The TEFASCO vs PPA Case

Nowadays, there are already many private ports in operation in the country. This is because companies have the urge to build their own ports for simplicity of operation, savings and security. Some shipping companies also build their own ports for the same reasons and some are simply in the business of ports like the big ICTSI (International Container and Terminal Services Inc.) of taipan Enrique Razon Jr., one of the wealthiest businessman in the country.

Actually, if municipal ports are excluded there are more private ports than ports run by the Philippine Ports Authority (PPA) and the Cebu Ports Authority (CPA) which is in charge of Cebu Province ports. However, the most numerous in the country are the municipal ports which are under the LGUs (local government units) as most of the coastal towns in the country has ports that mainly cater to the fishermen and the passenger-cargo motor bancas. Some municipal ports are actually former PPA ports that were turned over to the LGUs mainly for political and practical reasons (as in the revenue will never cover the operational costs like labor, utilities, security, transportation, etc.).

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The whole of TEFASCO. With no gantry cranes yet. Photo by Mike Baylon of PSSS.

The terms for the approval of private ports is actually vague for me and I wonder if the rules are actually set in stone. This is because I have heard of cases where it seems the spirit if not the letter of the pioneering case clarifying that is really followed. The case I am referring to is the TEFASCO vs PPA case which unsurprisingly went on for 27 years as cases between big shots normally take that long in the Philippines. Since this case was finally decided by the Supreme Court it should have been the law as it is held that decisions of the Supreme are considered part of the law of the land. TEFASCO is the Terminal Facilities and Services Corp. which is located in Ilang, Davao City.

“….In a nutshell, the issues in the two (2) consolidated petitions are centered on: (a) the character of the obligations between TEFASCO and PPA; (b) the validity of the collection by PPA of one hundred percent (100%) wharfage fees and berthing charges; (c) the propriety of the award of fifty percent (50%) wharfage fees and thirty percent (30%) berthing charges as actual damages in favor of TEFASCO for the period from 1977 to 1991; (d) the legality of the imposed government share and the MOA stipulating a schedule of TEFASCO’s arrears for and imposing a reduced rate of government share; and, (e) the propriety of the award of attorneys fees and damages….”

Some of more relevant points decided by the Supreme Court on the said case:

“….Secondly, we hold that PPA’s imposition of one hundred percent (100%) wharfage fees and berthing charges is void. It is very clear from P.D. No. 857 as amended that wharfage and berthing rates collectible by PPA “upon the coming into operation of this Decree shall be those now provided under Parts 1, 2, 3 and 6 of Title VII of Book II of The Tariff and Customs Code, until such time that the President upon recommendation of the Board may order that the adjusted schedule of dues are in effect.”34 PPA cannot unilaterally peg such rates but must rely on either The Tariff and Customs Code or the quasi-legislative issuances of the President in view of the legislative prerogative of rate-fixing.

Accordingly, P.D. No. 441 (1974) amending The Tariff and Customs Code fixed wharfage dues at fixed amounts per specified quantity brought into or involving national ports or at fifty percent (50%) of the rates provided for herein in case the articles imported or exported from or transported within the Philippines are loaded or unloaded offshore, in midstream, or in private wharves where no loading or unloading facilities are owned and maintained by the government. Inasmuch as the TEFASCO port is privately owned and maintained, we rule that the applicable rate for imported or exported articles loaded or unloaded thereat is not one hundred percent (100%) but only fifty percent (50%) of the rates specified in P.D. No. 441.

As regard berthing charges, this Court has ruled in Commissioner of Customs v. Court of Tax Appeals36 that “subject vessels, not having berthed at a national port but at the Port of Kiwalan, which was constructed, operated, and continues to be maintained by private respondent xxx are not subject to berthing charges, and petitioner should refund the berthing fees paid by private respondent.” The berthing facilities at Port of Kiwalan were constructed, improved, operated and maintained solely by and at the expense of a private corporation, the Iligan Express. On various dates, vessels using the berthing facilities therein were assessed berthing fees by the Collector of Customs which were paid by private respondent under protest. We nullified the collection and ordered their refund –

The only issue involved in this petition for review is: Whether a vessel engaged in foreign trade, which berths at a privately owned wharf or pier, is liable to the payment of the berthing charge under Section 2901 of the Tariff and Customs Code, which, as amended by Presidential Decree No. 34, reads:

Sec. 2901. Definition. – Berthing charge is the amount assessed against a vessel for mooring or berthing at a pier, wharf, bulk-head-wharf, river or channel marginal wharf at any national port in the Philippines; or for mooring or making fast to a vessel so berthed; or for coming or mooring within any slip, channel, basin, river or canal under the jurisdiction of any national port of the Philippines: Provided, however, That in the last instance, the charge shall be fifty (50%) per cent of rates provided for in cases of piers without cargo shed in the succeeding sections. The owner, agent, operator or master of the vessel is liable for this charge….”

“….Sec. 2901. Definition. – Berthing charge is the amount assessed against a vessel for mooring or berthing at a pier, wharf, bulkhead-wharf, river or channel marginal wharf at any port in the Philippines; or for mooring or making fast to a vessel so berthed; or for coming or mooring within any slip, channel, basin, river or canal under the jurisdiction of any port of the Philippines (old TCC).

Sec. 2901. Definition. – Berthing charge is the amount assessed a vessel for mooring or berthing at a pier, wharf, bulkhead-wharf, river or channel marginal wharf AT ANY NATIONAL PORT IN THE PHILIPPINES; for mooring or making fast to a vessel so berthed; or for coming or mooring within any slip, channel, basin, river or canal under the jurisdiction of ANY NATIONAL port of the Philippines; Provided, HOWEVER, THAT IN THE LAST INSTANCE, THE CHARGE SHALL BE FIFTY (50%) PER CENT OF RATES PROVIDED FOR IN CASES OF PIERS WITHOUT CARGO SHED IN THE SUCCEEDING SECTIONS. (emphasis in the original)….”

Which just means the PPA cannot arrogantly charge any amount it wants. It is still subject to the existing laws of the land. And whatever, the classification if a port is “national” or not is important. If the PPA gets 100% of the wharfage and berthing charges, how can a private port survive especially when the PPA or the government has not invested anything in the private port? That is almost confiscatory already.

Other juicy things pointed out by the Supreme Court”

“….It is, therefore, our considered opinion that under Section 2901 of The Tariff and Customs Code, as amended by Presidential Decree No. 34, only vessels berthing at national ports are liable for berthing fees. It is to be stressed that there are differences between national ports and municipal ports, namely: (1) the maintenance of municipal ports is borne by the municipality, whereas that of the national ports is shouldered by the national government; (2) municipal ports are created by executive order, while national ports are usually created by legislation; (3) berthing fees are not collected by the government from vessels berthing at municipal ports, while such berthing fees are collected by the government from vessels moored at national ports. The berthing fees imposed upon vessels berthing at national ports are applied by the national government for the maintenance and repair of said ports. The national government does not maintain municipal ports which are solely maintained by the municipalities or private entities which constructed them, as in the case at bar. Thus, no berthing charges may be collected from vessels moored at municipal ports nor may berthing charges be imposed by a municipal council….”

So an LGU cannot charge berthing charges. I wonder how many LGUs can actually cited for contempt. But they have no problem because 100,000 lawyers in the country won’t file contempt charges if they will not be paid for that.

The Supreme Court further added:

“….Moreover, PPA is bereft of any authority to impose whatever amount it pleases as government share in the gross income of TEFASCO from its arrastre and stevedoring operations….” (bold letters were in the original decision)

“….Henceforth, PPA shall collect only such dues and charges as are duly authorized by the applicable provisions of The Tariff and Customs Code and presidential issuances pursuant to Sec. 19, P.D. No. 857. PPA shall strictly observe only the legally imposable rates. Furthermore, PPA has no authority to charge government share in the gross income of TEFASCO from its arrastre and stevedoring operations within its subject private port in Davao City….”

The case adverted to is here:

http://www.chanrobles.com/scdecisions/jurisprudence2002/feb2002/135639.php

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TEFASCO port with the gantry cranes. Photo by Mike Baylon of PSSS.

The Un-achieved Blessing of the Eastern Seaboard RORO-Capable Port Towns

I am talking here of the port towns of Pilar and Matnog in Sorsogon, Allen and San Isidro in Northern Samar, Liloan and San Ricardo in Southern Leyte. When port ferry terminals were built there decades ago (a decade in San Ricardo’s case) to connect the islands there were high hopes of them being economically developed from being poor and distant towns to something better.

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Pilar port by Christian Von Jaspela of PSSS.

But that clearly did not happen and it seems it won’t be happening soon, no way. Those towns are still lagging economically in all ways. The populations are still small, no infrastructure to boast off, no commercial developments and the municipal incomes are still way down. They are not even first class towns and the best of them is a third class town which is just about average in the hierarchy of Philippine towns in income. They will not compete in any way with the string of towns between Butuan City and Davao City which are almost all first class towns because of agribusiness.

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Matnog Ferry Terminal by Britz Salih of PSSS.

The big question is why is it that these towns where so many travelers and vehicles pass through have nothing to boast of when they take in lots of forced collections which are actually illegal according to the Supreme Court in two decisions? In whatever guise whether it is called ‘regulatory”, “environmental” or for garbage these were all declared illegal because the Supreme Court said it is a form of travel tax and only the national government has the right to levy such.

Even the levying of collections against vehicles was also ruled illegal by the Supreme Court. In his ponencia, the then Chief Justice Artemio Panganiban said only High Urbanized Cities (HUCs) can levy a certain kind of rate on trucks using the port and that should only be for P500 a year. Now, none of the towns I mentioned is an HUC so clearly they have no right to such levy.

