The Sta. Clara Shipping Corporation and the Penafrancia Shipping Corporation

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King Frederick by Britz Salih of PSSS.

On paper, the Sta. Clara Shipping Corp. and Penafrancia Shipping Corp. of Bicol are two different companies but in actuality like Montenegro Shipping Lines Inc. (MSLI) and Marina Ferries the two are simply legal-fiction companies of each other. That means in operation and routes they cannot be distinguished except for some differences in the livery and in the name, of course. They share the same crew and schedules and the same port and they operate as one. Companies resort to this tactic to avoid wholesale suspensions of fleets in case of accidents and also to minimize the damage in case of a suit. But in the case I am discussing here there is a deeper reason than simple maneuvering.

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Nelvin Jules by Mark Ocul of PSSS.

Sta. Clara Shipping started with the clamor of travelers and shippers across the San Bernardino Strait for better services. What happened was that when the competition of the dominant Bicolandia Shipping Lines of Eugenia Tabinas, the Cardinal Shipping, Newport Shipping and Badjao Navigation collapsed and newcomer PSEI Transport Services was TKO’d in the courts and Luzvimin Ferry Services moved elsewhere, there was a swing from dog-eat-dog competition to lousy services that happens when a company is already in a dominant position and the government-owned Maharlika I which was operating a longer route to San Isidro, Northern Samar wasn’t able to offer a credible competition. There came always the complaint of “alas-puno” departures (that means the ferry only leaves when it is already full). I was surprised that in the petition submitted by Sta. Clara Shipping to be allowed to serve the route practically all the Mayors of Leyte signed there.

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Hansel Jobett by Orly Calles of PSSS.

Sta. Clara Shipping started with provisional authorities to sail and their first two vessels were the King Frederick which was named after the top dog Frederick Uy and the Nelvin Jules. [In Bicol, Frederick Uy is associated not with Sta. Clara Shipping but with the Partido Marketing Corp. (PMC) which is now the top trading firm in the region after it surpassed the old title holder Co Say.] The sister ships were fielded in 1999 and the two were joined by its “cousin” Hansel Jobett (“The Dragon”) in 2004. The King Frederick and Nelvin Jules were newer, faster and better-appointed than the ships of Eugenia Tabinas (this is my description here as she was also using legal-fiction companies) and in a short time after she lost in the courts for her claim of “pioneering” status (which she tried to equate to barring entry of other competitors) she was already crying “Uncle!”.

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Eugene Elson by Dominic San Juan of PSSS/

An amicable settlement was reached and Eugenia Tabinas sold out lock, stock and barrel to Frederick Uy and his partners and this happened in 2006 and the fleet and routes were thereby transferred not to Sta. Clara Shipping but to the newly-created Penafrancia Shipping Corp. and the reason for that that I heard was that the latter has similar but still a different set of owner-partners than the former. Well, there is such a thing that can be called the Bicol-type of partnership where the ownership and partnership varies from ship to ship (or bus to bus, if you will) and that was the reason why in the sale and dissolution of 168 Shipping two ships of the company went to Gov. Antonio Kho of Masbate and another went to Regina Shipping Lines (RSL) that is owned by another Governor.

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Don Benito Ambrosio II and LCT ST 888 by Ken Ledesma

In the transfer, the “flagship-by-name” Eugenia became the Eugene Elson, the “flagship-by-size” Princess of Mayon, the biggest ferry in Bicol that time became the Don Benito Ambrosio II and the Princess of Bicolandia became the Don Herculano. The transfer was marred by two strong typhoons and the second one was legendary Typhoon “Reming” which was the strongest in Bicol for three-and-a half decades. Lost in the first typhoon in Tabaco port was the venerable Northern Samar, a refitted ferry that initially came from Newport Shipping of Northern Samar and has been serving in the route since 1982. In Super-typhoon “Reming”, the Princess of Bicolandia which has no functioning engine because of an engine room fire was pulled by the storm surge from its dock in Mayon Docks in Tabaco City, Albay. No one thought she will be seen again but lo and behold! she was found the next day atop a sandbar in a neighboring town and from there she was towed to the Villono shipyard (now the Nagasaka Shipyard) in Tayud, Cebu where she would spend the next three years being repaired and when she came out she was already the Don Herculano. To refurbish the old fleet the newly-arrived Anthon Raphael was added to the fleet of Penafrancia Shipping in 2008.

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Don Herculano by Edsel Benavides of PSSS/

Before Anthon Raphael came, the Ever Queen of Pacific was bought by Sta. Clara Shipping from Ever Lines Inc. of Zamboanga in 2007. After refitting her from an overnight ferry with bunks to a short-distance ferry with seats she was then rolled out as the Mac Bryan. This brought the fleet of the twin companies to eight, a mixture of relatively big ones and three that were smaller, the Eugene Elson, Don Herculano and the Mac Bryan. By that time, the twin companies were basically serving two routes, the Matnog-Allen (BALWHARTECO) route and the Tabaco-Virac route. The Anthon Raphael first served the Pasacao-Masbate route, a missionary route offered by MARINA, the maritime regulatory agency but they soon withdrew from that after realizing that the habagat (Southwest monsoon) will broadside the ship there and that it is not a competitive route due to the long sea distance. She was transferred to the Bulan-Masbate route but geography still said she cannot compete with the Pilar-Masbate ferries and this is similar to the lesson taught to the Maharlika ferry of Archipelago Philippine Ferries which plied that route before. Bulan is still a long drive to Pilar junction where the truck from Bulan and Pilar will meet. The difference is approximately 100 kilometers which is roughly equivalent to 25 liters of diesel fuel and that is no small deal.

