Philippine Passenger-Cargo Shipping During The Commonwealth Era And On The Eve Of The Pacific War

Even before the advent of the Philippine Commonwealth in 1935, the Filipino ship owners (this the more proper term as there are American shipping companies operating in the Philippines then as they are free to do so as we are a colony of the US and thus part of their territory) began gearing up for the time when the American steamers will be supplanted by them. It is always the hope of top local businessmen and industrialists of colonies that when independence came that they will replace on top the businessmen and industrialists of their former masters. This was actually their hope also when we were still under Spanish rule, one of the reasons why many of the elite favored the Revolution against Spain. As they say, it is but just natural. And that is one reason why they were for independence for they expect to benefit.

Before the Commonwealth Era began, the biggest shipping companies were Madrigal & Co. and Compania Maritima, the latter with Spanish origins and connections. The two were mainly based in Manila and were about equal in size but direct comparison is not easy as Madrigal & Co. had pure cargo ships in the foreign trade whereas Compania Maritima concentrated on the inter-island passenger-cargo shipping. Compania Maritima was the biggest at the start of the American time but Vicente Madrigal, who has a reputation for Midas touch caught up starting in the time of World War I as the coal and vegetable oil market boomed because of the war and Vicente Madrigal had heavily invested in both. He had the country’s biggest coal mine then in Batan island in Albay. Besides, he was also in the primary export commodity then which was abaca and which also boomed during the war.

Madrigal & Co. had five ships over 110 meters in length (and those will not look small even today) and such size was few in those times. Their biggest, the Don Jose measured 159.6 meters x 20.0 meters and had a GRT (Gross Register Tonnage) of 10,893 tons (and this is in SuperFerry range). The fleet of Madrigal & Co. was even bigger before the Commonwealth era as Vicente Madrigal was forced to send big ships to the breakers and also sell a few to other shipping companies in the aftermath of the economic downturn  and its effect on shipping during the Great Depression of 1929 in the US. That provoked a protectionism in that US that also made easier the passage of the independence acts sought by Filipinos as the US farmers were feeling the effect of tariff-free imports from the colonies. The claim of the Madrigal scions that once they were the biggest in shipping in the country is certainly true because their big businesses boosted their shipping. Many shipping owners then ventured into shipping because they have goods to move and they want certainty in bottoms and preferential rates, of course. And moreover, ships are also big status symbols.

Compania Maritima grew big right at the start of the American period by buying out Spanish-era shipping companies especially Reyes y Cia (this is pronounced as “Compania”) and the MacLeod & Co. which divested from shipping but retained their business interests in the country which centered on trade distribution. After that, its next period of growth started in the mid-1920s and continued up to 1935 when its ship acquisitions stopped suddenly. Being Spanish citizens also then they might still have been observing how they will be affected by the coming independence of the country that will happen after ten years of a Commonwealth period which is the preparatory and training period for independence and where Filipinos will hold high places in government already. But then also they might have been affected by the looming Spanish Civil War and the unrest before that. The ships of Compania Maritima from 1924 to 1935 formed the big part of their fleet which was overtaken by the Pacific War which commenced on December 7, 1941.

The most notable of the other fleets then in the Commonwealth Era were the related shipping companies La Naviera Filipina Inc. and the Aboitiz & Co. Inc. The first was actually a partnership of the Spanish-derived Escano and Aboitiz families which were both in the primary export crop then that was abaca which has great use then in shipping. It was the Escano family which sponsored the coming of the Aboitiz family to the Philippines from Spain, according to their history and both were based in Leyte and Cebu and also spanning those two important islands. The sizes of the two fleets were about equal in number to Madrigal & Co. and Compania Maritima but their ships were were a little smaller. However, nearly all of their ships were brand-new. If their ships were not that big, the reason was they were not doing the long Southern Mindanao route that needed big liners.1938 0416 mv Don Esteban_De la Rama Steamship Co ad
Research by Gorio Belen in the National Library.

Next with about half of the ships of the “Big Three” came next the De la Rama Steamship Co. Inc. which was owned by a leading businessman of Iloilo and a Senator of the Commonwealth at that. Browsing over its ads, one might have the impression that it was the leading shipping company of its time. However, the maritime databases do not support that as their fleet was not that big although they have regional operations (but then Escano and Aboitiz also had ships connecting Cebu and Leyte that are not in the maritime databases). It had five brand-new ships and some were big, ocean-going liners. Their inter-island ferries were luxurious, it was promoted well and was touted to be the best in their class (and maybe that is where the impression “leading” came from).

De la Rama Shipping, like the La Naviera Filipina is a shipping concern that bet big in the Commonwealth Era and in the coming independence and that was shown by their acquisitions of brand-new ships like what La Naviera and Aboitiz & Co. did. From basically being regional shipping companies of a decade before, the two had ambitions of being leading national liner shipping companies and that was good then for Philippine shipping. And wouldn’t it be good if the two leading shipping companies had competition including in the oceangoing routes? Truly the anticipated coming of independence perked up the shipping sector then