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BALWHARTECO port of Allen by Joe Cardenas of PSSS.

And yet after collecting so much from travelers and vehicles passing through their town, Pilar, Matnog, Allen, San Isidro, Liloan and San Ricardo have no development to show after these decades. Worse, it seems these “other incomes” do not show in full in the income reports of these towns. Do all of these collections really go to government coffers? If it did then there must be some infrastructure development that they can show off already.

These illegal levies just go on and on despite two Department of the Interior and Local Government (DILG) memorandums because no one files a case of contempt or injunction and no one is hauled to jail (that is the only thing lawbreakers fear). It only stops if it is foreigners who question these things like what happened in the case of the Island Garden City of Samal. Well, they say we are governed by laws and there is “rule of law” (or is it “rule of law-ko”, the longer form of “loko”?) Maybe in Davao City only as the city government here did not try to collect any of these illegal fees.

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San Isidro Ferry Terinal by Grek Peromingan of PSSS.

What changed anyway after all these years when in the old past having a port is a passport to development? Well, in the past when there is a port there are compradas for the likes of abaca, corn and coconut. And these are loaded into ships manually (which provide income too) and brought to the likes of Cebu City. In return there are bodegas and stores which bring products from the city to the port town for distribution even to the neighboring towns.

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Liloan Ferry Terminal by Britz Salih

Maybe all these commerce where profit is made and provides livelihood and capital to farmers is the reason why old port towns generally became prosperous. And this seems to be no longer true in the new RORO-capable port towns where goods just pass through, literally. But the question that begs to be asked is what has the local government done to harness the opportunities  in the passing cars, trucks and people? Are they simply content is collecting from them illegal exactions like a landlord (at least this has the legal right)? If such is the case then woe to them and their people. Nothing will really change for them.

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Benit port by Mike Baylon of PSSS.

Actually, the case I am presenting is also true in other parts of the country but I found that more pronounced on the eastern seaboard of the country. Maybe this is a case for serious study by true scholars. It can even be a subject of a thesis.

Whatever, I hope there is a solution to this conundrum.

The Greatest Port in Northwestern Mindanao

The greatest port in northwestern Mindanao is actually not so obvious to many as it is not looked upon as a good port of entry. Ports like Davao, Zamboanga and Cagayan de Oro and others always overshadow it. Of course, many do not know its history. And having a small port area and limited wharfage, it does not really impress outside observers. I am talking here of the Port of Ozamiz (that is using the modernized spelling) in Misamis Occidental.

Originally, it was not even Ozamiz that became the first prominent port in Misamis Occidental even though Misamis, the earlier name of Ozamis, was the capital of the unified Misamis province before the war. Cagayan de Misamis, the current Cagayan de Oro (no, it does not have gold) was small compared to Misamis town. In prominence, the Jimenez port of Misamis Occidental rivaled Misamis port because the oil mill of the Chiongbians (and nobody in shipping does not know them) was there and copra was the most important crop of the province. An oil mill was a very big deal then in a municipality.

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Ozamiz port by Mike Baylon of PSSS.

Before the war, there were not many liners from Manila except when our passenger-cargo ships got bigger in the late 1920s. Northern Mindanao mainly connected to Cebu then but after the war, liners from Manila became commonplace. A route calling in Cebu, Tagbilaran, Dumaguete, Ozamis and Iligan looping around those five ports was common and the premier exponent of that is William Lines, obviously, as Misamis Occidental is their home turf.

Being provincial capital favored Misamis in their rivalry with other ports early but then it was removed as capital in favor of Oroquieta City.  But the biggest asset of Ozamiz port is its connection to Mukas port of Kolambugan in Lanao del Norte across the narrow Panguil Bay. Tamula Shipping dominated that connection then with wooden-hulled boats progressing to small cruiser ships later. Tamula Shipping was a pre-war shipping company starting from the American father-in-law of Tamula.

After the war, Pagadian of Zamboanga del Sur had its own liners from Manila. Along the years, in the 1970s, the liners left Pagadian. 1970s was the peak of the roadbuilding then in the country when once dirt roads were concreted. This roadbuilding impacted shipping in many ways, both positively and negatively. But in Ozamiz’s case, the new road uplifted it as traders, shippers and passengers of Zamboanga del Sur began moving toward Ozamiz. The travel time through Ozamiz and by road from that was shorter and cheaper compared to using Pagadian which loops around Zamboanga City. Actually, this route to Pagadian even reaches Cotabato as there were nightly big motor boats going there that lands in the city proper instead of Parang, Maguindanao which is still a good distance from Cotabato City.

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Ozamiz Port passenger terminal building by Mike Baylon of PSSS.

Ozamiz also served as a liner gateway to western Lanao del Norte through the Tamula ferries and later the Daima Shipping double-ended ferries which ended the reign of Tamula in Panguil Bay when Tamula failed to convert to ROROs. With the ROROs and the trucks and buses aboard it, Ozamiz’ reach magnified. Ozamiz became or became more prominent as the trading and distribution center in the area between Zamboanga and Cagayan de Oro.  Trucks from Ozamiz routinely reach Ipil, the capital of Zamboanga Sibugay. With that the ships from Zamboanga to Ipil and Kabasalan lost.

Ozamiz is actually the 5th busiest port in the country in 2018 in terms of passengers handled after Cebu, Batangas and Calapan ports and even ahead of Manila and other great ports. This is actually because of the big volume of passengers aboard the Daima ferries that cross to and from Lanao del Norte. Ozamiz is the shopping, trade and scholastic center of western Lanao del Norte (it is not Iligan City). Additionally, passengers from Lanao del Sur and Maguindanao can use Ozamiz port as there are vans from Kapatagan, Lanao del Norte that go to Cotabato City.

Lately, Ozamiz port even became the entry port of ships imported to the country especially by the Asian Marine Transport Corporation (AMTC). However, one down side I noticed is Manila liners and container ships including Manila companies do not know how to use and support Ozamiz port. With that the dominance of Cebu traders in Ozamiz continues. Can’t goods from Manila be sent direct to Ozamiz instead of going through Cebu? Take a look at the major Manila corporations. They do not have offices like what they have in Cagayan de Oro or Zamboanga City. Well, I know that the common availability of the “white powder” in Ozamis frightened them. Ozamiz port was also limited in size and in the back-up area.

Now there is a threat to Ozamiz port. Dapitan port is gaining in prominence and the rolling cargo loaded there for Dumaguete and Cebu were taken from Ozamiz. The fish that was once shipped from Ozamiz is now trucked through Dapitan. Recently, the Galas port of Dipolog also became a threat to Ozamiz port. Those two ports even handle trucks and passengers on the way to Ipil, the rest of Zamboanga Sibugay and Zamboanga City. Ozamiz port is being outflanked.

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Ozamiz port by Mike Baylon of PSSS.

Whatever, Ozamiz needs to have a forward-looking plan how to bring the city to the next level as trading and distribution center. After all it is cargo that brings in ships. Moreover, the bottleneck of vehicles between Mukas port in Tubod and Ozamis must be addressed and so is the congestion in Ozamiz port. Ozamiz must learn how to conquer the Narciso Ramos Highway in Lanao del Sur because that is not within the reach of the Dapitan and Dipolog ports. The old leadership in Ozamiz with plenty of “parochial” concerns was now toppled by President Duterte. The succeeding leaders should now prove their worth.

Did you know that the leading trading and distribution centers have archbishops particularly those outside Luzon? Well, Ozamiz has an archbishop.

Take a cue from that.

When Eastern Visayas Ports And Shipping Were Still Great

Growing up I heard tales from my late father how great Tacloban port was. He told me about its importance, its physical dimensions, the location, the size of the bodegas outside it and even its relation to Gen. Douglas MacArthur. I had the idea that Tacloban was the greatest port east of Cebu and my father told me that no port in the Bicol Region compares to Tacloban port and not even his beloved Legaspi port (that was the spelling of it then before it became “Legazpi”). He told me Tacloban port will not fade because the Romualdezes were in power in Leyte and everybody knows the relation of that clan to Ferdinand Marcos then (still a President, not yet a dictator). Ironically, my father was later proven wrong not because of politics but because of a paradigm shift in shipping that he was not able to anticipate (when the intermodal trucks and buses sank Eastern Visayas shipping).

So I always wondered what made Tacloban port click then. From my father, when I was still young, I got to learn what is a regional trade center, a regional capital, the importance of the two and it so happened that Tacloban happened to be both. The city by Cancabato Bay was really the dominant market east of Cebu City, bar none. My father always drilled me about cash crops and commodities and how it impacted or shall we say how it shaped shipping. He told me the government can always build ports and send ships to a port by inducement but he said if there is no cargo it won’t last as he stressed cargo makes shipping and not the other way around. Now, how many in government knows that maxim? Definitely not Gloria Macapagal Arroyo who loves “ports to nowhere” a lot!

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Tacloban port. Photo by Gerry Ruiz.

My father was very aware of the shift of the primary cash crop from abaca to copra in the 1950’s and its impact on shipping. In high school, I saw that with my own eyes. Proud, wealthy families in our province which grew rich on abaca handicrafts and trading suddenly became more modest in living. I saw how their bodegas became empty and how the abaca workers suffered. At the same time, I also saw how busy the private port of Legaspi Oil became. Legaspi Oil, an American firm, was then the biggest copra exporter of the country.

