The Sweet RORO

Many, when talking about the Sweet RORO of Sweet Lines Incorporated which is pf Bohol origin talk about her technicals and that is not wrong as there is nothing incorrect in admiring the technical merits of a ship especially that of a luxury liner. But to me I also tend to look at the historical position of things and how they interacted as I am also keen on the historical perspective of the ferries when they came and also their roles. After all, ferries make the shipping companies, at least in the early decades of our shipping history. And, it is in the great liners in which shipping companies are identified by the public.

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The Sweet RORO in original livery. Photo by Lindsay Bridge.

The Sweet RORO came to Sweet Lines when from the peak of the company a great slide was already happening them. This came from a probable mistake when in the late 1970’s the company decided they would henceforth just buy small liners. It was a great reversal from the previous mantra of the company that they will bring great liners, the prime examples of which were the highly regarded Sweet Faith and Sweet Home which were former luxury liners even in Europe. Also included in that was the Sweet Grace which was acquired brand-new from West Germany.

That bad decision came when the top liners of the company, the aforementioned Sweet Faith and the Sweet Home were already graying and if analyzed technically were already threatening to quit in a few years time (and they subsequently did). Coupled with that that the former cargo-passenger ship from Europe, the Sweet Bliss, the Sweet Life/Sweet Dream, the Sweet Lord/Sweet Land and the Sweet Love which buoyed the company early on and helped in their rise were also growing old as they were also built in the 1950’s like the Sweet Faith and the Sweet Home and ferries then were not known to exceed 30 years of life as the metallurgy and technology were still not the same as today when ferries normally exceed 40 years of service life here. Spare and surplus parts are easy to find today and CNC milling of parts are already common whereas that was not the case of 40 years ago. When that decision to just acquire small ferries was made the six liners of Sweet Lines from Europe were already approaching 30 years old save for the Sweet Home (but then this luxury liner, the biggest of her time was actually the first to go because of mechanical problems).

The year 1980 came and one of the biggest crisis in local liner shipping came. This happened when a lot of liners were suddenly laid up because the container ships came into full force all at once and suddenly the old passenger-cargo liners no longer had enough cargo to carry and it was actually cargo which is decisive in the profitability of a passenger-cargo ship. Before the arrival of the container ships of Aboitiz Shipping Corporation, William Lines, Sulpicio Lines, Lorenzo Shipping Corporation, Central Shipping Corporation (the cargo shipping company of Sweet Lines), Sea Transport Company, Negros Navigation Company and Solid Shipping Lines, it was practically just the passenger-cargo liners which were carrying the cargo in liner routes.

Sweet Home was gone in 1979, sold, and Sweet Faith was also gone the next year in 1980, first laid up then sold to the breakers. The new decade came and Sweet Lines had no ship good enough for the premier Manila-Cebu route which they used to dominate albeit with just a small pull only early in the 1970’s but largely gone as the decade was winding down. What they had left to serve as flagship was the cruiser liner Sweet Grace which was ordered brand-new from West Germany in 1968 but which does not have the speed and the size of the now-dominant fast cruiser liners of that era already.

While Sweet Lines was saddled with such problem William Lines rolled out the half-cruiser, half-RORO Dona Virginia in December 1979 which was the biggest liner in the country when she was fielded and with a speed of 20 knots too like the liner she was replacing, the storied Cebu City which came brand-new just in 1972. Then Sulpicio Lines rolled out the Philippine Princess in 1981 and this liner was nearly as big as the Dona Virginia but not as fast. Sweet Grace was far smaller than the two unlike the flagship Filipinas of Compania Maritima which was nearly as big as Dona Virginia and Philippine Princess although not as fast as the two. Sweet Grace was also much slower than the three, she cannot even be considered as a fast cruiser liner and so for the first time since Sweet Lines raised the bar in the Manila-Cebu premier route in 1970 with the Sweet Faith, this time it found itself as the laggard and outmatched. And that was where the decision to just buy small liners bit Sweet Lines hard.

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Photo from a research of Gorio Belen in the National Library

Having money from the proceeds of the disposals of Sweet Home and Sweet Faith, Sweet Lines was obliged to look for their replacement and it is forced that it should be a good and a big one. They did not disappoint when the former Ferry Ruby of the Diamond Ferry which plies the Osaka to Oichi route came to them in 1982 (but the seller was a third by the name of Dimerco Line SA of Panama and more on that later). The ship was nearly as big as her main competitors at 117.5 meters length and 4,700 gross register tons and at 18 knots design speed she was not giving away much to her direct competition, the flagships of the other liner companies although she was still the slowest at full trot among the flagships. And so what Sweet Lines emphasized was her being a RORO liner and its swiftness in cargo loading and unloading. However, the claim of Sweet Lines that she was the first RORO liner in the country is incorrect as the Sta. Maria of Negros Navigation Company came earlier in 1980. She, however, was the first big RORO liner in the country if the Dona Virginia is excluded.

When analyzed technically, the Sweet RORO is a leapfrog in technology compared to her main competitors which were mainly cruiser liners, the old paradigm. She was already a full-pledged ROPAX (RORO-Passenger) ship unlike the Dona Virginia whereas the Philippine Princess and the Filipinas of Compania Maritima were still cruiser ships . Now these four are all flagships and only four shipping companies were competing seriously in the prime Manila-Cebu route as the others like Aboitiz Shipping Corporation and Escano Lines were no longer in serious contention in that route and the others have practically withdrawn from contention there like Lorenzo Shipping Corporation and Carlos A. Gothong Lines Incorporated (but this company later made a comeback in that route). By the way, Negros Navigation Company is not being mentioned here as she was not doing the Manila-Cebu route then.

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Credits to Philippine Daily Express and Gorio Belen

But Sweet RORO might have been too much ahead of her time. Loading vehicles was not yet the wont then in her route (and neither now except for brand-new cars headed for car dealers down south). Container vans were mainly carried by the container ships and at that time there were still a lot of XEUs, the 10-foot container vans which can be handled by forklifts or loaded atop the cruisers at their bow and/or stern. Using chassis for container vans was not yet the standard then and so the full advantage of being a RORO or Roll-on, Roll-off ship was not fully realized when a lot of cargo was still palletized or are still carried loose (however, Sweet RORO had advantage over the others in carrying vehicles and heavy equipment down South). It would be nearly a decade later when the TEUs, the 20-foot container vans will be the new standard in cargo loading and by that time the Sweet RORO was already gone.

The Sweet RORO, the former Ferry Ruby was built by Onomichi Dockyard (Onomichi Zosen) in Onomichi, Japan in 1970 (but Sweet Lines says she was built in another yard) as one of the fast overnight ferries of Japan that bypasses their clogged highways then. She was average in size then (but this is not to disparage her) at 117.5 meters in Length Over-all, 107.0 meters in Length Between Perpendiculars, 20.6 meters in Breadth and 4,619 tons in Gross Register Tonnage. She was 1,943 tons in Net Register Tonnage and 1,477 tons in Deadweight Tonnage. This RORO liner was powered by 4 Kawasaki-MAN V8V 22/30ATL diesel engines with a combined 8,080hp which gave her a top speed of 18 knots which was also average for her size during her time. At that power she would have been more economical in fuel than the other flagships.

The stem of the ship was raked and she had transom stern. She was equipped with ramps bow and aft as access to the car deck. The ship has three decks for the passengers, the uppermost one a local addition (and that deck contained a lobby/relaxation room, the First Class bar and disco plus a game room) and abaft of the funnels is a wide open-air promenade area/sun deck. Aside from First Class and Second Class, a part of her Third Class (now known as “Economy”) is also airconditioned. This is because as-built the ship was fully air-conditioned. Her original passenger capacity as refitted was 1,692, one of the highest then among passenger ships in the country. It was broken down into 148 in 1st Class, 144 in 2nd Class, 400 in air-conditioned 3rd Class and 1,000 in non-airconditioned 3rd Class. The 3rd Class occupied the lowermost passenger deck while the First Class and Second Class accommodations and lobbies were on the deck above that and so it is the middle deck.

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Photo from a research of Gorio Belen in the National Library

Like the Sweet Faith before her, the Sweet RORO plied the premier Manila-Cebu route twice a week with a 22-hour sailing time which means a cruising speed of 18 knots for the 393-nautical mile route which is actually her design speed. It seems the policy of Sweet Lines is sail the ship at design speed because that is what they also did with the Sweet Faith. However, running a ship at 100% usually entails a ship’s not living very long. In 1988, Sweet RORO already had trouble with her engines specifically with her crankshaft as one report said and from that time on she already had difficulty sailing and if she did it is at reduced speed. The next year she was already laid up when she was less than 20 years of age. In 1990, she was sent to India for breaking up, a very short career when her two sister ships was still sailing in Greece up to the new millennium.

In 1987, Sweet RORO had a change of ownership but she was still sailing for Sweet Lines even then. She again became a Panamanian ship with the Dimerco Line SA which was the seller of her to Sweet Lines and to me that indicates a possibility that she was not fully paid for by Sweet Lines and so the seller re-acquired her. This was also about the same time that the Eduardo Lopingco group entered Sweet Lines and took over the management. With the entry of Lopingco additional ships came to the fleet but it turned out those were just chartered from the Hayashi Marine Company of Japan . Later, court cases arose after the company was not able to pay the charter to Hayashi Marine because court records show money was diverted by Lopingco to other ventures.

I wonder but I know financial troubles and mismanagement are ship killers especially when the needed maintenance of the ship are no longer made. And running ships at 100% power is parts-hungry and can result in damages to the engine in the long term especially when maintenance is not up to date. A report said that re-engining her was suggested to the company but nothing came out of it. This was already the time that the company was already headed on the way down after it seems that the founding Lim family has already lost control of the company if court filings are to be believed.

Whatever, the Sweet RORO was a big success in the Manila-Cebu route as actually Sweet Lines was a favorite of many especially the Bol-anons that until today many still remember her fondly (people are more attached then to their great liners unlike today that is why there were ship legends then including the Sweet RORO while now there is no such sentimentality anymore). However, it puzzles me why didn’t they extend the route to Tagbilaran given it was their origins and the ship had a long lay-over anyway in Cebu (was Tagbilaran port too shallow for her then?).

She was a fine ship ahead of her time. However, the sad part is she did not last long.

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Roble Shipping Is Finally Sailing To Mindanao

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

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Source: Oroquieta City LGU FB account

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

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

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

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

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

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

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

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

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Taelim Iris, the future Oroquieta Stars

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

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

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Oroquieta Stars just sailing to Hilongos, Leyte

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

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

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

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

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

Sayang naman kasi ng mga barko nila.