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Anthon Raphael by Orly Calles of PSSS.

In 2012, Sta. Clara Shipping acquired the Strong Heart 1 of Keywest Shipping. This was the former second Asia Japan of Trans-Asia Shipping Lines Inc. (TASLI) and was acquired through dacion en pago for fuel advances when a syndicate hit the company (they thought then that the Trans-Asia 3 was a fuel guzzler; I don’t know if this was the reason why the sister ships Trans-Asia and Asia China was disposed  to the breakers). However, she was not immediately refitted and repaired and she languished long in Strong Heart 1just serving as crew quarters and office. That was a boon for PSSS as she became the reason of the group to visit the shipyard (and visit the other ships there too). But when she was rolled out she already have the new name Nathan Matthew. In the process she lost part of her superstructure. Well, as a short-distance ferry, there is more passenger capacity with seats than with bunks.

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Jack Daniel by Mike Baylon of PSSS.

In 2015, the beautiful Azuki Maru was acquired from Olive Lines and after some refitting in Nagasaka Shipyard she became the Jack Daniel (no, there are no offerings of that drink aboard). This was about the same time that Sta. Clara was in a struggle to build their own port in Allen, Northern Samar and move out of their old home port BALWHARTECO in the same town. The difficulty was not in the technical or financial sense. It just so happened that the owner of BALWHARTECO (an old private port that dissolved the old municipal port of Allen) is actually the Mayor of the town and he refused to give a Mayor’s permit. That was no problem with Sta. Clara Shipping which had been in legal bruises before and any good lawyer will easily tell that the Mayor will lose in court through a Mandamus and his act will probably earn him a graft case easy. And so the construction of the port continued and it was not delayed because although padlocked the construction equipment were already inside the port.

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Mac Bryan and Nathan Matthew in Jubasan Port. Photo by Ken Ledesma of PSSS.

This new port was in Jubasan in Allen when finished was a notch higher than their old home port as the entire compound was already completely concreted right from the start. The only problem was strong current (maybe because of the proximity of Capul Island) so much so that they withdrew the Jack Daniel here as they feared its beautiful glass windows could shatter. Aboard a moored ship here one can feel it shudder and the dents on the sides of the ship is proof of the strong current. Whatever, Jubasan Port is so clean and organized and an urban-bred passenger will not be turned off by its restaurants (they have nice tables and chairs to lounge in and appreciate the ships and views and that is not easy in an enclosed passenger terminal building).

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Adrian Jude by Mike Baylon of PSSS.

In 2017, Sta. Clara Shipping purchased the last two Tamataka Maru ships still remaining in Japan in a “buy one, take one” manner and this ended that line there and it is a little sad because a lot of Tamataka Maru ferries went to the Philippines starting with the very first in the series which was the Tamataka Maru No. 21 which became the Cardinal Ferry 1 in 1979 and became the country’s first ever short-distance RORO (two ROROs anteceded her but both were first used as liners) and she also served the San Bernardino Strait crossing. The two were sister ships and after refitting in Nagasaka Shipyard, Tamataka Maru No. 85 became the Adrian Jude and Tamataka Maru No. 87 became the Almirante Federico, again a play on the name of the top honcho of Sta. Clara Shipping. The two then became the biggest ships in the combined fleet though not necessarily in the official Gross Tonnage as MARINA oftentimes play quirks with this measure.

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Almirante Federico by Naval Arch. Rey Bobiles of PSSS.

After the sister ships Sta. Clara Shipping Corp. joined the new paradigm, that of the Cargo RORO LCTs which cater to trucks and which do not carry passengers unless those are the crews of the trucks. The San Bernardino St. crossing really needs this type of ship as before there were plenty of complaints about the kilometers-long truck queues in peak season and after the usual weather disturbances. The intermodal trucks which were second-priority to buses before (because it has passengers and they will complain of delays) now have their dedicated transport.

Sta. Clara Shipping’s first Cargo RORO LCT was the LCT Aldain Dowey which was acquired in 2017 and actually this was formerly the locally-built LCT Ongpin but was lengthened. The next year they acquired the LCT ST888 from China and this was assigned to Penafrancia Shipping. Both crafts are slow by ferry standards but that is the characteristic of LCTs. They were not built for speed and buses and sedans are not fit for them as they were not really built for comfort especially with their limited passenger accommodations.

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LCT Aldain Dowey by Anthon Briton of PSSS.

Right now, Sta. Clara Shipping is (…censored…) like the other shipping companies of note and that is just a reflection on how intermodal shipping is booming across the country. But in the Bicol region there is no doubt that the combined Sta. Clara Shipping and Penafrancia Shipping is the tops not only in ships because remember they also have their own port and the worth of that will approach that of a good and big overnight ferry that is still in a good condition. Now they are also operating in the Liloan-Lipata route across Surigao Strait.

Over-all, Sta. Clara Shipping is one good success story that is nice to tell and I wish them more successes in the future.

 

Philtranco Always Tried Horizontal Integration

Horizontal integration is the setting up or the acquisition of a company at the same level of the value chain and that is meant to help the company compete. It can be a competitive strategy where economies of scale, more efficiency and increase of market power are the objectives. Companies engage in horizontal integration to benefit from possible synergies. But sometimes the resolution of a problem or a bottleneck prods a company into horizontal integration.

Philtranco Service Enterprises, Inc. (PSEI), the leading bus company in the Philippines then tried this strategy over a generation ago. From running a big fleet of buses from Manila to the southern part of the Philippines up to Davao City, they established their own RORO companies in the San Bernardino Strait crossing that linked Sorsogon and Samar. However, the results were certainly very mixed, to say the least, and controversial.

