Soon, Roble Shipping got a reputation of laying up a lot of ships in Pier 7 (this is very evident when one takes a ride aboard the Metro Ferry ships to Muelle Osmena in Mactan island). They are all huddled up there including the cargo ships. Maybe as protection for the cold so they won’t catch flu (rust, that cannot be evaded).

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Taelim Iris, the future Oroquieta Stars

Two sisters ships also joined the fleet of Roble Shipping, the former Nikel Princely of Aleson Shipping Lines of Zamboanga and the former Filipinas Surigao of Cokaliong Shipping Lines. The two became the Blessed Stars and Sacred Stars in the fleet of Roble Shipping, respectively. However, although one route was added, the Baybay route of the former Filipinas Surigao (which is again in Leyte) there was no other route except for the route they opened in Catbalogan in the aftermath of the demise of Palacio Lines, the Samar native shipping line. With their small ferries Roble Shipping also tried a route to Naval, Biliran which was formerly part of Leyte. I thought maybe Roble Shipping really loves Eastern Visayas too much that they simply can’t get away from it.

Two more ferries came, the former vehicle carriers TKB Emerald and Taelim Iris which slowly became the Graceful Stars and Oroquieta Stars, respectively (but then the Wonderful Stars was no longer wonderful as she was already out of commission after a fire in Ormoc port). Still the two just sailed to Leyte. And eventually, Roble Shipping quit Catbalogan which is a marginal destination to begin with because of the intermodal competition (trucks are loaded to western Leyte ports and just roll to Samar destinations and passengers also use that route). Roble then transferred the two sister ships Blessed Stars and Sacred Stars to become the Asian Stars I and Asian Stars II of the Theresian Stars, the new shipping company which was their joint venture with a former Governor of Sulu province. The two should have been alternating the the overnight Zamboanga to Jolo ferry route. But nothing came out of the venture and soon the two were back in Cebu. Technically, that was the first venture of Roble Shipping to Mindanao but not under the flag of Roble Shipping.

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Oroquieta Stars just sailing to Hilongos, Leyte

I thought Roble Shipping was really allergic to Mindanao but soon I was disabused of this thought when the news came out that definitely Oroquieta Stars will sail to Oroquieta City after supposedly some requirements were ironed out. That is good as some things will then be tested. Oroquieta is actually too near the Plaridel port which competitor (in Leyte) Lite Ferries is serving and which the defunct Palacio Lines was serving before. Roble Shipping and Lite Ferries will practically be sharing the same market and I do not know if enough cargo and passengers will be weaned away from Dapitan and Ozamis ports but then Dapitan port is nearer to Cebu with cheaper fares and rates.

Oroquieta Stars is fast among the overnight ferries having relatively big engines and has a design speed of 16 knots. I just thought that if it is worthwhile for Cokaliong Shipping Lines to extend their Ozamis route to Iligan, won’t it be profitable for Roble Shipping to extend their Oroquieta route to Tubod in Lanao del Norte or to Iligan perhaps? Tubod can be one of the origins of the Muslim-owned commuter vans which have a route to Cotabato City via Sultan Naga Dipamoro or Karomatan (these vans go up to Kapatagan in Lanao del Norte).

We will have to see if Roble shipping can stick with the Oroquieta route as their competitor Lite Ferries take all challengers very seriously. Funny, but Roble shipping was much ahead of them in the Leyte routes. However, Lite Ferries is very aggressive and is easily the most aggressive shipping company in this decade taking away that mantle from Montenegro Shipping Lines (but then they might just have the same patron saint anyway but the favors and flavors might have changed).

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Oroquieta Port by Hans Jason Abao. Might be improved by now.

I wish Roble Shipping all the luck in their Mindanao foray and how I wish they will explore more routes because after all the availability of ferries is the least of their concerns (sabi nga sa bus krudo lang ang kailangan para tumakbo). That could also be their case. Plus franchise and some explorations maybe (well, if Medallion was able to use their cargo ships for that so they can too as they also have a lot of freighters now).

Sayang naman kasi ng mga barko nila.

The Convergence, Parallels, Rivalry and Divergence of Sweet Lines and William Lines

For introduction, Sweet Lines is a shipping company that started in Tagbilaran, Bohol while William Lines is a shipping company started in Cebu City after the war while having earlier origins in Misamis Occidental before the war. And like many shipping lines whose founders are of Chinese extraction, the founders of both Sweet Lines and William Lines were first into copra trading before branching into shipping. And long after the two became national shipping lines Bol-anons and people of Misamisnons still have a close identification and affinity to the two shipping companies and in fact were the still the prides of their provinces.

1950 William Lines

1950 William Lines ad. Credits to Philippine Herald and Gorio Belen

William Lines became a national liner company in 1945 just right after the end of the war and almost exactly 20 years before Sweet Lines which was just a Visayas-Mindanao shipping company after the war whose main base is Bohol. The company just became a national liner company when it was able to buy half of the ships and routes of General Shipping Corporation when that company decided to quit the inter-island routes in 1965 after a boardroom squabble among the partner families owning it. And so William Lines had quite a head start over Sweet Lines. Now, readers might be puzzled now where is the convergence.