Next in rank came the Manila Steamship Co. Inc. of the Elizalde y Cia which had about the same number of ships as De la Rama Steamship. However, their ships were not new. Like Madrigal & Co. and Compania Maritima, they have ships in the 60- to 90-meter range because like the two just-mentioned companies, they have long routes and that means up to Kingking which is the modern Pantukan in Davao del Norte located at the apex of Davao Gulf and that is about 850 nautical miles in distance from Manila. Travel to Davao Gulf takes up to two weeks, one-way, as there are many ports of call in a voyage. Woe to the passengers if the accommodations are “cattle class” but I wonder if the tale is true or if it is a joke that at the end of the voyage they say many of the male passengers are already on the last hole of their belts. But in truth, many of these ships were already luxurious for their time in terms of accommodations, amenities and service and were divided into different passage classes as in those were not all-economy ships (a note to put it in context, the last liner of that type was the Palawan Princess of Sulpicio Lines Inc. which was also in the 80-meter class and was actually popular with the passengers in most of her career here). The Elizalde y Cia shipping company actually originated with the Ynchausti & Co. shipping concern which divested when they got heavily involved in the Spanish Civil War and the unrest before that.

After those majors come a slew of small liner companies with one or a few vessels and maybe the most notable among them with more vessels were Rio y Olabarrieta, a shipping company which connects Palawan and Mindoro to Manila and the government-owned Manila Railroad Co. (MRC), the forerunner of the Philippine National Railways (PNR) of today which had to operate ferries to connect its Bicol Line to their South (Luzon) Line but ended up operating liners as well (and the reason was President Quezon loved the MRC very much). These small liner shipping companies were about twelve or so in number and among them were Tabacalera (the short name of the Compania General de  Tabacos de Filipinas, a Spanish-derived company) which was once a big shipping company (and was still a leading tobacco company then), the Gutierrez Hermanos of Bicol (and supposedly related to the Gutierrezes of movie fame), Negros Navigation Co. Inc., Smith Navigation Co., the J. Garcia Alonso of Bicol, m/s Palawan Inc., United Navigation Inc., Visayan Transportation Co. Inc., E. Lopez (which was in Southern Lines Inc. after the war) and even the Philippine Government (yes, the government was also in shipping then).

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A 1924 photo but Muelle de la Industria, the primary local port then would still look similar to that in 1935. Credits to the photo owner.

A digression. If Bicol was well-represented in the shipping companies before the war (Madrigal & Co. among them), the reason was the primacy of the abaca (also called as “Manila hemp”) then as the leading export crop and Bicol dominates in the production of that crop plus the fact that Legaspi Oil, the leading exporter of copra then was based in Bicol (this was before Lu Do, Lu Ym of Cebu grabbed that distinction with the help of Carlos A. Gothong & Co.). The main source of coal then was Batan island and that is just a few nautical miles from Legazpi. As the saying goes, there are ships when there is cargo and it is not the other way around. Moreover, Legazpi  port (incorrectly spelled as “Legaspi” then) was supported in the movement of goods from the Bicol Valley (read: copra and abaca) because of the localized Bicol Line there of the Manila Railroad Co. which extended for most part from Pamplona town (later in Sipocot) to Legazpi and from Tabaco town (where the abaca of Catanduanes lands and Tabaco is the trading center of copra of the neighboring areas – Tabaco’s product then was abaca and not tobacco) to Legazpi. The Manila Railroad Co. has a spur line to Legaspi port and Legaspi Oil which had a separate port. [In this paragraph is the reason why my father volunteered to transfer to Legazpi. But he did not anticipate that soon abaca and coal will fade into insignificance.]

This liners list does not include the regional shipping companies and among those the most numerous were in Cebu connecting the other Visayas islands and Mindanao (the northern part). Where before in the early American period when Iloilo was bigger than Cebu and held the title “Queen City of the South” because of sugar and its connection to Singapore and when Cebu was considered “insignificant” for shipping by a 1908 almanac (that was when Legaspi port was as prominent as Cebu). The opening of northern Mindanao enabled Cebu to overtake Iloilo not only in shipping but in over-all prominence thereby grabbing the title “Queen City of the South” from Iloilo to the eternal consternation of the Ilonggos).

The ships of the regional shipping companies were small compared to the multi-day liners as those were basically overnight ships and the most numerous were actually the wooden-hulled motor boats which are called as lancha in various parts of the country. Most of the bigger regional ships were just in the 30-meter class in length and most were below 200 gross register tons. Among the most prominent Cebu-based regional shipping companies were Eutiquio Uy Godinez, the Cebu Navigation Co, the Visayan Stevedore Transportation Co., the Insular Navigation Co. and Maria P. Asuncion Garianda. In Iloilo, probably the most prominent were the two Lizarraga shipping concerns. In Zamboanga, it was the Francisco Barrios Jr. shipping company. In Manila, the big equivalent of them was the Teodoro R. Yangco shipping company which dominated Manila Bay and beyond and once claimed to be the biggest shipping company in the Philippines.

Amazingly, the progenitor of the postwar dominant Go Thong and Sweet Lines shipping lines after the war were still not prominent then. Well, in war some rise and some fall and some never even came back.

In our book, I will be more detailed. This is just an introduction.

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What Has MARINA Done For The Country’s International Container Shipping?

It was in 1974 that MARINA, the Maritime Industry Authority was created by a Presidential Decree by then President Ferdinand Marcos. Its primary mandate was the development of our maritime industry. For such function it has the shipping companies, the seamen and the shipyards under it. MARINA was our maritime regulatory agency and it even has quasi-judicial powers. As such this agency is responsible for issuing franchises to ships and in approving route permits. For a long time too they decided rates and fares in the shipping industry. MARINA was in charge of the inter-island trade as well as the ocean-going trade.