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The Cardinal Ferry 1. Research by Gorio Belen of PSSS in the National Library.

Since 1979, Philtranco buses (they were still known as Pantranco South then) have been rolling across already to Eastern Visayas via the San Bernardino Strait using the newly-fielded RORO Cardinal Ferry 1 of Cardinal Shipping. Newport Shipping which had ferries and cargo ships from Manila to Samar then followed with their Northern Star and Laoang Bay.

This reaction of Newport Shipping was very understandable as Newport Shipping was not really doing well with their Manila to Samar route and maybe they felt they have to defend their home turf as the owner of Newport Shipping is from Laoang, Northern Samar. They might have also felt that this new intermodal route might kill them in the long term and so they have to join the fun.

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MV Northern Samar. Formerly the MV Northern Star before she was refitted. Photo by Lindsay Bridge of PSSS.

Before the ROROs arrived it was the motor boats of Bicolandia Shipping Lines (this company has legal-fiction companies like E. Tabinas) which dominated the route across San Bernardino Strait. But with the buses now rolling the passengers no longer have to cut their bus trip to Matnog and they do not take a local bus to Allen, Northern Samar to take the lancha (motor boat). Convenience is what the intermodal system offered. Cargo of the passengers that was once a hassle became less with the bus for it afforded less handling and haggling.

Immediately, there was a surplus of bottoms in San Bernardino Strait as the government-owned Maharlika II (later replaced by Maharlika I whom it replaced earlier) was also plying the official Matnog to San Isidro, N. Samar route. Moreover, the passengers to Eastern Visayas did not immediately shift to the buses especially the passengers to Leyte. They were still content with the liners of Sulpicio Lines and William Lines which had calls in Calbayog, Catbalogan, Tacloban and other ports in Leyte and Southern Leyte. In terms of comfort the bus is actually inferior to the liners which has its own toilets and baths, are equipped with bunks with mattresses and even linen (called “beddings”) plus the meals are free and the rice servings are generous. However, they only call in ports unlike buses which roll through the various towns.

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The Maharlika I. Photo from Edison Sy of PSSS.

In the aftermath of that surplus of bottoms, Cardinal Shipping and Newport Shipping teetered especially when Eugenia Tabinas got into the RORO act starting when she was able to acquire the Northern Star in 1981 which she then renamed into the Northern Samar. Eugenia Tabinas was in a strong position as she dominated the intra-Bicol routes with her motor boats and so she can compete in one of her routes at just break-even.

However, with many buses crossing San Bernardino Strait, Philtranco thought they could save money if they operated their own ROROs where they will always have priority. And so they also got caught in the RORO act (they were still strong then and they have just re-fleeted into Hino) and they thereby acquired the Laoang Bay of Newport Shipping which was renamed into the Black Double. In 1984, this became the Philtranco Ferry 1 of Philtranco Services.

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The Philtranco Ferry I. Research of Gorio Belen of PSSS in the National Library.

It is here that things began to get interesting and lively. Eugenia Tabinas or Bicolandia Shipping smelled that Philtranco was operating without a Certificate of Public Conveyance (CPC) and complained to MARINA, the Maritime Industry Authority which is the country’s maritime regulatory agency and which has quasi-judicial powers. Philtranco countered that since they were only loading their own buses then there is no need for them to get a CPC. Now, if MARINA agrees with that then Philtranco will be the only sea carrier without a CPC and that has great implications.

Along the way, Black Double got unreliable as she was built in 1962 and diesel engines were not yet as reliable (with changes in design and technology that changed in the mid-1960s especially when Daihatsu marine engines became dominant). She was sold to Badjao Navigation and she became the Badjao and she plied a route from Cebu island to Leyte.

While the case was pending (as it reached the higher courts as MARINA quasi-judicial decisions can be appealed in the Court of Appeals and the Supreme Court), Philtranco acquired the salvaged Mindoro Express from Prince Valiant Navigation which then became the Christ The Saviour and Christ The King. The RORO became the Luzvimin Primo because she was now under the Luzvimin Ferry Services, the new ferry company of Philtranco.

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The Mindoro Express just before she became the Christ The King and Luzvimin Primo . Photo by Edison Sy of PSSS.

In due time (which means a long time), the Supreme Court sustained the ruling of MARINA that a shipping company cannot carry passengers without a CPC and the ferry service of Philtranco stopped. By that time Philtranco was already toppling and it was fast losing its Hino buses.

Philtranco then fell into the hands of transportation mogul Pepito Alvarez who then equipped Philtranco with his new MAN and Nissan buses. Soon, he was able to reach a deal with the administration of President Fidel V. Ramos to operate the already-weak Maharlika ferries which in that time consisted only of Maharlika I and Maharlika II (this one was not in San Bernardino Strait but in Surigao Strait).

After settling in, Pepito Alvarez added the Maharlika Tres, Maharlika Cuatro and Lakbayan Uno (this was later sold to Millennium Shipping). And then the Luzvimin Primo became the Maharlika Cinco. Later, the Maharlika Seiz and Maharlika Siete were also also added to be followed by the Grand Star RORO 1 and Grand Star RORO 3 which came from Phil-Nippon Kyoei. This time Philtranco was already careful about the CPC. In these moves, Pepito Alvarez worked through his protégé Cristopher Pastrana.

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Maharlika Cinco and Maharlika Seiz. Photo from the PPA.

