Chelsea Shipping Is The New Goliath of Philippine Shipping

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The Chelsea Dominance. The declaration of intent?

When the “new shipping world” was being built there was Phoenix Petroleum first which was not into shipping anyway. Many thought Phoenix Petroleum would end up like the “independent” oil players then which had a few gasoline stations here and there but were never a threat to the major oil players which have foreign genes. But with the smiling face of the world-famous Manny Pacquiao as mascot, Phoenix Petroleum grew until it challenged the Big 3 which were Petron, Shell and Chevron (which was the former Caltex and Mobil). That was blasphemy for the oldtimers which saw Filoil never got anywhere before.

Phoenix Petroleum got far because they changed the rule of the game. Where before local oil companies had to invest in local refineries to be granted permission to operate, Phoenix Petroleum simply had to import fuel from Singapore and it so happened in Southeast Asia oil prices are only high in the Philippines because a lot of taxes are tacked on to the price of fuel as oil is the milking cow for taxes of the government which rules a vast horde of people exempted from paying taxes because they are too poor.

Along the way to being the fourth Oil Major, Phoenix Petroleum established Chelsea Shipping to handle their fuel transport needs and the company operated a fleet of tankers. But Chelsea Shipping never operated the biggest tanker fleet in the country and their fleet never exceeded ten tankers.

But this year, 2017, Chelsea Shipping made a lot of sea-shaking moves in shipping. Early this year rumor leaked out already that they have already acquired majority control of Trans-Asia Shipping Lines Inc. (TASLI), a Cebu-based regional shipping company with Visayas-Mindanao routes. A bare few months later a boardroom fight erupted in 2GO, the only national liner shipping company left when Dennis Uy, the principal of both Phoenix Petroleum and Chelsea Shipping tried to claim what they felt was their rightful representation after buying shares and the old management group represented by Sulficio Tagud, the old top honcho resisted. But in the end Tagud and company waved the white flag after 2GO gained market value because of the fight and Dennis Uy took control of 2GO.

Weeks passed and the local shipping world was rocked again by a new development when it was announced that Chelsea Shipping is acquiring Starlite Ferries Inc., a Batangas-based regional shipping company lock, stock and barrel. Starlite Ferries has routes to and from Mindoro and its fleet is being reinforced by newbuilds from Japan acquired from a loan from a government-owned bank. It seems the coffers of Phoenix Petroleum and Chelsea Shipping are overflowing to the brim. Is there another acquisition in the making?

Chelsea Shipping now has foothold to the top three passenger shipping hubs in the country which are Cebu, Manila and Batangas. In tankers they are also strong in another hub which is Davao which has the cheapest fuel in the whole country courtesy of Phoenix Petroleum and which piqued Ramon Ang enough that he chopped the fuel prices of Petron. And so Davao fares remained among the highest in the country. Does it make sense? Nope. Maybe it is the moves of Chelsea and Dennis Uy which only makes sense.

I do not know if a second “Great Merger” will happen in Philippine shipping after the first “Great Merger” of 1996 which created William, Gothong and Aboitiz or WG&A, the predecessor company of 2GO. That first one ended in disaster and it only resulted in the death of two great historical shipping companies.

Will history repeat itself? I have my doubts. This time around there is only one top honcho which is Dennis Uy unlike before there was a big merged company with three heads pursuing some kind of a mirage. Actually it could be great for Philippine shipping as Dennis Uy and his patron are both loaded and might have the money to make moves in shipping without going to the banks. Who knows if the moribund shipping industry is revived with their coming?

Now if only Manny V. Pangilinan (MVP) bought out Negros Navigation Company (NENACO) outright some 15 years ago instead of being just a “white knight”. NENACO is one of the merged companies in 2GO. We really need investors with deep pockets in shipping. That is what might turn things around and not due to some government blah-blah.

Is there a renaissance of Philippine shipping in the horizon?

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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)

The Other Passenger Ships Built in 1967 That Came to the Philippines

There were other ships built in 1967 that also came to the Philippines. Their number is about the same as those still existing until now. If they are gone now it is not because they sank or was lost (except for a few). Most of the reasons why they are gone circles around the situation that they were no longer wanted and there were no other takers. Sometimes that is just the simple reason why ships including ferries are retired, disposed off and broken up.

All of these ferries were built abroad and there were no local-builds (it looks like shipping companies hold on longer to the ships that they built). Some of these were gone even before the turn of the millennium but then they still they lasted more than 30 years of service. So, here then are the passenger ships built in 1967 that came to our country but are no longer around.

Maybe we should start with the grandest of them all, the cruise ship Dona Montserrat of Negros Navigation Company which came in late 1974 but unfortunately she did not last long. She was a fine ship, no doubt, but it seems she was way ahead of her time as most Filipinos don’t have enough money yet for cruises and if they have they would rather go on trips abroad ait is more sosyal. But then Dona Montserrat had voyages even to Hongkong too. Negros Navigation Company bought this cruise ship for $3.4M, a big sum in those days.

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Dona Montserrat by Dimas Almada

The Dona Montserrat was originally the Cabo Izarra and built by SECN (Navantia Carenas) in Matagorda, Spain for Ybarra Line. She was a cruiser ship with three passenger decks and with all the amenities of a cruise ship of her size during her period. These included 110 staterooms for 273 passengers, dining salon with international and Filipino cuisine, main lounge, penthouse, library, game room, swimming pool and bars. The ship was fully air-conditioned, fully carpeted and she had a well-equipped galley. Music (as in a band) and entertainment nightly was available in Dona Montserrat. The primary route of this cruise ship was Manila-Corregidor-Iloilo-Zamboanga-Davao aside from cruises to special destinations like Sicogon island and Hongkong.

This cruise ship measured 104.9 meters Length by 15.8 meters Breadth by 10.3 meters Depth, a Depth which means she is a stable ship. Her Gross Register Tonnage was 4,339 tons and her Net Register Tonnage was 1,675 tons. She was powered by two B&W engines developing 7,800 horsepower giving her a top sustained speed of 19.5 knots. So during her time she was the passenger ship with the highest power sailing in the country and in terms of size she was about equal to the bigger fast cruiser liners that arrived in the country in the latter half of the 1970’s.

In less than 5 years, however, Dona Montserrat quit sailing and she was sold to China where she was used a cruise ship.

The next ship in this list was also a cruise ship but she came later, in 1999, but was more successful and was also built in Spain. She was the Coco Explorer No.1 of Coco Explorer Inc. She was more successful maybe because she was able to attract foreign tourists who wanted to explore our hidden coves and islands, do diving tours and being smaller and of shallower draft she was more fit in this role.

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Coco Explorer No.1 by Dimas Almada

The Coco Explorer No.1 was the former Sta. Maria de la Caridad and she was built by Union Levante in Valencia, Spain. This cruise ship measures only 66.9 meters by 11.0 meters by 5.1 meters and her Gross Tonnage is only 1,199 and her Net Tonnage is only 562. In size she is just like many of the Cebu to Leyte overnight ferries but she is not as tall. This ship was powered by MWM engines of 2,000 horsepower total and her design speed was 15 knots. The Coco Explorer No.1 was a cruiser ship.

In 2005, the Coco Explorer No.1 was sold to China for breaking up. Maybe age caught up with her and there was already competition by smaller tour-dive ships in the waters she used to go which was mainly in the direction of Palawan. Moreover, the places which were her haunts were already accessible by other means and there were already facilities like resorts and hotels.

The next ship on this list was a beautiful ship and once was a flagship of Negros Navigation Company which was the Don Julio. This ferry was built brand-new for Nenaco by Maizuru Heavy Industries in Maizuru Japan. She measured 95.7 meters by 13.9 meters by 7.5 meters with a Gross Tonnage of 2,381 and a Net Tonnage of 1,111. Her later passenger capacity was 994 with accommodations from Suite to Economy classes. The Don Julio was a cruiser ship where cargo was handled by a boom in the bow which meant slow cargo handling. Cruiser ships also have less cargo capacity compared to RORO ferries. And maybe these were the reasons why she fell into disfavor later in the company.

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Don Julio by John Ward

The ship has a single Hitachi engine of 4,400 horsepower and her sustained top speed was 17.5 knots qualifying her as a fast cruiser liner of her era. Her main routes were to Iloilo and Bacolod but when she got old and bigger ships came along she was shunted to minor routes like Roxas City. Later, when she can no longer be accommodated in the fleet of Negros Navigation she was transferred to Jensen Shipping and among the routes of the company was Cebu to Iloilo. Later, this ship disappeared without trace and not because she sank. It was simply that databases lost track of her. It was sad because the person after she was named, Congressman Julio Ledesma IV was interested in buying her for posterity.

The Don Julio was a sister ship of the Dona Florentina and the Don Juan, both of Negros Navigation Company and the Cebu City of William Lines, all of which became flagships of their fleets one time or another. Now, that is a distinguised company.

The next ship on this list should be the Iligan City of William Lines which later became the Sampaguita Ferry 3 of Sampaguita Shipping Corporation of Zamboanga City. Originally, this ship was Amami Maru of Amami Kaiun of Japan. She was built by Mitsubishi Heavy Industries in Shimoneseki, Japan and her external measurements were 83.1 meters by 12.0 meters by 4.5 meters. Her Gross Tonnage was 1,512 and her Net Tonnage was 562 and her passenger capacity was 635 persons. She was equipped with a single Mitsubishi engine of 3,800 horsepower which gave her a sustained top speed of 17 knots.