People who are already old enough now might think the convergence of the two shipping companies, a rivalry in fact, started when Sweet Lines fielded the luxury liner Sweet Faith in the Manila-Cebu route in 1970. That ship raised a new bar in liner shipping then plus it started a new paradigm in Cebu, that of the fast cruiser liner which is more dedicated to passengers and their comfort than cargo and has the highest level of passenger accommodations and amenities. It was really hard to match the Sweet Faith then for she was really a luxury liner even when she was still in Europe. That fast cruiser liner was not just some converted passenger-cargo or cargo-passenger ship which was the origins of practically of all the liners of the postwar period until then.

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Credits to Manila Times and Gorio Belen

Actually, the rivalry of Sweet Lines and William Lines started from convergence. William Lines, in their first 20 years of existence, was basically concentrating on the Southern Mindanao routes but of course its ships which were all ex-”FS” ships then called on Cebu and Tagbilaran first before heading south. Aside from Southern Mindanao, the only other area where William Lines concentrated was the Iligan Bay routes, specifically Iligan and Ozamis, near where the founder and the business of William Lines originated. But in 1966, William Lines started its acquisition of cargo-passenger ships from Europe for conversion here like what Go Thong & Company earlier did and what Sweet Lines will soon follow into. It was actually an expansion as they were not disposing of their old ex-”FS” ships and naturally an expansion of the fleet will mean seeking of new routes or concentration. 

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Credits to Philippine Herald and Gorio Belen

Sweet Lines, meanwhile, had an initial concentration of routes in the Eastern Visayas as a liner company which was dictated by the purchase of half of the fleet of General Shipping Corporation which consisted of five liners which were all ex-”FS” ships except for the new local-built General Roxas plus the Sea Belle of Royal Lines which was going out of business. But Sweet Lines immediately expanded and was also plying already the Cebu and Tagbilaran routes from Manila, naturally, because their main base was Tagbilaran. Then they also entered the Iligan Bay routes in 1967 and it was even using the good Sweet Rose (the former General Roxas) there which was a heavy challenge to all the shipping companies serving there that were just using ex-”FS” ships there previously. Of course, not to be outdone William Lines later brought there their brand-new Misamis Occidental, their flagship then, in 1970. If William Lines had two frequencies a week to the two ports of Iligan Bay in 1967, then that was the frequency of Sweet Lines too. And if William Lines had twice a week frequency to Cebu and Tagbilaran, then that was also the frequency of the expanding Sweet Lines. Their only difference in 1967 was William Lines had routes to Southern Mindanao while Sweet Lines had none there but the latter had routes to the strong shipping region then of Eastern Visayas while William Lines had no route then there.

Another area of confrontation of the two shipping companies was the Visayas-Mindanao regional routes. Sweet Lines was long a power then there especially since that was their place of origin. They then relegated there most of the ex-”FS” ships like the ones they acquired from General Shipping and thus in the late 1960’s they had the best ships sailing there. Meanwhile, William Lines which was also a player there also then used some of their ex-”FS” ships which were formerly in the liner routes (William Lines had a few ex-”FS” ships to spare since they bought five of those from other local shipping companies and they already were receiving former cargo-passenger ships from Europe starting in 1966). So by this time Sweet Lines and William Lines were not only competing in Cebu and Tagbilaran and in Iligan Bay but also in the Visayas-Mindanao regional routes.

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Credits to The Philippines Herald and Gorio Belen 

In the late 1960’s the government provided a loan window for the purchase of brand-new liners and among the countries that provided the funds for that was what was known as West Germany then (this was before the German reunification). From that window, the new liner company Sweet Lines ordered the Sweet Grace from Weser Seebeck of Bremerhaven, West Germany in 1968. William Lines followed suit by ordering a brand-new liner not from West Germany but from Japan which turned out to be the Misamis Occidental and this seemed to be taking the path of the expansion of Negros Navigation Company which was ordering brand-new liners from Japan shipbuilders. 

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Credits to Philippines Herald and Gorio Belen

Imagine for William Lines fielding the brand-new Misamis Occidental in Cebu in 1970 only to be upset by the more luxurious and much faster Sweet Faith in the same year. And that was aside from the also-good Sweet Grace and Sweet Rose also calling in Cebu. Maybe that was the reason, that of not being too outgunned, that William Lines immediately ordered a new ship from Japan, a sister ship of the Don Juan, the flagship of Negros Navigation Company but with a more powerful engine so she can top or at least match the speed of the Sweet Faith and that turned out later to be the legendary liner Cebu City. From its fielding in 1972, the battle of Cebu City and Sweet Faith was the stuff of legends (was using blocks of ice to cool down the engine room of Sweet Faith at full trot a stuff of legend?)

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Credits to Philippine Herald and Gorio Belen

As background to that, in 1970 with only the brand-new liner Misamis Occidental William Lines had to fend off Sweet Faith, Sweet Rose, also the first Sweet Sail which was a former liner of Southern Lines that was not an ex-”FS” ship but much faster and at times also the brand-new liner Sweet Grace . William Lines had a few converted cargo-passenger ships from Europe calling in Cebu already on the way to Southern Mindanao then but Sweet Lines had the same number of that also. If William Lines found aggressiveness in ship purchases from the mid-1960’s, Sweet Lines turned out to be more aggressive that in a short period of less than a decade it was already in the coattails of William Lines over-all and even beating it to Cebu, the backyard of William Lines. That was how aggressive was Sweet Lines in their initial ascent as a national liner company. And would anyone believe that in 1970 Sweet Lines was no longer using any ex-”FS” ship in its national liner routes, the first national liner company to do so (when other competitors were still using that type well in to the 1980’s)? So their ad their they were modern seems it was not a made-up stuff only.