The horizontal integration of Philtranco was not necessarily beneficial for the passengers unless maybe in its early years when the dominant Bicolandia Shipping Lines engaged in what is locally-known as “alas-puno” system of departures when a ferry will only leave if it was already full of rolling cargo (and that was the cause of their downfall later). With that system, the buses and its passengers lose time and it could be in the hours.

But when ROROs bloomed in San Bernardino Strait, horizontal integration became a negative because Philtranco buses have to wait for the ferries (Maharlika ferries were not so reliable and it tried many routes in the country including in Catanduanes, Masbate, Marinduque, Batangas and Panay and so its presence in San Bernardino Strait and Surigao Strait was actually diluted and trips were few) as Philtranco buses have no freedom to sail in competing ferries.

I was once a passenger aboard a Philtranco bus from Davao. Our driver was driving fast so we can board the morning RORO of Maharlika in their Dapdap port (owned by sister company Philharbor). We arrived at 8:30am only to see the ferry has just left. There was only one Maharlika RORO then there and we waited for its return. Finally, we left Dapdap port at 1:30pm and everybody was so pissed up including the drivers as we saw several ferries leaving the competing BALWHARTECO port ahead of us. If our Philtranco bus had freedom, we would have been aboard the first of those that left BALWHARTECO port and saved several hours of waiting time.

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Grand Star RORO I and Maharlika Tres in Dapdap port. Photo by Mike Baylon of PSSS.

The Philtranco driver/conductors also didn’t like that they have no freedom to load the buses in competing ROROs. The reason is they can’t avail of the “rebates” offered by the competing shipping companies. This comes in the form of free ferry tickets that can be sold by the driver/conductors to their passengers. Even if only half the tickets are free that can come up to an average of P1,500 for the driver/conductors in additional income.

When Archipelago Philippine Ferries, the name of the shipping company established by Pepito Alvarez) weakened and they just had a limited number of ROROs running, Philtranco finally allowed its buses to ride the competing ferries as passengers began to shun them. However, when the FastCat ROROs came for Archipelago Philippine Ferries, the Philtranco buses were no longer allowed that again. There was also the experiment where the Philtranco buses were no longer boarded aboard the FastCat ROROs and only the passengers and their cargo were loaded. In that system, a Philtranco bus will be waiting at the opposite port.

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Philtranco buses that disembarked from a FastCat. Photo by Mike Baylon of PSSS.

Now, Philtranco’s fleet is whittled and it is already far from its number in the 1980s after they re-fleeted from Leyland to Hino. And the tables turned already. It is so-many FastCats that needs them now and not the other way around.

Now, did you know that founder A.L. Ammen tried horizontal integration too?

The Claim of Carlos A. Gothong Lines That They Were First Into ROPAXes Was Most Likely True (But There Was Controversy)

Carlos A. Gothong Lines, Inc. (CAGLI), in their online published history claims they were first into ROROs. The more correct term is probably ROPAX or RORO-Passenger but many people just use the acronym “RORO” and that is what is commonly most understood by many. It was said that when new patriarch Alfredo (Alfred) Gothong went on self-imposed exile in Canada, he was able to observe how efficient were the ROROs there and he might have been talking of the short-distance ferry-ROROs including the double-ended ferries in the Vancouver area. It is in that area where Canada has many of those types.

The move to ROROs happened when the then-combined shipping companies Carlos A. Gothong Lines, Inc. (CAGLI) and Lorenzo Shipping Corporation parted ways in 1979 (in actual although the agreement was from 1978) after some 7 years of combined operations which they did to better withstand the shocks of the split that created Sulpicio Lines and the downfall of their copra and oil trading (in strategic partnership with Ludo Do & Lu Ym of Cebu) when the Marcos henchmen moved in into the copra trade and oil refining. When Carlos A. Gothong Lines and Lorenzo Shipping were still combined the former’s ships were mainly doing the Visayas and Visayas-Mindanao routes while the latter’s ships were mainly doing the Southern Mindanao and Western Visayas routes.

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1979 Gothong + Lorenzo shipping schedule (Credits to Times Journal and Gorio Belen)

The year 1979 was very significant for Philippine shipping in so many ways. First, it was the year when containerization went full blast when the leading shipping companies (Aboitiz Shipping, William Lines, Sulpicio Lines, Lorenzo Shipping plus the earlier Sea Transport) went into a race to acquire container ships. That also meant a lull in passenger-cargo ship acquisitions since more and more it was the container ships that were carrying the cargo to the major ports. Before the container ships, it was mainly the passenger-cargo ships that were carrying the inter-island cargoes. The shift to containerization resulted in passenger-cargo ships being laid up in 1980 and 1981 and later it accelerated the process of breaking up of the former “FS” ships.

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1979 container shipping ads (Credits to Times Journal and Gorio Belen)

Second, it was the year that the road plus ship intermodal system truly started when a Cardinal Shipping ROPAX appeared in San Bernardino Strait to connect Luzon and Visayas by RORO. It was the first step but in the next years ROPAXes linking the islands within sight began to mushroom (this is not to negate the earlier intermittent LCTs that also tried to bridge major islands within sight of each other the RORO way).

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A 1980 ad of Cardinal Shipping (Credit to Gorio Belen)

In their split, Carlos A. Gothong Lines and Lorenzo Shipping had two completely different responses to the new paradigm of containerization. The latter tried to join the containerization bandwagon and aside from the acquisition of general cargo ships from Japan for refitting into container ships it also tried to retrofit their earlier general cargo ships into container ships. Maybe Lorenzo Shipping does not have the financial muscle of the others but it tried to make up for this by ingenuity (and maybe Aboitiz Shipping which first tried this approach was their model).