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

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

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

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

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

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Credits to Manila Times and Gorio Belen

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

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Credits to Philippine Herald and Gorio Belen

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

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

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Credits to The Philippines Herald and Gorio Belen 

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

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Credits to Philippines Herald and Gorio Belen

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

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Credits to Philippine Herald and Gorio Belen

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

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

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

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

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

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

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

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

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

1980 Dona Virginia

Credits to Daily Express and Gorio Belen

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

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Credits to Philippine Daily Express and Gorio Belen

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

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

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

One of the Magic Elixirs of William Lines and Carlos A. Gothong & Co.

The term “magic elixir” refers to a potion that gives one powers and in modern usage it refers to a sort of magic that was the reason for an entity to rise. In this article I am not referring to something illegal but to one of the reasons for the rise of two of the most storied shipping companies of the Philippines where in their peak were contending for the bragging rights of being the biggest shipping company in the country.

Historically, the Chinese mestizo shipping companies were not as blessed as the Spanish mestizo shipping companies which antedated them in the business. The latter not only had a head start but they also possessed powerful political connections and that was very important then in getting loans from the Philippine National Bank (PNB) which dominated commercial banking then as there was almost no other commercial bank big enough in that time able to finance acquisition of ships. It was also crucial in getting ships from the National Development Corporation and earlier in getting surplus ex-”FS” ships from the Rehabilitation Finance Commission that was awarded as war compensation by the US Government.

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A 1950 ad of William Lines (Credits to Phil. Herald and Gorio Belen)

Of the two companies, William Lines had an earlier start and it was also blessed by political connections – the founder of the company, William Chiongbian happened to be a powerful Congressman who in his run for the Senator missed by one just slot (and his brother was a Congressman too at the same time but in another province). Carlos A. Gothong & Co. had to start from the bottom as it began almost a decade later than William Lines in liner shipping. But later it was blessed by a good strategic relationship with Lu Do & Lu Ym, the biggest copra concern then when copra was skyrocketing to being the Number 1 cash commodity and export commodity of the country.

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The first liner of Gothong & Co. (Credits to Manila Bulletin and Gorio Belen)

In the national liner scene, after its restart right after the end of the Pacific War, the strongest after a generation were the shipping companies that had routes to Southern Mindanao. Left behind were the shipping companies that just concentrated in the Visayas routes like Southern Lines, General Shipping, Philippine President Lines/Philippine Pioneer Lines/Galaxy Lines and other smaller shipping companies to Eastern Visayas, Bicol and the near routes to Mindoro, northern Panay and Palawan. Actually, in my totem pole of national liner companies in 1972, the Top 5 — Compania Maritima, Gothong & Co., Aboitiz Shipping+PSNC, William Lines and Sweet Lines — all have routes to Southern Mindanao.

What made Southern Mindanao the “magic elixir” of William Lines and Gothong & Co. when the latter was not even a liner company in the latter half of the 1940’s and William Lines was behind many shipping companies that preceded them?

In business, there is nothing better barring the illegal than a customer base that simply keeps growing and growing. And that was what Mindanao then was to the shipping companies Southern Mindanao. Before the war the population of Southern Mindanao was small and was practically composed by natives. That was before the government encouraged and assisted the resettlement of people from other parts of the Philippines to resolve what was called then as the “population pressure” (rapidly growing population in an agricultural economy with not enough land anymore to be divided into the next generation and there were no contraceptives yet then and the average number of children was five).

Northern Mindanao after the war already had Visayan migrants as it was just near the Visayas and the Spaniards was able to establish a strong foothold there even in the 19th century. But Southern Mindanao almost had no transplanted population and it is this part of the Philippines that experienced the greatest population boom after the war with what was called by the Moro National Liberation Front as the “colonization” of Mindanao (well, even some politician used the word “colonization” before that became politically incorrect). Where before in the 1948 Census the transplanted population was just a minority in Mindanao, in the 1960 Census the natives suddenly realized they were already the new minority and in the 1970 Census they saw they were beginning to get marginalized (Sultans and Datus who were once Mayors were even beginning to lose the elections).

This population boom, the opening of land for cultivation and the consequent exploitation of the natural resources of Mindanao needed transport and it was not by air (and not by road definitely) but by ship. And by this all shipping companies that were plying the Southern Mindanao routes benefited a lot. Of course shipping companies serving Northern Mindanao also benefited but not to the same extent as the Southern Mindanao shipping companies. And anyway the shipping companies serving Southern Mindanao were the same shipping companies serving Northern Mindanao (with exception of Escano Lines which has also routes to Northern Mindanao but not Southern Mindanao) and so the benefit of those serving Southern Mindanao were double.

If we analyze the biggest shipping company then which was Compania Maritima, most of its ships were assigned to Southern Mindanao. That was also true for the liners of Gothong & Co. (this company has a lot of cargo-passenger ships then to gather the copra for Lu Do and Lu Ym) and William Lines (which assigned 3/4 of its ships in Southern Mindanao early and Gothong & Co. of to 80% in 1967).

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One will wonder how this small ex-“FS” ship sails all the way to Davao

Although William Lines started ahead of Gothong & Co., the latter vaulted ahead of the former in the 1960’s. I think the reason is William Lines relied too much and too long on the ex-”FS” ships and it was only in 1966 when they acquired other types. Meanwhile, Gothong & Co. acquired ships from Europe earlier and in greater numbers. That does not even include the Type “C1A” ships acquired by Gothong & Co. which were big ships and were really ocean-going plus a lot of small ships the likes of lengthened ex-”F” ships and a host of local-builds. In ports of call, Gothong & Co. simply had too many because of the need to gather the copra of Lu Do & Lu Ym which was exporting a lot (and which Gothong & Co. also carried).

For sure, Compania Maritima which was already the Number 1 right after the war also benefited from the growth of Mindanao. However, their subsequent collapse in 1984 at the height of the financial and economic crisis then besetting the country is of another matter. Sulpicio Lines, the biggest successor company of Gothong & Co. also benefited from Mindanao after their creation in 1972 so much so that later it became the biggest shipping company of the country in the 1980’s.

What happened then to the shipping companies started after the war that just concentrated on Visayan routes? Well, by the 1960’s Southern Lines and General Shipping were already gone from the local scene and a few year later Galaxy Lines, successor to Philippine President Lines, the local operation and Philippine Pioneer Lines was also gone. And the smaller shipping companies like Escano Lines, Bisaya Land Transport (this was also a shipping company) were just in the fringe and barely alive in the 1970’s like the shipping companies that just concentrated in Bicol, Samar and northern Panay. That was also the fate of the shipping companies that was concentrating in what is called MIMAROPA today. After the 1970’s practically only batels survived in the last area mentioned.

Meanwhile, Gothong & Co. threatened Compania Maritima for Number 1 before their break-up in 1972. Later with the downward spiral of Compania Maritima, Sulpicio Lines and William Lines battled for Number 1. And when Compania Maritima quit and Aboitiz Shipping Corporation also quit Mindanao, Sulpicio Lines (the biggest successor company of Gothong & Co.) and William Lines further benefited. Actually, no shipping company that did not serve Southern Mindanao ever became one the top shipping companies in the country (that was before a lot of liner companies were culled in the crisis of the 1980’s).

That was the importance of Southern Mindanao for the shipping companies of the country. William Lines and successor of Gothong & Co. Sulpicio Lines ended up the Top 2 in Philippine shipping. Know what? They were the only survivors of the Southern Mindanao routes after all the rest quit (of course, Aboitiz Shipping came back later and there were others in container shipping).

Now, there are no more liners to Southern Mindanao, funny. But, of course, that is another story. The magic elixir dried up?

Camotes Sea and Bohol Strait Are Graveyards of Failed Shipping Companies (Part 1)

The Camotes Sea and Bohol Strait are two of the busiest shipping lanes in the country. These are the seas connecting Leyte and Bohol to the trade and commercial center of the central part of the country which is Cebu. Ships from Cebu going to Samar, Masbate, Mindanao and even Luzon have to pass through these seas also along with the foreign ships calling in Cebu. Over-all, the related Camotes Sea and Bohol Strait as sea connections are only rivaled by Manila Bay and the Verde Island Passage in the density of ships sailing and the three are the busiest shipping corridors in the country. There are many shipping companies operating here, both ferry and cargo. However, in terms of absolute numbers, this is also the area with the most number of failed shipping companies in the last 15 or 20 years when a Ph.D. from Philippine Institute of Development Studies (PIDS) said there is no competition or there is no effective competition or there is just mild competition in most routes here. Of course, she was definitely wrong if we sift through the evidence and among the most persuasive of evidences will be the number of shipping companies that failed. Why would they fail if there is no or only mild or no significant competition? Did they commit suicide? Of course not!

The greatest failure in this area is, of course, the big Cebu Ferries Corporation (CFC), the subsidiary of the giant merged shipping company WG&A Philippines which was probably the biggest regional shipping company ever. Their old ships were gone and dead before their time is up because those were sent to the hangmen of ships, the shipbreakers. Their newer ferries, the MV Cebu Ferry 1, the MV Cebu Ferry 2 and the MV Cebu Ferry 3 (the Cebu Ferry series) were transferred to the successor company 2GO Travel and those ferries were sent to Batangas and they are jokingly called the “Batangas Ferries” because they were no longer in Cebu.

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Cebu Ferry 1 leaving Cebu for Batangas

Once upon a time, this company ruled the roost here when they had so many ferries, many of which were hand-me-down liners or equal to liners in caliber. These hand-me-downs were actually much better and bigger than the overnight ferries of their competition. Their only drawback were their big and generally thirsty engines which was needed for speed requirement of the liner routes. Before the Cebu Ferries series came, some ten ships that passed to the Cebu Ferries Corporation fleet were sent to the breakers and most of them were still sailing good when they were sent to the cutters.

For more on this shipping company, I have a separate article:

https://psssonline.wordpress.com/2016/05/15/the-grand-start-of-cebu-ferries-corporation-cfc/

Probably the next biggest casualty in this area is the Palacio Lines (a.k.a. FJP Lines) which had its origins in Western Samar. In their heyday they had routes from Cebu to Bantayan island, Masbate, Northern Samar, Western Samar, Leyte, Bohol, Siquijor, Negros Oriental and Misamis Occidental. They lost some routes because of paradigm changes like in Bantayan island when they were torpedoed by the short-distance ferry-ROROs from Hagnaya (which is a much shorter route than their route from Cebu City). Palacio Lines was slow in betting on ROROs and they did not immediately see that the paradigm will shift to the intermodal system (as they still acquired cruisers even in the early 1990s).