Our old man also told me about San Pablo City and how desiccated coconut and coconut oil milling made it one of our earliest cities. He also related me when I was in high school that Laguna was no longer the king of coconut. Leyte was the new lord and I understood by inference how that will boost Tacloban port, its shipping and the city itself.

With PSSS (Philippine Ship Spotters Society) co-founder Gorio Belen’s research in the National Library I had more flesh of what my father was telling me when I was young. Tacloban was a great port of call in the 1960’s and 1970’s and that was visible with the frequency of ships there and the quality of its ships. Definitely it cannot match Cebu or even Iloilo but it was not far behind the latter. And to think the latter had ships calling that were still going to Zamboanga and Southern Mindanao (Cotabato, Dadiangas and Davao). Tacloban also had ships still going south to Surigao, Butuan or even Davao but it was not that many. What Tacloban had were ships calling in Catbalogan or Masbate before steaming further. There were also ships calling in Tacloban first before heading for Cebu.

Entering the ’60’s, Iloilo had 10 ship calls weekly while Tacloban had 7. That was when Cagayan de Oro only had 4 ship calls per week from Manila but Butuan and Surigao both had 6 each. Won’t you wonder with those figures? Well, Cagayan de Oro only became great when it became a gateway to Southern and Central Mindanao with the improvement of the highways. That will also tell one how Tacloban, the gateway to Eastern Samar then, stacked up to other ports. Catbalogan is also not far behind because in the main the ships that called on Tacloban also called on Catbalogan first to maximize passenger and cargo volume.

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Catbalogan port. Photo by Joe Cardenas of PSSS.

In the 1960’s, it was air-conditioning that already defined what is a luxury ship and Tacloban was among the first that had a ship with air-conditioning beginning with the MV Sweet Rose in 1967 (and she served Tacloban for long) and the MV Sweet Grace in 1970. Both were liners of Sweet Lines and they were good ships with good service (I first heard that phrase from my late father, funny). And that was when other great shipping companies still did not have that kind of ship (and that will also tell how great Sweet Lines then). Even the great port of Cebu still had plenty of ex-”FS” ships then which was the basic kind of liner then. And that will give one a view of how important Tacloban port was in those days.

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The MV Gen. Roxas which became the MV Sweet Rose. Philippine Herald photo. Reseach by Gorio Belen in the National Library.

A little of history. Right after the war, two shipping companies fought it out in the main Eastern Visayas ports of Tacloban and Catbalogan. These two were the old shipping company Compania Maritima which was of Spanish origin and the General Shipping Company (GSC) which were formed by former World War II military aides coming from distinguished Filipino families that were part of the comprador bourgeoisie. At one time, GSC had more ships to the two ports with three while Compania Maritima only had two. Another old shipping company, the Escano Lines also fought in the Tacloban route. Unlike the two, the ships of Escano Lines still went on to Surigao and Butuan which were their stronghold.

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MV Leyte. Gorio Belen research in the National Library.

There were some smaller shipping companies too in the route like the Philippine Sea Transport, Veloso Lines, Corominas Richards Navigation and the Royal Lines. Among the single ships that also called in the two ports were the M/S Leyte Lady and M/S Lady of Lourdes. In the mentioned shipping lines, converted “FS” and extended “F” ships were the types calling in the two ports. Among that type that served long in the route (but not continuously) was the MV Leyte of Compania Maritima and I mentioned that because that was notable.

In 1955, Everett Steamship through the Philippine Steamship and Navigation Company (PSNC), a joint venture of Everett and Aboitiz entered Catbalogan and Tacloban with the quixotic route Manila-Catbalogan-Tacloban-Bislig-Davao-Dadiangas-Cebu-Manila. They used two brand-new liners alternatingly, the MV Legazpi and the MV Elcano. Those two were the first brand-new liners used solely in the local routes (to distinguish them from the big De la Rama Steamship liners that soon ended up in ocean-going routes).

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Gorio Belen research in the National Library.

The MV Legazpi and MV Elcano were sister ships and fitted what was soon emerging as the new luxury liner class in the country (but the two were not at par with some of the luxury ships before especially the De la Rama Steamship liners which were lost in the war). If one has the money the route was a good way to tour the country and is a direct way to Southern Mindanao without going first to Cebu (because normally a passenger need to go there first from Eastern Visayas to take a connecting voyage). It was a nice route but sadly it did not last long because from the eastern seaboard route its route was shifted to the route rounding Zamboanga (I guess the reason was there was more business there and the seas were not so rough).

In the early ’60s, the Philippine Pioneer Lines, a subsidiary of the Philippine President Lines (PPL) also tried the Catbalogan plus Tacloban route. When they stopped sailing, their successor shipping company Galaxy Lines continued sailing that route but they did not last long when they folded operations as a company. The two companies used ex-“FS” and ex-“AKL” ships from the US Navy.

When General Shipping Company stopped local operations to go ocean-going in the mid-60s (and that provoked a break within the company), one of the companies which acquired half of their fleet and routes was the upstart Sweet Lines which was trying to follow the path of Go Thong & Company in trying be a national liner operation from a regional operations by acquiring an existing national liner shipping company which is quitting business. The other half of General Shipping fleet went to Aboitiz Shipping Company which then was revived as a shipping company separate from PSNC (and maybe the reason was the coming termination of the so-called “Parity Rights” in 1974). However, it was the PSNC that was used as the entity to re-enter the Tacloban but just using an ex-”FS” ship, the MV Carmen which came from the General Shipping Company and renamed.

At this time, however, the dominant shipping company in the Tacloban and Catbalogan route/s was already Compania Maritima (it was also the biggest shipping company then in the Philippines) after their main rival General Shipping exited the local shipping scene. The company had three ships assigned there, two of which were ex-”FS” ships including the aforementioned MV Leyte.

The year 1967 marked a change in the Tacloban and Catbalogan route. For the second time after the short-lived fielding of the luxury liners of PSNC the route had luxury liners again and two were competing against each other. The notable thing was they both came from General Shipping and both were local-builds by NASSCO (National Shipyards and Steel Corp., the current Herma Shipyard) in Mariveles, Bataan. These were the former second MV General Roxas which became the MV Sweet Rose and the former second General Del Pilar which became the third MV Mactan of Compania Maritima.

However, the two were not fast cruiser liners. This category was already multiplying in the country with the fielding of the 17.5-knot brand-new cruisers of Negros Navigation Company, the MV Dona Florentina in 1965 and the MV Don Julio in 1967. This was preceded by the MV President Quezon of the Philippine President Lines which later became the MV Galaxy of Galaxy Lines which was first fielded in 1962. A note, however, the earlier MV Don Julio of Ledesma Lines which was an overpowered (by putting a submarine engine) ex-”FS” ship can also be classified as a fast cruiser liner and it also served the Leyte route shortly as the MV Pioneer Leyte of Philippine Pioneer Lines.

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The earlier MV Don Julio which became the MV Pioneer Leyte. Gorio Belen research in the National Library.

In this tight market, a small shipping company serving Bicol and Northern Samar also tried a Catbalogan and Tacloban route. This was the Rodrigueza Shipping Corporation which was already feeling the effects of the Philippine National Railways in Bicol regarding the movement of cargo. However, two Chinoy shipping companies that will dominate Philippine shipping in a decade-and-a-half’s time were still not represented in the route. The two were William Lines and Sulpicio Lines (which was not yet existent then). The mother company of Sulpicio Lines which was Carlos A. Gothong & Co. was also not in this route at this time. They will come in two years time, however, with the fielding of the first MV Don Enrique which was a lengthened former “FS” ship. You know they tended to start quietly.

Many ex-”FS” ships or even smaller ships were battling in the Catbalogan and Tacloban routes after 1967. Many will battle for there is cargo and copra was so strong then (exports to the US, Japan and Germany when we had 44% share of the world’s exports) not only in Tacloban but also in a way in Catbalogan which was synonymous with fishing before overfishing caught up with them. In this era, imported rice does not yet go direct to the provincial ports and Eastern Visayas is a rice-deficit region and Cotabato and other parts of the country sends rice to it through trans-shipment. Many other grocery and hardware items also come from Manila to the region as Eastern Visayas was not an industrial region.

In the luxury liner category, however, the MV Sweet Rose of Sweet Lines and the  MV Mactan of Compania Maritima started their battle. This was actually a very even battle because the two were sister ships but the third MV Mactan was faster at 16 knots to the 13.5 knots of the MV Sweet Rose because she was fitted with a bigger engine. Compania Maritima fielded the MV Mactan here because the MV Sweet Rose was overpowering their MV Leyte which was just a lengthened ex-”FS” ship. In a few years, however, the MV Mactan will sink in a storm and MV Leyte will come back in the Eastern Visayas routes.

Leading into the next decade, the 1970’s produced significant changes. Aboitiz Shipping Corporation, the successor to PSNC abandoned their Catbalogan and Tacloban routes and just concentrated in Western and Southern Leyte which was their origin (it had lots of copra too). Morever, the rising William Lines was already present and two successor companies of Go Thong & Company, the Sulpicio Lines and Carlos A. Gothong Lines+Lozenzo Shipping Corporation (two shipping companies with combined operations before their split in 1979) were also plying the Catbalogan and Tacloban routes but they were just using ex-”FS” ships. The old partner of Aboitiz Shipping Corporation before the war, the Escano Lines also left Tacloban but maintained Catbalogan as a port of call as long as their MV Rajah Suliman was still capable of sailing.

