Carlos A. Gothong Lines Incorporated Is Still Fighting Back

When the original shipping company Carlos A. Gothong & Company broke up in 1972, one of the successor companies was Carlos A. Gothong Lines Incorporated (CAGLI or Gothong Lines) owned by the scions of the founder Don Carlos A. Gothong. It was eclipsed early by Sulpicio Lines Incorporated which was owned by the once operations manager of the mother company. And then its operation and fleet even got smaller in 1980 when Lorenzo Shipping Corporation of Lorenzo Go and two other siblings went their separate way (this company was later sold to the Magsaysay Shipping Group but later the scions of Lorenzo Go founded the Oceanic Container Lines Incorporated which now has the biggest number of container ships in the country which has the “Ocean” series).

Carlos A. Gothong Lines Inc. again became a significant national liner company in the 1990’s when again they built a fleet of liners starting in 1986 and more significantly in 1987 when they acquired the sister ships Our Lady of Fatima and the Our Lady of Lourdes. The sister ships Sto. Nino de Cebu (the later Our Lady of Medjugorje) and the beautiful Our Lady of Sacred Heart, both acquired in 1990 cemented their national liner position and the big liner Our Lady of Akita, acquired in 1993 declared their intention to play in the big leagues.

The rising company got absorbed when they acquiesced to the creation of big merged shipping company WG & A (which stood for William, Gothong and Aboitiz) in late 1995 and that included their small fleet of RORO Cargo ships and also their Visayas-Mindanao overnight ferries. In this merged company their main representative to the Board of Directors was Bob Gothong who was close to the Aboitizes and not the eldest Bowen Gothong.

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Butuan Bay 1 by Vinz Sanchez

While Bob Gothong never veered from the Aboitiz orbit (take note it was Aboitiz Jebsens which was in charge of the operations fleet maintenance of WG & A), the other siblings of Bob Gothong were not satisfied with the state of things in the merged company and in 2001 they asked out and the process of divestment began. Even before the divestment was completed the revived Carlos A. Gothong Lines Incorporated already had the Butuan Bay 1 ready to sail the Manila-Cebu-Nasipit route which was considered lucky for them and where they were very strong in cargo historically. Instead of being paid in ships, the Gothong siblings were paid in cash (while Bob Gothong remained with WG&A) and for this to happen a lot of WG&A ships, both ROPAX and container ships had to be sold to China ship breakers for cash.

With the proceeds in the divestment that did not include Bob Gothong, the Gothong siblings led by Bowen Gothong acquired the big Manila Bay 1 and Subic Bay 1 in 2003 and 2004, respectively which were as big as their old Our Lady of Akita which burned in 2000 as the SuperFerry 6. The two was followed by the Ozamis Bay 1, also in 2004 and by the Cagayan Bay 1, the sister ship of SuperFerry 2 and SuperFerry 5, in 2007. At its peak the revived Carlos A. Gothong Lines Incorporated had a total of 5 ROPAXes (RORO-Passenger ships) plus a valuable wharf in the new reclaimed land in Mandaue adjacent the Cebu International Port or Cebu Pier 6. But though they had five ferries, the revived CAGLI was only able to regain a limited presence in the Visayas-Mindanao routes which were once dominated by them together with the Trans-Asia Shipping Lines Incorporated.

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The revived Gothong Lines did not prove to be very successful. When they re-entered liner shipping, many passengers were already leaving the liners and they were going to the budget airlines and the intermodal buses using short-distance ferry-ROROs. Cargo was also shifting too to the intermodal system because of the high container rates and the hassles of hauling container vans to the Port of Manila from road congestion to criminality and to the rampant mulcting of the so-called “authorities”. In those years it seemed there was a surplus of bottoms which meant excess ships, a possible result of liberalization and incentives programs of President Fidel V. Ramos.

Gothong Lines then became notorious for late departures and arrivals because they gave preference to cargo which earns more than carrying passengers and they were actually never strong in the passenger department. Repeated complaints led the maritime authority MARINA (Maritime Industry Authority) to suspend their permit to carry passengers. With that happening Gothong Lines simply converted their ROPAXes into RORO Cargo ships just carrying container vans and vehicles.

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With weakness in this business too, soon Cagayan Bay 1 and Ozamis Bay 1 soon found themselves laid up in the Gothong wharf in Mandaue and Butuan Bay 1 was sold after an engine explosion and it became the Trans-Asia 5 of Trans-Asia Shipping Lines Incorporated (TASLI). So in the recent years it was only Manila Bay 1 and Subic Bay 1 which were sailing for Gothong Lines and it seemed the two was enough for their limited cargo and routes. However, as RORO Cargo ships they were inefficient because of their big engines. But even then Gothong Lines were offering discounts and cheap rates in general which only showed how overpriced are container rates in the country. Recently, Cagayan Bay 1 and Ozamis Bay 1 were sold to the breakers but their hulls are still in the Gothong wharf in Mandaue as of the writing of this article.