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Don Martin Sr. 8 not sailing before she was sold to breakers

Later, there were complaints about their ships which progressively got older and less reliable and soon competition was outstripping them. And finally the pressure from these (like Cokaliong Shipping Lines and Lite Ferries) ultimately did them in. They stopped sailing and soon they sold their remaining ferries one by one. This included their MV Bantayan (sold to Orlines Sea-Land Transport), MV Calbayog (sold to Starlite Ferries) and MV Don Martin Sr. 6 (supposedly sold to a Lucena concern). Meanwhile, their biggest ship, the MV Don Martin Sr. 8 was sent to the breakers. And the cruiser ships of the company were even laid up earlier. Their cargo ship, the MV Don Martin which was the first vessel of the company was also sold and this ended up with Quincela Shipping in Manila.

Former fleet: Calbayog, Bantayan, Don Martin Sr. Don Martin Sr. 3, Don Martin Sr. 6, Don Martin Sr. 7, Don Martin Sr. 8, Don Martin

The Rose Shipping Company which is also known as Vicente Atilano (after the owner) is probably the next most prominent loser in the shipping wars in this place. Originally they were a Zamboanga del Sur shipping company from the old town of Margosatubig. Leaving that area, they tried their luck here and they fully engaged in the wars in the Leyte routes especially against Aboitiz Shipping Corporation. One of their weakness, however, is their total reliance on cruiser ferries. Being obsolete, this type of ship progressively cannot compete with the ROROs in revenues (but not in comfort and service). Rolling cargo revenue is actually bigger and more significant than passenger revenues. They then stopped sailing and most of their ships had no takers even if for sale because almost nobody looks around for cruisers anymore. Their only notable ship sales were the MV April Rose which went to Atienza Shipping Lines in Manila and the MV Yellow Rose which went to Medallion Transport. Their MV Cherry Rose and MV Pink Rose were broken up while their MV White Rose and MV Tiffany Rose are missing and are presumed to be broken up. Their MV Pink Rose and MV Red Rose can’t also be found now and in all likelihood have been scrapped too by now.

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The Pink Rose in her last days

Maypalad Shipping which was earlier known as K&T Shipping is one of the older shipping companies in the area. They have disparate routes from as far as Lanao del Norte, Leyte, Southern Leyte and Samar. They seemed to have never really recovered from the sinking of their MV Kalibo Star which was their newest ship then and progressively their ships got older. They were also victims of routes that bit by bit weakened because of competition from other routes (like the Liloan route losing to the Bato and Hilongos routes and the Tacloban route losing to the Ormoc and Baybay routes). In due time, they had no good routes left and their ships were also unable to compete in the bigger routes.

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Part of the Maypalad Shipping fleet after it ceased operations

Among these bigger failures, it is Maypalad Shipping which has a fleet of cargo ships but upon being defunct all of these got anchored too in Mactan Channel. Their MV Cebu Star and MV Guiuan were broken up now while their MV Cabalian Star, MV Leyte Star and MV Tacloban Star could all also be gone now. Their MV Samar Star is the only sure extant ship now along with one freighter which may be too far gone now. Three other cargo ships of their wer also broken or sold to breakers and their LCT is also missing.

Roly Shipping and Godspeed Shipping and Ernesto Alvarado are actually legal-fiction entities of the other. They had routes before to Leyte and Bohol. But being a cruiser ferry company, they slow lost to the ROROs since this type of ship earns more revenues because the rolling cargo revenue is such that they can actually afford not to carry passengers as shown by the Cargo RORO LCTs. Some of their earlier ships were gone a long time ago (the MV Flo Succour, the MV Reyjumar-A, the MV Isabel 2 and the MV Tubigon Ferry). The tried to fight back with fast cruisers, the MV Roly 2, the MV Mega Asiana and the MV Tagbilaran Ferry but ultimately they lost too and quit a few years ago when the banks seized their ships and were laid up. The pressure of tightening competition was simply too great and the revenues were not enough to sustain operations. There were also allegations of internal rot.

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Mega Asiana and Tagbilaran Ferry cannibalized

Jadestar Shipping is another cruiser ferry company which just had a single route, the Cebu-Tubigon route. Then the ROROs of Lite Shipping came to Tubigon, four schedules in all daily. With a full load of rolling cargo these ships will not need any passengers to earn. And then a new paradigm came, the cheap but not-so-speedy but fastcrafts of the legal-fiction entities Sea Highway Carrier and SITI Inter-island and Cargo Services which were more popularly known as Star Crafts. Squeezed by two better competitors, Jadestar Shipping found they could not sustain operations and quit a few years ago (in connection with this, Island Shipping which also operated cruiser ships in the Cebu-Tubigon route also quit showing cruisers cannot beat ROROs).

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Jadestar Seis now in Ibnerizam Shipping fleet in Zamboanga

Some of the ships Jadestar Shipping were sold to other shipping companies like the MV Jadestar Tres which went to Wellington Lim and became a cargo ship and the MV Jadestar Seis which went to the Ibnerizam Shipping of Zamboanga). Two of their ships was broken up earlier and this were the MV Jadestar Nueve and MV Jadestar Doce. Head-on, the cruisers can only compete now in Zamboanga (but then that is another situation).

Former fleet: Jadestar, Jadestar Dos (cargo), Jadestar Tres, Jadestar Seis, Jadestar Nueve, Jadestar Doce.

Kinswell Shipping made a big splash when they started in 2002 because what they introduced were China-built vessels that were not of the usual design or hull material. Some of these are actually very small and not bigger than boats and were a little queer. But their Medium Speed Crafts (MSCs) could have been winners had they been handled well. One sold one, the MV Gloria G-1 is sailing well for Gabisan Shipping and the comparable Star Crafts were also successful.

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The derelict Kinswell boats

They tried many routes and the name of the ships reflected where they were sailing. The smallest ones were the first to quit sailing as it found no great patronage because they simply bobbed too much in unsettled seas. Now they are jut anchored near the Tayud shipyards. Being fiberglass they will not sink or rust and so up to this day those remain as floating markers outside Cansaga Bay. All their three bigger ships, the MSCs were sold, the MV Kinswell, MV Kinswell II and lastly, the MV Kinswell Cebu. They have no more sailing ships left.

Former fleet: Kinswell, Kinswell II, Kinswell Cebu (2), Kins Bantayan, Kins Ormoc, Kins Danao, Cadiznon 3, Kins Camotes.

San Juan Shipping of Leyte is another hard-luck company. They were doing relatively well with their first two ferries, the MV Sr. San Jose, a beautiful cruiser and the MV John Carrier-1, a small ferry even though competition to the Leyte route was already stiffening. Now, I wonder how they were sweet-talked into purchasing the MV Dona Cristina of the Cebu Ferries Corporation. This overnight ferry was a former regional ship of the Carlos A. Gothong Lines, Inc. (CAGLI) whose old ships invariably has a history of engine troubles (except for MV Our Lady of Mt. Carmel). However, it was already WG&A, the merged shipping company which sold the ship to them. Maybe they thought that since the name WG&A was glistening then, then the ship must be good.

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The remains of San Juan Ferry (Photo by Kontiki Diving Club-Cebu)

This ship which became the MV San Juan Ferry in their fleet and became the flagship and biggest ship. San Juan Shipping spent money to refurbish this ship. However, the ship brought misery to them when a explosion hit the ship and caught fire while on trials off Liloan, Cebu. The ship then sank. San Juan Shipping never recovered from that debacle especially since competition then to Leyte was very fierce. They then sold out to Lite Ferries lock, stock and barrel and it was there that Lite Ferries gained a foothold to Leyte.

M.Y. Lines is unique in a sense that when wooden motor boats were already on their way out they sort of made a revival out of it. They had two big, wooden motor boats in a fleet of three but one, the beautiful MV M.Y. Katrina was wrecked in a typhoon and scrapped. They bounced from one route to another and was never able to fully settle especially since they were using non-ROROs when ROROs had already come into full force and was proving its superiority. They tried to find niche routes in northwestern Leyte but was never able to really discover one. One thing that torpedoed them there was the opening of the Bogo-Palompon route and the rolling of Ceres buses from Cebu to that corner of Leyte. Later, their ferries were seized by the banks and laid up.

Former fleet: M.Y. Katrina, Michael-3, Sunriser

(To be continued)

Will The New Starlite Ferry And Oroquieta Stars Battle In The Future?

It has been announced in the news a few months ago that Starlite Ferries of Batangas send a ship of their to Ormoc, the premier gateway to Leyte from Cebu. Many know that the Cebu-Ormoc is a high-density route. However, at the time this article was written (May 2017) no new Starlite ferry has arrived in Ormoc. I do not know but maybe they are serious but they could still be awaiting a ferry from Japan that has overnight accommodations, i.e. equipped with bunks and maybe cabins too. Starlite Ferries must have realized by now that the stronger schedule to Ormoc is the night sailing and not the day voyage.

Meanwhile, Ormoc is a very important route for Roble Shipping and for sure they will not take a challenge there lying down. Currently they are using their bigger but older ferries in the Ormoc route and primarily this is the Joyful Stars, the former Cebu Princess of Sulpicio Lines. This ship might have been a former liner and hence has better accommodations than the usual overnight ferry but she is already old although not yet obsolete or unreliable. But people and passengers have a bent for taking the newer and more modern ferry and so if the new Starlite ferry arrives the Joyful Stars might have a hard time coping.

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An example of the new Starlite ferry (Photo by Irvine Kinea)

I and many other members of PSSS (Philippine Ship Spotters Society) have been wondering why the new ship of Roble Shipping, the Oroquieta Stars which is the former Taelim Iris has been staying long already in the Hilongos route when according to press releases of Roble Shipping before she is destined for the Oroquieta, Misamis Occidental route and hence the name of the ship. We thought at first she was in Hilongos to “acclimatize”. But over half a year has already passed and she is still there. Now I am thinking, is she actually waiting for a future competitor that got Roble Shipping’s attention?

I am guessing that if finally Starlite Ferries serves the Cebu-Ormoc route then Roble Shipping will transfer the Oroquieta Stars to this route to do battle. And if this happens, I expect a good battle between them. This will be a good fight between a surplus ship that is not yet old with new interiors versus a ferry that is completely brand-new. That will be a good test if a brand-new ferry really has an edge in a head-on fight. After all, the owners of the brand-new ships tout that they have the edge. An actual fight will prove if that is really true and I and PSSS will be glad to see if they can prove it.