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A former cargo-passenger ship from Europe using the eastern seaboard of Mindanao route. Credits to Times Journal and Gorio Belen

But that was not even the end of the expansion of Sweet Lines which the company penetrated the Southern Mindanao, the bread and butter of William Lines (note: Compania Maritima, Gothong & Co. and Philippine Steam Navigation Co. were stronger there having more ships) using the eastern seaboard of Mindanao, a route that William Lines do not serve. It is actually a shortcut, as pointed out by Sweet Lines but there are not many intermediate ports that can be served there to increase the volume of the cargo and the passengers (and so Sweet Lines passed through more ports before heading to Surigao and Davao). Besides, the seas of the eastern seaboard are rough many months of the year and maybe that was the reason why Sweet Lines used their bigger former cargo-passenger ships from Europe rather than using their small ex-”FS” ships (in this period their competitors to Davao were still using that type).

And so, in 1972, William Lines entered the stronghold of Sweet Lines, which it dominated, the port of Tacloban which the company was not serving before. Was that to repay the compliments of Sweet Lines entering their Iligan Bay bastion and their ports of Cebu and Tagbilaran plus the foray of Sweet Lines in Davao? William Lines entered Tacloban alright but it was a tepid attempt at first by just using an ex-”FS” ship (maybe they just want to take away some cargo). Their main challenge in Tacloban will come three years later in 1975 with their fast cruiser liner Tacloban City, only the third of its type in William Lines after the liners Misamis Occidental and Cebu City and that maybe shows how itching was William Lines in returning the compliments. Or showing up Sweet Lines.

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Where were the other leading national liner companies in this battle of the two? Regarding Gothong & Company, I think their sights were more aimed at the leading shipping company Compania Maritima plus in filling the requirements of strategic partner Lu Do & Lu Ym which was scooping all the the copra that they can get. Actually, the Go Thong & Company and Compania Maritima both had overseas lines then. Meanwhile, the Philippine Steam Navigation Company (PSNC) and plus Aboitiz Shipping Corporation (revived as a separate entity in 1966 after the buy-out of the other half of General Shipping Corporation) and Cebu Bohol Ferry Company, a subsidiary of Aboitiz Shipping Corporation which are operating as one is competing neither here or there as it seems they were just content on keeping what was theirs and that the interests of Everett Steamship, the American partner of Aboitiz in PSNC will be protected and later cornered when the Laurel-Langley Agreement lapses in 1974. Plus Aboitiz through the Cebu Shipyard & Engineering Works were raking it all in servicing the ships of the competition including the lengthening of the ex-”FS” and ex-”F” ships of their competitors (plus of course their own). Their routes are so diverse and even quixotic that I cannot see their focal point. It is not Cebu for sure and whereas their rivals were already acquiring new ships they were moored in maintaining their so-many ex-”FS” ships (they had then the most in the country). Also in owning Cebu Shipyard & Engineering Works they were confident they can make these ships run forever as they had lots of spare parts in stock and maybe that was through their American connection (not only through Everett Steamship but the Aboitizes are also American citizens). Besides, in Everett Steamship they were also in overseas routes and having overseas routes plus domestic shipping was the hallmark of the first tier of shipping companies then aside from having more ships. In this first tier, the Philippine President Lines (PPL) was also in there but later they surrendered their domestic operations.

Meanwhile, the greatest thrust of Gothong & Company it seems was to serve the needs and interests of Lu Do & Lu Ym but it was a strategic partnership that brought Gothong a lot of dividends so much so that before their break-up in 1972 they might have already been ahead of Compania Maritima in the inter-island routes with all the small ships that they are sailing in the regional routes aside from the national routes. Gothong & Company as might not be realized by many is actually a major regional shipping company too and with a bigger area than that served by Sweet Lines and William Lines for they were operating a lot of small ferries whose primary role is to transport the copra of Lu Do & Lu Ym, the biggest copra and coconut oil concern then in the country and carrying passengers is just secondary. In the Visayas-Mindanao routes, the Top 3 were actually Go Thong & Company, Sweet Lines and William Lines, in that order maybe. From Cebu, Go Thong had small ships to as far as Tawi-tawi and the Moro Gulf plus the eastern seaboard of Mindanao and Samar. Sweet Lines, however was very strong in passenger department.

In the early 1970’s, many will be surprised if I will say that the fleets of William Lines and Sweet Lines were at near parity but the former had a slight pull. And that was really a mighty climb by Sweet Lines from just being a major regional shipping company, a result of their aggressiveness and ambition. Imagine nearly catching up William Lines, an established shipping company with loads of political connection (think of Ferdinand Marcos, a good friend of William Chiongbian, the founder) and topping the likes of whatever General Shipping Company, Southern Lines and Escano Lines have ever reached. Entering the late 1970’s, Sweet Lines (and William Lines) were already beginning to threaten the place of Aboitiz Shipping Corporation (including the integrated Philippine Steam Navigation Corporation) which will drop off a lot subsequently after they stopped buying ships after 1974.