In the stead of the lost minor shipping lines of the region like Veloso Lines, some minor shipping companies were also doing the route. Among them were N&S Lines and NORCAMCO Lines which were actually Bicol and Northern Samar shipping companies. The two were looking for routes near their turf because of lost passengers and cargo from the opening up of the Maharlika Highway. Well, although Maharlika Highway was not yet fully paved, the trucks were beginning to roll to Bicol and maybe somehow they have already seen the handwriting on the wall. Rodrigueza Shipping, also a Bicol shipping company stopped sailing the route.

Soon, however, Sulpicio Lines upped the ante and fielded a liner with size, air-conditioning and service that will challenge the MV Sweet Rose and MV Mactan. This was the MV Dona Angelina which was a former refrigerated cargo ship in Europe. That type of ship, when converted here as a passenger-cargo ship will automatically have the availability of refrigeration and air-conditioning. At 13.5 knots design speed, she can match the pace of the MV Sweet Rose but not of the MV Mactan. The MV Dona Angelina was the second ship of Sulpicio Lines in the route.

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Gorio Belen research in the National Library.

In response, Sweet Lines brought in their former flagship into the route, the MV Sweet Grace which was acquired brand-new from West Germany in 1968. She has the speed of 15.5 knots but she was not bigger than MV Dona Angelina or even the MV Dona Vicente (that later became the MV Palawan Princess) which was assigned also to the route. Competition was really heating up in 1974 and I remember this year was the peaking of copra prices just before its great fall.

Things were really heated up because next year Sulpicio Lines brought in their new flagship MV Don Sulpicio on its way to Cebu which means a Manila-Catbalogan-Tacloban-Cebu route. Can you imagine that? If former flagship and current flagship will battle in this route then that means Tacloban and Catbalogan were very important ports then. And to think the later well-regarded MV Dona Vicenta also practically debuted on that route. Well, copra was still then a very important crop. In fact it was our primary cash crop then. By the way, the flagship MV Don Sulpicio was the later infamous MV Dona Paz and she came from Tacloban and Catbalogan on her last voyage.

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Gorio Belen research in the National Library.

In the heat of this competition, it was actually the old dominant Compania Maritima that was wilting. Their MV Mactan foundered in 1973 and there was no good replacement available and so the old ship MV Leyte was left shouldering alone and she was already badly outgunned by the ships of Sulpicio Lines and Sweet Lines. In the 1970’s there was no way a former “FS” ships can match the new liners that came from Europe. They simply were bigger, faster and had more amenities.

When the MV Don Sulpicio was assigned the exclusive Manila-Cebu route to join the two-way battle there of MV Cebu City and MV Sweet Faith, the good MV Dona Vicenta replaced her in the route and teamed up with the MV Dona Angelina. In 1976, however, William Lines fielded a very worthy challenger, the namesake of Tacloban which was the MV Tacloban City and she held the Catbalogan and Tacloban route for a long, long time. At 17.5 knots design speed she can match the best of Sulpicio Lines and Sweet Lines. Aside from speed she can also match in size, accommodation and service.

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Gorio Belen research in the National Library

And so in this year several ships that can be classified as luxury lines were battling in the route. That was an indication how important was that route. As a note, however, the MV Sweet Grace was reassigned by Sweet Lines to other routes especially since their luxury liner MV Sweet Home was no longer reliable. Meanwhile, the shrinking former nationally dominant Compania Maritima no longer fielded a second ship since they were already lacking ships because they no longer acquired a ship since 1970 despite a rash of hull losses.

In 1979, the death knell of Catbalogan and Tacloban ports was sounded clear although few realized it at that time for there was no concept of intermodal shipping before. This was the fielding of MV Cardinal Ferry I of Cardinal Shipping to span the San Juanico Strait and buses and trucks to and from Manila immediately rolled the new highways of Samar and Leyte. By this time copra as the primary cash and export crop of the country was already receding fast in importance because the export market was already shrinking due to the rise of what is called as substitute oils like corn oil, canola oil and sunflower oil.

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Gorio Belen research in the National Library

It was not Catbalogan and Tacloban which were first swamped by paradigm changes but the other ports of Samar like Laoang, Victoria and Calbayog (which I will discuss in another as these ports are more connected to Bicol and Masbate). The fall of Catbalogan and Tacloban ports will happen much later when copra has almost lost its importance. This was also the time that Manila oil mills has already been sidelined too by the rise of new oil mills in the provinces (and the government actually promoted that).

Although sliding now, for a time it looked like Tacloban and Catbalogan ports will hold on to the onslaught of the intermodal. One reason for that was in the crisis decade of the 1980’s it was the Top 2 Sulpicio Lines and William Lines that were still battling there and for sure none of the two will budge an inch. That was the decade when so many shipping companies quit business altogether (and that was most of our liner companies) and actually no shipping company was left unscathed.

In the late 1980’s, Carlos A. Gothong Lines Inc. (CAGLI) made a comeback in national liner shipping but it did not enter Tacloban or Catbalogan. Instead, they called on the Western Leyte ports of Palompon, Isabel and Ormoc before proceeding to Cebu and it was actually a very successful route for them. Also, the Madrigal Steamship came back to passenger shipping with good luxury liner cruisers (which were already obsolescent as it was already the  time of ROROs or Roll-on, Roll-off ships) and it had a Manila-Romblon-Catbalogan-Tacloban route.

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Gorio Belen research in the National Library

However, this was not a long plus to Eastern Visayas liner shipping because in the early ’90s the venerable Sweet Lines and Escano Lines quit passenger shipping and although the latter still had cargo ships their presence were already receding in the region. And then the Madrigal Steamship did just last a few years and quit their passenger shipping also. There were no other entrants in this period to the region except just before the end of the millennium when the MBRS Lines of Romblon, seeking new routes entered the San Isidro port in Northern Samar. However, they also did not last long.

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MV Our Lady of Sacred Heart in Ozamis port. Jorg Behman photo. Credits: John Luzares

When the “Great Merger”which produced the shipping company WG&A happened in 1996, they did not add a new ship and just altered two routes a little. Actually, what happened is they even pulled out a ferry from Carlos A. Gothong Lines and just left one which was mainly the MV Our Lady of Sacred Heart (WG&A is a shipping company which changed route assignment every now and then). However, one of their ships which was passed on to their regional subsidiary Cebu Ferries Corporation (CFC) tried a Manila-Ormoc-Nasipit route using the MV Our Lady of Akita 2 which was the former MV Maynilad. Although successful, she did not last long because she grounded in Canigao Channel and was never repaired.

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Credits to Toshihiko Mikami and funikichemurase

The last two liners to serve Catbalogan and Tacloban were the MV Masbate Uno of William Lines and WG&A and the MV Tacloban Princess of Sulpicio Lines which had identical routes. The MV Cebu Princess also spelled the latter ship when she was down for repairs. When the MV Masbate Uno left as the the MV Our Lady of Manaoag of Cebu Ferries Corporation she was briefly replaced by the MV Our Lady of Naju in the Tacloban route.

Catbalogan and Tacloban finally had no liners left when Sulpicio Lines was suspended from passenger operations in 2008 when their MV Princess of the Stars sank in a typhoon and the MV Tacloban Princess was sold to a local breaker. That suspension also meant the end of the old MV Palawan Princess of Sulpicio Lines serving the ports of Calubian, Maasin and Baybay in the island of Leyte. That also meant the end of the Manila-Masbate-Ormoc-Cebu route of the MV Cebu Princess of Sulpicio Lines. The WG&A also abandoned Tacloban and just tried to hold on to their Palompon/Ormoc route

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Photo by John Cabanillas of PSSS.

In a short time, however, the Aboitiz Transport System (ATS) which was the successor to WG&A also abandoned their Western Leyte routes too. However, for a time ATS came back and served Ormoc with the Manila-Romblon-Ormoc-Cebu route using the MV St. Anthony of Padua but that did not last long.

Now there are no more liners to Eastern Visayas and only oldtimers remember when its ports and shipping were still great. What the millennials know now are the intermodal buses and the so-many trucks in the many ports of Allen, Northern Samar.

Times have changed. The paradigm changed, too.

 

 

 

 

 

 

 

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 Unique Nasipit Port and Bay

Nasipit is the main port of Agusan after the Butuan ports (Butuan and Lumbocon) lost that status because the ships no longer came. That was because of the siltation of Agusan River and the general increase in the size and depths of the ships. Nasipit port is unique in topographic sense. It is located in a nearly enclosed bay which looks like a pond. Two enclosing spits of land nearly closes the outlet of the bay. As such Nasipit port is probably the most protected port in the Philippines. But it is deep enough that 160-meter ferries used to dock before in Nasipit. Those were great liners Princess of Paradise of Sulpicio Lines Inc. and the Our Lady of Akita of Carlos A. Gothong Lines Inc. which later became the SuperFerry 6 of WG&A.

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Photo by Janjan Salas

The very small Nasipit Bay was once the home of the famed Nasipit Lumber Inc. which used to produce veneer, plywood and other types of processed wood products. The plant of the company was once the original user of that bay and the bay also served as the stocking pond of their logs and their wharf inside the bay was where the cargo ships loading their products once docked. Nasipit port was built adjacent to Nasipit Lumber with the latter nearer the entrance of the bay. Nasipit Lumber has closed long ago when logs and lumber became scarce and new rules protecting the ancestral domain were drawn. Now that plant is even gone now including the buildings. What remained are some the concrete floors and just parts of their old wharf.