In size the two ferries will be a near-match. The new Starlite ferries are nearly 67 meters in LOA (Length Over-all) on the average. Meanwhile, the Oroquieta Stars has an LOA of 77.4 meters but in LPP (Length Between Perpendiculars) she is only 68.0 meters versus the 63.3 meters of the new Starlite ferries. The reason for the big difference in the LOA and LPP of Oroquieta Stars is she has a long bow. In estimating capacity, the LPP is more important than the LOA and so in LPP their gap is just 4.7 meters which is just the length of a sedan or an SUV.

In Breadth, however, the new Starlite ferries has a big edge at 15.3 meters versus the 12.0 meters of the Oroquieta Stars. This difference is actually one lane of vehicles and so the new Starlite ferries will probably carry more vehicles and ROROs earn more from vehicles compared to passengers. But then I would add early that Oroquieta Stars has a “homecourt advantage”. There are vehicles practically locked to them, they have been long in the business connecting of Cebu and Leyte and hence they know more people and customers and they are also good in offering low rates which is actually the primary decision point of those who decide loading of vehicles.

In passenger decks, both ships have two decks and so in passenger capacity they will not be far from each other, theoretically. But Roble Shipping is known for offering hard fiberglass seats on their routes and these maximizes passenger capacity and so probably in this category the Oroquieta Stars will have a dubious edge. These seats is what I call the “cruel seats”. Imagine sitting on them for 5 hours on the average for a just few pesos less than the fare charged for a bunk.

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Ormoc Port (Photo by James Gabriel Verallo)

In terms of comparison of cubic capacities of the ship in Gross Tonnage and Net Tonnage, I do not want to use them because such comparisons are usually meaningless in the Philippines because if there is “gross” it is because the declarations of them are grossly inaccurate in many cases. And besides the ship with a deeper keel will have a higher Gross Tonnage. By the way the new Starlite ferries are touted to be more stable because of its large Depth which is 9.4 meters. However, the Oroquieta Star’s Depth is nearly like that at 8.1 meters.

Regarding engine horsepower, the Oroquieta Stars have a significant edge at 4,900 horsepower versus the 3,650 horsepower of the new Starlite ferries. This is the reason why the former has a higher design speed, the speed that can be sustained when new at 16 knots versus the 14.5 knots of the latter. In an evening voyage this metric will not matter much since Ormoc is just some 60 nautical miles from Cebu and so it will just be a matter who arrives earlier in an unholy hour. In Ormoc at this hour there are no good connecting trips yet by land. In Cebu it might matter a little because buses leave at all hours of the night. But in daytime this will be an edge for Oroquieta Stars.

Plus of course bragging rights are always associated in being the faster one. And maybe the prestige of the new Starlite ferries will suffer a little because newer ships are supposed to be faster. But then those who know better knows speed is simply a function of the engine power. Even though Oroquieta Stars is already 23 years old, I think she will still have a slight edge in speed although forcing older engines always carries a risk. In mechanical reliability though, the ROROs built in the 1980s and later have proven they are still very reliable at 30 years of age or even greater.

In interiors a newly-refurbished ship is almost as good as a brand-new ship especially in the particular case of Oroquieta Stars which was converted from being a vehicle carrier. That means a lot of the accommodations are actually new. And if there is enough power from auxiliary engines then there is no reason why the air-conditioning of a ship would be weak.

In passenger service, well, it is proven that graduates of hotel and restaurant courses are better than nautical course graduates as the former have a lot of edge in training with regards to that. Whoever invests more in this will be the winner. If one is as good as the passenger service of 2GO or FastCat then they will probably have an edge. But if one just relies on cadets or apprentices, they will be a sure losers. They might be too cheap (as in they work for free) but I find them rough in the main and at times uneducated.

In the food service, whoever invests more will also be the winner too. The parameters here are the taste and variety. Actually what I found tasty were those who offered microwaved freeze-dried food because those are food that were actually standardized and tested. That is unlike the carinderia food which are always highly variable in quality and taste. Of course none will probably be able to offer the extras of the true liners of 2GO (I mean not counting the former Cebu Ferries). But knowing Pinoys, if one will offer unlimited rice that will be a certain edge.

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I imagine if the two will face off it will be a tight fight. Can the new Starlite ferry prove they really have an edge? Actually I doubt it. They might be more thrifty on fuel and needing less parts and service but they have a higher amortization because brand-new ships are not cheap and all were acquired through loans. In a straight fight with discounting the brand-new ships will have a hard time. Actually to say the new Starlite ferries are better against the likes of Oroquieta Stars is just like saying it is better and hence by implication will best or defeat the former Cebu Ferries of 2GO and that is actually hard to prove as everybody knows. That is what I mean that good second-hand ferries that were refitted well and has good maintenance and has very well-trained service personnel can easily match a brand-new ship.

And this will probably point to the weakness of the new Starlite ferries. They are new but they have no technical or technological edge versus the ferries built in the 1990’s like those used by 2GO. This is not like in buses and planes where a 20-year bus or plane can’t compete with a new one. If new ferries will have an edge it will be against ships that are already over 35 years old. And so this might not be yet the time the new Starlite ferries will have an edge over the Oroquieta Stars.

Whatever, these are mainly theoretical yet. What I want is a true test so conjectures and analyses can be proven or disproved.

Bring it on!

 

The First “Great” Merger: The Failed Saga of WG&A and CFC

When WG&A was formed it was ostensibly to combat the entry of foreign shipping companies on local inter-island routes. That was the time of many so-called “deregulation” initiatives of Fidel V. Ramos. But even then I had doubts about this as an cabotage law was in effect in the Philippines. Cabotage effectively prevents foreign shipping companies from plying local routes. And to repeal it an act of Congress is needed and I heavily doubted then that the Philippine Congress will go along with that.

It is generally accepted that it was Aboitiz Shipping that proposed this big merger. Rumors had it that the biggest shipping company, Sulpicio Lines, which was also Cebu-based was also invited but it refused and preferred to go it all alone.

The merger brought together the second, third and fourth-biggest shipping companies in the Philippines reckoned by passenger and cargo operations out of a total of five long-distance liner companies (but may I note which is in fourth place might be disputed by Negros Navigation). It had the effect of lowering the number of long-distance passenger shipping companies from five to three.

The merged company and its subsidiaries were the biggest shipping combine that ever existed in the Philippines in terms of fleet and in terms of route network. It significantly brought to that Visayas-Mindanao and intra-Visayas routes and High Speed Craft(HSC) operations. For the former, the Cebu Ferries Corp. (CFC) was formed and for the latter SuperCat was retained.

Brought into the merger were the following ferries (including their former routes):

WILLIAM LINES INC.
Mabuhay 1 (Manila-Cebu and Manila-Iloilo)
Mabuhay 2 ((Mnl-Surigao-Butuan-Tagbilaran-Mnl and Mnl-Tagbilaran-CDO)
Mabuhay 3 (Manila-Davao-Dadiangas-Manila and Manila-CDO-Iloilo-Manila)
Mabuhay 5 [after a few voyages permanent fielding overtaken by merger]
Dona Virginia (Manila-Dumaguete-Ozamis-Iligan v.v.)
Maynilad (Manila-Zamboanga-Davao)
Masbate I (Manila-Masbate-Catbalogan-Tacloban)
Zamboanga City (Manila-Puerto Princesa v.v.)
Tacloban City (Manila-Batan-Dumaguit-Dipolog v.v.)
Iligan City (Cebu-Iligan v.v.)
Misamis Occidental (Cebu-Ozamis v.v.)
Mabuhay 6 [unfinished]

CARLOS A. GOTHONG LINES INC.
Our Lady of Akita (Manila-CDO-Butuan v.v. and Manila-Cebu v.v.)
Our Lady of Medjugorje (Manila-Dumaguete-Ozamis-Iligan-Cebu v.v.)
Our Lady of Sacred Heart (Manila-Roxas-Palompon-Isabel-Cebu v.v.)
Our Lady of Lourdes (Manila-Dumaguit-Palompon-Cebu v.v.)
Our Lady of the Rule (CDO-Cebu v.v. and CDO-Jagna v.v.)
Our Lady of Naju (Cebu-Ozamis v.v.)
Our Lady of Fatima (Nasipit-Cebu v.v. and Nasipit-Jagna v.v.)
Our Lady of Mt. Carmel (Iligan-Cebu v.v. and Iligan-Dumaguete v.v.)
Our Lady of Guadalupe [reserve/unreliable; formerly Cebu-Surigao v.v.]
Our Lady of Lipa (Cebu-CDO v.v.)
Dona Cristina (Cebu-Tacloban v.v. and Cebu-Palompon v.v.)
Dona Lili (Cebu-Surigao v.v. and Cebu-Maasin v.v.)
Don Calvino [reserve/unreliable; formerly Cebu-Iligan v.v.]
Our Lady of Akita 2 [unfinished]

ABOITIZ SHIPPING CORP.
SuperFerry 1 (Manila-Iloilo-GSC-Davao v.v. and Manila-Iloilo v.v.)
SuperFerry 2 (Manila-Cebu-CDO v.v.)
SuperFerry 3 (Mnl-Zamboanga-Cotabato v.v. w/ Boracay (summer) and Mnl-Dumaguit-Roxas v.v.)
SuperFerry 5 (Mnl-Cebu-Iligan-Dumaguete-Mnl) and Mnl-Dumaguete-CDO-Cebu-Mnl)
Elcano (was not used; obsolete/unreliable; supposedly not brought by ASC to the merger)
Allowing for database inaccuracies, the following cargo ships were brought to the merger:

CARLOS A. GOTHONG LINES INC.
Our Lady of Peace (112.9m x 18.0m, 17kts, b. 1974)
Our Lady of Hope (99.0m x17.3m, 17kts, b.1979)

ABOITIZ SHIPPING CORP.
Aboitiz Concarrier V (69.0m x 10.9m, b. 1968)
Aboitiz Concarrier XIV (71.0m x 10.9m, 13kts, b. 1965)
Aboitiz Superconcarrier I (115.1m x17.3m, 14kts, b. 1970)
Aboitiz Superconcarrier II (102.0m x 16.3m, 12.5kts, b. 1970)
Aboitiz Superconcarrier III (105.5m x16.3m, 12.5kts, b. 1976)
Aboitiz Megacarrier 1 (139.7m x 19.3m, 14kts, b. 1975)
Aboitiz SuperRORO 100 (108.2m x20.0m, 16kts, b. 1983)

WILLIAM LINES INC.
Wilcon II
Wilcon 4
Wilcon 5
Wilcon VI
Wilcon VII
Wilcon 8
Wilcon 11
ROCON I

Excluding HSCs which were just beginning to arrive in the Philippines, the combined fleet of WG&A was nearly 50 vessels, slightly more than double the fleet of Sulpicio Lines, previously the biggest shipping company in the country.