Many speculated what will happen next to Gothong Lines with two inefficient and obsolescent ships and some were even asking if they will soon cease operations as their two ships were already clearly old and might even be too big for their routes. For me, I always look at their wharf which they retained and I know it is very valuable in terms of market value. Actually, the container shipping company established by their brother Bob Gothong, the Gothong Southern Shipping Lines Incorporated (GSSLI) does not even have an equivalent although it is the more progressive and booming company.

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Panglao Bay 1

Recently, two RORO Cargo ships arrived in the Gothong wharf one after another and they were still relatively new by Philippine standards. These are the Panglao Bay 1 and the Dapitan Bay 1 and from the look of things they are the replacements of Subic Bay 1 and Manila Bay 1. Actually, some three months ago as of the writing of this article, the Subic Bay 1 was already pulled by tugs and it seems here destination is a ship breaker somewhere in South Asia. That happened when the Panglao Bay 1 was already sailing for them. It is speculated that the Manila Bay 1 will be disposed of when Dapitan Bay 1 will already be sailing. In reality, it is possible she already has a buyer now.

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The Panglao Bay 1 was built in 1995 and her external dimensions are 128 meters by 22 meters with a Gross Tonnage (GT) of 5,930 in cubic volume and a cargo capacity of 4,946 tons in Deadweight Tonnage (DWT). Meanwhile, the Dapitan Bay 1 is officially a Vehicle Carrier and was built in 1992 and has the external dimensions 145 meters by 21 meters and has a cubic volume of 7,073 tons in GT and a DWT of 4,485 tons. This ship has different specifications depending on the maritime database. Whatever, these two ships are already the ships of Gothong Lines for the future and they look like worthy replacements for the Subic Bay 1 and Manila Bay 1 though they are a little smaller (but the engines are smaller too which is a plus). But then Gothong Lines might have already studied their cargo capacity needs and concluded that the sizes of the two fits them just right.

And so Carlos A. Gothong Lines Inc. is still fighting back. That is good news as they are the bearer of one of the most storied names in Philippine shipping history.

Denica Lines

This small shipping company probably won’t be much heard outside Bicol and they might be small but they also carry some weight and they won’t topple easily. Alternately, the vessels of Denica Lines are also listed under the owner Carolyn Cua Sy-Reyes. The home port of Denica Lines is Pilar, Sorsogon and they are among the shipping companies connecting that town to Masbate island.

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The Lady Regina

Denica Lines started as a shipping company by operating big motor bancas. When I say “big” it is because its passenger capacity will run upward to 100 persons. Alternately, if loaded with just cargo it can take in the load of a mini-truck or cargo jeep (well, it cannot be all cement or rice because the weight of that might exceed the DWT of the banca thus sinking it).

The owners of Denica Lines actually started as sub-regional distributors and traders and like in many places elsewhere the possession of own motor bancas is a needed horizontal expansion as it gives flexibility to trading and also generate savings. Usually a shipping operator with its own trading business is much more stable than its competitors. One part might not earn much but then the other part will carry it through. And there will also be no problem with what is called in shipping as “shut-outs” which is the failure to have a cargo loaded. For perishables that could be disaster.

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Denica Lines has many big motor bancas. These are fast because those are powered by surplus truck engines and usually it is twin-engined. The total of the horsepower will be over 400 and that will guarantee the motor banca will travel at at least 13 knots which are even faster than the basic, short-distance ferry-RORO which usually travels at only 10 knots. I have seen in Ticao Pass and Masbate Pass that they are really faster. [Well, if used for heavy cargo then all that horsepower will be needed.] Of course, their weakness is the choppy waters and cross-swells. The motor bancas have to time the crests and throughs of the waves and look out for the cross-swells which can damage the outriggers which is called katig locally.

As of now the motor banca fleet of Denica Lines consist of the Lady Regina, Gloria Express, Gloria 7, Gloria 8, Gloria 9, Gloria 10, Phoenix Express I, Phoenix Express II, Hammity and Hammity 2 plus the motor boat Golden Blossom. I would assume that the missing in the series Gloria 1 to Gloria 6 were their earlier motor bancas that are no longer around. The first two, the Gloria Express and Lady Regina are supposedly the fastest in the fleet of Denica Lines including their steel-hulled ships. The two can do at least 14 knots in calm waters.

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In motor bancas, the biggest competitor of Denica Lines is the Lobrigo Lines which have a fleet as big as theirs and which operated buses before (which lost when the intermodal buses came as they didn’t have ROROs). Aside from Lobrigo Lines there are many other operators of motor bancas as Pilar is a motor banca haven after all. Aside from motor bancas there are also motor boats going to Aroroy, Masbate. This town also have many motor bancas from Pilar.