Where did the divergence of the two very comparable shipping companies began? It began from 1975 when William Lines started acquiring the next paradigm-changing type of ships, the surplus fast cruiser liners from Japan which Sweet Lines declined to match but which the rising successor-to-Gothong Sulpicio Lines did. At just the start of the 1980’s with the success from this type of ship William Lines and Sulpicio Lines were already jostling to replace the tottering Compania Maritima from its top perch. It seems Sweet Lines failed to realize the lesson that the former cargo-passenger ships from Europe and the brand-new Sweet Grace and the good Sweet Rose fueled their rise in the late 1960’s and that the acquired luxury liners Sweet Faith and Sweet Home continued their rise at the start of the 1970’s. And these former cargo-passenger ships from Europe also propelled Gothong & Company and William Lines in their ascent. Why did Sweet Lines stop acquiring good liners? Was there a financial reason behind their refusal to join the fast cruiser phenomenon? Well, they were not the only ones which did not join the fast cruiser liner bandwagon.

The biggest blunder of Sweet Lines was when they declared in 1978 that henceforth they will just acquire small RORO passenger ships. I do not know if they were imitating Sulpicio Lines which went for small ROROs first (but then that company had fast cruiser liners from Japan). That might have been good for their regional routes but not for the liner routes. And to think their luxury liners Sweet Faith and Sweet Home might already conk out anytime because of old age (yes, both were gone in two years). And so for a short period Sweet Lines have no good liners for Cebu, the time William Lines was fielding their Dona Virginia, the biggest and fastest liner when it was fielded and Sulpicio Lines was fielding the Philippine Princess. What a blasphemy and turn-around! In 1970, just ten years earlier, Sweet Lines was dominating William Lines in the Cebu route. That was a miscalculation from which Sweet Lines never seemed to recover. From fielding the best there, Sweet Lines suddenly had no horse. And so the next chapter of the luxury liner wars in the premier Manila-Cebu route was fought not by William Lines and Sweet Lines but by William Lines and the surging Sulpicio Lines. In just a decade’s time Sweet Lines forgot that it was modernity in ships and aggression in routes that brought them to where they were.

1980 Dona Virginia

Credits to Daily Express and Gorio Belen

When Sweet Lines acquired the Sweet RORO in 1982 to battle again in the Manila-Cebu route it was as if they imitated the strategy of Carlos A. Gothong Lines Inc. (CAGLI) to go direct into the RORO or ROPAX paradigm and bypass the fast cruiser liners altogether (but then where was CAGLI in the totem pole of liner companies even if they bypassed the fast cruiser liner stage?). But by then their former cargo-passenger ships from Europe were already failing and will very soon be gone. The net effect was the Sweet Lines liner total was regressing even though they acquired the Sweet RORO 2 in 1983 to pair the Sweet RORO. The reason for this is its former cargo-passenger ships from Europe were already in its last gasps and the small ROROs were never really suited for liner duty except for the direct routes to Tagbilaran and Tacloban. If studied it can be shown that when a liner company stops at some time to buy liners sufficient in numbers and size then they get left behind. This is also what happened to Compania Maritima, Aboitiz Shipping Corporation and Escano Lines, the reason the fell by the wayside in the 1980’s). And that is what happened to Sweet Lines just a little bit later and so its near-parity with Williams Lines which surged in the 1970’s and 1980’s was broken. And that completed their divergence.

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Credits to Philippine Daily Express and Gorio Belen

In the early 1990’s, Sweet Lines will completely fail and stop all shipping operations, in liners, regional shipping and cargo operations (through their Central Shipping Corporation) and sell their ships with some of the ships sadly being broken up (a few of their ships were also garnished by creditors). Meanwhile, William Lines was still trying then to catch up with Sulpicio Lines that had overtaken them through a big splash in big and fast ROPAXes in 1988.

Sweet Lines benefited in the middle of the 1960’s with the quitting of General Shipping and Royal Lines. Later, William Lines, Sulpicio Lines and Sweet Lines benefited with the retreat of Aboitiz Shipping Corporation in the late 1970’s. In the next decade, William Lines and Sulpicio Lines benefited from the collapse of Compania Maritima in the crisis years at the tailend of the Marcos dictatorship. Sweet Lines did not benefit from that because they were not poised to because of their grave error in 1978.

When Sweet Lines collapsed in the early 1990’s it seems among those which benefited was the revived Aboitiz Shipping Corporation which was helped in getting back to the liner business by Jebsens of Norway (think SuperFerry). Well, that’s just the way it is in competition. It is a rat race and one can never pause or stop competing as the others will simply swallow the weak.

Carlos A. Gothong Lines Incorporated Is Still Fighting Back

When the original shipping company Carlos A. Gothong & Company broke up in 1972, one of the successor companies was Carlos A. Gothong Lines Incorporated (CAGLI or Gothong Lines) owned by the scions of the founder Don Carlos A. Gothong. It was eclipsed early by Sulpicio Lines Incorporated which was owned by the once operations manager of the mother company. And then its operation and fleet even got smaller in 1980 when Lorenzo Shipping Corporation of Lorenzo Go and two other siblings went their separate way (this company was later sold to the Magsaysay Shipping Group but later the scions of Lorenzo Go founded the Oceanic Container Lines Incorporated which now has the biggest number of container ships in the country which has the “Ocean” series).

Carlos A. Gothong Lines Inc. again became a significant national liner company in the 1990’s when again they built a fleet of liners starting in 1986 and more significantly in 1987 when they acquired the sister ships Our Lady of Fatima and the Our Lady of Lourdes. The sister ships Sto. Nino de Cebu (the later Our Lady of Medjugorje) and the beautiful Our Lady of Sacred Heart, both acquired in 1990 cemented their national liner position and the big liner Our Lady of Akita, acquired in 1993 declared their intention to play in the big leagues.