SHIP TRANSFORMATIONS AFTER THE MERGER
Mabuhay 1 became SuperFerry10
Mabuhay 2 became SuperFerry 7
Mabuhay 3 became SuperFerry 8
Mabuhay 5 became SuperFerry 9
Mabuhay 6 became Our Lady of Good Voyage
Our Lady Akita became SuperFerry 6
Our Lady of Akita 2 became SuperFerry 11 (and later the Our Lady of Banneux)
Masbate I became Our Lady of Manaoag (in 1998)
Misamis Occidental became Our Lady of Montserrat (in 1997)

VESSELS TRANSFERRED TO CEBU FERRIES CORP.
Our Lady of Lipa (later transferred to WG&A)
Our Lady of the Rule
Our Lady of Lourdes
Our Lady of Fatima
Our Lady of Mt. Carmel
Our Lady of Guadalupe
Dona Cristina
Dona Lili
Don Calvino
Misamis Occidental
Our Lady of Good Voyage (later)
Maynilad (later and also renamed Our Lady of Akita 2)
Our Lady of Banneux (later)
Our Lady of Manaoag (later)

Like all mergers and acquisitions (M&A), the terms “synergy”, “rationalization” and “streamlining” was bandied about as if these terms are positive terms in business. But soon these words brought chills to the rank and file because the sum of the 3 words is actually only one — “chopping block”. This is the field of bean counters where shipping passion is simply thrown out of the window.

Immediately, the Aboitiz Jebsens system was adopted. That means relying on bigger, faster ROROs and short in-port hours which equates to high utilization of ships. That called for good ship engines, a field of expertise of the now-renamed WG&A Jebsens. That system, however, also meant the death knell for the cruiser liners as their cargo booms meant long in-port hours and their having no car decks means low capacity for container vans.

The new style was to put all cargo in container vans and all container vans are mounted in trailers. For fast handling, tractor heads from trucks were no longer good enough. Only dedicated, automatic prime movers with the capability to raise the trailers were used. Calls on in-between ports generally were only 2-3 hours and ships don’t stay overnight at the farthest port of call of a voyage.

With so many ROROs sailing high hours per week (with some ships sailing 145.5 hours out of a 168-hour week), WG&A was confident it could sell less-efficient and slower ropax and container ships without affecting capacity and frequency. Soon some of the vessels were already for sale.

VESSELS SOLD SOON AFTER THE MERGER
Tacloban City (cruiser)
Iligan City (cruiser)
Dona Cristina (slow, small RORO)
Don Calvino (slow, small, unreliable RORO)
Dona Lili (slow, small RORO)
Wilcon 6 (old cargo ship)
Aboitiz Concarrier V (old cargo ship)
Aboitiz Megacarrier 1 (big, modern container ship)
Aboitiz SuperRORO 100 (big, modern container ship)
RoCon I (big, modern container ship, the biggest in the country)

VESSELS OFFERED FOR SALE BUT NOT SOLD THEN
Dona Virginia (cruiser liner)
Maynilad (big but slow RORO liner)
Zamboanga City (ROLO liner)
Our Lady of Naju (cruiser)
Masbate I (slow, small RORO)
Our Lady of Montserrat (cruiser)
SuperRORO 300 (former Our Lady of Hope, container ship)

With WG&A Jebsens managing the fleet, the merger upgraded the amenities, cleanliness and passenger service of the ferries. But initially all meals were for sale; vehement protests from patrons thereafter forced WG&A to backtrack. It was also claimed that safety standards improved as the whole fleet is now internationally-certificated. However this was not reflected in lower hull-loss rates. Ironically, it was the lesser Our Ladies (and not the SuperFerries) which proved to be unsinkable.

WG&A and CFC practiced branding. Branding is good in the sense that it promises consistent quality and service. On the other hand branding also utilizes ads and promotions. If that results in better market share then it should be good. Otherwise it only means higher level of costs. And higher costs are a threat to marginal routes and to less-efficient ships.

Initially, even with a fifth of their fleet sold (and with only one additional ship coming, the SF12 and while losing the SF7 to fire), WG&A was able to offer more frequencies because of the higher utilization of ships. But almost no new ports of call were added except for Bacolod. And probably the only significant new routes were the Manila-Cebu-Surigao-Davao (which passes through the eastern seaboard of Mindanao), Manila-Ormoc-Nasipit, Manila-Dumaguete-Cotabato and Manila-Cebu-Zamboanga-General Santos/Davao routes.

It was Cebu Ferries that added more new ports of call and routes (like Cebu to Dumaguit, Roxas City, Bacolod, Dumaguete, Larena, Jagna and Camiguin and Cagayan de Oro to Dumaguete) which in turn put a lot of pressure on the other Cebu shipping companies. CFC ships were faster than the competition and as former liners they simply outclassed the rest in terms of amenities and service.

Sulpicio Lines and Negros Navigation responded by adding ships. Sulpicio Lines basically kept to their old routes (except for the new Manila-Cebu-Davao-Dadiangas route) but Negros Navigation which previously concentrated only in Western Visayas has to venture in a lot of new routes and ports of call because their fleet more than doubled in a span of a few years. But then by sailing to Cebu, Nenaco also opened their former exclusive port of Bacolod to competition and they lost more than they gained.

This period right after the merger, the late 90s, was probably one of the best in Philippine passenger shipping. Competition was fierce, choices were many and there were a lot of newly-fielded ships. There were more shipping companies in the past but the ships of the 90s were far better than the ships of the earlier periods. In major ports there were nearly daily departures from all the liner companies combined.

But they say good times never really last. But I didn’t expect that the decline will be that soon, that fast, that continuous and what will be left is just the rump of the biggest-ever shipping company in the Philippines.

The first hint of trouble that I detected was when I noticed that WG&A was not properly assessing the threat, challenge and development of the intermodal system in Eastern Visayas which was then growing by leaps and bounds.

If Fidel V. Ramos had a deregulation program in shipping he also had a deregulation program in the bus and truck sectors. As deregulated area, bus companies can now ply Eastern Visayas routes with just a temporary operator’s permit. Soon a lot of buses were plying the Samar-Leyte-Biliran routes. Then the dominant short-distance RORO company in the Matnog-Allen route lost the case to protect their missionary status and new players entered that route ensuring that the ROROs needed will always be there. Long-distance trucking also developed with the loosening of the restrictions in the importation of surplus trucks. And with the advent of radial truck tires long-distance trucking became easy.

WG&A’s response was to withdraw from the Samar-Leyte routes except for the adjacent ports of Ormoc, Palompon and Isabel which actually comprises just one route. But soon under pressure from the buses these were lost too including the port of Masbate City which was also part of this route. Soon the islands of Masbate, Samar, Leyte and Biliran were lost to the intermodal trucks and buses.

Eastern Visayas was a signal victory for the intermodal system which was based on long-distance truck/bus plus the short-distance RORO ship. Wins by the challengers tend to have a multiplier effect. They become stronger, bolder and more confident. If the ship can be beaten in one area then nobody can pooh-pooh anymore that they will not be beaten in the next area of confrontation. And the next challenge probably happened before the WG&A has fully internalized their loss and it happened when they were in relative disarray.

A related development at this time was that WG&A’s new routes failed to stick and only the Bacolod route was able to survive. The new CFC routes also failed to pan out and were being abandoned one by one. One contributory factor for CFC’s retreat is fuel cost. The amenities and service of their ships might have been higher as those were former liners but as former liners it is also the reason why their engines are bigger and consume more fuel. Soon WG&A/CFC were selling ships. This was the second set of disposals and it happened at about the turn of the millennium. Also disposed in this period were at least six catamarans including vessels that came from mergers in the High Speed Craft (HSC) sector (the mergers with the Sea Angels of Negros Navigation and Waterjet).

At the same proximate time, it was already the strategy of WG&A to sell old and inefficient cargo ships and just let the ROROs liners carry the container vans. They then went for bigger ROROs later with twin cargo decks, the reason for the purchases of the SuperFerry 15, SuperFerry 16, SuperFerry 17 and SuperFerry 18.

The next challenge did not come from the intermodal. Rather it was the withdrawal of the Gothong family from the merger except for one scion. Soon the Gothong family re-entered the shipping business and re-established Carlos A. Gothong Lines Inc. (but they were not particular successful). Not long after this development the Chiongbian family (of William Lines) also withdrew from the merged company. But they did not re-enter the shipping business. Let it be noted, because it is important, that all the merged shipping companies independently retained their cargo forwarding businesess. For the Chiongbian family it was the Fast Cargo Transport Corp.(FCTC) and Gothong Cargo Forwarding Corp.(GCFC) for the Gothong family.

One can speculate that the sale of 10 vessels in 2000-02 (including those withdrawn from routes and old container ships) might somehow be connected to these withdrawals. When the company also took out a big loan in this period ($18.6 million) it might also have a relation to this state of affairs. Before the end of 2002, Aboitiz had already bought out its former partners. But it will still be later that the company will be renamed Aboitiz Transport System (ATS).

The next challenge came from the intermodal again. In 2003, the Western Nautical Highway opened and buses, trucks and jeeps were able to roll down to Panay island via Mindoro and Batangas. Soon the shipping routes and shipping companies serving Panay were under great pressure. Again, WG&A chose to withdraw (from Dumaguit and Roxas) and just tried to hold on to Iloilo port.

The opening of the Western Nautical Highway and the consequent withdrawal from routes, the withdrawal of the Chiongbian family and the need for new ROROs provoked a massacre of ships in this period as about 15 ships were disposed in the years 2003-06, both from WG&A and CFC, both ROPAX and container ships. It must also be noted that six catamarans were also sold in this period. WG&A was lucky that at this time world metal prices were peaking. If it hastened the disposal of ships I can say it is probable. Let me state that in the late 1990’s when all three families were still in WG&A, the company did not sell to the breakers, in general. In the first half of the first decade of the new millennium WG&A sold heavily to the breakers especially when world metal prices were peaking.

Attracted by the doubling of world metal price in 2007, WG&A then sold their prized ferries Superferry 15, SuperFerry 16, SuperFerry 17 and SuperFerry 18 to foreign liner companies.In the process they earned a windfall. But this is not without cost as they suddenly lacked the ships needed to carry the container vans. As a stopgap measure WG&A chartered 3 container ships, the “Myriad”, “Markella” and “Eponyma”. They then also converted SuperFerry 2, SuperFerry 9 and SuperFerry 12 into twin-cargo-deck ROPAX ships. Later the subsidiary cargo company 2GO was formed and the chartered ships were returned one by one.