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The former location of Nasipit Lumber

Now the permanent resident of the bay is the power barge of Therma Marine Inc., an Aboitiz Power Corporation subsidiary and this is located in the inner part of the nearly-enclosed bay. Also in Nasipit Bay, inside the port is the Port Maritime Office (PMO) of the Philippine Ports Authority (PPA) which is in charge of all the ports in the Caraga Region. The manager of it and the employees wants it transferred to Butuan, however, because it is there that where most of them live. I don’t know if that will push through. Nasipit Bay is also home to swirling rains I have not observed anywhere else and maybe that is due to the peculiar topography of the Nasipit inlet which are surrounded by high hills in a particular way.

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The power barge of Therma South

Nasipit port is a straight quay where the middle it was broken by a slanted RORO ramp which is just a recent alteration. In the inner end smaller ships like tugs and Philippine Coast Guard (PCG) patrol boats are docked. There is a transit shed for cargo and a passenger waiting area in the port terminal building. Docking for big ships is a precise maneuver inside the Nasipit inlet as the bay is very small and there are shallow portions and it is especially dangerous when it is low tide. However, there are not s to contend unlike in the exposed ports.

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Nasipit port has been the port of passenger ships for a long time now not because it is convenient or near the city (it is actually out of the way and relatively far from the town and highway). The change happened in the 1970’s when the ports of Butuan became shallower because of siltation and there was lack of dredging (the results of which are often just undone by raging annual floods of the great Agusan River). By the 1980’s, Nasipit port has already supplanted the Butuan ports especially since the shallow-draft ex-”FS” ships were already dying from old age and the replacements of that type were already bigger. However, even though the ports have changed many passenger shipping companies still used the name “Butuan Port” when actually they were already docking and using Nasipit port and this entailed confusion to the uninitiated including land-bound researchers doing shipping studies.

There were passenger vessels which did both the Butuan and Nasipit ports. They just gave up on Butuan port when docking there became much dependent on high tide (and risk waiting until noon at times when this would already jeopardize departure time because loading and unloading using booms and porters is slow). One example of this were the former “FS” ships of the Bisaya Land Transport Company of the Cuencos of Cebu (no typo there, that is the actual name of a shipping company which is a division of their land transport). When they find it impossible to dock in Butuan, they then proceed to Nasipit port (to the complain of many passengers).

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The MV Samar of Compania Maritima (Credits to Philippine Herald and Gorio Belen)

Compania Maritima, the leading shipping company after the Pacific War was one of the earliest to use Nasipit port. Their passenger-cargo ship Samar which is the bigger type of US war-surplus ship used to dock in Nasipit port. That was also true for their passenger-cargo ship Mactan which was in the 80-meter class and whose depth is two meters over the depth of an ex-”FS” ship, the last type of passenger ship that can be shoehorned in the shallow Butuan ports. Their Mindoro and Romblon, both converted ex-”FS” ship docked at both Butuan and Nasipit ports (and maybe that is to increase the passengers and cargo). Their Panay, a bigger ship docked at Nasipit when it can’t in Butuan. Later, even their ex-”FS” ship Leyte was calling exclusively in Nasipit port. Compania Maritima was the first to dominate Nasipit port when the Chinoy shipping companies were just on their way up and not calling on Nasipit port. In the main they came to Nasipit port when Compania Maritima was already gone.

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The MV Panay of Compania Maritima (Credits to Philippine Herald and Gorio Belen)

Some actually just gave up on the Agusan trade when their ships can no longer dock in Butuan and they did not really try to earnestly use Nasipit port like Escano Lines which used to be strong in Butuan. Well, it must have been frustrating for them when the ship can’t dock after a few hours of waiting and then would have to go to Nasipit port anyway to load and unload. Moreover, the floods of Agusan River that happen many months of the year with its floating logs and other debris which can damage the ship propellers and rudders also added to the vagaries in docking in Butuan.

By the 1980’s the passenger ship calls on Nasipit, Butuan and Surigao which are all connected ports went down considerably. There was a big, general downturn in the economy because of economic crisis and container ships began supplanting the passenger-cargo ships in carrying cargo (where before this type carried a lot of the express cargo that are not in bulk or liquid). These new container ships cannot fit in the Butuan ports. However, few of them are coming in Butuan anyway. Another thing, the cargo ace of Nasipit before which were the forest products began slumping as the forest cover was fast going down and it raised a howl and therefore restrictions on logging were placed by the new Aquino administration.

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The pocket liner Surigao Princess (Photo by Edison Sy)

At the tail end of the Compania Maritima dominance a new liner was calling in Nasipit, the Surigao Princess of Sulpicio Lines which was a pocket liner. In the post-martial law period the Our Lady of Guadalupe of Carlos A. Gothong Lines, Inc. (CAGLI) came. And so these two liners succeeded Compania Maritima were gone as the company went out of business at the height of the political and economic crisis of the mid-1980’s. Soon, the better Our Lady of Lourdes of CAGLI replaced the Our Lady of Guadalupe in that route. In 1988, the big Nasipit Princess of Sulpicio Lines began calling in Nasipit port. But her route was mainly Cebu only as it was still Surigao Princess that was the liner there of Sulpicio Lines Inc. And, the Dona Lili of Gothong was also sailing from Nasipit to Cebu.

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The Nasipit Princess by Suro Yan

William Lines, Lorenzo Shipping Corporation and Negros Navigation Company, among the great survivors of the crisis of the 1980’s did not have Nasipit among their ports of call when the 1990’s started. Escano Lines will soon be leaving passenger shipping as well as Bisaya Land Transport. Aboitiz Shipping Corporation is also much-weakened in passenger shipping then as they did not buy liners for 15 long years (however, the will be back with a flash with their SuperFerry series and the were strong in container shipping)

It was Carlos A. Gothong Lines and Sulpicio Lines which were competing in Nasipit port in the 1990’s both in the liner route to Manila and the overnight route to Cebu. Although Nasipit was no longer as grand a destination like when Butuan still had a lot of ships calling, the two companies brought some great liners in Nasipit port like the Our Lady of Akita and the Princess of Paradise and what a show of confidence it was for Nasipit port. That was the heyday of competition when there was much optimism in business and the shipping liberalization and modernization policies of the administration of Fidel V. Ramos (FVR) took effect. A little before the “Great Merger” William Lines will also enter Nasipit port with their liner Mabuhay 2.

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The Our Lady of Akita (Credits to Manila Chronicle and Gorio Belen)

When the Great Merger that produced the giant shipping company WG&A came there was a plethora of ever-changing ships that got assigned to Nasipit port unlike in the past when a ferry will hold a route for a decade or even longer. In WG&A, routes and route assignments happen at least once a year and so tracking of ships that served a port became difficult. However, Nasipit was a regular route of the company. That liberalization of FVR also brought the expanding Negros Navigation Company (NENACO) to Nasipit where they used their beautiful St. Francis of Assisi. Unfortunately, that liner burned right in Nasipit quay not long after in 1999 which resulted in the destruction of the ship. The revived Carlos A. Gothong Lines Inc. (CAGLI) also tried the Manila to Nasipit liner route before it just became a Cargo RORO route when they got suspended from passenger shipping. Nasipit still has lots of load, no longer forest products but bananas.

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The Our Lady of Lourdes by Chief Ray Smith

With the “Great Merger” and the creation of Visayas-Mindanao subsidiary Cebu Ferries Corporation (CFC), that company also paraded a succession of ships in Nasipit port that is bound to Cebu on an overnight route. It began from the old Our Lady of Lourdes and it ended with Cebu Ferry 2 when CFC was already under the Aboitiz Transport System (ATS), the successor company of WG&A. Sulpicio Lines, their only competitor in the overnight route brought the Cagayan Princess in Nasipit when the Nasipit Princess can no longer sail. This was later followed by the much-better Princess of the Earth. And for a while, the Gothong Southern Shipping Lines Inc. (GSSLI) brought their Dona Rita Sr. to Nasipit port after they acquired the Our Lady of Good Voyage of Cebu Ferries.

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Filipinas Butuan in Nasipit port

The port has also a link to Jagna port in Bohol as service to the Bol-anons residing in Mindanao. Usually the Cebu-Nasipit ship of a company will do a once a week call to Jagna on their seventh day and the ship will go back to Nasipit within that seventh day and then resume their route to Cebu.

This decade saw a great downturn for Nasipit in sailing ships. There was only one liner left doing a once a week voyage to Manila and this was usually the St. Leo The Great of 2GO. Sulpicio Lines quit passenger sailing and Gothong Southern also gave up that segment. Even Cebu Ferries quit the Nasipit overnight route to Cebu when they transferred their ships to Batangas.

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The St. Leo The Great

Now, a completely new cast is in Nasipit port headed by Cokaliong Shipping Lines Inc. (CSLI) which use either their Filipinas Butuan or Filipinas Iligan in the Cebu to Nasipit overnight route with an off day diversion to Jagna. Lite Ferries also has a Nasipit to Jagna ship on the stronger months for sailing but there is no permanently assigned ship. 2GO still has that once a week liner from Manila. Nasipit is not a favorite of container ships except for Carlos A. Gothong Lines.

Passenger shipping which is down already ia affected by the intermodal buses and the budget airlines, both of which offer competitive fares compared to ships and with the advantage of daily departures. Nasipit is also not helped by it being out of the way from the city and the municipality’s policy of barring the buses and commuter vans from the port doesn’t help the case of Nasipit port either in attracting passengers who are turned off the expensive and very cramped tricycle ride which is also vulnerable from the rains driven by the swirling winds of Nasipit inlet.

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The legendary white-out of Nasipit port

I wonder when and how Nasipit port will have a renaissance. Somehow, some day, I just hope that it will come.