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From the research of Gorio Belen in the National Library

When MARINA was created in 1974, we still had many international lines ranging from Philippine President Lines (sometimes known as United President Lines), Maritime Company of the Philippines, the Eastern Shipping Lines, Madrigal Shipping as well as an assortment of smaller international lines some of which were associated with our national passenger liner companies. In those days we were ahead of most of our neighbors in international shipping and that might have included even South Korea and China. Can anybody imagine that was possible and believable? It can even be an entry now in “Ripley’s Believe It Or Not”.

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From an newspaper found by Grek Peromingan

When Martial Law came another ocean-going company emerged in the scene, the Galleon Shipping Corporation of Herminio Disini, a documented Marcos crony (“Some Are Smarter Than Others” by Ricardo Manapat) and of the Bataan Nuclear Power Plant “fame”. He and the surging Philippine President Lines (PPL), now helmed by Emilio Yap, of the Manila Hotel and Manila Bulletin fame, had a race in the ocean-going scene, acquiring tons of big ships from the National Development Company (NDC) of the Philippine Government. Government functionaries during Martial Law simply cannot ignore what were called as “marginal notes”.

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From an newspaper found by Grek Peromingan

The two giant companies were able to accumulate a total of some 200,000 gross tons of ships totaling some 20 ships each. How big was that? The only other time that figure was approached was when the WG&A was created with the merger of William Lines, Carlos A. Gothong Lines Incorporated and Aboitiz Shipping Corporation in 1996 and that included the container ships for a total of some 60 ships.

In using government funds for development the National Economic Development Authority (NEDA) is mandated act as the validator if the project really makes sense. And I assume the input of MARINA was sought in the maritime field because supposedly it regulates this field and it is tasked for its development.

I wonder about the divergence. In the 1970’s, our neighbors were already stressing and supporting the creation of their international container lines after seeing this new paradigm develop in the late 1960’s in the more advanced countries. In our country, what the National Development Company acquired for Philippine President Lines and Galleon Shipping Corporation were the castoff bulk carriers and OBO ships of the other countries some of which were even built in the 1940’s and the 1950’s (and it was already in the 1970’s; during that period we buy ferries that were 10 years old). What was the sense in that? Well, if there is “slush”, then that is the “sense” maybe.

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Built in 1958. From the research of Gorio Belen in the National Library

Where was MARINA in all of that? They should have been the “experts” telling the government the “development” was headed in the wrong direction. Shall we lay the primary blame to NEDA? They might have MBA graduates there from good schools but that degree does not confer any maritime knowledge (well, they might not even know the difference of port to starboard or bow to stern). Was it because MARINA is full of lawyers in the upper echelons and not by true maritime experts? The government can hire consultants if they lack knowledge. Did they ever try to enroll true maritime experts in this case?

Fast forward to the great political and financial crisis of 1983 when Ninoy Aquino was assassinated and the economy was tottering, let alone the Marcos regime. Not long after this the Philippine President Lines and Galleon Shipping Corporation toppled along with the Martial Law regime that supported them. Their ships stopped sailing and most were given the fiery torch treatment of the ship breakers. Some others, the newer ones were sold abroad. Practically none survived locally except for the Galleon Tourmaline which became the Madrigal Integrity of Madrigal Shipping.

And that was really a great lost chance for Philippine shipping. It invested a lot of money in ships and all came to naught. And it is very hard to find a second chance after a venture that lost great money and simply went down the drain. The government was left practically holding nothing but just an empty bag. Or shall we say a bag with a lot of scrap metal.

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From the research of Gorio Belen in the National Library

In the 1980’s and early 1990’s, some local shipping companies still tried to engage in the international container trade at least in the short routes in the Far East. It was not really a full container service as understood in the full sense of the world. One of these was the Aboitiz Overseas Shipping Corporation (AOSC). Another was the Eastern Shipping Lines (but it was mainly operating general cargo ships). None ever engaged big container ships by international standards.

I thought Aboitiz was serious in this business when they acquired three brand-new container ships from Ukraine starting in 1994, the Ramon Aboitiz, Vidal Aboitiz and the Luis Aboitiz. The three were under Aboitiz Jebsens and were not part of the merger that produced WG&A. However, after a few years the three were sold. Maybe they found out competing with established international container lines is difficult. We don’t have much to offer the world anyway. Abaca and copra have lost importance in the world market and we have no more logs left and metal ores were in the doldrums then. Our tropical fruits and fresh produce still had limited production and markets then.

A new millennium is always greeted with great fanfare, hopes and expectations. But not in our international shipping. By this time we almost have no container ships going abroad. We practically have no bulkers or OBO ships going abroad. Of course, some small general-purpose cargo ships will go abroad if there is cargo but that is nothing to be proud of and that is not significant enough to be counted. All we had was a lot of mariners wanting to board ships somehow.

Where was MARINA in this plunge of our international shipping, I would like to ask? Where were they as developers of our shipping? Where they simply just too busy pushing papers and affixing their signatures to the regulations they impose on our seamen? Their number is nearly a million so imagine all the papers that need to be cleared. Maybe because of the weight of all of these they have already forgotten that their primary duty is to develop our maritime industry. Actually our mariners are over-certificated. Our doctors, engineers and other professionals don’t have to waste time pursuing such many certificates. In the mariner world, it is not only certificates that they have to cope with. They also have to undergo a lot of training repeatedly at their own expense. Maybe the lawyers in MARINA should be the first one to undergo and pass these trainings and be able to handle ships in the real world.