At about the same time, in 2007, a very ominous development took place. Aboitiz partnered with MCC Transport of Singapore, the Asia subsidiary of the A.P. Moller – Maersk Group, the biggest container shipping company in the world and formed the MCC Transport Philippines (MCCTP). Since it met nationality rules, it was able to ply local routes and the ships invested by Maersk were given special permits by MARINA.

If the chartered ships of ATS and the ships of 2GO were a step up over local competition, the ships that came from MCC Transport were still another further step ahead in terms of size, speed and efficiency. MCCTP acted as feeder to MCC Transport which now dominates the Asia container routes. Together with the coming of more regional container ships (after APL) with direct foreign routes (like MELL, PIL, RCL and others), this completely undermined one important bread and butter of local container shipping which is the transshipment of foreign container vans. ATS and subsidiary 2GO cargo operations might have been affected by this but as a group Aboitiz is safe because they are also on the side of the winners through MCCTP.

After the sales of the four of the biggest and most modern SuperFerry ships in 2007, the fleet of ATS/CFC no longer grew. New ships have come like SuperFerry 20, SuperFerry 21, Cebu Ferry 1, Cebu Ferry 2 and Cebu Ferry 3. But ships have also been sold, lost or laid-up like SuperFerry 9, Our Lady of Medjugorje, Our Lady of Good Voyage, Our Lady of the Rule, Our Lady of Mount Carmel and SuperFerry 19.

With only six ships sailing, ATS ports of call were already down to half compared to its peak and in half of these ports the frequencies were down to once a week. CFC ports of call were also down to half and its fleet is less than a third of what it had before. CFC changed its website and no longer claimed it was the biggest Visayan shipping company (which is just a reflection of the truth). The Sulpicio Lines fleet was already bigger than the combined ATS and CFC fleets. If cargo ships are counted, Sulpicio’s fleet was almost double the combined ATS, CFC and 2GO fleets.

In 2008, KGLI-NM, the holding company owning Negros Navigation made an offer for Aboitiz Transport System. When the bank financing the take-over bid asked for more collateral the bid collapsed. This take-over bid was news for a long time because of the significance and it dragged. It was here that ATS propagated the canard that shipping is losing to the budget airlines and it obscured the fact that cargo is the lifeblood of shipping. Ironically it is this same year that regional container ships in Philippine ports multiplied. And not once did I notice Aboitiz discussing its shares in MCC Transport Philippines. But at least the Aboitiz group was frank enough to admit that the business of power generation attracts them more and that they are already heavily investing in it and if ATS is sold it will be one of their primary investment areas.

In 2010, with the assistance of the ASEAN-China Fund, Negros Navigation Company was finally able to secure the deal to buy Aboitiz Transport System and its subsidiaries especially Cebu Ferries Corporation, SuperCat and 2GO, the forwarding company. At its end as an Aboitiz company, ATS, CFC and 2GO had only 9 ROPAX ships and 2 cargo ships sailing which is not any bigger in gross tons than the company it merged in WG&A even if the SuperCats are counted. So in effect that means the bigger William Lines and Gothong sank without any replacement.

Aboitiz always says around that it has already gotten out of shipping and the maritime industry. But they completely obscure the fact that they are still in MCC Transport Philippines (MCCTP) and they completely own now the former Aboitiz Jebsens (renamed back when the Gothong and Chiongbian families withdrew from WG&A). The former Abojeb is in crewing and manning and that is one of the five recognized sectors of the Philippine maritime industry as defined by the government. MCCTP is already in expansion after Aboitiz sold Aboitiz Transport System. [Recently, Aboitiz clarified that some of their family members are engaged in MCCTP.]

Now, Negros Navigation Company owns Aboitiz Transport System and NENACO even retained the name and the brands. It will be a matter of time before it will be evident how big a bag they are holding.

The “great” merger of 1996 started out with a bang, lofty words and promises. It exited with just a whimper. But along the way it sank two great liner companies (William Lines and Gothong) and took down with it the liner industry.

The Batangas-Caticlan Route

Once, as we were ship spotting Pier 4, me and Vinz noticed that there seems to be a ceremony involving Cebu Ferry 1 and Cebu Ferry 3. Asking the guard who is his friend, Vinz learned it was despedida (farewell ceremonies) for the two Visayas-Mindanao ferries which will be transferred in Batangas. We learned later that the Batangas manager of 2GO said he can make the two ferries earn more there than in Cebu. That was already the era of the retreat of Cebu Ferries Corporation (CFC) when to think that in the late 1990’s they were bullying the Visayas-Mindanao ferry companies which led to the demise of some. This time around, Cebu Ferries Corporation can no longer keep with their competition. What a reversal of fortune!

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The despidida for two Cebu Ferry ships

Vinz asked me how the two ferries will fare in Batangas. I told him it is a different ballgame there. What I meant was in Cebu it was a matter of attracting passengers and loose cargo, I told Vinz the game in the intermodal ports of Luzon (and Batangas is one) is in attracting the buses and the trucks and I told him discounting (called “rebates”) is the name of the game there (and that also includes freebies). That means whichever has the biggest discount will have the rolling cargo and for the regulars long-term agreements apply so it is not the decision of the drivers what ship to board. I told Vinz the new “Batangas Ferries” (my monicker) will have to learn the new game.

The new “Batangas Ferries” plied a direct Batangas to Caticlan route compared to their competitors which ply both the Batangas-Calapan route and the Roxas-Caticlan route and let the buses and trucks roll from Calapan to Roxas in Oriental Mindoro, a distance of about 120 kilometers or so or about 3 hours of rolling time. The “Batangas Ferries” can easily sail that route as an overnight ferry because they have the speed to do it in less than 12 hours (and as overnight ferries they are already equipped with bunks). In fact, early on they tried a round trip in a day for the Batangas-Caticlan route. Then they found out they don’t have enough load because many of the buses and trucks are already tied to their competitors and there is no load yet in the early morning in Caticlan as the buses and trucks are still rolling from many parts of Panay and will still arrive at noon or in the afternoon.

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A “Batangas Ferry” sailing into the coming night by Nowell Alcancia

In reality, even the slower ferries of their competition can do a Batangas-Caticlan route should they want to do it. It will take more than 12 hours but they will still be able to sail the next night. Even at the usual 11 knots they can do that route in no more than 16 hours. Their faster ferries than can do 14 knots can do the route in about 14 hours. Their ferries will just have to become overnight ferries+ instead of being short-distance ferries.

That then was the first rub. The ferries of Batangas are not used to and are even loath to operate overnight ferries. For one, they will have to convert their ferries to have bunks. That means expenses, that means lessening the passenger capacity. Now for shipping companies that are even loath to adding scantlings and were just content to have the unofficial “Stairs Class”, that is a difficult sell. Good overnight ferries also must be able to provide a restaurant and hot food. Well, nothing beats the ease and profit margins of overpriced instant noodles where the only capital is hot water. Now what if MARINA obliges them to provide free meals if the voyage time is over 12 hours like what Administrator Pacienco Balbon required then of Viva Shipping Lines? That could be disaster.

Well, it seems nothing will beat requiring the rolling cargo and its passengers two ferry rides within the same night (for some that leave Manila late). They will earn twice and anyway the rolling cargo won’t go to “Batangas Ferries” because many are tied to them with discounting and rebates. And they won’t just transfer because the rates in the sea is high for the same distance and the distance of Batangas-Caticlan is high and so it is not cheap and Batangas Ferries is not used to discounting (actually, the reason they eventually lost in Visayas-Mindanao is they were the more expensive).

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Passengers can’t be aboard the bus during the voyage and in loading and offloading

The buses won’t go along with “Batangas Ferries” too. If they ride on a Batangas-Caticlan ferry they would have to forego the fare for 120 kilometers or so and that is not peanuts. It has long been held by the LTFRB that a bus cannot charge for the distance traveled at sea (of course, secretly they will try to do it since anyway most passengers don’t know how to compute the fare nor do they know of the number of kilometers). And they will have to pay higher for the longer sea distance crossed. Does anyone need a nail to the head?

And so the buses will rather have their passengers ride two ferries at night. That connotes all the trouble of disembarking and boarding again plus the queues for the various tickets. And never mind if it is raining. In that route, that can be the definition of “passenger service”. Is there a difference between passengers and cattle?

And so until now it is still just 2GO, the renamed “Batangas Ferries” which do the direct Batangas-Caticlan route. Montenegro Shipping Lines, Starlite Ferries, Archipelago Ferries Philippines, Super Shuttle Ferry (Asian Marine Transport Corporation) and Besta Shipping Lines never did that direct route. Who said they will walk the extra mile for their clients?

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“Batangas Ferry 3”

Anyway, passengers are appreciative of the superior accommodations of the 2GO ferries. They have never seen such ferries in Batangas before (and they haven’t been to Cebu either, the home of good overnight ferries). They never ever thought that their ropaxes are actually just cattle carriers. And they have never seen a true restaurant in a ship before which the 2GO ferries have. And oh, plus true, polite passenger service (they have been too used to masahista ng bakal in T-shirts before pretending as stewards).

Will Archipelago Ferries Philippines do a direct route since their catamaran ROROs are faster (theoretically they can do the route is just 10 hours but they will have to do it at daytime since they don’t have bunks)? Well, I don’t think so. I heard they are even happy with the farther Bulalacao-Caticlan route since their sister company bus rolls farther and thus earns more from fare.

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A catamaran RORO of AFPC by Jon Erodias

And that is the situation of the Batangas-Caticlan route. Now I wonder when the Panay passengers will demand for something better.

Are they just content to get up at night and disembark even if it is raining and continue the trip with their heads hanging out from seats and their bodies contorted in search of sleep?

The Battle for the Southern Mindanao Ports After The War And Before The Era of RORO Liners

Discussing this topic, the author wishes to clarify that the discussion will be limited to the period after World War II. There are not enough research materials yet before the war and in that earlier period Southern Mindanao was not yet that economically important to the country since the great wave of migration to the region only happened starting in the 1950’s and then peaking in the 1960’s and the 1970’s.

Talking of Southern Mindanao ports, these consisted mainly of Davao, General Santos (or Dadiangas) and Cotabato (which is actually Parang or Polloc port located in another town) and to some extent also Pagadian and Kabasalan in earlier times and also Mati and Bislig. Since ships generally used the western approach, inadvertently Zamboanga port will be included in this since all ships to Southern Mindanao port using the western approach will use that as an intermediate stop since it just lies along the route and it has a good passenger and cargo volume.