New Developments in Masbate Port

I had been to Masbate port twice in recent days in this month of July of 2017. The first one was when my ship Super Shuttle RORO 3 of Asian Marine Transport Corporation (AMTC) was on the way to Batangas and dropped anchor in Masbate first. The second was when I took the route via Pilar and Masbate ports on the way back to Cebu. Those two visits afforded me a chance to compare and weigh developments in Masbate port since last January of 2017 when I was also able to visit the port.

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Masbate port

The first notable thing is all works in expanding Masbate port has already been completed. The lineal distance of the port is a little longer now. On the other hand, talking of infrastructure, the Masbate port terminal building deteriorated in the same span of time as it is no longer air-conditioned and yet the dear terminal fee which is more expensive than the much better Cebu and Batangas ports remained the same when Masbate port does not even have shuttle buses and does not really have the capacity to take in all the passengers of the buses. And so it copied the Batangas port model which means bus passengers have to go down when the bus enters the port in order for them to pay the terminal fee and then board the bus again or walk to the ferry. The former is the preferred mode now.

Another new thing is Masbate port has an X-ray machine now for the baggage but it is not operational yet. Another useless piece of equipment just to justify the terminal fee and to have another reason for “cattle-herding” the passengers. It seems what is good enough for the buses is not good enough for PPA (Philippine Ports Authority), security-wise, because buses don’t bother checking the baggage of the passengers because they know the chance of them being victims of terrorist attacks is next to nil, at least in Bicol. And I think if one asks the ferries they will say they are not bothered if there is no X-ray machine. The buses and the ferries do not have the ISPS thinking that all passengers are possible terrorists. Actually that is simply ridiculous and is just the product of “praning” minds.

One more notable thing is that the passenger motor bancas are now practically gone from Masbate port and they have already transferred to the municipal port of Masbate near the public market and the bus/van terminal because of the high passenger terminal fee being charged by the port when passengers have no actual need for the terminal as they go direct to their vessels. Actually, last January I saw a terminal building (it was named as a community fish landing center) being built in Masbate municipal port and I saw that it is already finished when I went to the bus and van terminal.

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The problem now in Masbate municipal port is congestion, I was told, especially in the rush hours of the morning and the early afternoon. The boat landing areas there are actually the facility being used by the so-many small passenger motor bancas and motor launches headed to the different barrios across Masbate Bay. Add to that that that is also the docking area of the passenger motor bancas to barrios just outside Masbate Bay and up to Baleno town. Now the bigger motor bancas to Ticao island, Pilar port and Burias island are also lumped there now. That also includes a few cargo motor boats that were once passenger motor boats.

Actually, some small motor launch operators also built docking areas just beyond the northern end of Masbate port. I was told these transfers were the reaction to the terminal fee that costs P30. A terminal fee of that amount for a P10 boat fare? So right now just a very few motor bancas use Masbate port. One effect is congestion of the port was gone in one stroke. So I wonder now if there was any need to lengthen the port after all. Maybe they could have just donated the construction materials to the boat landing areas at the end of the port. The surface there is still dried muck which is obviously undulating and slippery. Well, if the funds were really meant to benefit the public.

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A makeshift boat landing area adjacent Masbate port

Regarding steel-hulled ferries, the competition in Masbate port is heating up and truck volume was obviously bigger than last January. Not in the buses though as July is already part of the lean months. Sta. Clara Shipping Corporation fielded their Cargo RORO LCT there, the LCT Aldain Dowey which was identified in PSSS (Philippine Ship Spotters Society) as the former LCT Ongpin. So now they have a total of three ferries in Masbate and I was told in summer Sta. Clara Shipping even fielded a fourth ferry. Their LCT is of the same length as their Jack Daniel and Anthon Raphael, their two ROPAXes there which are the best in the fleets of Sta. Clara Shipping Corporation and sister company Penafrancia Shipping Corporation (this is before the fielding of the former Tamataka Maru ships from Japan).

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Their LCT is the first to leave at noon and in the afternoon they are the only ferry departures from Masbate at 2pm and 4pm. Their three ferries are the biggest in Masbate because what their competitors have are only basic, short-distance ferry-ROROs because they use the shallow Pilar port whose depth cannot handle bigger ferries. By the way in terms of rolling cargo traffic the Pio Duran route now of Sta. Clara Shipping and Penafrancia Shipping is the favorite now since Pio Duran in Albay is nearer to Manila than Pilar of Sorsogon while the rolling cargo rate is just about the same.

With the exception of the ROROBus which is related to Montenegro Shipping Lines Inc. practically all the other buses to Masbate are handled by Sta. Clara Shipping Corp. and Penafrancia Shipping Corp. as the third operator Denica Lines, a Pilar native does not load buses. Loading buses from Luzon meant extending discounts, rebates, free tickets and free meals and Denica Lines does not play that game because they say they have their share of rolling cargo too. And I saw that when we left left Pilar port aboard their Marina Empress at 3am and the car deck was full. From Masbate port their three ROROs Odyssey, Regina Calixta-II and Marina Empress all left full. Denica Lines has already bought the Regina CalixtaII of Regina Shipping Lines (RSL) of Catanduanes and so they have three ROROs also now while Montenegro Shipping Lines Inc. (MSLI) is down to two ROROs from three. Maybe because it is lean months now and maybe they have one undergoing refitting in a shipyard.

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If we assume that Montenegro Lines has a third RORO in Masbate then a total of 8 ROROs make a daily crossing now to Luzon plus there is a Cargo RORO LCT for a total capacity of about 100 truck/bus units (of course, since there are smaller vehicles mixed in, the actual total is higher). Many of these come from as far as Cebu island. Buses will be at least a fourth of that total. One will wonder why there is such a large number of people on the move when within Masbate island there are not that many number of buses although there is a significant number of commuter vans.

Montenegro Lines have three fastcrafts and a catamaran in Masbate including their newest and fastest, the City of Angeles which is a catamaran. They also have there one of their biggest fastcrafts, the City of Masbate. Their future rival, the two fastcrafts of Denica Lines are still not ready and are still being refitted in Pilar port. Meanwhile, I wonder if the Masbate-Pilar motor bancas are already in terminal decline. There are just so many ROROs and High Speed Crafts. Although the motor bancas are faster than the basic, short-distance ferry-ROROs, they are noisier. They might be noisy, however, but still they are better than the “Stairs Class” of Montenegro Lines.

But in trucks and buses Sta. Clara and Penafrancia are already beating Montenegro Lines by about 3:1. Denica Lines could also be level now with Montenegro Lines in trucks and buses. By the way, sedans, SUVs, AUVs are not that many in the Masbate crossing to Pilar and Pio Duran and jeeps are practically unknown.

However, there is a rumor in Masbate port that a new player will come and serve the Masbate-Pio Duran route and it seems it is not Medallion Transport which was gone from the route after their Lady of Carmel sank in 2013 off Burias island. It remains to be seen if this rumor will come true.

The Super Shuttle RORO 3 of AMTC is also back in Masbate port and it connects to Batangas and Cebu plus Cagayan de Oro but their schedule is irregular as in there are no definite day for arrivals and departures as it is more of a container carrier now. There are also still a few motor bancas to Bulan when where before that was the dominant route to Bicol from Masbate.

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There are also off-hours docking now in Masbate port as Denica Lines has an early evening departure from Pilar. To the credit of Masbate port they let the passengers stay in the port terminal as the arrival of that is midnight and there is still no transportation to the towns outside Masbate City (and that gave me an idea). And Sta. Clara Shipping sends back its ship from Pio Duran if there are a lot of shut-outs (vehicles left unloaded in port) and that becomes another off-hours docking. That was the reason why they fielded their LCT because shut-out were already happening frequently (I saw that last January when one Mega Bus cannot be accommodated and they asked passengers of that to get down the ship and it was an event not good to look at — I pitied the passengers).

Masbate port is changing. Traffic is obviously up and I think the port will only get more important in the future when more traffic will shift to it from San Bernardino Strait if the rates become lower. Maybe then competition will further heat up and we will see the full blooming of Masbate port.

But they have to get that passenger terminal fee down. It is much higher than Zamboanga port when that port is better than Masbate port and the passenger terminal is not really needed by most of the ship passengers. A sore point really and that must change.

My Recent Trip To Hagnaya

I promised myself that when I come back to Cebu I will visit Hagnaya again and try to find the shipyards that I was not able to reach last January. I also promised myself  that I will go via the San Remigio-Tabuelan route which I failed to find last time because of a misinformation. And that exactly what I intended to do when I set out.

To be sure I will be able to pass the Tabuelan-San Remigio road, I intended to take the Inday Memie bus that has a route to Tabuelan and Maravilla or even beyond like Lambusan. I was early at Cebu North Bus Terminal at before 5:30am but I found out the first Inday Memie bus was still at 7am. I was worried about the lost time and thought about taking a direct route to Hagnaya via Bogo especially with a Cebu Auto Bus parked which I desired to ride but I feared what happened last time. I don’t want trying to find a mid-afternoon ride to Tabuelan and worrying if all the connecting rides will work out fine.

And so I waited for the Inday Memie bus while at the same time weighing if I will continue the trip as I was not feeling very well. But a dose of Mountain Dew cured my ailment and I already knew what it was. When the bus took its parking place I took the front seat for maximum observation. It was a slow bus in early going trying to find passengers but I didn’t really mind. It even passed by a meal stop. After three hours we were already in Tabuelan but I did not go down the bus to visit Tabuelan port. There are other members that cover that port and if I visit it is likely I will only find a solitary Tristar Megalink ship there and I will probably lose an hour which is better spent trying to find the Hagnaya shipyards and fish landing areas.