This ship was a cruiser ship and thus she had the same disadvantages of the Don Julio when the RORO ferries came. She was mainly fielded by William Lines in the Cebu-Iligan route and she stayed there until the merger which created WG&A in 1996. She was then transferred to the WG&A subsidiary Cebu Ferries Corporation where she was tried in the Cebu-Roxas City route and other routes. She was not successful and she was one of the ships offered for sale by Cebu Ferries Corporation immediately. By then she was no longer a satisfactory ship as her passenger accommodations were already tiny compared to the current standards of the times then.

In 1997, Iligan City was purchased by Sampaguita Shipping Corporation of Zamboanga City where unmodified she became the Sampaguita Ferry 3. During that time Sampaguita Shipping was building up its fleet to have modern and comfortable overnight ferries for its long routes using bank loans. They also used the abbreviation “SF”, a takeoff from the SF SuperFerry as in they are the SuperFerry of Zamboanga. Well, they even built a modern terminal a la SuperFerry near the entrance of Zamboanga port.

However, Sampaguita Shipping was hit by bad timing because soon the highways out of Zamboanga City became paved and they eventually lost to the buses. Competition also became very tight in Zamboanga which was a product of the deregulation policies and incentives laid out by the Ramos Administration. Modern and new High Speed Crafts (HSCs) even came to Zamboanga City like Weesam Express and the fastcrafts of A. Sakaluran. Under the crushing load of its debts, Sampaguita Shipping defaulted, collapsed and ceased operations. The last heard of Sampaguita Ferry 3 was she was sold to the breakers.

We will then come to three overnight ferries that first came to Carlos A. Gothong Lines Incorporated (CAGLI) locally. The first was the Dona Lili which was very well-known in the Cebu-Nasipit route battling the big Nasipit Princess of Sulpicio Lines. This ship was built in Japan as the Seiran Maru by Taguma Shipbuilding & Engineering Corporation in their Innoshima yard. And in 1980 this ferry came to CAGLI as one of the earliest RORO ships of the company and in the archipelago.

The Dona Lili had the external measurements 69.0 meters by 12.0 meters by 4.5 meters. Her Gross Register Tonnage in Japan was 856 tons and in conversion here to Gross Tonnage the figure was left unchanged. The ship’s Net Tonnage was 448 and her passenger capacity was 732 persons. The Dona Lili was powered by two Daihatsu marine engines with a total of 2,600 horsepower and her sustained top speed when still new was 15.5 knots. In size, she is just like the Cebu to Leyte overnight ferries of today.

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Credits to PDI and Gorio Belen

When the merger that resulted in WG&A came she was transferred to its subsidiary Cebu Ferries Corporation and in this company she was assigned the Cebu-Tacloban route with also a route to Camiguin. But when Cebu Ferries Corporation dropped its Tacloban route because it was losing to the shorter Ormoc route, it seems Dona Lili did not sail again. By that time Cebu Ferries had an excess of ships because they already dropped a third or more of its former routes and so the older and smaller ferries especially the cruisers had nowhere to go especially since WG&A can drop former liners to Cebu Ferries. With that situation, Dona Lili dropped from sight never to be seen again and not because she sank.

The next ferry that came to Carlos A. Gothong Lines Inc. was their second Don Benjamin (they had an earlier Don Benjamin which was a former “FS” ship) which arrived in 1982. This is a ship that served their Iligan and Ozamis overnight routes for them from Cebu but this ship only lasted until just before the mid-1990’s because of engine issues.

The second Don Benjamin was the former Shin Kanaya Maru in Japan and she was built by the Shimoda Dockyard in Shimoda, Japan. This ship measured 61.0 meters by 13.7 meters by 2.9 meters and in Japan her Gross Register Tonnage was 877 tons. Locally her Gross Tonnage was just 685 and her Net Tonnage was just 268 both of which looks suspiciously low. The second Don Benjamin was a smaller ship than Dona Lili.

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Don Benjamin partially scrapped by Edison Sy

The Don Benjamin was powered by a single Nippon Hatsudoki engine, a generic Japan engine of 2,550 horsepower. That was good for a sustained top speed of 15 knots. However, her engine seems to be the reason for her undoing as Hatsudoki engines are not long lasting and even early in the 1990’s she was already plagued by unreliability. When the new ship Our Lady of Naju came for Carlos A. Gothong Lines in 1994, she was sent to a Navotas breaker. During those times, re-engining then was not yet common. She was a rare ferry that did not last 30 years in service.

The third ferry from Carlos A. Gothong Lines Inc. was the Dona Casandra, a ship that came also in 1982. She was built as the Mishima in Japan by Hashihama Zosen in Hashihama yard. This ship had the measurements 53.8 meters by 11.0 meters by 3.7 meters, dimensions which were less than the war-surplus “FS” ships. Her Japan Gross Register Tonnage was 487 tons. What I find suspicious in her specifications was her Deadweight Tonnage (DWT) which was only 180 tons in Japan. Was she meant to just carry a few sedans and light trucks?

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Dona Casandra (Credits to Times Journal and Gorio Belen)

Here, after addition of more metal and passenger accommodations her Gross Tonnage rose to 682 but I was not able to obtain her Net Tonnage. The declared passenger capacity of the ferry was 650 persons. The Dona Casandra was powered by two Daihatsu marine engines with a total of 2,000 horsepower and her design speed was 14 knots.

The Dona Casandra did not last long in service because once in a voyage from Butuan to Cebu she foundered on November 21, 1983 in a rough Mindanao Sea experiencing the disturbance of a distant typhoon. She was then carrying lumber aside from passengers. The sinking caused the loss of lives of the bulk of the passengers and crew but the exact number was never established as the ship sank without trace. Was her load to much for her load capacity in DWT and in a rough sea and considering she has added metal to her structure?

The Lorenzo Shipping Corporation also had ships in this list which are about the same size as the mentioned ships of Gothong Lines (once from 1972 to 1979 the two had combined operations). Lorenzo Shipping once was also in passenger shipping and it was even in liner operations albeit not in high profile but later they quit passenger shipping to become an all-cargo operation and maybe that is why many people can’t connect their name to passenger shipping.

The first should be the Dona Okai which was the biggest of the three. This ship was also known as Dona Oka 1 and Don Okai in Lorenzo Shipping. What names! The Dona Okai was paired with another ship of the same size in the fleet of Lorenzo Shipping to do their unique Manila-Dipolog-Zamboanga-Pagadian-Dadiangas route which took nearly two weeks to compete and that is why two ships have to be paired in that route so a weekly schedule can be maintained.

The Dona Okai was originally the Ryoho Maru of the Kashima Kisen K.K. shipping company in Japan. She actually had three owners before coming to the Philippines in 1979. When she was sold to Ebisu Kisen K.K. she was converted into a chemical tanker. When she was sold to Daiei Kaiun K.K. In 1973 she was converted back into cargo ship.

The Dona Okai was a cruiser ship built by the Asakawa Shipbuilding Company in Imabari, Japan. She measured 74.2 meters by 10.5 meters by 5.4 meters. In Japan her Gross Register Tonnage was 1,093 but this rose to 1,173 in the country with a Net Register Tonnage of 780. The ship was equipped with a single Makita engine of 1,500 horsepower which gave her a top speed of 12.5 knots.

In 1992, Lorenzo Shipping sold her into another shipping company. She is now deleted from maritime databases which happens when ten years has passed and there is no further news about the ship. She might be a broken-up ship by now.

1980-2-3 Lorenzo Shipping

Lorenzo Shipping schedule, 2/5/80 (Credits to Times Journal and Gorio Belen

The second ship of Lorenzo Shipping was the Dona Lilian which had the external dimensions of 63.7 meters by 9.6 meters by 4.8 meters and in Japan her Gross Register Tonnage was 753 tons. This ferry was a cruiser ship which arrived in the country in 1978.

The Dona Lilian was the former Seiun Maru No.5 of Tsurumi Kisen K.K. of Japan. She was built by Imabari Zosen in Imabari, Japan. In the Philippines her Gross Register Tonnage remained unchanged and her Net Register Tonnage was 487. She was powered by a single Makita engine of 1,300 horsepower and her sustained top speed was just 11 knots, just about the same as freighters of her size as she is a little low on power.

This Lorenzo ferry held for the company the Iloilo and Pulupandan combined route from Manila and one of the last ferries to sail to Pulupandan as this port can only dock shallow draft vessels then (the reason why when ferries grew in size the route was abandoned). When the company eventually withdrew from the Pulupandan route because it can’t compete with the Negros Navigation ships using Banago port in Bacolod, she found herself on the Davao route. However, on a voyage with two distant typhoons affecting local weather conditions, she foundered in heavy seas off Tandag, Surigao del Sur on December 6, 1982.

Lorenzo Shipping had to other ships in this list, the Don Francisco. This ship was actually the second Don Francisco as there had been an earlier ship by that name in the Lorenzo fleet which was a former “FS” ship converted into passenger-cargo use. When the earlier Don Francisco was lost in the earlier part of the year 1978, this ship came to replace the lost ship in the same year 1978.