However, Carlos A. Gothong Lines had a different approach. They bypassed the acquisition of container ships and instead went headlong into the acquisition of small ROPAXES (but bigger than the basic, short-distance ferry-ROROs). Most likely their situation as primarily an intra-Visayas and a Visayas-Mindanao shipping operator influenced this. In these routes, there was no need for containers ship as almost all cargoes there are either loose cargo or palletized cargo that are loaded mainly in overnight ships.

There is controversy which shipping company fielded the first RORO in the Philippines (setting aside the earlier LCTs). Negros Navigation claims their “Sta. Maria” was first in RORO liners. That ship came in 1980 and it was a RORO liner, obviously. But as far as ROROs or ROPAXes, there is indubitable proof that Cardinal Shipping fielded the “Cardinal Ferry 1” in 1979 in the San Bernardino Strait crossing.

To make the debate murkier still, the “Northern Star” (a double-ended ferry at first before she was converted and she became the latter “Northern Samar”) and “Badjao” of Newport Shipping arrived in 1978 but they were not doing RORO routes then. By the way, the San Bernardino RORO service became only feasible when the roads in Samar were already passable so it cannot come earlier.

Carlos A. Gothong Lines might win the debate, however, because in 1976 they already had the small RORO “Don Johnny” which they used as a passenger-cargo ship from Manila to Leyte but not as a RORO. This ship later became the “Cardinal Ferry 2” of Cardinal Shipping that was the first to bridge the Surigao Strait as a RORO (that was not an LCT) in 1980 with a fixed schedule and daily voyages. And even though the former vehicle carrier “Don Carlos” arrived for Sulpicio Lines in 1977, still Carlos A. Gothong Lines was technically ahead in ROROs.

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The Don Carlos (Credits to Times Journal and Gorio Belen)

From 1980 and ahead of the other shipping companies, Carlos A. Gothong Lines already bet big on ROROs when they fielded such type one after the other. In 1980, the “Dona Lili” and “Don Calvino” arrived for Carlos A. Gothong Lines although there are those who say the former arrived earlier. Negros Navigation might have been right in stressing that their “Sta. Maria” was a RORO liner and was first because the two ROROs of Carlos A. Gothong Lines were just overnight ferries. Nevertheless, both were ROROs or ROPAXes.

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

The “Dona Lili” was a ship built as the “Seiran Maru” in 1967 by Taguma Zosen in Innoshima, Japan. The ferry measured 69.0 meters by 12.0 meters with an original 856 gross register tonnage, a net register tonnage of 448 tons and deadweight tonnage of 553 tons. She was powered by two Daihatsu engines totalling 2,600 horsepower with gave her a sustained speed of 15.5 knots. The permanent ID of the ship was IMO 6713609.

In comparison, the “Sta. Maria” of Negros Navigation was not much bigger at 72.0 meters by 12.6 meters and 1,110 gross register tonnage. Their speed was just about the same since “Sta. Maria” has a design speed of just 15 knots. So one ship was not clearly superior to the other. It just so happened that the routes of the companies dictated the particular role of the ships. By the way the “Sta. Maria” is still existing as the “Lite Ferry 8” so shipping observers still can benchmark her size, visually.

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The Don Calvino (Credits to PAL, George Tappan and Gorio Belen)

The “Don Calvino” was built as the “Shunan Maru” by Naikai Zosen in Onomichi, Japan in 1968. The ship measured 62.6 meters by 13.4 meters with an original gross register tonnage of 881 tons. She was powered by twin Hitachi engines of 2,660 horsepower total and a design speed of 14.5 knots. Her ID was IMO 6829484. As a note, the “Dona Lili” and the “Don Calvino” had long lives and they even outlived their company Carlos A. Gothong Lines which disappeared as a separate company when it joined the merger which created the giant shipping company WG&A.

Another RORO also arrived for Carlos A. Gothong Lines in the same year 1980. However, the ship did not live long. This ferry was the “Dona Josefina” which was built as “Kamishiho Maru” in 1968 by Mitsubishi Heavy Industries in Shimonoseki, Japan. This ship had the external dimensions 71.6 meters by 13.0 meters and her gross register tonnage was 1,067 tons which means she was slightly the biggest of the three that came to Carlos A. Gothong Lines in 1980 and almost a match to the “Sta. Maria” of Navigation in size (incidentally the two ships both came in 1980). This ship was powered by twin Daihatsu engines of 2,600 combined like the “Dona Lili” and her sustained top speed was 15 knots. Her permanent ID was IMO 6823399.

Acquiring three medium-sized ROROs in a year showed the bet of Carlos A. Gothong Lines on ROROs or ROPAXes instead of container ships. Actually in overnight routes, it is ROROs that is needed more because it simplified cargo handling especially with the employment of forklifts which is several times more efficient than a porter and does not get tired. When Carlos A. Gothong Lines acquired RORO cargo ships starting in 1987 with the “Our Lady of Hope” , it was when they had Manila routes already and those cargo ships were used in that route.

Carlos A. Gothong Lines then had a short pause but in 1982 they purchased the ROPAX “Don Benjamin”. This ship was the former “Shin Kanaya Maru” and she was built in 1967 by Shimoda Dockyard Company in Shimoda, Japan. This ship measured 61.0 meters by 13.7 meters and the gross register tonnage was 685 tons and her permanent ID was IMO 7022875. She was powered by a single Nippon Hatsudoki engine of 2,550 horsepower and her design speed was 15 knots. Her engine was the reason the ship did not have a very long career here.