But I did not realize I was on the wrong side of the bus because a kilometer after Tabuelan town Tabuelan Bay came into view with its two ports, the old Tabuelan port and the new wharf for Goldenstar Shipping that lies on the other side of the bay. With the right place and timing shots can be taken from a bus if there is an ultrazoom lens. Since I was not ready I was not able to distinguish much if there are ships there. But I espied that the half-sunk fastcraft of Aznar Shipping was still there. On a next ship spotting the shortcut is to take a tricycle to that vantage point and prepare a long lens and the best will be to take the earlier Tabuelan/Tuburan bus of Ceres Liner.

We were then on the way to San Remigio and I have to be dropped on a point where there is already a jeep to San Remigio. Alternatively if the Inday Memie bus is for Lambusan then there will already be Ceres buses on the way to San Remigio. The jeep was very slow as it was always looking for passengers. Again I did not really mind. No use being upset by what are actually local conditions. Best thing is to really just have a lot of time.

I realized the Tabuelan-San Remigio road is not really a coastal road. On most parts of the road there is no view of the coast and of the sea. What I found out was there was a lot of mangrove ponds and I began to understand why Haganaya is historically associated with fishing (ditto for Daanbantayan and Bogo which also have a lot of mangrove ponds).

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I reached Hagnaya junction after more than 5 hours of travel and I then transferred to a tricycle to Hagnaya port. It was already 11:38am when I reached it and first thing I did was to look for food as I did not really have breakfast. I also used that rest to ask around and let the light rain pass. After the meal I had a quick tour of Hagnaya port so I can have two tours of it while I am there.

I was informed the farthest shipyard was in Punta which is already beyond Hagnaya and the conveyance there is a motorcycle or habal-habal in local parlance. Not really cheap as it is some three kilometers away but I had it rented so I can save time and energy. We reached Punta alright and it was true that only LCTs are built there and not fishing vessels like in the other shipyards of Hagnaya.

I found out the owner of the yard is also the owner of Island Shipping Corp. There is an LCT being built there and the name is LCT Island Ventures III. Its completion is estimated to be November of 2017. It is powered by Weichai engines from Dynamic Power in Mandaue, a facility the PSSS (Philippine Ship Spotters Society) was able to visit in 2015 through an arrangement made by Capt . John Andrew Lape, a PSSS (Philippine Ship Spotters Society) member.

It is the place where the LCTs of Island Shipping Corp. are built or refitted. The first two LCTs was just refitted there and the hulls came elsewhere. However, the more recent LCTs of Island Shipping Corp. have already been built there.

Interviewing the Island Shipping engineer, I learned the cruiser ferries of Island Shipping have already been sold and the only remaining one is the Super Island Express II, their former Cebu-Tubigon ferry which is now plying the Tangil-Dumanjug route via the Bolado port. And that lays to rest the question why the Island Shipping cruisers can no longer be seen in Hagnaya.

With the rented motorcycle I visited the ports of Hagnaya especially those I was not able to reach last January. My driver is a former employee of Mr. Alexander Tan, the owner of Island Shipping. He clarified he is not a mariner but a cook decades back when Mr. Alexander Tan was not yet into shipping but in the trading business and motor bancas are used to transport goods until Mr. Tan entered the shipping industry.

I asked my driver how many shipyards are there in San Remigio and he answered five and I countered there must be near ten. It surfaced that they count not by yards but by ownership and related ownership. If two nearby yards have related owners they only count it as one. All the other shipyards of Hagnaya build just fishing vessels. They have a curious term for the fishing vessels that venture far. They call it “shipper”. The yards double as fish landing areas because it is forbidden to land fish in Hagnaya port and Hagnaya has no fishport. Imagine Hagnaya which is practically the fishing capital of northern Cebu island and very near the Visayan Sea having no fishport. I really wonder how our government decides where fishports should go as there are fishports in areas with marginal fishing.

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In a yard I was visiting I was lucky to cover the departure of Super Shuttle Ferry 23 while at the same time the Island RORO I was passing by. But I was in a little hurry to finish my ship spotting of the fishing vessels and fish landing areas of Hagnaya. That is really the problem of long-distance ship spotting – more time is spent traveling. I want to finish before 2pm because after that all the departures of the buses in Hagnaya port is only when a ferry arrives from Bantayan island and the next trip will be 3pm already. With that departure and the slow buses of Cebu island I won’t be able to cover any other port anymore.

There are yards I did not try to enter anymore and just tried to cover their ships from the adjacent yards. But the negatives are I don’t have a good angle at times and I am not able to make short interviews or observe what kind of fish is being unloaded if I was not too late for that. But I also was able to visit the wharf near Hagnaya port which is a fish landing area too and which has a big motor banca for an island between Bantayan island and Negros island and I was able to cover her departure.

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Back in Hagnaya port I did not try to board the ferries anymore as I was intent on being able to make the 2pm bus. However, I was still able to field queries especially about the Hagnaya-Cawayan (Masbate) LCT of Island Shipping. This time around I saw it is a possible way for me to reach Naga without being forced in an overnight stay in Masbate City if the LCT will arrive in Cawayan at 1pm and the last trip from Masbate to Pio Duran is 4pm. A little iffy but possible if the van is fast and the ferry in Masbate does not leave earlier than her ETD.

At 1:35pm I was already done. It took me nearly two hours to finish my ship spotting and it was really a rush kind with no time lost anywhere. I was able to make the 2pm bus and used it as a respite. I was still able to get a shot of the departure of LCT Island Ventures II which I was not able to anticipate but with me inside the bus I did not notice the arrival of the Super Shuttle Ferry 26 of the Asian Marine Transport Corp. (AMTC), the main and only rival of Island Shipping Corp. I was just able to get a shot of her when the bus was already leaving the port. Oh, well, one can’t have it all.

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In Hagnaya port, I also noticed the wrecked fishing vessels in Hagnaya are already gone and only one remained. I was able to find they are now in one of the shipyards which I visited and it is obvious that they will be refitted. Well, we don’t really break ships if they are still salvageable.

Our Sugbo Transit Express bus was oh so really slow. As I said before if a bus carries the name “Express” it is surely a slow bus. With that speed I nearly had trouble making Carmen port before the light was already fading especially we had a meal stop before Carmen town where our driver and conductor really had a meal at just past 4pm when to think at lunchtime they were in Hagnaya. Maybe no discount is offered for them in Hagnaya and they fear getting hungry in CNBT.

I again hired a motorcyle to save on time and energy and I reached Carmen port at 4:35pm and that was nearly three hours after we left Hagnaya at 1:45pm. And I found out that the gate was locked and there is a guard who told me outsiders can no longer enter. He asked my purpose and I told him I want to take pictures of the ships there and he told me that is also forbidden. Now when some guards tell me it is forbidden to take pictures that always raises my goat. I asked him if I can take pictures of the truck. Now he sensed I was leading him into an absurd situation. Then I told him one can enter a military or police camp by leaving an ID card and stating the purpose and that he knows that. I then asked him if that lousy port is more security-conscious than a military camp. He then let me in. Sometimes what is just needed is just to bamboozle and intimidate the guards and lead them into absurd answers. Even before taking pictures I already told the guard to tell his higher-ups that they are crazy (sira-ulo). On the way out, I thanked him of course.

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The Cebu Sea Charterers LCTs were no longer there and just a tanker and tug were around plus the usual pleasure boats but there was a CSC road tanker and I asked it crew about their LCTs there. There were two in the route to Leyte and departures are 12mn and 12nn and I was early for the arrival from Leyte.

I was able to board a 5pm bus and there was still enough light when we passed Danao port and I was able to get shots from our moving bus like when I passed there in the morning. My trip home by bus from Carmen was much faster although there is traffic because I was not riding a Ceres bus and I did not have to go down in CNBT because our bus still continues to CST and beyond. I reached USC after just a little over two hours and I was home by dinner time and not that tired because the motorbikes save me a lot of energy.

The whole trip cost me more than 14 hours. Such is the cost of long-distance ship spotting.

Why Ozamis Port is Stronger Than Iligan Port

Ozamis port and Iligan port are nearby ports and both are located in Iligan Bay in northern Mindanao. This is the reason why in the past and even today some liners from Manila combine the two ports in a single route to maximize passengers and cargo as calling in the two ports won’t cost much additional fuel as the two ports are just 28 nautical miles apart and yet each port serves a different area. In land distance the two ports are much farther apart and one is not the alternate port of the other. Cagayan de Oro port is actually the one that serves as the alternate port of Iligan (and none for Ozamis). If there is no ship in Iligan, its people and shippers go to Cagayan de Oro.

Meanwhile, people of the western portion of Lanao del Norte treats Ozamis as its main port rather than Iligan. The reason is distance and trade relations. It is easier to cross the narrow Panguil Bay to ride the ship in Ozamis and departures in Mukas are just 15 to 20 minutes apart which is about the frequency of the buses to Iligan and Iligan is even farther. When people of western Lanao del Norte needs to buy something not available in their town they will almost always go to Ozamis which is even more complete in supplies than Iligan (more on this later).

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Ozamis port by Janjan Salas

On the balance Iligan is should have been the winner between the two ports as its population is nearly two-and-a-half times than Ozamis’ and it is one of the earliest super-cities and High Urbanized Cities (HUCs) of the country outside of Metro Manila (that means a population of at least 200,000). Besides, Iligan has industries and Ozamis can barely name one. Iligan was the site of the country first integrated steel mill and it had other industries connected or dependent to it (like the nearby Mabuhay Vinyl Corporation). And aside from that Iligan is the biggest oil milling center in the country and it has cement factories (including one in adjoing Lugait and Lugait is practically a suburb of Iligan like the town immediately west of Iligan which is Linamon).