The second Don Francisco was first known in Japan as the Zensho Maru of the Marujutoko Unyusoko K.K. shipping company. She was built by the Higaki Shipbuilding Company in Imabari, Japan. Her external dimensions were 53.4 meters by 9.3 meters and her Japan Gross Register Tonnage was 496 and she has a speed of 10.5 knots. In terms of external dimensions, cubic volume and speed, this ship is very much alike the once-dominant former “FS” ships converted into ferry use here. This ship is also a cruiser ship.

The ship shouldered on in various capacity under Lorenzo Shipping until when the company was already taking a step back already from passenger ship (the company later on became an all-cargo company utilizing container ships until she was sold to the Magsaysay Group which continued to use the same name). This ship then disappeared from maritime databases but it is assumed that she did not sink and most likely she had just been quietly scrapped.

Another ship built in 1967 that is no longer around was the former Nadayoshi Maru No.2, a fishing vessel in Japan by Kanasashi Shipbuilding Company in Shizuoka, Japan. In 1974 this ship came into the Philippines and in her first rebuild she was converted into the passenger-cargo ship Gingoog City in 1987 and the name is already suggestive of her route.

In 1991, this ship was sold to the new shipping company Cokaliong Shipping Lines Incorporated (CSLI) which was already expanding their fleet and she became the Filipinas Siargao. This ship measures 49.5 meters by 7.8 meters by 3.6 meters with a Gross Tonnage of 327. Her Net Tonnage of 181 and the passenger capacity is 292 person in bunks as this was an overnight ferry-cruiser. The ship is powered by a single Hanshin engine of 900 horsepower.

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Filipinas Siargao (Parsed from a framed photo in Cokaliong Tower)

In 1997 the Filipinas Siargao was sold to Ting Guan in Mandaue as scrap because Cokaliong Shipping Lines is already converting to RORO ships. She lasted exactly 30 years.

Another ferry that was built in 1967 that was sold to local breakers under the same conditions in almost the same period but a little later was the beautiful cruiser Sr. San Jose which was even a little bigger than the Filipinas Siargao. The ship was a Cebu to Leyte ferry of the San Juan Shipping of Leyte.

The ship was originally the Tanshu Maru of Kansai Kisen K.K. of Japan. She was built by Hashihama Zosen in Hashihama, Japan. She had three owners in Japan the last of which was the Fukahi Kaiun. The ship had the measurements 54.0 meters by 8.6 meters by 2.3 meters. Her Gross Tonnage was 498 and her Net Tonnage was 185 with a passenger capacity of 558 persons. The Sr. San Jose was powered by a single Akasaka engine of 1,470 horsepower giving her a sustained top speed of 15 knots when new.

The ship together with her company was sold to Lite Ferries in the aftermath of the explosion, burning and sinking of the company’s flagship San Juan Ferry in 2000. When she was sold, Lite Ferries was already fully into ROROs and no further use was needed of her especially since her engines were no longer that good. She was then sold to the breakers.

The next ship on this list is a lost ship but not violently. She was the Princess Camille of the Shipsafe Shipping. The ship had the overnight route Batangas-Romblon but on a voyage on March 21, 2003 she developed a leak in the hull in Romblon port the next day which resulted in her capsizing in the port but her passengers were safe.

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Princess Camille remains by Arnel Hutalla

The Princess Camille was the former New Olympia of the Nanbi Kaiun K.K. She was built by the renowned Kanda Shipbuilding Company in Kure, Japan. The measurements of the ship was 39.2 meters by 11.2 meters by 3.4 meters which means she was not a big ferry, just the size of a basic, short-distance ferry-RORO (she is a RORO). Her Gross Tonnage was just 350 and her Net Tonnage was 197. The Princess Camille was equipped with a single Daihatsu engine of 900 horsepower and her top speed was 12 knots. The Princess Camille came to the Philippines when she was already 30 years of age. She reached 36 years of sailing.

The ship was no longer salvaged and her company soon collapsed especially since there was very tight competition then in Southern Tagalog shipping.

There are 13 ferries in this list. Three of the 13 were lost at sea .

One thing I can say is if ferries are no longer relevant then they quit sailing and the shipping owners does not need the government to tell them that.

And another thing is if the engine is no longer good and won’t be re-engined anymore then they also send the ships to the breakers and no government order is also needed for that because on their own shipping owners has enough common sense aside from financial sense.

I now leave it to the readers to weigh the careers of these ferries built in 1967 that are no longer around.

The Bill Rider To Kill 35-Year Old Ships

Maybe they are golfing buddies but one thing sure is both of them are in the Cabinet of President Rodrigo Duterte. And maybe Secretary Arthur Tugade offered to carry the cudgels (or golf bags) for Secretary Alfonso Cusi for the latter’s new ships cannot win over the competition in a level playing field because it has no definite technical advantage unlike the FastCats which definitely have low fuel consumption relative to their rolling cargo capacity. The new Starlite ferries might be new and are thrifty compared to the old ferries but they still have to amortize their ships whereas their competitors’ ships are already basically paid for already and that really matters a lot.

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A very good ferry that is 35 years old

There was a bill to give President Rodrigo Duterte new Starlite ferries to solve our traffic problems. And it seems a rider was inserted that will cull ferries that are already 35 years old which meant ferries built in 1982 or earlier. There was even a rumor that new ferries will be given exclusive routes. This is what I was saying in another article of mine that there seems to be moves to target and retire old ship via legislative or administrative fiat. It seems that without that kind of assistance the new Starlite ferries or the new SWM ferry would have a hard time competing. Knowing short-distance ferries have fixed schedules and two-hour gaps are in the rules then that just simply negates the advantage of new ferries as passengers, drivers and car owners normally take the next available RORO. And besides they don’t perceive the old ferries have a definitely disadvantage in safety.

The fact is in many routes no steel-hulled ferry has ever sunk and that includes many heavily-traveled routes like the Matnog-Allen/San Isidro route, the routes from Tabaco to Catanduanes, the Pilar-Masbate route, the routes from Bogo to Cawayan, Cataingan and Palompon, the routes connecting Leyte and Bohol, the Roxas-Caticlan route, the routes from Lucena to Marinduque, the Bacolod-Dumangas route, the Iloilo-Bacolod route, the routes from southwest Cebu to southeastern Negros Oriental, the Dumaguete-Siquijor routes, the Dumaguete-Dapitan route, the Ozamis-Mukas route, the routes from Balingoan to Camiguin, the Zamboanga-Basilan routes and many, many other routes too numerous to list. And old ferries basically plied these routes.

In a conference called by MARINA earlier this year (2017), they admitted that they have no study that says old age is the cause of the loss of ships (well, they can’t even if they make a study because actually one big cause of the mishaps is navigational errors and some ships were lost while not sailing like a force majeure caused by a typhoon and accidents in shipyards or while doing afloat ship repair or ASR). Now after a stalemate where MARINA can’t force its way it seems they simply passed the (golf )ball to Secretary Tugade’s club who I suspect can be influenced but does not know shipping. I don’t think he is even aware that culling 35-year old ship will mean cutting up approximately half of our short-distance and overnight ferry-RORO fleets which are very essential in bridging our islands by moving cargo, people and vehicles. These sectors are actually more important than the liners and the container ships as they connect ports that are beyond the reach of their Manila-based counterparts.

If half of our RORO fleet outside the liners and container ship is suddenly discarded there would definitely be a shipping crisis of major proportion. Some shipping firms like George & Peter Lines, VG Shipping, J&N Shipping, Southern Pacific Transport, Denica Lines, JVS Shipping, Aurelio Shipping, CSGA Ferry, Millennium Shipping, Milagrosa J Shipping and the Camiguin ferry companies will suddenly end up defunct for they will lose all their ferries. And some shipping companies will only retain one ferry out of a former fleet. Actually ferry companies in Cebu province will lose more than half of their ferries and there is no need to emphasize the importance and weight of Cebu shipping to the country. The would be like that of 1986 (or even worse) when we severely lacked ferries because so many shipping companies collapsed in the crisis spawned by the Aquino assassination and the former “FS” ships also gave out because of old age (but unlike now the old ships are not expiring yet because of advances in metallurgy and technology and the availability of replacement engines). I thought the current administration is seeking growth. Is killing ships the way to do that? Replacing nearly 200 ferries is never easy. Can anybody guess how much will that cost?

I have always wondered why in our government the decision-makers in transport are the ones who do not ride them. Like in shipping I wonder if Secretary Tugade ever rode a scheduled ferry for I know he is a certified landlubber from Cagayan province. That is also true in buses and jeeps; the decision-makers also don’t ride those. These decision-makers do not really know their fields inside-out and yet they decide its fates and maybe it is only the whispers to their ears that count. I thought when I was still studying that it should be the experts that should decide and not the political hacks. It has been a long time already when our Cabinet was dominated by technocrats or those who really studied their fields. In the US most of the men in Cabinet are there because of political connections. But at least they know when to bring in and to consult the experts. Not here because for a long time already those who feel and act like they are the “experts” are the politicians, the media people and the bishops when actually they practically know nothing and true experts are just used as decoration.