The rising company got absorbed when they acquiesced to the creation of big merged shipping company WG & A (which stood for William, Gothong and Aboitiz) in late 1995 and that included their small fleet of RORO Cargo ships and also their Visayas-Mindanao overnight ferries. In this merged company their main representative to the Board of Directors was Bob Gothong who was close to the Aboitizes and not the eldest Bowen Gothong.

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Butuan Bay 1 by Vinz Sanchez

While Bob Gothong never veered from the Aboitiz orbit (take note it was Aboitiz Jebsens which was in charge of the operations fleet maintenance of WG & A), the other siblings of Bob Gothong were not satisfied with the state of things in the merged company and in 2001 they asked out and the process of divestment began. Even before the divestment was completed the revived Carlos A. Gothong Lines Incorporated already had the Butuan Bay 1 ready to sail the Manila-Cebu-Nasipit route which was considered lucky for them and where they were very strong in cargo historically. Instead of being paid in ships, the Gothong siblings were paid in cash (while Bob Gothong remained with WG&A) and for this to happen a lot of WG&A ships, both ROPAX and container ships had to be sold to China ship breakers for cash.

With the proceeds in the divestment that did not include Bob Gothong, the Gothong siblings led by Bowen Gothong acquired the big Manila Bay 1 and Subic Bay 1 in 2003 and 2004, respectively which were as big as their old Our Lady of Akita which burned in 2000 as the SuperFerry 6. The two was followed by the Ozamis Bay 1, also in 2004 and by the Cagayan Bay 1, the sister ship of SuperFerry 2 and SuperFerry 5, in 2007. At its peak the revived Carlos A. Gothong Lines Incorporated had a total of 5 ROPAXes (RORO-Passenger ships) plus a valuable wharf in the new reclaimed land in Mandaue adjacent the Cebu International Port or Cebu Pier 6. But though they had five ferries, the revived CAGLI was only able to regain a limited presence in the Visayas-Mindanao routes which were once dominated by them together with the Trans-Asia Shipping Lines Incorporated.

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The revived Gothong Lines did not prove to be very successful. When they re-entered liner shipping, many passengers were already leaving the liners and they were going to the budget airlines and the intermodal buses using short-distance ferry-ROROs. Cargo was also shifting too to the intermodal system because of the high container rates and the hassles of hauling container vans to the Port of Manila from road congestion to criminality and to the rampant mulcting of the so-called “authorities”. In those years it seemed there was a surplus of bottoms which meant excess ships, a possible result of liberalization and incentives programs of President Fidel V. Ramos.

Gothong Lines then became notorious for late departures and arrivals because they gave preference to cargo which earns more than carrying passengers and they were actually never strong in the passenger department. Repeated complaints led the maritime authority MARINA (Maritime Industry Authority) to suspend their permit to carry passengers. With that happening Gothong Lines simply converted their ROPAXes into RORO Cargo ships just carrying container vans and vehicles.

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With weakness in this business too, soon Cagayan Bay 1 and Ozamis Bay 1 soon found themselves laid up in the Gothong wharf in Mandaue and Butuan Bay 1 was sold after an engine explosion and it became the Trans-Asia 5 of Trans-Asia Shipping Lines Incorporated (TASLI). So in the recent years it was only Manila Bay 1 and Subic Bay 1 which were sailing for Gothong Lines and it seemed the two was enough for their limited cargo and routes. However, as RORO Cargo ships they were inefficient because of their big engines. But even then Gothong Lines were offering discounts and cheap rates in general which only showed how overpriced are container rates in the country. Recently, Cagayan Bay 1 and Ozamis Bay 1 were sold to the breakers but their hulls are still in the Gothong wharf in Mandaue as of the writing of this article.

Many speculated what will happen next to Gothong Lines with two inefficient and obsolescent ships and some were even asking if they will soon cease operations as their two ships were already clearly old and might even be too big for their routes. For me, I always look at their wharf which they retained and I know it is very valuable in terms of market value. Actually, the container shipping company established by their brother Bob Gothong, the Gothong Southern Shipping Lines Incorporated (GSSLI) does not even have an equivalent although it is the more progressive and booming company.

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Panglao Bay 1

Recently, two RORO Cargo ships arrived in the Gothong wharf one after another and they were still relatively new by Philippine standards. These are the Panglao Bay 1 and the Dapitan Bay 1 and from the look of things they are the replacements of Subic Bay 1 and Manila Bay 1. Actually, some three months ago as of the writing of this article, the Subic Bay 1 was already pulled by tugs and it seems here destination is a ship breaker somewhere in South Asia. That happened when the Panglao Bay 1 was already sailing for them. It is speculated that the Manila Bay 1 will be disposed of when Dapitan Bay 1 will already be sailing. In reality, it is possible she already has a buyer now.

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The Panglao Bay 1 was built in 1995 and her external dimensions are 128 meters by 22 meters with a Gross Tonnage (GT) of 5,930 in cubic volume and a cargo capacity of 4,946 tons in Deadweight Tonnage (DWT). Meanwhile, the Dapitan Bay 1 is officially a Vehicle Carrier and was built in 1992 and has the external dimensions 145 meters by 21 meters and has a cubic volume of 7,073 tons in GT and a DWT of 4,485 tons. This ship has different specifications depending on the maritime database. Whatever, these two ships are already the ships of Gothong Lines for the future and they look like worthy replacements for the Subic Bay 1 and Manila Bay 1 though they are a little smaller (but the engines are smaller too which is a plus). But then Gothong Lines might have already studied their cargo capacity needs and concluded that the sizes of the two fits them just right.