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The Don Benjamin partially scrapped (Photo by Edison Sy)

In 1983, Carlos A. Gothong Lines acquired two more ROROs, the “Dona Casandra” and the “Dona Conchita” which were both ill-fated here. The “Dona Casandra” was the former “Mishima Maru” and built by Hashihama Zosen in Hashihama, Japan. She was smaller than the other ROROs of Carlos A. Gothong Lines at 53.8 meters by 11 meters but her register tonnage was 682 tons. Her engines were twin Daihatsus at 2,000 horsepower total and that gave her a top speed of 14 knots, sustained. She possessed the IMO Number 6729476.

The other ship, the “Dona Conchita” was significantly bigger than the others as she had the external dimensions 82.0 meters by 13.4 meters and Japan gross register tonnage of 1,864 tons. This ship was the former “Osado Maru” and she was built in 1969 by Ishikawajima Heavy Industries (IHI) in Tokyo, Japan with the IMO Number 6908187. This bigger ship with a design speed of 16.5 knots was supposedly what will bring Carlos A. Gothong Lines back in the Manila route. However, both “Dona Casandra” and “Dona Conchita” sank before the decade was out.

While Carlos A. Gothong Lines was acquiring these ships, they were also disposing of their old ferries including ex-”FS” ships they inherited from their mother company Go Thong & Company before the split in 1972. What they did, the selling of old ships to acquire new was actually the pattern too in the other national shipping companies. The war-vintage ships then were already four decades old and were already in its last legs and its equipment and accommodations were already outdated compared to the newer ships that were already beginning to dominate the local waters.

After 1983, Carlos A. Gothong Lines’ ship acquisitions went into a hiatus for three years (but they already acquired six ROROs, much more than the total of the other shipping companies). Well, almost all ship acquisitions stopped then. The crisis that hit the Philippines was really bad and nobody knew then where the country was heading. But in 1986 when the crisis began to ebb and more so in 1987 and 1988 they acquired another bunch of RORO ships, bigger this time including RORO Cargo ships. That was the time that they attempted to become a national liner shipping company again after they became one of the Big Three in Visayas and Visayas-Mindanao shipping (the other two were Sweet Lines and Trans-Asia Shipping).

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The Our Lady of Guadalupe (Credits to Manila Times, Rudy Santos and Gorio Belen)

But then, the return of Carlos A. Gothong Lines as a national liner shipping company is worth another story, as they say.

Abangan.

The Matnog Ferry Terminal

The government ports that were built in the 1980’s to connect Luzon, Visayas and Mindanao through the eastern seaboard of the country were not called “ports” but instead were called “ferry terminals”. And so it became Matnog Ferry Terminal, San Isidro Ferry Terminal, Liloan Ferry Terminal and Lipata Ferry Terminal. The four actually had a common design in their port terminal buildings and general lay-outs. The paint schemes are also the same.

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Matnog town had been the connection of Sorsogon and Luzon to Samar even before World War II and it might even been before the Americans came. That situation and importance was simply dictated by location and distance as in Matnog is the closest point of Luzon to Samar. In the old past, that connection to Samar crossing the San Bernardino Strait was done by wooden motor boats or what is called as lancha in the locality.

These lanchas existed until the early 1980’s. Their fate and phase-out was forced by the arrival of the pioneering Cardinal Shipping RORO in 1979, the Cardinal Ferry 1. With the arrival of other ROROs and especially the government-owned and promoted Maharlika I, the fate of the lanchas were slowly sealed until they were completely gone. By this time the new Matnog Ferry Terminal which was a replacement for the old wooden wharf was already completed.

Maharlika I

The Matnog Ferry Terminal is a RORO port with a back-up area for vehicles waiting to be loaded. At the start when there were few vehicles yet crossing and there were only a few ROROs in San Bernardino Strait that back-up area was sufficient. But over time it became insufficient and so additional back-up areas were built twice. Before that the queue of vehicles sometimes went beyond the gate and even up to the Matnog bus terminal/public market. Worst was when there were trip suspensions and vehicles especially trucks snaked through the main streets of of the small town of Matnog.

The Matnog Ferry Terminal is one of the more successful ports of the government. Actually most ports owned by the government do not have enough revenue to pay for the operational expenses like salaries, security, electricity, transportation and communication and for maintenance. The performance and success of Matnog Ferry Terminal is dictated not by the quality of port management but simply by the growth of the intermodal system. From Luzon there is no other way to Eastern Visayas except via Matnog. The intermodal system began to assert itself in the 1980’s until it became the dominant mode of connection to most of the islands in the country.

The Matnog Ferry Terminal has a total of four corresponding ports in Samar, amazingly. These are the BALWHARTECO port, the Jubasan port of Sta. Clara Shipping Corporation, the Dapdap port of Philharbor Ferries, all in Allen town and the San Isidro Ferry Terminal. The first three are privately-owned ports. The government-owned San Isidro Ferry Terminal lost out early to the privately-owned ports because it has the longest distance at 15 nautical miles while BALWHARTECO port is only 11 nautical miles from Matnog. A shipping company using San Isidro Ferry Terminal will simply consume more fuel and it cannot easily pass on the difference to the vehicles and passengers.

The existence of those many ports in Samar showed the increase over the years of the number of ROROs crossing San Bernardino Strait and also the number of vessel arrivals and departures. Currently, on the average, a dozen ferries and Cargo RORO LCTs serve the routes here with the companies Sta. Clara Shipping Corporation/Penafrancia Shipping Corporation, Montenegro Shipping Lines Incorporated, 168 Shipping Lines, Archipelago Philippine Ferries Corporation, SulitFerry and NN+ATS involved. The last two mentioned are operations of the liner company 2GO.