We only have just over 300 ferry-ROROs (there are also a few cruisers and true motor launches but our liners is just over a dozen). So that means we are practically just talking about overnight ferries and short-distance ferries in this issue. Add to that a little over 40 HSCs (High Speed Crafts) too. The others are Moro boats, motor boats and motor bancas which are too numerous to count (they are much more than in numbers than our steel-hulled crafts) and should not be included here (anyway practically none of them are over 35 years old, amazingly). In the ROROs, the LCTs are included.

If 35-year old ferries are to lose licenses the following will have to be sent to the breakers (or be converted into cargo ships if cargo ships over 35 years old will not be culled but the freighter Fortuner breaking into two recently after loading with steel bars will not help their case):

Montenegro Lines/Marina Ferries: Maria Angela, Maria Beatriz, Maria Diana, Maria Erlinda, Maria Gloria, Maria Helena, Maria Isabel, Maria Josefa, Marie Kristina, Maria Matilde, Maria Rebecca, Maria Sofia, Marie Teresa, Maria Xenia, Maria Yasmina, Maria Zenaida, City of Sorsogon, City of Masbate, City of Tabaco, City of Calapan, Maria Timotea, Reina del Rosario, Reina Genoveva, Reina Hosanna, Reina Neptuna and Reina Quelita. A total of 26 ferries and fastcrafts. The four whose names start with “City” are fastcrafts. Hernan Montenegro will cry a bucket of tears and expect Gloria Macapagal Arroyo to fight like hell against the bill in Congress.

Asian Marine Transport Corporation (AMTC): Super Shuttle Ferry 1, Super Shuttle Ferry 2, Super Shuttle Ferry 3, Super Shuttle Ferry 5, Super Shuttle Ferry 6, Super Shuttle Ferry 9, Super Shuttle Ferry 15 and Super Shuttle Ferry 23. A total of 8 ferries.

Trans-Asia Shipping Lines Inc. (TASLI): The new Trans-Asia that is not yet finished, Trans-Asia 2, Trans-Asia 9, Trans-Asia 10 and Asia Philippines. A total of 5 ferries.

Cokaliong Shipping Lines Inc. (CSLI): Filipinas Iligan, Filipinas Butuan, Filipinas Iloilo, Filipinas Maasin, Filipinas Dapitan, Filipinas Dinagat and Filipinas Dumaguete. A total of 7 ferries.

Roble Shipping: Wonderful Stars, Joyful Stars, Theresian Stars, Beautiful Stars and Ormoc Star. A total of 5 ferries. Add to this the Asian Star and Asian Star II which were the former Blessed Star and Sacred Stars sent to Theresian Stars shipping company.

Lite Ferries: Lite Ferry 1, Lite Ferry 2, Lite Ferry 3, Lite Ferry 6, Lite Ferry 7, Lite Ferry 8, Lite Ferry 15, Lite Ferry 20 and Lite Ferry 21. A total of 9 ferries.

Island Shipping: Island RORO I, Super Island Express I, Super Island Express II, Super Island Express III, Island Express II, Island Express III and Island Express V. A total of 7 ferries although I doubt the existence of some now.

Medallion Transport: Lady of Love, Lady of All Nations, Lady of Miraculous Medal, Lady of Sacred Heart, Lady of Charity, Lady of Guadalupe-Cebu and Lady of Angels. A total of 7 ferries and I am not even sure the Lady of Good Voyage will survive.

Aznar Shipping: Melrivic 1, Melrivic Two, Melrivic Three, Melrivic Seven, Melrivic Nine and their fastcrafts.

George & Peter Lines: GP Ferry-2, Zamboanga Ferry and Georich

Gabisan Shipping: Gloria Two, Gloria Three, Gloria V

Jomalia Shipping: Mika Mari, Mika Mari III, Mika Mari V, Mika Mari VI

Maayo Shipping: LCT Giok Chong, LCT Martin, LCT Wilcox

Cuadro Alas Navigation: Santander Express, Santander Express II, Santander Express IV

GL Shipping: GL Express and probably GL Express 2

J&N Shipping: J&N Carrier and J&N Ferry. Ubay will suddenly lose its connection to Cebu.

Southern Pacific Transport: South Pacific and Fiji-II

VG Shipping: VG RORO II and VG 1.

Rose Shipping: Yellow Rose

Maypalad Shipping: Samar Star

Lapu-lapu Shipping: Lapu-lapu Ferry 1

Golden Star: Anluis

Metro Ferry: Princesa (but not Carmen Uno)

PAR Transport: Leonor 3 and probably Leonor 5

R&D: Lady Star (this is laid up)

Orlines Sea-Land Transport: Siquijor Island 1

Sta. Clara Shipping/Penafrancia Shipping: Hansel Jobett, Mac Bryan, Nathan Matthew, Don Benito Ambrosio II, Don Herculano and Eugene Elson. A total of 6 ferries.

Regina Shipping Lines: Regina Calixta IV

168 Shipping: Star Ferry-II

Denica Lines: Marina Express and Odyssey

Province of Camarines Sur: Princess Elaine (a fastcraft)

Kalayaan Shipping: Kalayaan VII

Rolly Fruelda: Elreen 2

Tour-cruise ships of Manila: Pacific Explorer, Eco Explorer, Discovery Palawan, 7017 Islands, Oceana Maria Scuba

Atienza Shipping Lines: April Rose

JVS Shipping: D’ASEAN Journey, D’Sea Journey

Aurelio Shipping: San Carlo Uno

Quincela Shipping: Q-Carrelyn VII

Starlite Shipping: Starlite Annapolis, Starlite Ferry, Starlite Navigator and Starlite Polaris. A total of 5 ferries.

Besta Shipping Lines: Baleno VII

Navios Shipping Lines: Grand Unity and Grand Venture 1

CSGA Ferry: Princess Annavell

Tri-Star Megalink: LCT Tabuelan Navistar

Millennium Shipping: Lakbayan Uno and Millennium Uno

Milagrosa J Shipping: Milagrosa J-3 and Milagrosa J-5

Aleson Shipping: Estrella del Mar, Stephanie Marie, Neveen, Danica Joy, Ciara Joie, Ciara Joie 2. A total of 6 ships.

Ever Lines: Ever Queen of Asia, Ever Queen Emilia, Ever Transport, Ever Sweet, Ever Queen of Pacific. A total of 5 ships.

Magnolia Shipping: Magnolia, Magnolia Grandiflora, Magnolia Fragrance

Evenesser Shipping/Ibnerizam Shipping/Sing Shipping: Bounty Cruiser, Jadestar Legacy, KC Beatrice

Province of Tawi-tawi: Tawi-tawi Pearl 1, LCT Tanah Tawi-tawi

ZDS-ATOM FSA: LCT Mabuhay

Sarangani Transport: Song of Dolly-3

Mae Wess/CW Cole: The Venue, LCT Nicole II Starferry

KSJ Shipping: Fortune Angels

Philstone Shipping: Yuhum, Kalinaw, Royal Princess

Davemyr Shipping: Dona Pepita

Hijos de Juan Corrales: Hijos-1

Daima Shipping: Swallow I and Swallow II

Ocean Fast Ferries: Oceanjet 7

A total of about 187 steel-hulled ferries to be culled including a few fastcrafts. Again, Moro boats (whose number is about 130 plus), motor boats, motor launches (like most of the crafts of Metro Ferry) and passenger-cargo motor bancas, big and small are not included. Anyway almost all of them will survive as the local-built, wooden-hulled crafts are generally below 35 years old in age (few wooden-hulled crafts reach 35 years of age).

In my database about 250 steel-hulled ferries will survive including over a dozen liners and more than 3 dozen HSC plus a sprinkling of Medium Speed Crafts (MSCs) like the two Anika Gayle ships (this count does not include the FastCats). If liners, HSCs and MSCs are not included (but the FastCats are included) so the comparison will be basically ferry-ROROs (that are not liners) then about 180 will be culled and about a little less 200 will survive (very few of the 180 and 200 are cruisers like the Georich and Yellow Rose). So that means killing nearly half of our ROPAXes.

If the plan to cull 35-year old ships is immediately implemented one sure response will the be multiplying of LCTs from China (not the local LCTs as basically those are not people carriers although some can and will be converted and the bulk of them are less than 35 years old). Will they call the transition from ferry-ROROs to passenger-cargo LCTs as “progress”?

If ships that are not ferries will not be culled then many of the ferries that will be culled might be converted into Cargo RORO ships that will not carry passengers like what happened to Trans-Asia 5 (but she is too beautiful as a comparison). People then will have to find alternate means of transport. Maybe the intermodal buses will mushroom. Or probably the Camotes motor boats like the Junmar ships will multiply. Otherwise there is our trusty motor banca to take. But I thought they want to phase that out too including the motor boats? Again, will they call that as “progress”?

I imagine for the remaining ferries, passenger loads of 100% will be a daily common occurrence, peak season or not. Maybe the ticket scalpers will return too to make a living. And it will matter a lot if one knows a crewman of a ship. Or better yet one of the owners. But if I talk of shipping of the 1980’s, will Secretary Tugade understand? I am sure he has no understanding of the shipping difficulties of that period.