Today, we still have no international container shipping lines. Well, not even reefers which are important to our fresh fruit and fresh produce exports except for two ships I heard is chartered by Lapanday Foods Corporation of the Lorenzo family. If an innocent lad will look at the ships that call on our ports he might think our national line is Maersk as they dominate our foreign trade.

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A ship of the de facto “national” container line of the Philippines

Today our neighbors have their international container lines. We have none. So clearly in this segment MARINA was clearly a great failure after all these years. It simply dropped the ball.

What are their plans for this segment? Or is it better to just dissolve them and replace them with a body of true maritime experts (like those who know that most maritime accidents are caused by human error) who truly have the interest of our shipping in their hearts and have the vision (and who know their main job is not the export of mariners)?

The Davao Ports That Handle Foreign Ships

I would have liked to expound on the ports under the Davao PMO. But that would mean tackling all the ports in Davao Region and that is just too many. I also wanted to tackle the ports and wharves of Davao City but I will still be burgeoned with many ports and wharves that basically handle traffic only to Samal island. I thought the best was to focus on one distinguishing mark of the Davao ports and that characteristic is many of its ports handle foreign vessels. Among the combined ports in the country it is Davao which has the most since about 20 ports here handle foreign ships, some regularly and some occasionally. But this will not be limited to Davao City only but will include ports in Panabo, Tagum, Maco, all in Davao del Norte and Sta. Cruz in Davao del Sur. This is a stretch of ports of about 25-30 miles of almost straight linear distance. Another trait of Davao ports is a significant number of foreign ships that call in Davao dock in two or three different ports trying to fill up more cargo. Senator Bam Aquino filed a bill that became a law allowing that but he was two decades too late and his bill just showed his ignorance of maritime matters.

Handling foreign ships is one thing that became more important in the last several years in Davao. This became more pronounced especially when passenger liners from Manila stopped calling in Davao. To Sulpicio Lines that was force majeure since they were suspended by MARINA (Maritime Industry Authority) from sailing in the aftermath of the capsizing of the MV Princess of the Stars in 2008. For Aboitiz Transport System (ATS), they said “there was not enough cargo” (and after that their competitors were simply too glad to fill up the void created).

The main type of foreign ship that calls on Davao are the regional container ships, otherwise called “feeder ships” abroad. I named it as such since they basically do regional routes especially in Southeast Asia and East Asia. Types like “Panamax”, “Handymax” or “Aframax”, etc. have no meaning in the Philippine context since only the smallest of international container ships call locally, in the main. Not that we are in an out-of-the way route but because that size is just what the size of our economy can muster (yes, we are mainly good only in producing people (and billiards players) and in fact, that is one of our main exports but they don’t ride container ships). Some of the ships that call in Davao goes all the way to Europe so not only regional container ships call in Davao.

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Regional container ships in Sasa Port by Mike Baylon

The second main type of foreign ships that call in Davao are the reefers or refrigerated container ships. These reefers and the regional container ships basically carry the export fruits (Cavendish bananas, broad-shouldered pineapples, solo papayas mainly but that can also include avocado, giant guavas and buko and many others) and export fresh produce (like lettuce, cauliflower and many other high-priced vegetables) grown in Southern Mindanao. Some of the refrigerated container vans loaded here come from as far as Agusan del Norte, Misamis Oriental, Bukidnon, Maguindanao and Lanao del Sur. Actually, almost all kinds of fruits and produce grown in farms and orchards are already exported now like camote, cassava, saging na saba (cardava in Bisaya), other varieties of bananas, mature coconuts, langka and gabi that we sometimes joke here that it seems they also cook ginataan (benignit in Bisaya) abroad now. Or make camote cue, banana cue, turon and ginanggang (https://en.wikipedia.org/wiki/Ginanggang) abroad.

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Reefer by Aris Refugio

The third main type of ship that calls on Davao ports are the tankers (included here are the like-type LPG carriers). Some of these are chemical tankers and they load coconut oil in the many oil mills of Davao. Many of these are oil tankers that bring in fuel to the tanker jetties in Davao (and that is why fuel is cheaper here since many of our fuel is from Singapore). The fourth main type of foreign ships that call in the Davao are the general cargo ships or simply freighters. Some of these bring rice, some are Vietnam ships that load copra meal, some load desiccated coconut. The fifth main type are the bulkers or bulk carriers. However, this type is not that frequent in Davao.

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Bulk Carrier by Aris Refugio

On the average, a total of more than 25 foreign ships call on Davao ports every week for an average of three four ships a day. In container volume, it is actually Davao which is number two in container ship calls ahead of Cebu and Batangas ports but behind Manila port, the national port. What happened is that after our first two main export commodity crops abaca and copra/coconut oil lost in the world markets because of economic shifts (abaca was displaced by nylon and copra/coconut oil lost to other edible oils) it is now fresh fruits and fresh produce (and also canned pineapple) which have taken their place. These are basically loaded in Davao as Southern Mindanao and Bukidnon practically lords it over the other Philippine regions in the production of those export goods as the other regions are still stuck to their traditional crops which are mainly not for export in significant quantity except maybe for the sugar of Negros.