In 2002, Denica Lines ventured into steel-hulled ferries when the purchased the laid-up cruiser Elizabeth Lilly of the defunct Western Samar Shipping Lines. They refurbished the engines of the ship and it was again reliable. They renamed the ship as the Bikol Express but she was not really fast as she had only a single 550-hp Yanmar Marine engine and her design speed was only 11 knots. The size of the ship was just the equivalent of a basic, short-distance ferry-RORO at 29.3 meters by 6.0 meters and 189 in gross tons.

As a ferry, Bikol Express was not much. She didn’t even have bolted seats, just plastic benches that can be moved. The reason is like some of the motor bancas of Denica Lines is she doubles as a cargo ship with passengers. What cannot be carried by the motor bancas like a truckload or two of rice or cement, she will carry. Her DWT of 100 tons comes in handy for such loads.

M/V Marina Empress

Marina Empress by Irvine Kinea

But then ROROs of Montenegro Shipping Lines came and so Denica Lines has to adjust as the trucks instead of unloading their cargo in Pilar just board the RORO now and goes direct to Masbate. They sold the Bikol Express to Batanes Multi-purpose Cooperative (BMPC) and went hunting for a RORO. Again, true to form they settled on a RORO that was not sailing, the Torrijos or Vanessa P2 of the Sta. Cruz Shipping of Marinduque which was already then in the process of winding up their shipping operations having been on the receiving end of the pressure from stronger shipping companies like Montenegro Lines.

The ship was taken from a Navotas yard and she was renamed as the Marina Empress. The Marina Empress is a basic, short-distance ferry-RORO of just 700 horsepower from her single Daihatsu marine engine and with the external measurement of 32.3 meters by 7.8 meters and a gross tonnage of 195. However, like the earlier rumor, her engine was no longer strong.

With Alabat Shipping Corporation of Alabat island going out of operations too, Denica Lines purchased its only ferry, the Odyssey which was the former Starlite Odyssey of Starlite Ferries. This is another basic, short-distance ferry-RORO with a not-so-strong engine anymore. She is powered by a 550-hp Kubota marine engine and her external measurements are 30.5 meters by 7.0 meters with a gross tonnage of 176 which means she is slightly smaller than the Marina Empress. Denica Lines did not bother to rename the Odyssey.

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Denica Lines rarely sails the two ferries simultaneously as both are not really that reliable. Their ferries are in direct competition with the basic, short-distance ferries of Montenegro Lines which also do the Pilar-Masbate route. Their ferries might not be spic-and-span (it will remind one of the E.B. Aznar Shipping basic, short-distance ferry-ROROs) but most times their competition from Montenegro Lines are also basic, short-distance ferry-ROROs of the same age (which means old). Unless Montenegro Lines bring in the Reina Banderada which is a bit better.

If one considers that Denica Lines has a lot of motor bancas that carry not only people but also cargo it will not look that Montenegro Lines dominates them in the Pilar-Masbate route. The two might have some rough equality since Montenegro Lines has fastcrafts in the route. In glitz and glamour, of course, Montenegro Lines exceeds them.

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Pilar port and market

The owners of Denica Lines are also “well-positioned”, as they say. The husband was the Mayor of Pilar until 2016. In the May elections of this year Carolyn Cua-Sy Reyes was elected the Mayor and whitewashing her five opponents with 84% of the votes going to her. Well, it seems they are really respected in Pilar (in 2013 the husband also whitewashed his opponents). I do not know Pilar that much but from what I know it does not have the bokong of Leyte nor the use of muscles and influence in gaining an advantage for ship operations or in locking out the opponent.

Such is Denica Lines.

Container Ships Also Sink Our Liners

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

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Gorio Belen research in the National Library

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

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

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Gorio Belen research in the National Library

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

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Gorio Belen research in the National Library

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

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

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Gorio Belen research in the National Library

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

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

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

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

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

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

Superferry 12

Photo by Edison Sy

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

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

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

Lorcon Dumaguete assisted by tugs

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

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

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

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A Cargo RORO LCT by Asian Shipping Corporation

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

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

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

Shouldn’t We Be Downsizing Our Liners Now?

In the ten years after the end of World War II, the bulk of our liners were ex-”FS” ships with a sprinkling of former “F” ships, former “Y” ships and former small minesweepers of the US Navy which were even smaller ships. The first-mentioned ship was only 55 meters in length. Passenger capacity then of 200-300 were normal. The built capacity was not too high as our population was still small then with a little over 20 million people and besides, the country and the economy were just beginning to recover from the devastation of the Pacific War

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An ex-“FS” ship (Photo credits: Manila Chronicle and Gorio Belen)

In the next decade after that, there came the lengthened former “FS” ships which are over 60 meters in length with three decks. Passenger capacities then rose a bit. The lengthening of ex-”FS” ships, which was still the dominant liner type then was a response to the growing capacity need because the population was beginning to increase and trade was also on the rise. In 1960, our population already rose to 27 million.