One thing in common of the two cities — both were once provincial capitals. Iligan was once the capital of Lanao del Norte before the capital became Tubod which has jurisdiction over Mukas port. Meanwhile, Ozamis was once the capital of the then-undivided Misamis province when Ozamis was still known as Misamis and Cagayan de Misamis, the current Cagayan de Oro (which by the way has no gold) was still a backwater. Iligan and Ozamis became cities in the early Republic years.

What then tipped the scales for Ozamis that it exceeded Iligan as a port? Well, ports do not just serve their nearby territories. Actually it can serve even a province away. That was Ozamis’ blessing. When the road to Pagadian was opened and became good there was no more need for the people of Zamboanga del Sur to wait for the ship from Manila. All they had to do was truck their produce to Ozamis and where there are practically daily ships for Cebu and Manila. That frequency was especially needed for goods that are perishable and Zamboanga del Sur is known for their sea products. Ozamis is a more direct route and so even the rates are cheaper while the produce reach its intended market sooner.

On the reverse side, the traders bringing in commercial and industrial goods to Zamboanga del Sur just had to get their products to Ozamis, warehouse it and truck or deliver it as needed or ordered. That is the reason why Ozamis is known for bodegas and regional traders which has origins in Cebu. And so Pagadian as a port with national connection slowly died while Ozamis as a port with national connections rose and even exceeded Iligan port which is ironically based on a bigger city. The bodegas trumped the bigger population.

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Iligan port by Mike Baylon

Lanao del Sur, a nearby province also use Iligan port (but then also Cagayan de Oro port) but on the balance it does not pull Iligan even with Ozamis. That is because aside from Zamboanga del Sur, portions of Zamboanga Sibugay also use Ozamis port and this is aside from the western portion of Lanao del Norte using Ozamis port including parts of it that has sea foods. And besides the industries of Iligan and Lugait have their own private ports and wharves so it does not add to the Iligan port total. And on sheer activity and dockings Ozamis has a short-distance route to Mukas and Iligan port has no equivalent of that.

In total population, Lanao del Norte is slightly ahead of Misamis Occidental. The northern part of the latter province use the port of Plaridel and also the port of Dapitan. But on the whole that loss of Ozamis is more than made up by the gains in Zamboanga peninsula and western Lanao.

On paper Iligan might seem ahead of Ozamis but in trading and shipping Ozamis is simply ahead of them and many people don’t see that. But look at dockings and activity. Ozamis port is simply more busy than Iligan port.

The P700-Million Peso Mistake

In the old past, the Pulupandan port which is some 25 kilometers south of the capital Bacolod was the main port of Negros Occidental province. It came to be located there because Bacolod has no way to build a deep-water port the because of the shallow slope of its beaches. And for export of sugar, the Negros sugar barons even developed a terminal in Guimaras before the war where foreign ships can dock and load sugar for export.

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From the NENACO Anniversary book

There was not much controversy was found before in Pulupandan being the main port of Negros Occidental. For the short hop to Iloilo the then smaller ferries were able to dock in Bacolod wharf. But for liners to Manila after the war, Pulupandan was the port and even the shipping company founded by Western visayas interests which did exclusive Western Visayas routes, the Southern Lines used Pulupandan port. All liner companies then used Pulupandan port.

Things changed in the 1960’s when Negros Navigation was already “the” Western Visayas shipping company and the company was plotting its rise and it was loaded with political connections. 1960’s was also the decade when from mainly having small and shallow draft ex-FS ships as the primary workhorse for shorter distances, the ships started to get bigger because maybe the population was growing fast and maybe also the economy was also developing because of the population increase (but of course not in a qualitative way – it was still plow and harrow technology of the old ages and mainly tilling of land in individual plots).

For their bigger ships now, Negros Navigation decided to have a new port which turned out to be the Banago port. This port was located in government-owned foreshoreland on a build-operate-transfer (BOT) lease of 50 years.

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Banago port (from “docdoms” in Photobucket)

Banago port was a big success for Negros Navigation. How can it not be when it was located right at the capital and commercial center and Pulupandan is some distance to the south? As a private port, Banago was exclusive to the ships of Negros Navigation as they were the owner and operator of that.

Pulupandan port was then left to decay slowly and get shallow as the years went by. Being near an estuary did not help its case and in any case as the years went by dredging has to be done on ports so the depth will be maintained as silt will naturally accumulate due both to human and natural causes.

The other shipping companies like Sulpicio Lines, William Lines, Lorenzo Shipping and Compania Maritima still used Banago port until the early 1980’s by using the shallow draft ex-FS ships and other vessels of the same size and draft. But in the same decade these types were gone in Pulupandan and there was no way they can still dock their bigger ships there now. And so one by one they abandoned Pulupandan and not even their new container ships called there and Pulupandan completely lost its liners from Manila.

The 1980’s started with Negros Navigation having practical monopoly of shipping to Negros Occidental aside from the occasional small general purpose ship calling in Pulupandan which remained operational and the attempt of Aboitiz Shipping to use Sipalay port in the southern part of Negros Occidental as alternative. So when one has to go to Bacolod by ship (which was much cheaper than the expensive PAL plane then), one then has to go to the nearest negros Navigation ticketing office or booth.

But things never lie still and in the 1990s, the Bacolod Real Estate and Development Company (BREDCO) applied for a reclamation permit with the purpose of building a port. That was subsequently granted and the new BREDCO port slowly began to take shape. When it became operational it was obvious that its design and capacity is much, much superior than the Banago port of Negros Navigation. And that was why I wondered why after so many decades Negros Navigation didn’t care to build a port that is comparable and that they will own forever.

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BREDCO Port (from “docdoms” in Photobucket)

When the merged shipping company WG&A came into being and it wanted to challenge Negros Navigation in its own turf, they had BREDCO which they can approach. BREDCO port served WG&A ships and in an instant the monopoly of Negros Navigation in Bacolod and Negros occidental was suddenly broken. And the competition situation was WG&A had more and better ships than Negros Navigation. If not for the Negrense’s loyalty to Nenaco, WG&A would have pushed Negros Navigation to the brink more rapidly.

In retaliation, Negros Navigation also entered the home turf of WG&A which is Cebu. But they were never particularly successful there as they were like facing three combined shipping companies there especially in cargo and let us not forget that Cebu is also the stronghold of the Number 1 before the “Great Merger” which was Sulpicio Lines. Negros Navigation never really the quality of the great liners serving the Cebu route and so competing there was very tough for them.

Soon BREDCO portwas a roaring success. Not only did it host liners from Manila but also container ships. With the development of the intermodal system, the Bacolod-Dumangas short-distance ferry route took off and not only that the HSC (High Speed Craft) route between Iloilo and Bacolod really took off also and in its wash it even sank the Iloilo-Bacolod short-distance ferries of Negros Navigation which they served since their inception in 1932. By this it was all too obvious that Banago port is no match to BREDCO port in location and in facilities. Well, it was also even able to develop a grain and an oil terminal. They have it all including all the assortment of charges, too to better fund their expansion.

It was obvious then that BREDCO was just a good commercial port and not much more and not even protecting Negros Navigation interests which at the start of the new millennium its fortunes are ebbing fast. Soon Negros Occidental politicians had grumblings against BREDCO to maybe shake up its roost and effect changes. But no dice. BREDCO simply shrugged off all pressures and cases filed. Soon even the Negros Navigation hold on Banago port was gone because their 50-year lease already expired and they have to return the foreshoreland and together with it surrender the port to the government which happened during President Aquino’s term.

When the return of Banago port was imminent, the Negros Occcidental politicians tried to have a government port that will compete with BREDCO. But then all their brain wracking produced just one lousy idea, the re-development of Pulupandan port into a port worthy of regional port standards and for this they committed a budget from the peoples’ coffer of over P700 million. And with that money a new modern port rose in Pulupandan.

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Pulupandan Port (Photo from BizBilla.com)

Which soon turned practically into a “port to nowhere”. No liners came nor container ships. Just few occasional small freighters will come just like before. The government tried to sell it as a connection to Guimaras. After prodding, the Montenegro Shipping Lines responded and fielded a Pulupandan to Sibunag short-distance ferry-RORO. But then that solitary ferry is no match in weight with all the HSCs and short-distance ferry-ROROS using the BREDCO to Iloilo and Dumangas routes. There was simply no way to compete with the much superior location and development of BREDCO port. It was just like developing Cavite port to compete with North Harbor or developing Argao port to compete with Cebu port.

Now there is pressure to develop a new government port in Bacolod to compete with BREDCO. Huh? I thought it was the mantra of government not to compete with private enterprises (by the way, I am not the defender of BREDCO nor do I have any connection with them; it just titillates me to twit government stupidity), Why don’t they just tow the Pulupandan port to Bacolod to save on cost? Now, if that is only possible so the mistake can be corrected. And where was the stupid NEDA (National Economic Development Authority) in all of this when it should have checked well the validity of government projects? Will the proponents and validators of the Pulupandan port project willing to have their necks garrotted?

Now imagine another regional port in Bacolod costing about a billion pesos to build including land to be purchased just to make up for the Pulupundan error and compete with BREDCO!

When one Negros Occidental congressmen questioned that project, the main proponent which is one of the richest men in Congress simply said he will try to have a similar port in another congressional district north of Bacolod and the congressman which questioned was mollified. Well, with “solons” like this maybe it is high time we close Congress and better just save the money.

And that is the P700-million peso Pulupandan mistake which they will try to remedy by throwing good money after bad.