Sasa Port is the main port of Davao. It is a government-owned port and it is the biggest in Davao. It is also the base port of Davao PMO (Port Management Office which is equivalent to a regional division). Sasa Port has a total wharf length of about a kilometer and six or more ships of 80 to 180 meters size range can dock simultaneously and more if the ships are smaller and/or local. Foreign ships, which are conscious of demurrhage are the priority here and there are inducements like crisp foreign bills so they will be given priority in docking. Since Sasa Port has the tendency to exceed its capacity then ships that cannot be accommodated or are displaced are made to anchor off Sta. Ana Port so as not to congest the narrow Pakiputan Strait separating Samal island from Davao.

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Sasa Port by Mike Baylon

One weakness of Sasa Port is the lack of gantry cranes. With that she cannot handle the gearless container ships that are now beginning to appear in Panabo Port. However, Sasa Port has the usual needs of foreign ships: reefer facilities, container yard, marshalling area aside from the usual open storage area. There are also transit sheds and a passenger terminal that is no longer being used. When regional container ships arrive speed is the essence in unloading so aside from their booms the reach stackers are widely used. There are two arrastre firms operating in the port. Sasa Port is due for expansion and renovation but its cost is shrouded in controversy and many local stakeholders and the local government unit of Davao City have formally objected. The administration of President Aquino then seems to be intent in ramming it through but now that plan is dead duck under the current Duterte administration. For sure, the plans will be modified as it was really overpriced.

The two Panabo ports are next in importance to Sasa Port. To an outsider Panabo Port might look to be a single port but they are actually two, the TADECO (Tagum Agricultural Development Company) wharf of the Floirendos and the PACINTER (Pacific International Terminal Services) wharf of Dole-STANFILCO. Together, the two along with minority interests reclaimed part of the sea and built an extension port and yard. This is equipped with gantry cranes and it is called the Davao International Container Terminal (DICT). It is the only port in Southern Mindanao that can handle gearless container ships at the moment and this port is the main handler of the produce of “Banana Country”, the wide flat swath of land in the localities of Panabo, Carmen, Braulio Dujali and Sto. Tomas plus parts of other towns that is dedicated to the propagation of Cavendish bananas. In “Banana Country” there is nothing else to see for kilometers on end but Cavendish bananas.

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Panabo ports (TADECO and Dole-STANFILCO) by Mike Baylon

These ports of Panabo are private ports. The DICT expansion cost only P2.7 billion (and was financed by private banks) and that was the comparison used why the local stakeholders blanch at the quoted price of the proposed expansion and modernization of Sasa Port (well, just adding gantry cranes, cold storage facilities and a little extension will already make it modern). [Of course, there are other and sometimes unspoken issues and projects that are related to this but that should be in another article.] Besides, the Panabo ports are also “Exhibit A” against those who badger the government to build ports for them for free or to pandering politicians who promise to build international ports and terminals just to get votes. If there is really traffic then the private sector will build its own ports rather than wait for government to build the ports for them (after all they will earn, won’t they?). And if the private sector builds the ports it always comes out cheaper than if government had it built (it is a question of corruption, inefficiency and waste). However, though expanded, DICT still lacks docking space many times and so container ships and reefers have to wait.

There is a modern, purpose-built port in Davao that was purposely-built for handling fresh fruits and fresh produce for export. This is the AJMR Port in the northern part of Davao City on the road to Panabo and this port is synonymous with Sumifru or Sumitomo Fruits, the biggest fruit distributor in Japan. Japan is known for having the highest quality requirement in fruits and they pay adequately for that. To meet that requirement, AJMR Port has its own vapor heat treatment (VHT) facility right inside the port, a plastic plant too and a factory for its carton boxes. However, the docking facilities of AJMR Port is rather limited and only two container ships or reefers can dock at the same time in its jetty-like wharf. By the way, AJMR is also classified as an “agro-industrial economic zone” which is similar to a “special economic zone”. That means it is enjoying a lot of perks from the government.

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AJMR Port by Mike Baylon

In importance, the adjacent Craft Haven International Wharf and TEFASCO Port might be next in importance. Craft Haven is also a purpose-built port to handle fresh fruits for export. Formerly, the place was once a shuttered plywood factory. Many of its exports goes west to the Middle East and India which are new markets for Cavendish banana (introduced by “Operation Desert Storm”). Many of its cartons bear the trademarks of Arab brands as well as the famous Unifrutti brands (i.e. “Chiquita”). The operator and agent of Craft Haven have good connections with Muslim planters of Cavendish banana of SOCCSKSARGEN region. The port has cold rooms but compared to AJMR it does not have its own carton box or plastic factories. But wood for making boxes is delivered in the port. The Craft Haven International Wharf can handle up to three ships simultaneouslyvand the “Cala” ships are regulars there. These are ships that trade to Japan and Korea.

I will go next to TEFASCO Port as it is just adjacent. TEFASCO means Terminal Facilities and Services Corporation. They so-famously won a landmark case then against PPA (Philippine Ports Authority) which set the principle that PPA can’t collect fees on ships docking in private ports. TEFASCO mainly docks local ships especially the container ships of Solid Shipping Lines but a few years ago they were able to lure Pacific International Lines (PIL) of Singapore which uses their wharf now to load container vans (these are the container ships with the name “Kota”). They only dock and does not engage in any processing of the fresh fruits and produce as they are not a “clean” port (a no-no in fresh fruits and fresh produce as it leads to contamination). Fertilizers and other contaminants are present in their port but refrigerated vans are practically hermetically-sealed unless Customs comes knocking.