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Gorio Belen research in the National Library

After World War II, shipping to Southern Mindanao boomed because it was the “new frontier” of the country. There was great migration by Christians from other parts of the country and this was encouraged and supported by the government to ease the “land pressure” in Luzon and Visayas which was the fuel then for the land unrest (read: Pambansang Kilusan ng Magbubukid, Sakdalista movement, Hukbalahap, etc.). The land of Mindanao was being opened through the building of roads and the bounty of the land and the forests were being exploited (without asking the say-so of the native peoples and that fueled the unrest of the latter decades; the Luzon land unrest was “solved” to be replaced by Mindanao unrest and war – what an irony and tragedy!). And so people and goods needed to be transported and in such a situation where “ships come where there is cargo” there was a battle for the Southern Mindanao ports among the local shipping companies. Davao was the primary route and port of Southern Mindanao and almost invariably the Davao ships will also drop anchor in Dadiangas (General Santos City).

At the outset, it was Compania Maritima which led the pack to Southern Mindanao after World War II as she was the biggest liner shipping company then with the most ships, half of which were big by local standards (that means a length of about 100 meters). The company possessed ex-“C1-M-AV1” surplus ships as compensation by the US Government for their ships lost during the war and also big cargo-passenger ships from Europe while the competition had no better than the small ex-“FS” ships from the US Army which have to seek shelter when the seas begin to roil.

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Gorio Belen research in the National Library

Among the Compania Maritima competitors to the Southern Mindanao ports in the late 1940’s and early 1950’s were Philippine Steam and Navigation Company (PSNC), Manila Steamship Company, De la Rama Steamship, William Lines Inc. and Escano Lines. Most of the liner shipping companies of the day then shirked from Southern Mindanao routes because it was taxing on the fleet as the ships needed two weeks for the entire voyage. So just to be able to offer a weekly schedule, two ships of the fleet must be devoted to a Southern Mindanao route.

It was Philippine Steam and Navigation Company (PSNC), being backed by Everett Steamship of the United States, which was more competitive against Compania Maritima as it also had ex-“C1-M-AV1” and ex-“Type N3” ships. PSNC was a venture between Everett Steamship and Aboitiz Shipping (and later with the end of “Parity Rights”, it passed on to the latter). Manila Steamship Co. was competitive, too since it also had a big fleet. However, this company quit shipping after the explosion and fire that hit their flagship “Mayon” in 1955. Meanwhile, De la Rama Steamship even quit earlier to concentrate on international shipping and being an agents after some local issues.

The year that Manila Steamship quit shipping, the new liner company Carlos A. Go Thong & Company joined the Southern Mindanao battle, too. In the mid-1950’s, with some shake-out in the shipping industry, there were less competitors and ships in this decade (because some really old ships have already quit along with some very small ones). It should be noted, however, that there were ocean-going liners that were originating from Southern Mindanao that goes to Manila first before proceeding to Japan and the USA. Some of those that provided that kind of service were Everett Steamship and Compania Maritima.

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Gorio Belen research in the National Library

In the 1960’s, passenger-cargo ships from Europe that were bigger than the ex-“FS” ships began to arrive in the Philippines and many of these were fielded to the Southern Mindanao routes. Among the users of that type were Go Thong and William Lines. Go Thong was also able to acquire the big World War II surplus “C1-A” ships like the “Manila Bay” and “Subic Bay”. Compania Maritima, however, bought brand-new liners and chartered big reparations cargo-passenger ships from the government-owned National Development Corporation (NDC) and so they held on to their lead in the Southern Mindanao routes in this decade. Meanwhile, Everett/PSNC was not far behind and they even used in Southern Mindanao their new liners from Japan, the “Elcano” and the “Legazpi”. Additionally, there was a new entrant in the late 1960’s, the ambitious Sweet Lines which was one of the beneficiaries of the quitting of General Shipping Company of local routes (the other was Aboitiz Shipping Corporation).

At the start of the 1970’s, Compania Maritima was still ruling the Southern Mindanao routes. But several very interesting developments happened in this decade. First, the big Go Thong/Universal Shipping which already exceeded Compania Maritima in size had broken into three shipping companies and Sulpicio Lines Incorporated, Carlos A. Gothong Lines Incorporated and Lorenzo Shipping Corporation emerged (until 1979 the operation of the latter two were joint). In a few years time, however, Sulpicio Lines grew fast and proved to be a strong competitor. In this decade, it was already slowly becoming obvious that Compania Maritima was losing steam especially as they regularly lost ships in storms. William Lines then was in a race with Sulpicio Lines to dislodge Compania Maritima from its perch. Everett Steamship meanwhile bowed out because of the end of “Parity Rights” of the Americans (and thus they are no longer allowed to do business as a Philippine “national”) and PSNC (their partnership with the Aboitizes) was merged with Aboitiz Shipping Corporation and the latter became the surviving entity. But with no new ships, Aboitiz Shipping Corporation bowed out of Southern Mindanao liner service. However, the combined Lorenzo Shipping Corporation and Carlos A. Gothong Shipping Lines (CAGLI) and Sweet Lines Inc. were still competing heavily in the Southern Mindanao routes in the 1970’s.

Two very important developments happened before the end of the 1970’s. One, containerization began and this changed the game of shipping. Where before it was just practically the liners that carried the cargo, now the carriers split into two, the container ships and the liners. Subsequently, the passenger capacity of the liners grew as they no longer have to devote a lot of space for cargo. By this time, the massive migration of Christians to Southern Mindanao has also boomed its population and consequently more need to travel.

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Gorio Belen research in the National Library

The second development was the introduction of fast cruiser liners that call on just one intermediate port (before a liner to Davao will usually call first in Cebu, Tagbilaran, a northern Mindanao port maybe, Zamboanga definitely and Dadiangas. So where before 10-knot ships like the ex-”FS” and ex-”C1-M-AV1” ships will take two weeks to complete an entire voyage and the faster ex-European passenger-cargo ships cycles every 10 or 11 days, the new fast cruisers complete the voyage in just a week. By my definition, fast cruisers of this period were the liners capable then of 18 knots. Usually, these were not converted cargo-passenger ships from other countries (these were fast cruisers even in Japan, usually). These were also luxury liners in the local parlance and one key feature of that is the availability of air-conditioning. With that truly luxurious suites and cabins became possible.

The fast “Dona Ana” (later “Dona Marilyn”) of Sulpicio Lines which came in 1976 tried to change the game by just having one intermediate port call, in Cebu. William Lines responded with the even faster cruiser “Manila City” (the second) in 1976 which only had Zamboanga as its intermediate port. With their speed and the use of just one intermediate port, the “Dona Ana” and “Manila City” was able maintain a weekly schedule. Although the luxurious flagship “Filipinas” of Compania Maritima was also fast at 17 knots, she dropped by many intermediate ports and so she cannot maintain a weekly sailing. Compania Maritima never dropped the old style of many intermediate ports.

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Photo credits: Times Journal and Gorio Belen

Gothong+Lorenzo was not able to respond well to this challenge (though they tried) as they had no true fast cruiser liners. So, they had to use two ships for a route to maintain a weekly sailing or three ships to maintain a cycle of every 10 days. Sweet Lines also tried but like Gothong+Lorenzo they also have no fast cruisers assigned to Southern Mindanao (they had two though in Cebu, the “Sweet Faith” and the “Sweet Home”). Compania Maritima and Sweet Lines were the users of three ships to the Davao route to be able to cycle a ship every 10 days. Aboitiz Shipping, meanwhile, with no new ships simply dropped out of liner shipping to Southern Mindanao and just concentrated on container shipping.

Although William Lines and Sulpicio Lines already had fast cruiser liners to Southern Mindanao they also still used their old passenger-cargo ships to the region in the late 1970’s in conjunction with their fast cruisers liners. So with them the passengers have a choice of the fast or the slow which was also less luxurious. Fares also differed, of course.

In the container segment of shipping, the battle was toe-to-toe. Aboitiz Shipping rolled out the Aboitiz Concarriers, William Lines had the Wilcons, Sulpicio Lines fielded the Sulcons (Sulpicio Container) and later Lorenzo Shipping sailed the Lorcons (Lorenzo Container). Many of the ships mentioned were once general cargo ships converted into container ships. [The later series Aboitiz container ships were named Superconcarriers and Megaconcarriers.] Lorenzo Shipping then split with Carlos A. Gothong Lines Inc. and the latter then quit Southern Mindanao routes to concentrate on the Visayas-Mindanao routes. [Later, Lorenzo Shipping quit shipping altogether and sold out to the Magsaysay group before they were reborn as the Oceanic Container Lines.]

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Gorio Belen research in the National Library

In passenger liners, William Lines and Sulpicio Lines continued to battle in the Southern Mindanao ports in the 1980’s using fast cruiser liners. Sulpicio Lines had the edge as they had more fast cruiser liners [William Lines still had to make do with their graying former European passenger-cargo ships]. For a while until they quit in 1984, Compania Maritima was battling Sulpicio Lines more than toe-to-toe. After all, Southern Mindanao was the area of concentration of Compania Maritima and in Davao they even have their own port, the MINTERBRO port. Compania Maritima concentrated their best liners, the “Filipinas”, “Visayas” and “Mindanao” plus their passenger-cargo ships “Leyte Gulf” and “Dadiangas” in the General Santos/Davao route before the company’s life expired. While the three were battling, the other liner companies were not able to respond except for Sea Transport Co. and Solid Shipping Lines which were not operating passenger liners. One independent liner company, the Northern Lines Inc. which had routes to Southern Mindanao also quit at about the same time of Compania Maritima at the height of the political and financial crisis leading to the mid-1980’s.

Before the era of RORO liners, there were already more container ships to Southern Mindanao than passenger liners. That how strong was the growth of that new paradigm. This new dominant paradigm even forced the fast cruisers to carry container vans atop their cargo holds as that was already the demand of the shippers and traders.

In the 1980’s before the advent of RORO liners starting in 1983 there were actually only a few fast cruiser liners doing the Southern Mindanao routes. Among those was the “Dona Ana”, the pioneer fast cruiser of Sulpicio Lines to Davao. This ship was later pulled out to replace “Don Sulpicio” in the Manila-Cebu route as the ship caught fire and she was renamed to “Dona Marilyn”. However, the fast cruisers “Don Enrique” (the later “Davao Princess” and “Iloilo Princess” and “Don Eusebio” (the later “Dipolog Princess”) alternated in the Manila-Cebu-Davao route. In 1981, when the “Philippine Princess” came, “Dona Marilyn” was reassigned to the Cotabato route. She was the first fast cruiser liner in that route.