In this period, there were no other sources yet of new liners as the European market was not yet discovered except by Compania Maritima and practically there were no surplus ships yet from Japan. It is true that we then already had some big ships mainly in the form of ex-”C1-M-AV1” ships which were US surplus from the war and former European passenger-cargo ships in Compania Maritima’s fleet. These big liners (by Philippine standards) averaged some 100 meters in length.

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An ex-“C1’M-AV1” ship (Photo credits: Philippine Herald and Gorio Belen)

In passenger capacity, however, those big liners then were not even double in passenger capacity compared to lengthened ex-”FS” ships. It was normal for them to have cargo holds in the bow and in the stern of the ship with the passenger accommodations in an “island” at the middle of the ship or amidship. Those big liners normally had only about 500 persons in passenger capacity.

Actually, when the European passenger-cargo ship Tekla came in 1965 to become the Don Arsenio of Carlos A. Go Thong & Co., she was then already tops in the Philippines in passenger capacity at about 700 persons. To think Go Thong has the tendency to maximize and pack it in and that ship was already 110 meters in length and one of the biggest in the country. [Well, liners of the 1990’s of that length already had more than double of that in passenger capacity.]

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Elcano by suro yan

In the middle of the 1960’s, big ships from Europe started to arrive for Go Thong and William Lines and also for Compania Maritima which had been buying ships from Europe right after the end of the war. These shipping companies had the long routes then which extended up to southern Mindanao which had many intermediate ports. Hence, big capacity matters to them. PSNC (Philippine Steam and Navigation Company) which also had routes to southern Mindanao was using ex-”C1-M-AV1” ships or if not they were using their luxury liners Legazpi and Elcano which were 87 meters in length (the two were sister ships).

It was the pattern that as the years went by the ships got bigger and its passenger capacities rose. That was a function of our country’s population increasing and hence also its trade because more population needs more commodities and goods. I am actually interested in the trivia which liner first had a 1,000 passenger capacity but right now I don’t have that data. Maybe that ship emerged sometime in the 1970’s.

In 1970, we already had a population of 37 million. And one change was Mindanao was already colonized, its population was growing fast and its new people had to connect to the rest of the country because this time most of the population of Mindanao were no longer native-born as in they were migrants from other parts of the country.

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Don Sulpicio  (Research by Gorio Belen in the National Library)

One benchmark in capacity was the Don Sulpicio which became the Sulpicio Lines flagship when she came in 1975. She had a passenger capacity of 1,424 (this could be the latter figure after refitting from a fire). But her sister ship Dona Ana has a bigger net tonnage and might had a bigger passenger capacity especially since her route was Davao while Don Sulpicio‘s route was only Cebu. The Don Sulpicio later became the infamous Dona Paz which supposedly loaded 4,000 plus passengers (guffaw!)

These two ships were only in the 90-meter class but one thing that changed with the arrival of the cruisers that were not formerly cargo or cargo-passengers ships is that they had full scantling already so the passenger accommodation stretches from the bridge to the stern of the ship. And one more, the liners became taller with more passenger decks and it is even up to bridge or navigation deck.

Of course, their spaces were not as big as the big 1990’s liners. Riding a 1970’s liner, one would find that all the spaces are “miniaturized” from the size of the bunks to the spaces between the bunks, the tables and the restaurants and the lounges. They were simply a different beast than their counterparts two decades later where spaces and amenities were really ample.

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Research by Gorio Belen in the National Library

In the early 1980’s, passenger capacities of over 1,000 was already commonplace with the biggest liners in the 110 and 120 meter class and with some featuring four passenger decks already. Actually as early as 1979 with the arrival of the sister ships Don Enrique and Don Eusebio which were southern Mindanao specialists, their capacities already touched 1,200 and yet they were only in the 110 meter class. The two were the latter Iloilo Princess and Dipolog Princess, respectively.

Actually, passenger maximization was already the game then as even 70-80 meter liners built in the 1970’s and early 1980’s, both cruisers and ROROs, already had capacities averaging 800 or so persons. These were the pocket liners in the 1980’s when the former smallest, the lengthened “FS” ships were already bowing out. In 1980, the country’s population already reached 48 million. With the development of the roads even the people of the interior were already traveling.

1980 Dona Virginia

Photo credits: Daily Express and Gorio Belen

On December of 1979, the first ship to reach 2,000 in passenger capacity arrived. This ship was the flagship Dona Virginia of William Lines. It was also the longest liner then in the country with a length of 143 meters, the longest then in our ferry fleet. And to think the Dona Virginia was not even a tall ship.