And so Carlos A. Gothong Lines Inc. is still fighting back. That is good news as they are the bearer of one of the most storied names in Philippine shipping history.

The Ship Design Conflict Within WG & A

On the first day of the year 1996, the “Great Merger” officially happened. This brought the fleets and all assets of William Lines Inc. (WLI), Carlos A. Gothong Lines Inc. (CAGLI) and Aboitiz Shipping Corporation (ASC) under one single company and management except for some very old ferries of Aboitiz Shipping Corporation (the likes of Legazpi) and a some ferries and container ships of Aboitiz Jebsens (that was a separate company) which were the container ships acquired from the Ukraine. This was supposedly a preemptive move so local shipping can compete against the purported entry of foreign competition in the inter-island routes which proved to be a bogey or a false story later. How some old shipping families believed that foreigners can enter with a Anti-Cabotage Law in effect that forbids foreign shipping firms from sailing in local routes is beyond me because repeal of any law passes through Congress and our Congress is usually not keen on passing laws that grants free passage to foreigners and if those three liner and container shipping companies are willing, the regional shipping companies and other companies might not be willing and they can also raise a ruckus. But anyway the unlikely merger happened and a very big shipping company was formed from previously competitors.

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Dona Virginia (Credits to Palawan Wildlife Rescue and Conservation Center and Manu Sarmiento)

Any merger usually results in excess assets and in shipping that includes ships aside from management personnel and employees and logistical assets like containers, container yards and buildings. This was easily obvious with the WG&A merger. Since there were excess liners some of it were sent to its regional subsidiary Cebu Ferries Corporation (CFC) like when the Mabuhay 6 (the Our Lady of Good Voyage) and the Our Lady of Lipa were sent there. Meanwhile, all the cruisers liners were offered for sale. They also tried to dispose old and unreliable ROROs like the Dona Cristina, Don Calvino and the Dona Lili that were formerly regional ferries. Actually even some recent liners were also offered for sale. The total was about 10 and that was already about a third of the combined fleet. That also included a handful of container ships.

I knew it early there was a conflict with the disposal of ships when I had as a cabin mate in SuperFerry 7 the cargo manager of William Lines in North Harbor and he was furious because to him it seems that the liners of William Lines were being targeted. Well, that might have been the unintended result of getting Aboitiz Jebsens as fleet and maintenance manager because they will use their old standard in choosing ships (that company was subsequently renamed to WG&A Jebsens to reflect the changed circumstances).

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Don Calvino (Credits to George Tappan and Gorio Belen)

One has to look into recent history to understand this. Aboitiz Shipping Corporation as a liner company did not acquire any liners from 1974 to 1988 and the one they acquired in 1988 was inconsequential as it was just the small and old cruiser liner Katipunan of Escano Lines which became the Legaspi 1. By that time Aboitiz Shipping Corporation had just a few old liners sailing, a combination of former “FS” ships which were on its last legs and a few old cruisers including the pair acquired from Everett Steamship, the Legazpi and the Elcano which were also clearly obsolete already and getting unreliable. It looked to me that without their partner Jebsens Maritime that was influential in their container shipping (which was actually good), they might not have had their blockbuster SuperFerry series.

If one looks at the SuperFerry series of Aboitiz Shipping Corporation, one will easily see its distinguishing characteristics. They are all ROROs (or more exactly ROPAXes) with car ramps at the bow and at the stern, the container vans are all mounted in trailers, trailer caddies hauled them in a fast manner and if possible the two car ramps are both employed so one is dedicated for loading and the other for unloading. Radios are also employed for communication to orchestrate the movement of the container vans so a trailer caddy hauling a container aboard will have a container being unloaded on the way down and markers are used so loading of container vans will not be helter-skelter which can mean difficulty in unloading a container van in an intermediate port.

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Maynilad by Britz Salih

To remedy their serious lack of liners due to non-purchase in the recent years past, Aboitiz Shipping Corporation and Aboitiz Jebsens designed their liners to have short interport hours as in 2 to 3 hours only, the former the preferred time. In Manila and in the endport, the port hours were also very short. With this kind of operation the SuperFerries had a high number of hours at sea on a weekly basis which meant maximum utilization. While a Sulpicio Lines liner will only have a round-trip voyage if the route is Southern Mindanao, an Aboitiz ship will still have a short trip to the likes of Panay within the same week or else do a twice a week Northern Mindanao voyage. With this style, their 4 SuperFerry ships were in practicality the equal of 5 or 6 ships of the competition. Of course with this kind of use of ships a heavy load of preventive maintenance is needed and that happened to be the forte of Aboitiz Jebsens.

When the Chiongbian and Gothong families agreed to the Aboitiz proposal to have Aboitiz Jebsens as fleet and maintenance manager they should have already known was in store and that is the liners should perform the Aboitiz Jebsens way and that meant those which can’t will fall into disfavor and might be the target for culling because with the Aboitiz Jebsens system a lesser number of liners will be needed to maintain their route system and frequencies. Of course at the start WG & A will try to employ all the liners that were not relegated to their subsidiary Cebu Ferries Corporation. But then new liners were still coming onstream, the liners William Lines, Gothong Lines and Aboitiz Shipping ordered when they were still separate companies. WG & A created new routes and frequencies but in a short time they realized what cannot be maintained because there are not enough passengers or cargo like the routes to Tacloban and Dipolog (Dapitan actually) and the Manila-Dumaguete-Cotabato and Manila-Cebu-Surigao-Davao routes.