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In Samar, all those ferries can be docked simultaneously thereby showing enough docking capacity. In Matnog Ferry Terminal only about five ferries can be docked simultaneously especially since the two new RORO ramps there seems not to be in use. When they built that it was by means of bulldozing rocks into the sea to build a back-up area and those rocks seem to be dangerous to the ferries and their propellers and rudders which means a possible wrong design or construction.

When the government built a back-up area near the Matnog terminal/market, I assumed a true expansion of Matnog Ferry Terminal there. A causeway-type wharf could have been developed there and the docking ferries could have been separated there so there would be less mix-up of the departing and arriving vehicles. Causeway-type wharves like what was successfully deployed by the BALWHARTECO and Dapdap ports. This type of wharf is very efficient in using limited wharf space and it is very good in handling ROROs and LCTs.

Until now the Philippine Ports Authority (PPA) insists on using pile-type wharves which is more costly but less efficient. A pile-type wharf is good if freighters and container ships are using the port but freighters do not dock in Matnog but in nearby Bulan port and there are no container ships hereabouts. If there are container vans passing here it is those that are aboard truck-trailers. But many know that if there are “percentages”, the less efficient pile-type wharves will guarantee more pie than can be “shared” by many. And I am not talking of the pie that comes from bakeshops.

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In a causeway-type of wharf the ferries can dock adjacent each other

Matnog Ferry Terminal by its evolution is actually a little bit different now from its sister ports because its wharf has an extention through a short “bridge” like what was done in Cataingan port although this is less obvious in the case of Matnog. The three other Ferry Terminals have no such extensions which is done if the water is shallow and there is enough money like in Ubay port which has an extension that is long and wide enough to land a private plane already (and yet it handles far less traffic than the Ferry Terminals). Almost always the priorities of government in disbursing funds is questionable at best. The budget used in Ubay port would have been more worthwhile if it was used in the shallow Pilar port which has far more traffic and is of much greater importance.

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With lack of RORO ramps it is normal that ferries in Matnog will dock offshore. It is also usual that a ferry will wait a little for a ferry loading to depart before they can dock especially at peak hours. Again, the docking of ferries askew to the port in high tide where there is no RORO ramp still goes on. Matnog Ferry Terminal and the Philippine Ports Authority is really very poor in planning that one will question what kind of data do they input in planning. I even doubt if the idea of a breakwater ever crossed their minds. Matnog is one place where swells are strong especially both in habagat and amihan (it has that rare distinction) or if there are storm signals (and Bicol is so famous for that) or when there is what is called as “gale” warning by the anachronistic weather agency PAGASA (they issue a “gale warning” even if there is no gale; they could have just issued a “strong swell “ warning because it is actually what they are warning about).

In Bicol, Matnog Ferry Terminal has the most number of vessel departures per day if motor bancas are excluded. Matnog’s vessel departures can reach up to 20 daily in peak season with a corresponding equal number in arrivals. In this regard, Matnog Ferry Terminal is even ahead of the likes of Legazpi, Tabaco and Masbate ports and such it is Number 1 in the whole of Bicol. That will just show how dominant is the intermodal system now. And how strategic is the location of Matnog.

A few years ago there was a change in Matnog Ferry Terminal that I was bothered about. Matnog is one port that has a very strong traffic and traffic is what drives income up. But before her term was up Gloria gave the operation of Matnog Ferry Terminal passenger building to Philharbor Ferries. This was also about the same time she wanted to privatize the regional ports of the country with strong traffics like Davao, Gensan and Zamboanga.

Now what is the point of giving the control of a passenger terminal building of a very strong port to a private entity? That port terminal building is actually a cash machine. Imagine about 2,000-3,000 passengers passing there daily in just one direction. Of course Gloria has some debt to the true owner of Philharbor in terms of executive jet services during her term and for providing escape to Garci. Was the deal a payback?

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No covered passenger walkway in Matnog

After years of private operation I have seen no improvement in Matnog Ferry Terminal. From what I know the construction of the two new back-up areas were funded by government. So what was the transfer of control of the passenger terminal building all about? They cannot even build a covered walkway from the passenger terminal to the ferries when BALWHARTECO port was able to do that (and both have long walks to the ferry). Does it mean that BALWHARTECO port cares more about its passengers?

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BALWHARTECO covered walk for passengers

Matnog Ferry Terminal could have been a greater port if properly managed and it should have been properly managed and programmed because it is one of the critical ports of the country. It is actually the strongest of the four Ferry Terminals and by a wide margin at that. Now, if only they will plow some of the profits of the port back into improvements of the port. Or shell out money like what they did to Ubay and Pulupandan ports which severely lacks traffic until now even after spending three-quarters of a billion pesos each. Again one will wonder what kind of data PPA used. Did the “figures” come from whispers of powerful politicians? And did they twist the moustache of NEDA Director-General Neri?

Quo vadis, Matnog Ferry Terminal? You should have been greater than your current state.

Allen is the King of Samar Shipping

Allen, a small town in the northwest tip of Samar island is the king of Samar shipping if measured by the number of ports existing and by the number of vessel arrivals and departures and even in the passenger throughput. This has not always been so because in the past Calbayog and Catbalogan have been the kings of Samar shipping. That was the time of cruiser liners and when the intermodal system did not yet exist.

Allen has been the connection of Samar to Sorsogon even before World War II when motor boat (lanchas) was the king of connections between near major islands. That was simply because Allen is the nearest town of Samar to the Sorsogon landmass. Additionally, Allen was also the connection then of the northwestern part of Samar to Calbayog when there was still no road connecting those two parts of Samar.