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TEFASCO, Craft Haven and Holcim ports by Aris Refugio

Holcim Port is just adjacent TEFASCO Port and it also handled foreign ships in the last few years when Sasa Port and Panabo Port were experiencing congestion. However, the primary ships that Holcom Port handles are ships that carry cement (naturally!) and these are mainly local ships. Holcim is actually a cement plant (actually the biggest in the Philippines) as many knows. With cement dust (and also coal)  it is not also a “clean” port and so there are no processing facilities there for fresh fruits and fresh produce. It is simply a come and go operation there.

In terms of future growth the Hijo Port in Madaum, Tagum City, capital of Davao del Norte might be next in weight. This port is now a joint venture between ICTSI (International Container Terminals Services Inc.) which is not just an arrastre service anymore but operator of ports in other countries and the Manila International Container Terminal (MICT) and Hijo Plantation with the former in the saddle. ICTSI is developing this port to rival Davao International Container Terminal although in volume they are not yet there. Hijo Plantation is the main user of the port although it is intended to intercept the container vans coming from the north and east of Tagum but the intent has not materialized yet.

I will no longer go one by one with the other ports handling foreign ships as they are relatively minor or can just be bunched together. Universal Robina Corporation (URC) wharf sometimes handle bulk carriers which bring in imported wheat for URC’s need. The frequency of this in every few months or so. Down south in Astorga, Sta. Cruz, Davao del Sur, foreign ships load the products of Franklin Baker Company which is best known for its desiccated coconut which are mainly for export.

 

Meanwhile, Davao City is host to several coconut oil mills like Legaspi Oil, INTERCO, DBCOM and the New Davao Oil Mill. Foreign chemical tankers come to load their products and combined the arrivals are at least a week in frequency or even more frequent, on the average. Additionally, Vietnam freighters come to load their by-product copra meal (an ingredient and protein source for animal feed).

Davao is also home to several petroleum products depots like Chevron, Petron, Phoenix Petroleum and Shell. Aside from local tankers, foreign tankers also come especially those that come from Singapore. In addition, there are also LPG carriers that also come to the Price Gases jetty in Sta. Cruz, Davao del Sur, the Isla LPG Corporation wharf in Davao City aside from the tanker jetties of the petroleum majors and many of these are foreign vessels. The frequency of these foreign tankers and LPG carriers combined might be every week also.

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Tanker jetties, oil depot, Legaspi Oil, URC by Mike Baylon

Once in a while, a foreign ship will also come to Maco Port in Davao del Norte. This port is just near the Hijo Port in Tagum and both are located in the innermost portion of Davao Gulf (which is actually a bay).

And that sums up all the ports of Davao PMO handling foreign vessels. Sasa Port and DICT dominates the handling of the foreign ships. DICT don’t even handle local ships, in fact. The other ports, except the tanker jetties, started handling foreign ships because of the congestion of Sasa Port and the Panabo ports (except Hijo Port which handled their own shipments from the start).

With many ports handling ships, both foreign and local, one unintended benefit was road traffic did not build up so fast in the port areas of Davao unlike in Manila which is dependent on so few ports. Maybe a lesson can be learned here.

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Sasa Port by Mike Baylon

How To Lose The Equivalent Of A Liner Fleet in Just Over A Decade: The Decline And Fall of Compania Maritima

For nearly a century since the tailend of the Spanish regime in the Philippines it was Compania Maritima that was the dominant passenger shipping company for most of that period although at times there were also shipping companies that will draw parity or even slightly exceed Compania Maritima. This company has Spanish origins and hence it had the advantage of European connections, a factor not enjoyed by other shipping companies and the plus of that can be felt in ship acquisitions and maybe even capitalization. It also did not hinder Compania Maritima that the owner Fernandez Brothers were not only heavyweight in business but also in politics even in the Commonwealth period and this continued until the early Republic years. As in one of them being a Senator of the Commonwealth and of the Republic. Those were the times when capital was tight and acquiring loans need inside and political connections.

Right after the Republic was born, Compania Maritima or Maritime Company was fast out of the gate and immediately built up a sizable fleet not only in sheer number but even in the size of ships. They were the first among local companies in tapping Europe as source of ships and unlike those sourced by Madrigal and Elizalde, theirs were not old, worn-down ships weathered by convoy duty during the war. There was only one time in the postwar years that a local shipping company was able to match them in sheer number. This was the Aboitiz Shipping Corporation that was the beneficiary of the expiration of the Laurel-Langley Agreement in 1974 when Everett Steamship has to give up their share in Philippine Steamship and Navigation Company. But that fleet of Aboitiz was loaded with small ex-”FS” ships that were already growing old. Compania Maritima had a significant number too of ex-”FS” ships but they were not dependent on that type while that formed the backbone of Aboitiz’s fleet.