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Tacloban City (Credits to Times Journal and Gorio Belen)

With that “weak” and “inefficient” ships will be targets for culling aside from the old liners and there was no question that cruiser liners will be first in the firing line. That type cannot carry much cargo and their cargo handling in the interport is longer as cargo booms are not as fast in loading and unloading unlike trailer caddies. So it was no surprise that the cruiser liners Misamis OccidentalTacloban City and Iligan City, formerly of William Lines were almost immediately up for sale. The small ROPAX Zamboanga City was also offered for sale because her engines were big relative to her size and capacity (16,800-horsepower engines) and she had no ramps at the bow. That also went true for the slow Maynilad (14-15 knots only on 16,800 horsepower). The problem with these is they were all former William Lines ship, the reason why some former William Lines people were upset. But they accepted Aboitiz Jebsens as the fleet manager and so that will almost inevitably be the result.

Some lesser liners survived. The “Our Lady” ships of Gothong Lines survived because for their size and capacity their engines were small and that speaks of efficiency and though while a little slower they were fit for the short routes like the northern Panay routes (Dumaguit and Roxas City) or in the periphery like Masbate and Eastern Visayas. The northern Panay route also became the refuge of the Our Lady of Naju, a former Gothong ship which was also a cruiser. The passengers and cargo of the route were not big and so a big cruiser liner like the Dona Virginia will not fit. But of course all that favored the former Gothong ships. It might just have been a quirk of fate and not necessarily because the Gothong representative to the WG & A Board of Directors who is Bob Gothong is close to the Aboitizes. But then I wonder how the Our Lady of Lipa survived. For her size she has big engines and speed was not really needed in the Dumaguit/Roxas City route. Was it because they wanted to show up their competitor the old but beautiful cruiser liner Don Julio of Negros Navigation? I thought when the old cruiser liner Misamis Occidental was refurbished to become the cruiser ship Our Lady of Montserrat, a former William Lines vessel she might have fitted the route (she was even re-engined and became all-airconditioned like the Our Lady of Naju). Was her speed not really enough for the route? Or WG & A wants a ship that is really superior to the competition?

Our Lady of Banneux

Credits to Keppel Cebu and Ken Ledesma

It was not surprising then that in the early merger years that former William Lines officers and employees would think it was only their vessels which was on the firing line or chopping block.

The beautiful SuperFerry 11 which was fielded after the merger was also not that favored. Her engines are just about okay for her size, she has the speed but then like the Zamboanga City she has no car ramps at the bow because she also came from A” Lines of Japan. She was also destined for William Lines if the merger did not happen. The beautiful Maynilad would have easily been a SuperFerry in terms of size and accommodations if not for her grave lack of speed. Being excess later the SuperFerry 11 and Maynilad were passed to Cebu Ferries Corporation and they were the biggest ships that company ever had. That was after WG & A created an entirely new route for them, the Manila-Ormoc-Nasipit route which in first report was good. But then along the years WG & A and successor company Aboitiz Transport System (ATS) developed a reputation for being very soft in holding and maintaining routes. In Cebu Ferries the SuperFerry 11 was renamed to Our Lady of Banneux and the Maynilad was renamed to Our Lady of Akita 2 after her top passenger deck was removed. The two happened to be ex-William Lines ships also! Although not clearly disfavored (as she made the SuperFerry grade), the Our Lady of Banneux which can run at up to 19 knots had a grounding incident in Canigao Channel from which she never recovered again.

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The ship Zamboanga by Wilben Santos

So actually the William liners were the great casualties of the merger due to redundancy and incompatibility and that was because they were unlike the original SuperFerry liners and they simply cannot make the SuperFerry grade (well, just like the former “Our Lady” ships of Gothong Lines only one of those made the SuperFerry grade, the former Our Lady of Akita which became the SuperFerry 6). Of course their former Mabuhay 1 and Mabuhay 3 which made the SuperFerry grade lived longer. The former Mabuhay 2 was not lucky as she was hit by fire early which led to complete total loss. In the longer run only the Mabuhay 1 and Mabuhay 3 survived and the Mabuhay 3 as SuperFerry 8 was even leased to Papua New Guinea because of the surplus of liners in WG & A.

The liners of Carlos A. Gothong Lines Inc. (CAGLI) were more lucky as they found niche routes and small engines played into their favor. Moreover many of the former Gothong Lines ships were in regional routes and they lived long there including their former small liners the Our Lady of Fatima and the Our Lady of Lourdes which were sister ships. That even included the venerable Our Lady of the Rule and their old Our Lady of Guadalupe which has unreliable engines and I even wonder how she lasted so long. In the regional routes some former ships of William Lines survived like the Our Lady of Good Voyage and the Our Lady of Manaoag.

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Dona Lili (Credits to PNA, Phil. Daily Express and Gorio Belen)

When the Chiongbian family of William Lines divested in 2003 only 2 of their former liners remained in WG & A aside from a few container ships. They were paid off in cash from the passenger and container ships that were scrapped. There were still many Gothong ships in the fleet of WG & A when they divested as most survived the culling but they preferred newly-acquired ships when they restarted independent operations.