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Credit to Gorio Belen and Times Journal

The BALWHARTECO (Balicuatro Wharfage and Terminal Corporation) port was THE port of Allen even then. This port is a private port and founded by the father of the current owning Suan family. From a port handlings lanchas, BALWHARTECO port evolved into a RORO port with the coming of the ROROS. When it did, the Matnog-Allen lanchas gave way to the ROROs until they became extinct. With that, gone too was the cumbersome mano-mano cargo handling system done by the porters.

In the past, liners from Manila docked in Calbayog and Catbalogan mainly and also in Laoang, Caraingan, Allen and Victoria. But with the finishing of the Maharlika Highway, the buses and also the trucks came to Bicol and suddenly there was a need for a RORO to cross them across San Bernardino Strait to Samar which Cardinal Shipping through Cardinal Ferry 1 provided in 1979. This was followed by other companies with ROROs like Newport Shipping whose owner is from Laoang town. Other companies followed such as the Philippine Government through Maharlika Uno in 1982 and by the Bicolandia Shipping of Eugenia Tabinas.

When the intermodal buses and trucks came, the bottom suddenly fell out of Northern Samar ports and ships and in a few years they were gone. Calbayog and Catbalogan proved more resilient but the BALWHARTECO private port in Allen grew by leaps and bounds as the years showed consistent annual increase of trucks, buses and passengers crossing the San Bernardino Strait. From a wooden wharf BALWHARTECO port was converted in a concrete causeway-type wharf. Moreover, additional buildings were added to BALWHARTECO port and it housed pasalubong shops, eateries and various offices plus a lodge and a disco above.

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BALWHARTECO in earlier days. Photo by Lindsay Bridge.

When BALWHARTECO and the San Bernardino connection grew, others were tempted to also have their own like the Dapdap and Jubasan ports. Dapdap is owned by Philharbor Ferries and the new Jubasan port is owned by Sta. Clara Shipping Corporation. So now Allen has three ports and very rare is a town that has three private ports catering to ROROs.

Meanwhile, the old dominant ports of Calbayog and Catbalogan no longer have liners from Manila nor overnight ferries from Cebu with the exception of the new Manguino-o port in Calbayog which hosts Cokaliong Shipping Lines. In the main they have already lost to the intermodal trucks from Cebu which use ports in the western seaboard of Leyte as entry like Palompon, Isabel, Ormoc including GGC, Albuera and Baybay.

These changes only showed the complete triumph of the new paradigm, the intermodal system where vehicles (buses, trucks, cars, etc.) are now just rolled into ROROs including LCTs and the traditional way of shipping cargo has already been superseded.

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BALWHARTECO port

In a day, Allen has nearly 20 ROROs dockings and an equivalent number of departures for a total of about 200 vehicles of at least four wheels either way so not counted here are the likes of motorcycles. Near ports of cities like Tacloban, Masbate, Legazpi and Tabaco do not even have such volume. It actually exceeds even the port of Ormoc, the greatest port in the western shores of Leyte. So that is how big is the traffic of Allen and probably many do not realize that. Additional some 2,000 passengers a day pass each way in Allen for a total of about 4,000 passengers. North Harbor of Manila doesn’t even have such passenger volume.

However and sadly, such growth, such traffic are not transferred in the locality. Where before a port confers prosperity because the big bodegas and trading houses will be there, this is not in the case of the intermodal system because the cargo, which is rolling cargo at that, just passes through. There are no bodegas or trading houses in Allen. And that is the case of all the short-distance ports in the eastern seaboard from Matnog to Allen to Liloan to San Ricardo and Lipata.

Maybe it is not right to expect to have bodegas in Allen. That is impossible as the cargo trucks will simply roll on. But there must be a way to grab some business from all those passing vehicles. Like fuel sales if the pump price is right. Or restaurants like Jollibee. There are passengers like me who desire such kind of restaurant which serve a standardized quality of food in an air-conditioned accommodation.

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BALWHARTECO offices and eateries. The lodge and disco are located above.

Well, maybe even hotels or lodging houses. But the price should be right otherwise the travelers will just continue on (Allen is known to travelers as having high lodging rates). BALWHARTECO port has a lodge and that shows this is possible. The best type will be a SOGO-type of hotel that offers 12-hour accommodation for half the price.

Pasalubongs and novelty items like T-shirts are also possible. Like in lodgings the price should be right. Novelties must have the reputation of being cheaply-priced. Tourism? Maybe not. The transients did not come to Allen for that.

Allen is king of Samar shipping but it is poor. As of today it is just a fourth-class municipality which means an income of just P25-35 million yearly. Its population is still small. So it means people are not moving in for maybe there is really no growth and progress.

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Jubasan port of Sta. Clara Shipping Corp.

What Allen is famous for is its illegal exactions (illegal because the Supreme Court has twice declared it is so and that is the final authority on legalities) on the vehicles and passengers. They will charge the vehicles when arriving and when departing. At P75 per truck (their rate) and and about 300 trucks and buses passing daily both ways that would have been an easy P20,000 per day net or P7 million a year. Add to that the P5 per departing passenger. That would be about another P10,000 per day or P3.5 million a year. It seems these collections are not reflected properly in Allen’s income. At P10 million a year times for 30 years there should already been an infra that Allen can be proud of but it seems there’s none as Allen still has the look of a small town.

Allen has ports that is doing good business except Dapdap. Truth is its ports are the best infra in the town. Its incomes should have been a good addition too.

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Dapdap port of Philharbor

But Allen is still poor. Like Matnog, Liloan and San Ricardo although all have illegal exactions. Me and Rey B. called that the curse of the illegal exactions.

Sometimes they say the king is poor. Maybe that is Allen.