In 1988, further bigger liners arrived in the country. The Cotabato Princess which was also a southern Mindanao liner also reached 2,000 in passenger capacity. Its sister ship Nasipit Princess also had the same capacity. Both were 149 meters in length. But the new champion was the very big Filipina Princess which had a passenger capacity of over 2,900. This great liner had a length of 180 meters.

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In the 1990’s, liners of 2,000-passenger capacity or a little less became commonplace. The liner with the biggest ever capacity that existed here was the Princess of the Orient with a passenger capacity of 3,900. It was the longest-ever ship that sailed here at 195 meters. Other ships of this era that had passenger capacities of over 3,000 were the Princess of the Universe and the Princess of Paradise. Both were over 165 meters in length. All the ships mentioned from Cotabato Princess up to Princess of Paradise were liners of Sulpicio Lines.

Even with these high capacities of 2,000 and over the liners were able to pack it in in the 1990’s. I was once a passenger of the Princess of the Paradise on a Christmas trip when all bunks were taken (maybe if there were vacancies it was in the cabins). I also had a same experience on a June trip aboard the Our Lady of Akita (the latter SuperFerry 6) and the crew had to lay mattresses in the hallways because the ship was overbooked. And that ship have a passenger capacity of over 2,600. [Maybe we were technically not “overloaded” as there might have been vacancies in the cabins.]

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Princess of the Orient from Britz Salih

But things began to change in the new millennium. Maybe there was already a surplus of bottoms because there was a race then to acquire liners in the term of President Fidel V. Ramos as it was encouraged and supported. But budget airlines also came along with the intermodal buses. The demand for ship bunks began to slacken and the liners can no longer pack it in like before.

This trend was reflected in the liners fielded starting in 2000. Among the liners of the new millennium only SuperFerry 17 and SuperFerry 18 reached 2,000 in passenger capacity and just barely. And to think they are 174 meters in length. The new liners of Aboitiz Transport System already had two wagon decks instead of four passenger decks. But on a look-back the two wagon decks were also not fully loaded.

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Photo credit: port of douglas

The liner acquisitions of Sulpicio Lines in the new millennium both did not reach 2,000 passengers in capacity. Not even the very big Princess of the Stars, the Philippines’ biggest liner ever. So even Sulpicio Lines recognized that passenger demand was already declining. But unlike Aboitiz Transport System (ATS), they did not convert liners to have two cargo decks. Well, unlike ATS, Sulpicio Lines have many container ships to carry the container vans.

After 2005, only Aboitiz Transport System, Negros Navigation and latter 2GO still acquired liners (excepting Romblon Shipping Lines). None had a passenger capacity that reached 2,000. Some even had passenger capacities of less than 1,000. Most had two wagon decks that does not get full.

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SuperFerry 21 by Nowell Alcancia

If liners can no longer get full in passengers and in container vans then what is the use of acquiring liners of 150 meters length and with over 20,000 horsepower? It is useless. Liners should have lower horsepower now because fuel is the number one expense in shipping. There is also no use now running them at 19 or 20 knots. The overnight ferries have shown the way. Even though their ships are capable of higher speeds they just use economical speed now. No more racing.

Actually, the new overnight ships like what Cokaliong Shipping Lines is acquiring could be the new liners. These average 80 meters in length. Or maybe ships a little bigger than those could be acquired. And that will be like the former Cebu Ferries that were pulled out from the Visayas-Mindanao routes. Their length averages 95 meters. The engine power of all of these are all not topping 9,000 horsepower and yet they are capable of 17-18 knots if needed and that was the range then of many liners in the 1990’s.

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Our Lady of Lourdes by Ray Smith

I think the new size paradigm of the liners should just be about 100 meters maximum with a horsepower of 10,000 or less and a speed of no more than 18 meters. That will be like the smaller liners of the late 1980’s like the Our Lady of Fatima and the Our Lady of Lourdes of Carlos A. Gothong Lines Incorporated (CAGLI) which were 101 meters in length and had 8,200hp. The Tacloban Princess of Sulpicio Lines in that era was 98 meters in length had engines of 8,000hp total. Yet, all three were capable of 17 knots here.

Maybe another and probably better paradigm were the former Our Lady of Medjugorje and the Our Lady of Sacred Heart also of CAGLI. Both were former RORO Cargo ships in Japan but were beautifully refitted here. Both were 123 meters in length but only had 9,000 and 8,000 horsepower, single-engined. The passenger capacity of the two even averaged over 1,500 passengers. They might not be too speedy at about 16 knots but we have to be practical and have to scale back. In amenities and space, the two were good. The former SuperFerry 3 of Aboitiz Shipping Corporation is also a good model. At 118 meters, 9,300 horsepower, 16 knots she was a credible liner then with a passenger capacity of 2,000 . All the quoted speed were when they were already running here when they had additional metal and the engines were no longer new

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Our Lady of Medjugorje from Britz Salih

But technology has improved and for the same engine horsepower a ship can be faster. Take for example the Trans-Asia 3 of Trans-Asia Shipping Lines Incorporated. At only 9,000 horsepower and 110 meters in length, she is still capable of 18 knots here.