However, out of twenty or so ships accumulated through the years with some used for a time in foreign routes, Compania Maritima began losing ships through hull losses at a rate of nearly one per year from 1967 to 1981 when before that they almost had no serious accidents. Of course, like the latter Sulpicio Lines, Compania Maritima “pushes” ships even in inclement weather. But the downturn was so stark I cannot begin to understand it was simply the result of “pushing” or bad luck or the growing age of their fleet. I don’t know if there was a death wish. The weakness of many old Spanish mestizo companies was for too long they simply relied on their initial headstart in capital accumulation which for many resulted from monopolies or warrants given by the Spanish regime. Later, they also had the inside track in Malacanang connections which can do wonder in many things. So when these two factors evaporated, their weaknesses was sadly exposed by the new challengers that grew without the support that the Spanish mestizo companies took for granted.

The middle of the 1960’s also saw a change of occupant in Malacanang who had his own fair boys (well, was there an occupant of that palace who had none?) and these did not include the Fernandezes (their stars were already on the wane then). Suddenly, an outsider was the insider and the former insiders are now the outsiders. That began the decline of the old business empires that were formed during the Commonwealth years or earlier and they were many. Suddenly, the Fernandez shipping companies found they cannot compete in favor with Philippine President Lines (PPL) especially in the international routes. Even the venerable and well-connected but not-in-power De la Rama Steamship was overtaken by Philippine President Lines in the international routes. The redoubtable Madrigals also began to lose steam in this period when they no longer had elective posts.

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There was also a newcomer on the block that was riding the surge of the king of commodity crops which were copra and coconut oil. Abaca was far going down and those which latched into was also being pulled down like the Elizaldes and the Madrigals. Note these two were once great names in shipping. The Sorianos were lucky they were just in beer and beer carrier barges and the Zobels were lucky that their holdings in non-commercial talahib turned out to be golden real estate. That was also the good luck of the Aranetas and Ortigases. The Rufinos were also in shipping but their fortunes in it were not getting better and the Delgados which was in forwarding and shipping was also finding their hold being swept by the boy of the new man in Malacanang.

The newcomer is actually newcomers as they are a duo. One was the biggest in copra and coconut oil whose signage is still prominent today in SRP in Cebu. This was the Lu Do Lu Ym and their gatherer-carrier locally and their bringer to international markets was the fast-rising Carlos A. Go Thong & Company.

I do not know if the Fernandezes saw their eventual decline in shipping. However, it is not hard to draw visions from the decline of Madrigal, Elizalde, Rufino and Delgado, all very powerful names then and financiers of presidential campaigns one time or another. They have no powerful engine like a commodity crop. They have no hold in Malacanang like before. And there are powerful new challengers buoyed by the need to move goods that they racial kins were beginning to control. Later this change of guard came to be known as the eclipsing of the Castilaloys by the Chinoys or the rise of the taipans. Moreover, the Fernandezes saw their perch in forwarding wrested by a favored boy of Malacanang, the new landsman of the Makati Stock Exchange (now how significant is that?).

What I know is from 1970 Compania Maritima stopped acquiring ships and local shipping history has shown that such a non-move presages the change of the order or standing in shipping. Compania Maritima no longer purchased ships even though they were bleeding from a fast loss of ships. Most of these maritime losses came under a literal storm which means a typhoon.

Compania Maritima first lost a ship on January 16, 1967 when their MV Mindanao, an ex-”C1-M-AV1” ship was wrecked near Odiongan, Romblon on January 16, 1967. That was very remarkable because for twenty years preceding since they restarted operations in 1947, they never lost a ship no matter what typhoon passed the country. However, being beached and wrecked is a lot better than foundering in a storm because a lot of casualties are averted and the remains can either be refloated or broken up depending on the extent of damage. MV Mindanao was broken up the next year, in 1968. This passenger-cargo ship was first known as the MV Star Knot in Compania Maritima’s fleet, the same name she had while on the service of the US Navy in World War II.

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On the same year the first MV Mindanao (there was a later MV Mindanao) was lost, the MV Mindoro, a weak ex-”FS” ship foundered in a storm, the Typhoon “Welming” on November 4, 1967 off Sibuyan island. This ship was first known as the first MV Basilan in the fleet of Compania Maritima before she was renamed in 1952 when another ex-”FS” ship was acquired by the company that will bear that name. When the first MV Mindanao was lost, she was holding the quixotic route Manila-Catbalogan-Tacloban-Surigao-Nasipit-Butuan which passes through the eastern seaboard of Leyte but not under the San Juanico bridge as that bridge was not yet existing at that time.

In 1969, another ex-”C1-M-AV1” ship of Compania Maritima was wrecked again in a storm, the super-typhoon “Eling” (900 hPa!) which was then blowing off northeastern Luzon. This was the MV Siquijor which was earlier known as MV Carrick Bend in their fleet and also when she was still in the US Navy. She was beached in Tag-olo Point on the tip of the longer peninsula enclosing Dapitan Bay and like the MV Mindoro her remains was broken up the next year.

On July 16, 1973, the passenger-cargo ship MV Mactan, the third ship to carry this name in the fleet of Compania Maritima foundered in a storm. She was lost in Tablas Strait on a Nasipit-Manila voyage when two typhoon were affecting our seas. This liner was the MV General del Pilar in the fleet of General Shipping Corporation that was bought brand-new in Japan. She was actually big also at 83 meters length and the only ship of Compania Maritima from Japan except for the taken-over ships from De la Rama Steamship which were the former MV Dona Alicia and MV Dona Aurora (these ships were seized by the National Development Corporation, an entity owned by the Philippine Government, as they are the true owners). The route of MV Mactan is the same as the lost first MV Mindanao which was Manila-Catbalogan-Tacloban-Surigao-Nasipit-Butuan. She was the replacement ship on that route.