Do MARINA and Secretary Tugade think that passengers are that important to the shipping companies? Those in the know knows that is not so and shipping companies can live by cargo and rolling cargo alone and that is the reason why the Cargo RORO LCTs are thriving. If the bill is passed I imagine the likes of Roble Shipping will just be doing cargo and rolling cargo basically plus maybe two ROPAXes to Ormoc and Hilongos, their prized ports and that will also include their freighters and Cargo RORO LCTs. I don’t think Secretary Tugade knows that the bulk of the sailing ships of Roble Shipping is not into passengers (and that includes their freighters). So in the end it will be the passengers that will really suffer. 

I wonder if Secretary Tugade knows some of the ships he wants to cull are actually re-engined now and some do not have any history of trouble and are still very good condition like the sister ships Filipinas Iligan and Filipinas Butuan. In other countries they base renewal of ship papers on technical inspection and not in some kind of arbitrary cut-off in age. As pointed out by the ship owners and PSSS (Philippine Ship Spotters Society), there is no mandatory retirement of ships in other countries and the IMO (International Maritime Organization) has no protocol on that (gusto yata mas magaling pa tayo sa kanila; mahilig din naman ang Philippine bureaucrats sa hambog). For the haters of old ships to say there is such a thing is just a bald lie and they resort to that because they have their own vested interest. Now what they want is a legislative fiat which is clearly anti-competition.

Give exclusive routes to the new ships? To where? To Sabah and Indonesia? Does Secretary Tugade think he can simply dissolve the franchises held by the shipping companies? It seems that Secretary Tugade is also applying into the Impunity Club a.k.a “What Are We In Power For” Club. It can smash a ship owner’s head like a golf ball.

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A very good ship that is over 35 years old (Photo by Jonathan Bordon)

The current dispensation is saying that former Secretaries Roxas and Abaya left a lot of mess in transport. Do they want their own mess too?

Time Will Come The LCTs Will Take Away The Business Of The Container Ships

It was a friend of mine who worked as trusted man of someone high up in shipping who told me that MARINA has set it just to 30 or 35% load for a container ship to be profitable. I was aghast by that because that will mean terrible inefficiency and high rates for the shippers. That was twenty years ago and in that same time span our local shipping industry has been under attack for very high rates and it has been pointed out that from Davao it is much cheaper to send a container van to Hongkong or Singapore which are much farther than Manila. But even after two decades there has been no change in the situation of the industry. If there was, it is the rates went up geometrically higher. And of course that was unacceptable but our bureaucrazy only acts to change things if there is already an imminent revolt.

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Intermodal trucks for loading in BALWHARTECO Port in Allen, Samar

As they say water seeks its own path and one cannot hold or bottle it forever. One big response by shippers that I saw was in the widespread deployment of intermodal trucks that use our highways and then boards short-distance ROROs at the end of the road and then continue on to the next island. The intermodal truck might then still board another short-distance RORO to another island. I found out there are even trucks whose origin is Mactan island which are bound to Manila and will traverse Cebu island, Negros island, Panay island and Mindoro island before landing in Batangas port. And of course intermodal trucks from Manila or CALABARZON find its way to Davao regularly and there are some that reach as far as Zamboanga.

Consolidation” of the local cargo shipping industry especially the container sector has long been proposed by experts both local and foreign. But it has fallen into deaf ears and the national government will not wield the proverbial stick to make this come true and so it lays until now where it started, that is as proposals. “Consolidation” would have led to greater efficiency and thus lower rates. But locally, businesses and not only shipping wants to see efficiency not to lower rates (of course, they will pay lip service to that) but to higher profits. And so greed rules and trumps everything and the higher national interest and greater good do not matter in the end.

Our different shipping companies are republics of their own and historically they have never been into cooperation, consolidation or merger (except the “Great Merger” which produced WG&A and which had been a disaster to local shipping) even though some are related by blood. If there has been a CISO (Conference of Inter-island Ship Owners) in the past, it is only because they want to present a common front vis-a-vis the government and also to make sure that the agreed rates are being observed by all (however, in other countries that will ruled as “cartelization” and subject to penalties or even jail terms; but not here as that term is practically unknown and even Economics teachers here do not know that). Oh, well, actually the cartel master locally is MARINA which sets the rates. Historically, they set the maximum rates but like what happened to LTFRB they treat the maximum rate as also the minimum and MARINA in the end serves just the needs of the shipping companies and not the general public. But before it be misconstrued that they are servile to shipping companies, the truth is shipping companies fear MARINA as their livelihood and fortune is dependent on the decisions of MARINA. If the rates are drastically brought down then they might all go down.

That is the reason why the shipping companies will fight toe and nail for the retention of the Anti-Cabotage Law which bars foreign shipping companies from sailing local or inter-island routes. If the Congress (which has the power to repeal the Anti-Cabotage Law) allows the entry of the much more efficient and capable foreign ships then local cargo rates will drastically go down but our local shipping companies will drown. Regarding the Philippine Competition Commission (PCC), that entity will not amount to anything in shipping because that only checks mergers and mergers are a near-impossibility in shipping.

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LCT Raenell of Asian Shipping Corporation in Mandaue

And so shippers and other related interests will find new ways to bring down rates some other way. One of these is the employment of the cheap and cheap-to-operate LCTs which has only 1,000 horsepower on the average which is just about a third of the power of the container ships. True, they will probably only run at about 7 to 8 knots compared to the 11 to 12 knots of the container ships. So they will take three days to Cebu where a container van will only take two days. But, hey, the bulk of cargo is not express anyway and a difference of one day will not really matter, in the main. Nowadays if one really wants it fast one takes to the plane and use air cargo which is P20/kilo at the lowest now.

It is through the use of chartered LCTs from Asian Shipping Corporation that Ocean Transport had their start. Using big LCTs (by local standards), 94 TEUs can be fitted with the container vans stacked like Lego and handled by big forklifts. The LCTs cost P70,000 a day, fuel and crew included and so the transport cost one way is just over P200,000 not including cargo handling in Manila and possible cargo handling in Cebu. Plus of course other labor, office, yard and anciliary costs and maybe insurance. Under the table money, I have only the vaguest of ideas. But in this calculation one can see the movement of a TEU to Cebu via chartered LCTs is just P4,000, starting. That will not be the actual rate but one can see how low it is via LCT when the normal commercial rate for a TEU to Cebu is probably 5 times of that. The LCT might have just a capacity of 94 TEUs and the container van has 300 TEU but if they are only a third full on the average then the actual load of the two is just about equal and the LCT has probably only has a third of the horsepower of the container ship. The LCT usually has about 100% load. So it is very easy to see which is more efficient and why an LCT can give much, much cheaper rates.

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Roble Shipping was the next to follow the shipping model of Ocean Transport and like the first they were also very quiet about it. Maybe the two fear that if it becomes known widespread that the LCT mode is successful some shipping companies will lobby MARINA and MARINA will institute a crackdown and maybe cite “safety” again which is the usual bogey of MARINA. It has been a long time that the LCTs, being flat-bottomed and not that resilient against capsizing has been tagged with safety issues. It does not help either that being open-decked and having a low freeboard some issues were also attached by some to those. [Note: Ocean Transport and Roble Shipping now operates their own LCTs regularly carrying container vans from Manila to Cebu.]

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LCT Akira of Ocean Transport by John Carlos Cabanillas

The longest route I have seen LCTs bring container vans regularly is from Manila to Cagayan de Oro. And so locally it is proven now that LCTs can be container carriers for 500 nautical miles. I do not know if they are capable of Southern Mindanao routes which is up to 800 nautical miles but I think they can do it if needed. Of course, LCTs are normally earlier to seek shelter than container ships when there are storms. But if MARINA and the Coast Guard suspends voyages at 45kph wind speed then the container ships might not have an advantage anymore.

The LCTs are looked down upon by many but they should know that China which is already the biggest shipbuilding country in the world and is already a shipping power widely uses LCTs to move their cargo internally and on shorter distances. Actually most of our new LCTs now are from China and many came here brand-new. In terms of age, our LCTs might be younger than our container ships now. And LCTs are the backbone of our Cargo RORO LCT fleet which not only move trucks but also trucks and trailers bearing container vans especially to islands that are not served well by container ships like Bohol, Leyte and Samar.

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LCT PMI-3 from Leyte

If MARINA won’t crack down, I see intermodal trucks and LCTs further taking away the business of the container ships which is still growing in number but I know their cargo volume is not increasing. Consolidation would have been easy for them if they will just open their eyes and be open-minded and it does not mean that they would have to merge, an anathema to many executives as that might mean losing their positions and careers that they have built over the years. Actually the simplest consolidation is the swapping of container vans. There is no container company that has daily departures even from Manila and the simplest is they should load their containers to their partner shipping companies which has the nearest departure. That will mean ships being fuller and at the end of the month they can reconcile their figures and charges would have to be paid for the difference but of course it should be on friendship or partner rates.