If liners are smaller with smaller engines then maybe weaker routes abandoned might be viable again. I think Aboitiz Transport System and 2GO had to scale back on routes because their liners and its engines were too big for the weaker routes. They tried to shoehorn a 150-meter liner in the like of Tagbilaran. No liner of that size did a Tagbilaran route before. Like even at the peak of passenger shipping no shipping company sent a liner of that size to Roxas City.

But government also has to help. Maybe, one possible step maybe is to limit the number of container ships. There might be too many of them sailing already. It is growing at a rate much ahead of our trade and production growth. So it simply diminishes the capability of a liner to be viable.

In the past before 1978, our cargo is being carried by the passenger-cargo ships. That was the reason why there was so many liners then as in over 60 in total and even 90 in the 1960’s when ships were smaller and ex-”FS” ships still dominated. What happened next is while our inter-island container fleet is growing, our liner fleet was also growing smaller because cargo is also being carried by the container ships.

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Research by Gorio Belen in the National Library

On the same route there is no way a liner can carry cargo cheaper than container ships. For the same length the container ships have much less smaller engines, the acquisition cost is much less, insurance is smaller and crewing is much smaller too and there is less regulation. Of course, they are slow. But let upon liners in competition they can practically sink the liners. I heavily doubt if our government functionaries understand this relationship and history.

It might be anti-competitive but if the government does not intervene I think our liner sector will sink and be wiped out. One possible intervention even is to decree that vehicles can only be carried by the liners. This will be added revenue for the liners. Or that liners should have fuel that is cheaper. Of course some will balk at that and suspicions of fuel diversion will always be aired. But good controls can be put in place. Unless we as a people is really that corrupt and bribable.

As it is, 2GO is profitable now when the world market prices of oil plummeted. But then one thing that worries me is their fares on the average are not lower than the budget airlines and the intermodal buses. With longer time of travel they cannot compete with budget airlines in the long run. And with frequencies that are not daily the passengers will not really wait for them.

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Maybe we should go back to this size

If the government wants the liner sector to stay it cannot just be verbal encouragement. Press or praise releases and promises are also next to nothing. There should be concrete steps and a program if they really want to save this sector. But is there anybody in government high enough that really understands this sector?

The government can put out all the verbal encouragement for other entities to enter this sector but I don’t think those who know shipping will enter this segment as things stand now. Downsizing is maybe one step that can arrest the downslide of passenger liner shipping.

The Pio Duran Port

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The smallness of Pio Duran town

Pio Duran is a small town and a port in the southern coast of Albay. However, some people spell this as “Pioduran” which is incorrect since the town was named after the Congressman who sponsored the bill creating the town. The town was eventually created after Congressman Pio Duran died.

In the past this place was called “Malacbalac” and it was known for mainly one thing, its abundant fish which was supplied to the rest of Albay towns and even as far as Iriga in Camarines Sur. Before that the place was generally referred to as “Panganiran” and thus the bay where Malacbalac is situated is called Panganiran Bay. There is still a barrio named Panganiran in Pio Duran town.

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Pio Duran port

For decades after the creation of the town, Pio Duran was not an enchanting place to visit because of the really bad state of the road then (it was unpaved and muddy) which was sometimes cut at the peak of the rainy season or when there is a typhoon. In 1984 a new port was built in the town supplanting the old wooden municipal port. This was one of the 12 Bicol ports wangled by then Minister Luis Villafuerte from President Ferdinand Marcos when there was already an arrangement that Villafuerte’s ministry will be absorbed by Roberto Ongpin’s ministry.

The funds for the ports were sourced from JICA (Japan International Cooperation Agency) and these were called “fishports”. But except for Camaligan port, it cannot be compared to the known fishports today like Navotas, Daliao and Sangali because it is just a port and there are no blast-freezing facilities, cold storage and fish processing.

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Pio Duran town and port

After more than 20 years, the old municipal port and “fishport” of Pio Duran were practically gone, weathered by the elements and assaulted by the storm waves generated by the typhoons that pass Bicol and the sometime fierce habagat waves. That is why when President Gloria Arroyo thought of Pio Duran as a RORO port a new, very simple finger port with no back-up area has to be built.

Pio Duran “fishport” is one damning evidence against politicians and bureaucrats who say that when a port is built the ships will come. Usually when the ships try to come many years later the old port is no more. Ports are unlike highways or roads than when built then people and vehicles come. I really don’t know why we have to listen to politicians and bureaucrats who have no knowledge of maritime matters like the former Senator Aquilino Pimentel Jr.