The bad streak of Compania Maritima did not end and on September 17, 1973, a liner of theirs from Europe, one of the best in the local waters in the early 1950’s was wrecked in the shores of Pangan-an island, part of the Olango island group of Cebu east of Mactan island. This is the MV Cebu, the biggest in the fleet of Compania Maritima which was only equaled when the brand-new MV Luzon came in 1959 and exceeded only in 1963 when the brand-new MV Visayas arrived from West Germany. Mind you, the MV Luzon and MV Visayas were flagships and so it is an exalted comparison. MV Cebu might be the biggest in their fleet in almost the whole of the 1950’s but it seems it was the MV Panay that they considered their flagship. MV Panay would later share the same fate as MV Cebu. MV Cebu was later broken up in 1974.

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In the same year, the sister ship of MV Panay, the MV Jolo will also be wrecked. Is there an eerie pattern now? It seems the ships of Compania Maritima suddenly had a great love for the beaches and not in a nice way. Wrecking does not result in great casualties, hence, there is less to settle on the passenger and it does not produce a great outcry from the public. MV Jolo was wrecked in Caballo island near Corregidor on Oct 11, 1973 when the winds of Typhoon “Miling” hit her. This happened just a month after their MV Cebu was lost.

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In April 8, 1974, Compania Maritima would suffer the only maritime hull loss due to fire. This was the MV Romblon, an ex-”FS” ship but the incidental thing is she was also beached! It is really a good coincidence if a fire happens near an island. The route of the MV Romblon was Manila-Capiz-Iloilo-Pulupandan-Sangi-Estancia and the beaching happened in Naujan, Oriental Mindoro. She was among the last liners calling in Pulupandan as silting of the waters of the port demanded that only shallow-draft vessels like the MV Romblon can only dock in the port (in a few years liners will stop calling in Pulupandan and Negros Occidental will become a sole property of Negros Navigation).

On March 23, 1977, it was the turn of the MV Panay to be lost by wrecking (again!). She was lost off Salauan Point the farthest spit of land of Laguindingan, Misamis Oriental near where the new Laguindingan airport stands now. There was no typhoon that time as it was summer. Did she go straight for the shallows or they left the nautical charts ashore?

In my study of maritime losses, I actually did not see a streak as long as what Compania Maritima had. And I was wondering what MARINA (it was already in existence then) was doing. If this was Sulpicio Lines and with Maria Elena Bautista at the helm, I think Compania Maritima will already be shuttered. And this is not the end yet.

On April of 1978, a summer typhoon visited the Philippines. This is the Typhoon “Atang”, a 150 kph typhoon that visited the central Philippines. A lengthened ex-”FS” ship of Compania Maritima was caught in that, the MV Leyte. She was wrecked in the southwestern portion of Sibuyan island trying to reach shelter. She was then on a Manila-Cebu voyage.

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The beaching streak of Compania Maritima would not yet end and on July 6, 1979, the MV Guimaras, a 98-meter liner from Europe will again be wrecked near the boundary of Negros Oriental and Negros Occidental on the southern side. There were two typhoons then in the northern part of the country and maybe the seas then in that place was strong as those two typhoons will suck the sea north.

And on June 23, 1980, another big liner (in those days a liner over 100 meters length is big) of theirs from Europe, the MV Dadiangas will again be lost through wrecking in Siargao island due to Typhoon “Huaning”. The MV Dadiangas was earlier known in the fleet of Compania Maritima as the MV Isla Verde and she was a Manila-Davao ship passing the eastern seaboard of Mindanao, the shortcut route to Davao. It seems changing names of ships from islands to cities did not help them.

Eleven liners lost through accidents in 13 years! Can anyone imagine that!? I am sure the ones commanding the ships of Compania Maritima are not some simple able-bodied seaman. How could they have lost that many and as continuously with most ending on the beaches and on the rocks?

To compare that was more than the fleet of Sweet Lines, Galaxy Lines, Escano Lines, Aboitiz Shipping Company+Cebu-Bohol Ferry Company (outside of Aboitiz’s holdings in Philippine Steamship and Navigation Company) during that time. In that period only the fleets of Gothong A. Gothong & Co., William Lines and Philippine Steamship and Navigation Company could be greater than those 11 ships lost by Compania Maritima but then maybe not in combined gross tonnage because the ships lost by Compania Maritima are generally big.

With those losses, Compania Maritima entered the years of financial crisis of the country in the 1980’s with a much weakened fleet and the loss of Number 1 position in local shipping especially since they did not acquire any more liners after 1970 when they acquired the second MV Mindanao. They also disposed of a few other ships along the way. But still when they began breaking up ships in 1982 and ceasing operations in 1983 they still had 7 ships left although some of these are just old ex-”FS” ships (three) that were barely running.

From a great shipping company and Numero 1, the Compania Maritima went out in a whimper. Kindly, I think they might have had a death wish and a desire for exit already. After closing shop, the Fernandez brothers packed their bags and headed back to Spain, their country of origin. They were dual citizens all throughout.

Photo Credits: Gorio Belen, Philippine Herald, Manila Chronicle, Times Journal

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