With that, less ships might have to be employed, there would be less sailings and that would have to mean savings that should be passed on to consumers if they have any integrity. With consolidation too there might be enough containers vans to ports and islands that they have already abandoned or bypassed and so the container ships can come back there and sailing level might be maintained (now isn’t that neat?). Internationally, this system I mentioned is already being used and not only in shipping. I don’t see any valid reason why the local shipping companies can’t do it. It will only be impossible if their distrust of each other is too much and their owners and executives are too obtuse. The national government should also wield the stick after incentives are laid out. They can even set the rules and the system. It is high time already as for the past two decades after constant criticisms I have not seen our local container companies try to bring down container rates to acceptable world standards. They are just being kept afloat by the blood of the shippers. And that is why forwarder companies are making great strides and container shipping is just where they were two decades before. That is also the true reason they won’t venture out to foreign waters because they simply cannot compete. Regarding their charge that our ports are too shallow that is baloney because much bigger foreign ships use the same major ports that they do.

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LCT Poseidon 15 in Verde Island Passage

I wish the LCTs well for maybe it is them that will be able to bring down container rates even though they might not look modern or beautiful. If they drown the container ships then it is the fault of the container shipping companies themselves.

Haters of Old Ships Should Train Their Guns on Liners

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Image from ABS-CBN News

This article is actually intended for the reading (dis)pleasure of the likes of Arben Santos, Christopher Pastrana, Alfonso Cusi and Rey Gamboa who in the past three years or so have been attacking old ships as if they are unworthy or worse as thought of “floating coffins”. They try to make the connection that old ships are bound to sink although they cite no study or empirical evidence to support such conjecture. They also intentionally neglect to cite that human error could simply be the cause of the sinking or hull losses of local ferries and this is what is posited by one experienced Captain. I would really like to read the BMI or Board of Marine Inquiry findings of these mishaps but sadly they are not public. BMI is made by Coastguardmen but the Philippine Coast Guard cannot even feed media reliable and complete statistics on sinkings or hull losses. I wonder if termites or sea water got to those findings first.

There was a conference arranged by the Maritime Industry Industry or MARINA two months ago where are all the shipping companies and shipyards were invited. Sensing the topic will be the culling of old ships, the shipping companies came prepared and with their lawyers (well, I understand one of the functions of lawyers is to protect their clients’ rights). The shipping companies asked if MARINA has a study showing old age was the cause of ship sinkings. Of course MARINA has no such study or studies and so the answer of MARINA was simply, “Noted”. Watta funny answer! I thought they were the experts. At the least that is their line of work. Now I don’t know if they are making a study. Well, I am glad there was a BMI in the past because although their records might not be complete, at least it prevents the twisting of events and results in the past. Now, they better find those records now and fast.

Of course, I would like to help them. Or better yet I would like the public to know the empirical evidence on ship losses so they can judge for themselves. In rearranging my database of maritime hull losses I only took note of the the sinkings and hull losses of the past 25 years or from 1992. 25 years is one generation and so it is long and broad enough and there is sufficient sample. 1992 was also the start of the term of President Fidel V. Ramos which introduced shipping liberalization in the country and he rolled out incentives in the importation of ships. His term was the start of the sharp rise in the importation of ships including ferries. Many will remember too that in his term High Speed Crafts (HSCs) which means catamarans and fastcrafts became a new and successful shipping paradigm in the country.

In my sample I just concentrated on steel-hulled ferries. Why ferries? Because it is ferries that capture the public’s attention and their ire if it sink (of course our media is sensationalistic but without substance). I excluded High Speed Crafts because the comparison to steel-hulled ferries might be inexact (and anyway only four were lost in the same period). I also excluded the wooden-hulled crafts like the motor boats (officially called motor launches) and more so the passenger-cargo motor bancas. Their rates of loss are simple much higher than steel-hulled ferries and the reason is pretty obvious and they will simply skew the comparisons.

In the last 25 years some 56 steel-hulled ferries were lost to various reasons (and that is an average of more than 2 a year) and that includes not only sinkings and founderings but also hull losses due to fire and wrecking. Included were ships lost even when they were not sailing but were caught by typhoons in anchor and which became complete total losses or which capsized and never were salvaged. Of these 56, 16 were liners, 20 were overnight ferries and another 20 were short-distance ferries. And for me that is a very surprising finding. Why? Because pro rata the liners which are the biggest and most well-equipped sink at a greater rate than their smaller counterparts. There are not that many liners but sure there were much more overnight ferries and even more short-distance ferries.

How did that happen?? I don’t have a complete explanation myself. And to think many of the liners have MMSI Numbers hence AIS-equipped. For sure their masters are real Captains whereas in lesser ships a Second Mate will qualify as Captain. And of course their crews are better trained than the crews of the two other classes. Most of our ships that have P&I (Protection and Indemnity) insurance, the most comprehensive insurance are the liners among the ferries. It might be incomprehensible but that is the raw statistics. Liners sink at a faster rate than overnight ferries and short-distance ferries (is that believable?). By the way most of the 56 lost ships are ROROs (Roll-on, Roll-off ships). There were actually very few cruisers among them.

So if Arben Santos, Christopher Pastrana, Alfonso Cusi and Rey Gamboa are really interested in safety, the lesson is maybe they should be more critical, should have a more wary eye of the liners (LOL!). Now I just wonder how Dennis Uy will tell them off. But as they say numbers don’t lie. But for the four gentlemen mentioned I just hope they make their own study first before they open their mouths the next time. Shut down the propaganda and be more objective. They might say liners casualties are rare now. But that is simply because there are so few liners now. And voyages are suspended even if it just a tropical depression with winds of 45kph and swells of less than 1 foot.

For the perusal of the public here are the lost steel-hulled ferries since 1992. This is much, much more complete than what was presented by media which do not know how to do research.

Lost Steel-hulled Ferries Since 1992:

LINERS

OVERNIGHT FERRIES

SHORT-DISTANCE FERRIES

Cebu City (1994)

Aleson III (1994)

Baleno 168 (2013)

Iloilo Princess (2003)

Asia Malaysia (2011)

Baleno Nine (2009)

Philippine Princess (1997)

Asia South Korea (1999)

Baleno Six (2006)

Princess of the Orient (1998)

Asia Thailand (1999)

Baleno Tres (2011)

Princess of the Pacific (2004)

Blue Water Princess 1 (2007)

Ciara Joy (2003)

Princess of the Stars (2008)

Cebu Diamond (1998)

Ivatan (2000s)

Princess of the World (2006)

Dumaguete Ferry (1990’s)

Ivatan Princess (2004)

St. Francis of Assisi (1999)

Hilongos Diamond 2 (2004)

Lady of Carmel (2013)

St. Gregory The Great (2013)

Kalibo Star (1997)

LCT Davao del Norte (1990s)

St. Thomas Aquinas (2013)

Kimelody Cristy (1995)

LCT Gwen Vida (2008)

SuperFerry 3 (2000)

Labangan (1996)

Maharlika Dos (2014)

SuperFerry 6 (2000)

Maria Carmela (2002)

Northern Samar (2006)

SuperFerry 7 (1997)

Princess Camille (2003)

Ruby – 1 (1993)

SuperFerry 9 (2009)

Pulauan Ferry (2000’s)

Ruperto Jr. (1990s)

SuperFerry 14 (2004)

Rosalia 2 (1999)

San Miguel de Ilijan (1990s)

Tacloban Princess (2009)

Sampaguita Ferry 2 (1990s)

Sta. Penafrancia 7 (2006)

San Juan Ferry (2000)

Starlite Atlantic (2016)

Super Shuttle Ferry 7 (2014)

Super Shuttle Ferry 2 (2013)

Super Shuttle RORO 1 (2012)

Super Shuttle Ferry 17 (2014)

Wonderful Star (2000s)

Viva Penafrancia II (2000)

In the classification I looked more at the route of the ship and not if it has bunks or none. I did not include in the list the Mega Asiana and Tagbilaran Ferry that were cannibalized inside a shipyard nor the Roly-2 which capsized in a shipyard but over land. Not also listed were the Dona Virginia and the Our Lady of Banneux which were no longer repaired after grounding and were instead sold to the breakers. The last two were actually liners. In the same manner, I did not include the Starlite Voyager which was sent to the breakers after a grounding incident. Also not listed was the Ocean King II which capsized but not under water and was salvaged to become a RORO freighter. And I did not also list the casino ship Mabuhay Sunshine which was formerly a cruise ship. If all these are counted, the total would have been 64 and 18 would have been liners and 23 would have been overnight ferries and 22 would have been short-distance ferries.

I challenge the four haters of old ships to prove which of those 56 (or 64) steel-hulled ferries were lost due to old age. Well, the might even have determining what were the causes of the loss of the 56.

Two of the ships mentioned above belong to Alfonso Cusi and another one belongs to Christopher Pastrana. 7 of the 16 lost liners belong to the highly-respected WG&A/Aboitiz Transport System/2GO. 6 lost liners belong to the much-maligned Sulpicio Lines.

Why Not Iloilo Ferries?

Many decades ago, I was wondering when I first heard the “Queen City of the South” monicker of Iloilo City because I thought it belonged to Cebu City. It was only later when I learned from reading that there was a time when Iloilo City can stand toe-to-toe with Cebu City and that it had a great past entering the 20th century. And that standing was propped up when sugar cane was still gold.

One of the requisites for a city to be great is not only manufacturing. It must also have great transportation links and this is one ace of Cebu City. Cebu has so many shipping companies with many routes and ports of call and so the goods of Cebu reach many islands and places. Conversely, goods needed by Cebu including food to feed its big populace are always available with reasonable prices. Like when I see packed vegetables from Bukidnon, I know many of it are headed to Cebu. I will also then see ads for Fighter Wine which is needed to fuel the muscles of the farmers and cargadores handling those vegetables.