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The old “fishport” of Pio Duran

Even when the new port was built it did not have ships coming immediately. What turned the table in favor of Pio Duran was the bad situation in the nearby port of Pilar in Sorsogon which connects Masbate to the Luzon mainland through ROROs and other kinds of crafts. New players wanted to come in but there were two obstacles. One, the old port of Pilar was only serviceable because the pioneer RORO operator Montenegro Shipping Lines Inc. made improvements.

There were no improvements before because President Arroyo hated the guts of the Congressman then of the place which was Francis Escudero who among other congressmen tried to file an impeachment complaint against her. Now, one can’t do that to a Capampangan without reaping the whirlwind. Pilar port at the start did not even have a RORO ramp and besides the docking area is crowded because it is actually small and there are a lot of passenger-cargo motor bancas and some motor boats.

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Pilar port

The second obstacle was being in a river estuary Pilar port is very shallow and only basic, short-distance ferry-ROROs and LCTs can dock there. In an oncoming low tide, the RORO has to leave early otherwise it might not be able to get out. One competitor of the Montenegro Lines does not even have basic, short-distance ferry-ROROs so Pilar port was automatically out for them.

It was the expanding Medallion Transport which first applied for a Pio Duran-Masbate route. Next followed the dominant shipping line of Bicol, the Sta. Clara Shipping Corp./Penafrancia Shipping Corp. combine which then ditched their unprofitable Bulan-Masbate route (before that they even tried a Pasacao-Masbate route which they abandoned very fast).

The RORO business between the Bicol mainland and Masbate bloomed and many buses and intermodal trucks now cross daily and some are even destined for Cebu through Bogo port. Cebu trader trucks now also cross to the Bicol mainland through Masbate. There are also vehicles destined for CALABARZON and Metro Manila.

There is now an even split between Pio Duran and Pilar in terms of RORO traffic. The Sta. Clara Shipping Corp./Penafrancia Shipping Corp. combine and Medallion Transport operate ferries to Pio Duran while Montenegro Lines operates ROROs and fastcrafts to Pilar and Denica Lines also operates ROROs and motor bancas to Pilar.

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Denica Lines RORO

Recently, I noticed Montenegro Lines got a franchise to Pio Duran. Well, with the construction of a back-up area and a new RORO ramp more vessels can now be accommodated in Pio Duran. Pilar is also improved now and I wonder if the Sta. Clara Shipping Corp./Penafrancia Shipping Corp. combine will “invade” that. Maybe not if the port is not dredged (there had been long calls for this but the government practically have no more dredgers running).

For intermodal buses and trucks coming from Manila and CALABARZON and even Naga, Pio Duran has an advantage in that about 40 kilometers and more than an hour of travel time is shaved. Besides, Pio Duran has no depth problems and so docking and undocking can be done at any time unlike in Pilar.

Pilar meanwhile will always host the motor bancas and the motor boats because those connect local passengers and cargo to Masbate. A passenger or a shipment from Daraga, Legazpi or Tabaco will not use Pio Duran because it will then be a longer route and besides there are no motor bancas or motor boats running from Pio Duran to Masbate. This situation is also true for the fastcrafts where the passengers are mainly local. Meanwhile, Pio Duran will continue to host the few motor boats going to the Claveria town in the eastern half of Burias island.

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Pio Duran main road

Whatever, it can be said that Pio Duran town and port has already triumphed. From a sleepy, remote town with no ROROs and not many buses and trucks, it is now beginning to bustle with activity because it became a connecting port to Masbate and part of the intermodal system of transport and an alternative to Pilar.

Pio Duran port is no longer a port to nowhere. Unlike one near port to the west of them, the Pantao port which is the white elephant of Governor/Congressman Joey Salceda and it is still a port to nowhere until now. If only the funds spent for Pantao port to be a “regional port” were given to Pio Duran and Pilar ports.

Well, that is how politics and development intertwine in the Philippines.

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A Sta. Clara Shipping RORO in Pio Duran port

The Cruel Loss of the Southern Mindanao Liner Routes

Talking here of Southern Mindanao ports, I am not only referring to Gensan (General Santos City) and Davao but also of Zamboanga and Cotabato which are technically Western Mindanao and Central Mindanao ports. But once the four were all closely interrelated as the routes through them are inter-connected. This connection also goes all the way to Iloilo port which was the intermediate port then of the Southern Mindanao liners.

In the late 1990’s, Davao had six liners to Manila per week which was about the same number Gensan and Zamboanga had. Cotabato had less as in only about two or three as it was not as big as the three other cities. Cotabato port, by the way, is actually the Polloc port in Parang, Maguindanao, a nearby town and not the river port in the city which is too shallow for liners.

I cannot believe that in just over a decade’s time from that all four ports will lose their liner connection to Manila or to Iloilo and Cebu. To think that since the Spanish times all had steamers from Manila with the exception of Gensan which was not yet existing then. Zamboanga has one ship a week now to Manila but several years ago she also lost her liner to Manila. The intermediate port of her liner now is Dumaguete and not Iloilo any more.