Don Sulpicio, Dona Ana and Don Ricardo

Photo by Jon Uy Saulog

On another noteworthy trivia and clarification, Sulpicio Lines also fielded the third “Don Carlos” in the General Santos route in 1977. This ferry was a former vehicle carrier in Japan and so she had a cargo deck and a ramp. However, she was not used as a RORO ship. The ramps were just used to ease the loading of livestock from Gensan. This city sends a lot of those live commodities to Manila. She was actually a “WOWO” ship (Walk on, Walk Off). However, she also takes in heavy equipment and trucks bound for Gensan dealers. So technically “Don Carlos” was the first RORO to Southern Mindanao. But she did not use container vans.

For William Lines, the second “Manila City” (the first “Manila City” was an ex-”FS” ship) was their only fast cruiser to Southern Mindanao for a long time in this decade. Most of the passenger ships they were using in the region were former European passenger-cargo ships like what Sweet Lines were using (the company was also using the “Sweet Grace” to Southern Mindanao which was a brand-new liner in 1968 but was not that fast). Approaching the end of the decade only three national shipping companies were left sailing liners to Southern Mindanao – Sulpicio Lines, William Lines and Sweet Lines. One of the reasons for that was the crisis spawned by the Aquino assassination halved the number of liner companies in the Philippines. It was not because the traffic to Southern Mindanao dropped considerably. In container shipping to Southern Mindanao before the RORO liners came there were six players – Aboitiz Shipping Corporation, William Lines, Sulpicio Lines, Lorenzo Shipping Corporation, Sea Transport Company and Solid Shipping Lines.

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MV Don Carlos (Gorio Belen research in the National Library

In 1983, a new paradigm arrived in the Southern Mindanao routes and it ushered a new era. These are the RORO (or ROPAX) liners which were even bigger and just as fast as the fast cruiser liners. And they can carry more container vans than the fast cruisers. Later, RORO liners were even faster as they can already sail at 20 knots. Can anyone hazard a guess which was the first RORO liner of Southern Mindanao?

I will discuss the era of RORO liners in Southern Mindanao in a subsequent article (as I do not want this article to be too long and unwieldy). With that, it will be a discussion of the recent history of the Southern Mindanao routes and liners.

Container Ships Also Sink Our Liners

In the past, before 1980, there was no conflict between the our liners and the container ships. First, container ships did not exist before the late 1970’s. Second, before that time, general cargo ships were not many as it is our liners that were mainly carrying the inter-island cargo that should be transported fast and were not in bulk. That was the reason why even though our production and the number of people were not yet as high like today, there were so many liners existing with as high as 90 liners at its very peak.

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Gorio Belen research in the National Library

In the early 1970’s, the Sea Transport Company came into existence. What was notable for this new company is they offered regular express cargo service to Mindanao which means a direct service and aside from loose cargo, their ships were able to carry small container vans which were non-standard as in they were offering 8-foot containers which they themselves designed (it was rectangular in shape). In due time, they also shifted to standard container vans and they fielded pure container carriers.

In 1976, Aboitiz Shipping Corporation converted one of their general cargo ships, the P. Aboitiz into a container carrier. Conversion like this was not difficult because only some internal structures need to be modified so a container van can be slot in and that also means modifying the holds and the hatches. The grabs of the booms also have to be modified by a bit so it can handle a container van.

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Gorio Belen research in the National Library

In 1978, containerization was already in full swing when Aboitiz Shipping Corporation added more container ships and William Lines Incorporated followed suit. The next year, in 1979, Sulpicio Lines Incorporated also joined the bandwagon to be followed in the next year by Lorenzo Shipping Corporation which had already split from its merger with Carlos A. Gothong Lines Inc (CAGLI). Negros Navigation Company also joined this new paradigm in 1980. In 1981, Sweet Lines Incorporated also followed suit but they used their old company name Central Shipping Corporation. Among the major liner companies then, it was only Compania Maritima which did not join this new paradigm.

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Gorio Belen research in the National Library

These new container services offered direct sailings as in there were no intermediate ports. With direct service, the container ships might be a little slower than the liners (except for the fast cruisers) but their transit times were not worse than the liners (except to Cebu) because they don’t lose time in an intermediate port or ports. With the speed, convenience, security (no pilferage), lack of damage and contamination, soon the shippers were already shifting en masse to the new container services.

In the liner crisis of 1980 when many liners were deactivated and laid up, it seems the main cause of that was the emergence and immediate success of the container ships and container shipping. Maybe the liners suddenly found they don’t have enough cargo and hence they can’t maintain the old sailing schedule and from the outside it looked like that suddenly there was a “surplus” of bottoms (actually the liners complained of that).

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Gorio Belen research in the National Library

In December 1979, the first RORO liner, the Dona Virginia of William Lines came. This RORO and those that came after her were capable of carrying container vans especially the XEU or 10-foot container vans that can be loaded aboard by the big forklifts. Soon even the fast cruiser liners were also carrying container vans atop their cargo holds especially at the bow of the ship. Some can also carry container vans on a platform in the stern.

Locally, I did not see a new paradigm take hold as fast as container shipping. The ROROs even took longer to be the new paradigm. In containerization, there was even a rush to convert general cargo ships into container ships. All the “new” container ship of Lorenzo Shipping Corporation were converts at the start. The other container shipping companies bought general cargo ships from Japan and converted them into container carriers. Our first container ships looked like general cargo ship unlike the modern container ship which does not look like general cargo ships (and nor can they handle loose cargo).

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In just a little over a year William Lines had 5 container ships (Gorio Belen research in the National Library)

The emergence of the RORO liners even pushed containerization faster as that new kind of ferry is ready-made not only for vehicles or rolling cargo but also for container vans, wheeled in atop chassis (which means atop trailers) or not (if not wheeled then big forklifts “wheeled” them in). There were not yet reach stackers in the early years of our containerization to handle the container vans.

In the 1980’s and the 1990’s, the liners can still hold off the container ships. The reason was there were no budget airlines yet (Philippine Airlines fares then were really stiff) and there were no intermodal buses yet in the bulk of the islands (it was only strong in Eastern Visayas, their pioneer area). And liners can still pack in the passengers (even up to “overloading” or overbooking point) because people has already learned how to travel and there was a great push for migration to Metro Manila (which later led to the overcrowding of this metropolis).

However, when budget airlines and the intermodal buses came in droves, the passengers of the liners dropped. The 2,000 to 3,000 passenger capacity slowly became “too big” and hence the national shipping companies no longer fielded liners with capacities such as this in the new millennium. Aboitiz Transport System (ATS) also tried to reduce passenger capacity and increase cargo capacity by converting some of their liners to have two decks for rolling cargo like what they did in SuperFerry 12, SuperFerry 9 and SuperFerry 2.

Superferry 12

Photo by Edison Sy

Can the liners compete with container ships when the passenger demand dipped? The answer is a plain “No way”. Liners usually have more than three times the horsepower of a local container ship (and it is single-engined which means less spare parts are needed) and yet the local container ship usually have three times the container capacity of a RORO liner. This even became more pronounced when the regime of high oil prices came in the first decade of this millennium. Per fuel prices alone, the container ships can carry each container van much cheaper than what a liner can.

Container vans also do not need the amenities needed by the passengers. Moreover, it does not need the service expected of the passengers which need to be fed and be given more than decent accommodations plus some entertainment. Because of that, the crewing needs of a liner is far higher than that of a container ship. All of those means more expense of the part of the liner company. Besides, a RORO liner is more expensive than a container ship for the same size and its insurance is higher.

Ever since the 1980’s, even when the passenger demand was still great, the national shipping companies were earning more from cargo than their passengers. That is true even today when 2GO admits that almost 70% of their revenues are from cargo (and to think under their roof is SuperCat which widens the passenger revenues). Definitely their investment for liners is greater than their cargo ships. Maybe it was only loyalty to their passengers and passenger shipping why they were not quitting this segment. Maybe it is also because of inertia which means just keeping doing the old things.

Lorcon Dumaguete assisted by tugs

If we look at the recent years we can see that for every liner acquired at least 7 container ships were acquired and this is even a conservative estimate. If we look at the last 10 years starting from 2006, only 11 liners came to our shores and that includes the 3 Cebu Ferries, two of which are still used as overnight ships although already converted into small liners. Meanwhile, MARINA registered 80 or more newly-arrived container ships in the same period. These are the container ships of Oceanic Container Lines, Sulpicio Lines/Philippine Span Asia Carrier Corporation, Lorenzo Shipping Corporation, NMC Container Lines, Solid Shipping Lines, Negros Navigation/Caprotec Corporation/2GO, MCC Transport Philippines (MCCTP), Moreta Shipping Lines, Meridian Cargo Forwarders, Seaview Cargo Shipping Corporation, Escano Lines/Loadstar Shipping Company and West Ocean Lines and Transport acquired in the last ten years. Now how many container lines is that compared to a sole passenger liner company?

There are few liners sailing now and all are under just one company which is 2GO (since Romblon Shipping Lines has already quit). Meanwhile, container ships are still mushrooming and more container shipping companies are joining the field. Even 20 years ago there were already more container ships than liners. Now the container ships are already outstripping the liners in number. And the trend holds true year after year.

The question is why? Well, the simple answer is the shipping companies won’t invest in liners as it does not make sense. More revenues can be earned from container shipping at less investment with less hassles from regulations and supply needs (like the food needed by the passengers). So why would they enter passenger liner shipping? Better “pets” like containers vans rather than people like the passengers who can raise a ruckus and if the ship sinks then goodbye to all the advertising and service spent for the goodwill. If a cargo ship sinks, the uneducated public and the media almost won’t mind at all.

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A Cargo RORO LCT by Asian Shipping Corporation

If cargo is the bread and butter of shipping it will now go to the container lines because they can actually offer the lower shipping rates. If not it will go to the intermodal trucks which has even lower rates. And arriving now recently are the Cargo RORO LCTs which carry container vans (even from Manila) like those of Roble Shipping Incorporated, Ocean Transport and Asian Shipping Corporation. This new paradigm can offer even lower rates than the container ships.

Sometimes it looks like liners are already passe. But I don’t want them to go because I prefer them over planes and the intermodal buses are sometimes too tiring especially those who are no longer young.

Will the liners survive? Now, that is one question I would not like to answer.