There are probably many reasons why over the decades Cebu City outstripped Iloilo City. And one of those reasons is probably the difference in their shipping where Cebu City far outstrips Iloilo City. While Cebu has a dozen or so homegrown passenger shipping companies some of which are of national stature, Iloilo can barely list a few and most are small. Add to this the fact that Cebu City has perhaps two dozen or more cargo shipping companies and LCT operators while Iloilo City has only a few. These differences alone are more than reason for the disparity of the two cities now. An industry like shipping has a multiplier effect. And that is the reason why Cebu has Tayud, the Navotas counterpart of the shipyard row in the south. And Cebu has many mariners each of whom if deployed abroad contribute to the the economy of their hometowns.

There was a proposal for a petition to be sent to 2GO for the revival of Cebu Ferries. I respectfully disagree. There are so many Visayas and Visayas-Mindanao shipping companies already and some had shown great growth and aggressiveness in the past and among them are Cokaliong Shipping Lines, Lite Ferries, Roble Shipping and Medallion Transport. It will be hard to beat them now when they were not beaten when they were still not that strong. And factor in that the last three are also strong in cargo shipping and in transporting vehicles.

Maybe if 2GO and Negros Navigation Company (NENACO) want to expand to regional operations and maybe to bolster their bases Iloilo City and Bacolod City then they better just establish “Iloilo Ferries” rather than resurrecting Cebu Ferries. It will not be anthema to the company as they already have the equivalent of “Batangas Ferries”. This is what actually became of their Cebu Ferries when it left Visayan waters.

I think Iloilo Ferries can have five routes, to wit (this is a circular listing):

Iloilo-Romblon-Batangas route

Iloilo-Puerto Princesa route

Iloilo-Bacolod-Zamboanga route with a possible extension to General Santos City

Iloilo-Bacolod-Dipolog-Cagayan de Oro route

Iloilo-Cebu route

An Iloilo hub should be able to handle transshipment to other routes like goods from Zamboanga should be transferred to a Batangas or Cebu ship if the cargo is intended for that.

Anent the third route, an Iloilo-Zamboanga ship is needed because that connection has been lost when for a century it has been existing. When that was lost the passengers have to take the uncomfortable bus which has double the transit time.

Regarding the last, why should Trans-Asia Shipping Lines and Cokaliong Shipping Lines have all the fun? That is also the reason for the second route. Why default it to Montenegro Shipping Lines and Milagrosa Shipping?

The fourth route should be able to load vehicles at reasonable rates to better fill up the ship and compete with the Dapitan-Dumaguete ferry.

Regarding the choice of ships, I suggest to just invest in 80 to 100 meter ferries just like what Trans-Asia Shipping Lines and Cokaliong Shipping Lines use. If the route is potentially weak there is no dishonor in settling for 60 to 70 meter ferries like what Aleson Shipping uses for Jolo, Bongao and Sandakan. And that is what might be needed for the Iloilo-Puerto Princesa route.

If there is a shipping line with an Iloilo hub and also serving Bacolod then products of Western Visayas (I am using the old regional grouping) will be pushed and promoted and at the same time products from other regions needed by Western Visayas will also be made available and probably at cheaper prices. Like I know how cheap some products are in Zamboanga and these are not only barter goods. George & Peter Lines is not bashful taking in canned sardines, dried fish and even ginamos for this help fill up their ship and those are really cheap and Zamboanga and the city hosts some 7 canneries.

Dipolog (not Dapitan port) doesn’t have a regular ship link to Manila. With the fourth route ship passengers can be transferred in Iloilo if they are not clients of the budget plane. That is also true for Zamboanga ship passengers to Manila which has only one liner per week.

Since Negros Navigation is Western Visayan then it is their duty to develop Western Visayan shipping. There is probably no need to take cudgels anymore for Cebu Ferries as 2GO is no longer a Central Visayan shipping company. It is Iloilo City, Bacolod City and Western Visayas that need more support now.

Now, isn’t “Iloilo Ferries” a great name? If there was a Cebu Ferries and a “Batangas Ferries”, how can that name not be possible? And shouldn’t Negros Navigation honor Iloilo too?

Some People With Vested Interest Always Raise the Issue of the Age of Our Ferries

For the past five years or so, I often notice that some people with vested interest in shipping always raise the issue of the age of our ferries imputing that our old ferries are not safe. That include their friends who parrot their line but actually have no knowledge whatsoever of local shipping. One thing they have in common is their lack of objectivity and empirical knowledge of our shipping. They are the type of bashers of our shipping who will pass on lies to “justify” their position. The bad thing is they have access to media which will simply broadcast what they say or worse simply reprints “praise releases”. And the baddest is millions of people who have no knowledge of shipping are fooled by them.

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The Maharlika II which capsized and sank after losing engine power and no help came

MARINA (the regulatory agency Maritime Industry Authority) itself in a very recent consultation with shipping company and shipyard owners admitted they have no study linking maritime accidents to the age of ships. I am not surprised here because I know MARINA has no database of our shipping losses and accidents. I guess even if they study the findings of Board of Marine Inquiry (BMI) proceedings on maritime accidents, they will be hard put to correlate the accidents to the age of ships because the BMI generally proceeds with facts on records and most conclusions point to human or navigation error.

Major accidents that resulted in hull losses, the type that generally provoke ignorant public outcry, generally can be classified into three:

Capsizing/foundering/sinking

Fire and explosion

Beaching/grounding that resulted in complete total loss or CTL

For the last 30 years from 1986 when radar was already generally available and weather forecasting was already better, capsizing/foundering/sinking composed about 45% of the cases of ship losses while fire and explosion composed 40% of the cases and the remaining 15% were due to beaching/grounding that resulted in CTL. In the sample, the motor bancas and small motor boats were excluded but batels and Moro boats are included. But if they are included it can be easily seen that most of them were lost in bad weather and few of them are over 20 years old (wooden-hulled crafts don’t last long anyway) and so it is hard to connect their loss to age.

In capsizing/foundering/sinking, most of them can be connected to the prevalent bad weather or storm. Such cases of losses are also hard to connect to the age of the ship especially since with hull scanners replacing the hammer in testing the hull integrity of the ships few sink now because the ship developed a hole while sailing. Well, capsizing/foundering/sinking is even easier to connect to the hardheadedness of their captains and owners. Their only connection to age is captains and shipping owners are generally old, pun intended.

In fire and explosion, the age of the ships can be suspected to be a factor. But so do simple lack of maintenance and lack of firefighting capabilities. A relatively new ship with poor maintenance will be mechanically old especially if parts are not replaced. An old ship with replacement engines and bridge equipment is mechanically newer like Mabuhay 3 that although built in 1977 was modernized in Singapore when she was lengthened. Understand too that some of the fires happened in the shipyard or while undergoing afloat ship repair (ASR). Fire is a risk while doing hot works like welding in a shipyard and many times this was what caused the fire and not the age of the ship.

In beaching and grounding, this is almost the province of bad weather and bad seamanship and navigation. The only connection to age here is when the navigator used old and obsolete nautical charts, pun intended again. The age of the ship practically has no connection to this unless some machinery broke like in Baleno 168 when the shaft broke free. By the way, the total number of ship losses here I consider as ship losses is over 75 ferries. Not included are other types of ships like freighters, tankers, container ships, barges and tugs.

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The Starlite Atlantic floundered while maneuvering in a strong typhoon

But these people with vested interests and that even includes MARINA would not dwell on the actual causes of ship losses. What they just is just an administrative fiat where ships will be phased out after a certain age (30 or 35 years) irregardless of the actual condition of the ship. They cite “safety”. But what they actually want is to have the whole field for themselves because they are the ones which have new ships. They do not want fair competition. What they want is to simply banish the competition.

For me, because I believe in laissez-faire competition, it should be “Let the market decide”. If they think their ferries are better then let them charge higher or with a premium (as anyway they need to amortize their ships). And see how the market reacts. That is how it is in the deregulated areas for buses. The better buses charge higher, of course, and why not? The market then decides which they want or which they can afford. Like my friend in Naga. When business is good he might take a premium Lazy Boy bus. But when business is slow, he will settle for the very common aircon bus. It should be that way in shipping too. Please no administrative fiats. It is simply not fair. If you want to argue about the age of the ships then put forward a worthy scholarly study that have gone through a panel of knowledgeable shipping persons (and please no landlubber Ph.D’s).

In Youtube, there is a Captain who said most of the accidents are caused by human error. I agree fully (and please invite him to the panel which will check the scholarly study). It is just like in a car, a truck or a bus. It is not the age of the vehicle which will be cause of the collision or it falling in a ditch or running over a pedestrian. It will most likely be human error on the part of the driver (unless there was a mechanical failure which can also be attributed to poor maintenance).