And that was the story of the ship design conflict in WG & A which have been one of the reasons why the “Great Merger” unraveled so soon.

Now They Are Selling The Shipping Company With The Ships They Say Are The Most Modern

What is happening?

Shipping news recently said that the Cusi family is selling Starlite Ferries to Chelsea Shipping which has recently gained control of 2GO, the only national liner shipping company left and Trans-Asia Shipping Lines Inc. (TASLI), once the biggest regional shipping company in the Visayas before the advent of Cebu Ferries Corporation (CFC). When to think Alfonso Cusi is politically powerful and influential in his own right being in and out of government at usually Cabinet level.

Until just recently Starlite Ferries was very proud of their brand-new series of ships from Japan which is supposedly the best in the short-distance routes. These ships are a series of ten ships financed through a leasing window of the government-owned Development Bank of the Philippines (DBP), the DBP Leasing Corporation. This window is the arm of the government in modernizing our shipping industry and for Starlite Ferries to corner ten ships speaks of their clout.

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Starlite Archer, the latest ship of Starlite Ferries (Photo by Jon Erodias)

Just a while ago Starlite Ferries announced they are extending the run of these modern ships from ten to twenty because they said they were expanding operations to the ASEAN Region which if it materialized will be our first foray ever in international passenger shipping operations. The news was believable because in the ASEAN Free Trade Zone any company should in theory would be allowed free entry in any country within the FTZ.

Now this news of the sell-out looks like a hot potato being dropped and of course questions will be raised.

Starlite Ferries already had nine ROPAXes (RORO-Passenger ships) and two fastcrafts when they started to acquire a series of ten brand-new ferries from Japan which to me, with its size looks better if it had been used in overnight routes rather than the short-distance routes. I was puzzled when they first announced it because they have only four routes – Batangas-Abra de Ilog, Batangas-Puerto Galera, Batangas-Calapan and Roxas-Caticlan which are all Mindoro routes. Mindoro is the origin of Alfonso Cusi, the founder and owner of Starlite Ferries.

I thought if they will acquire ten new ships then all old ships have to be disposed unless they create new routes. But then Alfonso Cusi was jeering our old ferries and so I thought he will really dispose his old ships. That is if he is true to his word.

But then I never saw a shipping company dominate a route simply because their ferries were all-new. One simply has to look at the experience of Maharlika I and Maharlika II then in the eastern seaboard routes of Matnog-San Isidro and Liloan-Lipata. They did not dominate. Schedules, discounts and rates are decision points too for shippers and passengers and it is not only the newness of the ship that matters. If it is 12 noon and the new ship will still be available at 3 or 4pm the shippers and the passengers will not wait for that. That is particularly true in the short-distance routes which are the routes of Starlite Ferries.

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A view of the stern of one of the new ships of Starlite Ferries (Photo by Carl Jakosalem)

There was news then that Starlite Ferries will enter the overcrowded Cebu-Western Leyte routes through the Cebu-Ormoc route. But though Starlite Ferries already had its new ferries nothing came out of that rumor. They were still on their home base and they still have no new routes while their fleet expanded by about 50% already and they were already shelling out amortization and carrying costs for the new ferries. And with probably no additional income to boot. Somehow something have give as additional ferries are being built for them in Japan. Was the ASEAN routes just a trial balloon?

If Starlite Ferries was doing well as what can be concluded from their press releases and as indicated by their new ships then why the sell-out?

I do not know if theirs is a case of biting what they cannot chew. A PhP 2.4 billion loan without new successful routes and with no sign competition is backing down is not easy to digest. Their new ships have no technical edge over competition unlike the new FastCats of Archipelago Philippine Ferries. It is simply new, nothing more. Maybe that was the reason there was rumor they will be given exclusive routes. But to where? Franchises or Certificates of Public Conveyance (CPC) of the competition can’t simply be cancelled. And maybe that was the reason for the underhanded push to get rid of 35-year old ferries through a questionable administrative fiat which has actually no empirical basis.

Is Alfonso Cusi bailing out before he chokes? The shipping company that acquired Starlite Ferries which is Chelsea Shipping has owners and patrons with very deep pockets. And they have cheap fuel and lubricants to boot which could be decisive in making sense for the new ferries of Starlite.

I am just reminded of a critical juncture in our shipping history in the 1960’s when we already needed to enlarge our inter-island passenger-cargo fleet. Some national liner companies like Escano Lines, General Shipping Corporation, Compania Maritima and Southern Lines Inc. took the route of acquiring loans to order brand-new ships from the National Shipyards and Steel Corporation (NASSCO) and West Germany shipyards. They regretted their decisions eventually.

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Port view of one of the new ships. Starlite Pioneer is the lead ship of the series (Photo by Carl Jakosalem)

Meanwhile at the same time Carlos A. Gothong & Company, William Lines Inc. and Sweet Lines Inc. decided to purchase second-hand vessels from Europe to be converted into passenger-cargo liners here and they came out ahead. For the same amount as a brand-new liner they were able to acquire two to three surplus ships of the same size, reliability and speed. Guess who was able to offer more routes and frequencies and which had more passengers and cargo. That decision vaulted Carlos A. Gothong & Company , William Lines and Sweet Lines to the Top 5 when they were not in that position the decade before.

Is history repeating itself here and Alfonso Cusi has seen the handwriting in the wall and wants to bail out early?