In 2011, I had a friendly discussion with a Japanese ship spotter who is very knowledgeable about Philippine shipping. I was dismissive of these ships having these expensive P&I (Protection and Indemnity) insurance and being classed by classification societies affiliated with IACS (International Association of Classification Societies). I asked him a conondrum to please explain to me why ferries in the eastern seaboard of the country never sank while sailing (that was true before the Maharlika Dos sank in 2014). The ferries there are old, some even have problems with their painting, none have MMSI or INMARSAT, nobody has heard of P&I and IACS and yet they do not sink since steel ferries arrived there in 1979 (a total of 22 years) while the proud SuperFerry lost the SuperFerry 3, SuperFerry 6, SuperFerry 7 and SuperFerry 14 in just a span of a few years. I was needling the guy a little since he was a big SuperFerry fan. He was speechless and can’t provide an answer. So I told him P&I and IACS might look good in Japan but here evidently it does not translate to greater safety, empirically and arguably. So then why are these people with vested insterests pushing for IACS classification when it actually means nothing here? Hell, no ship sank in the Dumaguete-Dapitan route, the Bacolod-Dumangas route, the San Bernardino routes, the routes to Catanduanes, etc. There is no IACS-classificated ships there except for the recently arrived FastCat. There is also no lost ship in Roxas-Caticlan and probably the only IACS-classed ships there are the new Starlite Ferries and FastCat. So that means an IACS classification is not really necessary. If we proceed empirically then higher classification should only be required by route and by shipping company. If a route or a shipping company has no major accident then just require them the usual local classification because it proved it was enough, isn’t it? Then require IACS or even higher classification for the likes of 2GO, Archipelago Philippine Ferries and Starlite Ferries because it had major accidents already in the past. Now isn’t that simple? Why should the curse be suffered by shipping companies which had no major accidents? Is that fair? And the irony is that those who prate safety and which called for the throw-out of old ships are those which had history of sunk ships already.

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Report says she grounded, was declared CTL and broken up (Pic by M. Homma)

The eastern seaboard with more ships than the fleet of Starlite Ferries or Archipelago Ferries only lost two ships until today and one of that was when a ferry was moored during a typhoon and therefore not sailing (the Northern Samar) and the other one was the Maharlika Dos of Archipelago Philippine Ferries. Now the fleet of one of these guys has already lost two, the Starlite Voyager and the Starlite Atlantic when his company started operations just in 1996 as they claimed. Eastern seaboard ferries have been in operation since 1979, much earlier than his. The only eastern shipboard ferry lost while sailing belongs to another loud guy with vested interest and his ship was the Maharlika Dos which sank because it wallowed for many hours without power when his Maharlika Cuatro was just nearby and failed to help until Maharlika Dos sank with loss of lives.

Actually safety and seamanship are not the result of paid certificates. Just like there is no presumption one is a capable and safe driver after getting a driver’s license or a car is safe because it was registered in the Land Transportation Office or a bus is safe because it was registered in the LTFRB. Just like the Supreme Court said in a recent decision a ship is “seaworthy” (because it has seaworthiness certificates) until the moment the hull the develops a hole and sinks. Certificates actually confer nothing in the true world of Philippine shipping.

In Typhoon “Ruping”, the strongest typhoon to visit Cebu in history in 1990 a lot of ships sank, capsized or were beached. The typhoon did not ask the ships their age. Ditto when Typhoon “Yolanda” struck in 2014 with the loss of many ships too all over the country. Typhoons are not selective with regards to age. Unless one will argue the anchor broke because of age.

But these people with vested interest peddle lies that in Japan ships after reaching twenty years of age are retired. That is simply not true. Even the Japanese ship spotter said that. I once thought the 35-year limit proposal was a European Union standard. Not true also. They do it by actual inspection or classification of ships. If the ship has too many violations it is detained until corrections are made. It stops sailing when corrections can no longer be made or it is already too expensive to be economical and when that happens the ship is sold to the breakers or a Third World country. The process there is objective unlike the proposed arbitrary rule here to base it on age.

Passenger ship sinks off Calapan City

The Baleno 168’s propeller shaft broke loose and water rushed inside making her capsize (Photo by Edison Sy)

I just cannot understand these people resorting to lies just to promote their product. I thought in the past these were subject to boycott. The problem with the Philippines is there is no Fact Check like in the USA. Here things are reduced to “batuhan ng lies”. I am just glad in our society, the PSSS (Philippine Ship Spotters Society) that has never been the rule or custom because we always stick to the facts and TO the truth.

And that is the raison d’etre for this article. I do not like liars nor do I like people who wants to pull a fast one or those who try fool people or hood their eyes.

The P700-Million Peso Mistake

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

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From the NENACO Anniversary book

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

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

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

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Banago port (from “docdoms” in Photobucket)

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

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

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

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

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

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BREDCO Port (from “docdoms” in Photobucket)

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

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

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

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

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

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Pulupandan Port (Photo from BizBilla.com)

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

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

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

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

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

Is Sulu Sea the New Somalia?

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The MV Royal 16 (Credits to “tropic maritime images and ShipSpotting.com)

There are some foreign writers and analysts that postulate that Sulu Sea is becoming the “new Somalia”. Maybe they are trying to be polite and so they refer to Sulu Sea when in actuality most parts of Sulu Sea are peaceful and so do most of the provinces that border that sea. Maybe they really want to point to Sulu but they might be trying not to offend some people. Or is it Sulu Sea because the kidnapping incident that first caught world attention happened in Puerto Princesa, the Dos Palmas incident where the Burnham couple and Abu Sayyaf became world-famous?

Somalia I think is a much different case. In there you had a country that descended into a complete civil war with many contending sides and no competent central government was left standing except in name. From Somalia the term “failed state” came and that came to denote a country where there is no central authority that has the mandate nor the force to enforce laws and to provide order. It also meant that there are no social services like education and health services that are normally found in states with working central governments.

At the most here, we can only have a situation where there can be two “failed islands” or “failed provinces”. But then Sulu and Basilan have working provincial governments, those still provide public and social services and regular elections are still being held. The military is still present in both provinces although it has difficulty containing and neutralizing the Abu Sayyaf Group (ASG) threat. The military is still capable of launching offensives but with no decisive results because the Abu Sayyaf Group is embedded in the population.

The situation in Somalia or Afghanistan and Libya, two other “failed states” is different. There, the regular armies of the Western world fear to commit fully because they think that they will just be bogged down can’t get out in an unwinnable war and take unacceptable casualties through suicide attacks by the forces they are trying to control and defeat. Such situation is not true in Sulu and Basilan nor it will come true in the short foreseeable future.

What is only true in Sulu and Basilan is the Abu Sayyaf and related groups can kidnap and hold people for ransom including whites (and that is what catches world attention). But then kidnapping had been going on in the more lawless provinces of Mindanao since 40 years ago that it is almost like a cottage industry. Whites including priests have been victims of kidnapping for ransom in the past. What only changed is the ransom demand now is much higher and the kidnappers will behead the hostages if they think they need to prove a point or exert pressure.

Another recent change also is they can attack ships now and maybe that is the reason why the foreign commentators liken it to Somalia where taking of ships and its crews for ransom has been the hallmark of their fund-raising there. And like in Somalia the military here can’t seem to find and free the hostages without ransom being paid. They can launch operations but when the target is embedded in the population it is just like trying to find a tiny object in the dense woods.

In Somalia the attacks on ships have gone down to a record low in the past few years in a big part due to the rotating naval patrols of countries that has a great number of ships sailing the world’s waters (I am not talking here of flags of convenience countries like Panama and Liberia) and that includes even China. So it seems better patrols and surveillance can do the trick.

Can that be replicated here? Now I doubt it since the custom is the best ships of the Coast Guard and the Navy are always “floating monuments” in the biggest ports like Manila and Cebu (maybe they feel their commodores need an office and a showcase?). Even in search and rescue role, seldom will one will see their ships being based or patrolling the busy seaways where accidents can happen (because that will entail basic in some remote or lonely places like Romblon or the Camotes islands).

Attacks on foreign ships near Sulu have already happened in the recent months. Still the generated clamor by the anti-China media is to patrol the Scarborough Shoal and now the Benham Rise. ITLOS has already said the land features in Sulu Sea do not generate any territorial seas. And it should be obvious as daylight that the waters above Benham Rise is international waters. And so patrolling of international waters seem to be higher priority than patrolling our internal and archipelagic waters where there is an actual threat on life and property.

Do our leaders and opinion makers realize that the taking of foreign ships and its crews in our waters is a big slap on our face? If our forces cannot protect ships in our waters, will not our “patrolling of international waters” seem laughable to them?

Now some shipping companies already have advisories not to pass through the Balabac Strait to and from Singapore on the way to Cebu or Davao and instead pass through Mindoro Strait which means a longer route (no problem for them as they will just pass additional charges to us in the long run). And Puerto Princesa is now our cruise ship capital and cruise ships coming here was a new, good development in the past few years. Well, another “Dos Palmas” again or an attack on cruise ship tourists like in Tunisia and those cruise ships will be gone in an instant.

Whatever now, our shipping scene is already changed and not only on the foreign shipper side but also on the local side. Is there a local shipper not apprehensive to pass now through Basilan Strait on the way to Gensan and Davao? The last few times I checked the AIS, I noticed more ships are now using the eastern seaboard of Mindanao. It seems the choppier waters of the part of the country is less of a problem than the pirates of southwestern Mindanao.

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This was being towed when it tug was attacked

But a “new Somalia”? Nope. Not by any means. And any comparison such as that is simply insult to us.