The slide first started when Negros Navigation Company (NENACO) shrunk operations due to financial difficulties. Among the routes they abandoned early were their routes to Southern Mindanao (but they held on to the Zamboanga route). The frequency they held was never filled up. Among that could be added to the early loss here was when Aleson Shipping Line of Zamboanga also dropped their liner route when they sold their Lady Mary Joy (not to be confused with the current Lady Mary Joy 1 which is a different ship) to the breakers because its run was not profitable.

But the big slide came when Sulpicio Lines got suspended in 2008 after of the floundering of the Princess of the Stars in a typhoon which drew international and local outcries. In the aftermath of that, stringent regulations were laid out for Sulpicio Lines in order for them to come back to passenger shipping. Only two liners were maintained by Sulpicio Lines after that and they withdrew from all routes in Southern Mindanao (among many other routes too).

I was saddened and worried by the departure of Sulpicio Lines. I know the passenger liner segment of shipping was weakening already as budget airlines and the intermodal buses were getting stronger but Sulpicio Lines is not the ordinary shipping company that will immediately withdraw from routes as soon as that route is no longer showing profit. It was one resilient liner that was actually needed then to shore up the weakening passenger liner sector.

I was apprehensive even then of that development because the only remaining liner company in Mindanao which is governed by bean counters is very fast in junking routes and in selling liners to breakers. Even when they fielded the SuperFerry 20 and SuperFerry 21, my apprehensions were not quelled especially since I know they are fast weakening in container shipping because they have the highest rates and new challengers with lower rates are already around and challenging them.

And I was not mistaken in that apprehension because in just over a year they withdrew from Davao but still temporarily retained Gensan. But in about one or two years’ time again they withdrew from Gensan, Cotabato and Zamboanga. With that withdrawal the Iloilo-Zamboanga route was also eliminated.

At about that time, the buses for Manila leaving Ecoland terminal in Davao grew in number. It was not just Philtranco anymore but PP Bus came and soon the so-called “colorums” followed. It was not just the budget airlines that benefited from the withdrawal of the liners.

Davao was at least more fortunate because there are many Manila flights to it and there are plenty of intermodal buses to Manila. Gensan and Cotabato was not that fortunate because even though they have planes to Manila they do not have buses to Manila. Now some people are simply afraid to take flights and some do not have the identification papers needed to board planes. Some are too terrified to enter an airport because they fear losing their way around (well, I found out there were even people who do not know how to order in Jollibee) and also be exposed as stupid barrio folks. They may not really like the buses but they dislike the plane even more.

So some Cotabato folks would take the bus to Davao and transfer to the Davao-Manila bus. People from near Cotabato City also has the option to take the commuter van to Marawi-Iligan so they can take the ship there. Some can also opt for the commuter van for Kapatagan, Lanao del Norte and from there they can connect to Ozamis which both has a ship and a plane. Well, people from Davao or Cotabato province also take the bus or commuter van to Cagayan de Oro where there is also a plane and a ship.

But what kind of cruelty is that of forcing people to travel long land distances in order to catch a ship? Maybe to ameliorate that the only liner company offered tickets to Manila which included a bus ticket of Rural Transit of Mindanao to Cagayan de Oro for a ride that is 320 kilometers from Davao.

With the loss of the Southern Mindanao liners, people also lost their transport for the intermediate routes like Davao-Zamboanga, Gensan-Zamboanga and Cotabato-Zamboanga. Also lost was the intermediate route Iloilo-Zamboanga. Taking a ship then was cheap, relaxing and one disembarks freshened (after taking a bath) and probably fed and ready for the next trip. Now one has to take the plane or the very long bus or commuter van ride.

There is a Davao-Zamboanga plane but it is more expensive than the Tourist class of the former liners. There is no Gensan-Zamboanga or Cotabato-Zamboanga plane as of the present. There is a Zamboanga-Iloilo plane but not daily and it is more expensive than the former liners. Saying it is more expensive does not even include the airport terminal fee nor the airport transfer expenses.

From Zamboanga, people now take the cruel route of a Rural Transit bus up to Bacolod which takes over a day. Mind you the ordinary bus has no comfort room nor meals on board and one is tossed around for that length of time. So the meals are extra expense (it is automatically included in the ticket of Sulpicio Lines). I tell you that ride is backbreaking and it is hard to sleep because at every terminal the bus will stop, open its lights, vendors will board or hawk and there is the general shuffling of people coming up and going down. One also had to look if his luggage is already being taken down by other people.

I also take the very difficult bus-commuter van-bus ride from Davao to Zamboanga and it is backbreaking too and lasts nearly a day if via the Narciso Ramos Highway of Lanao del Sur. The trip is longer and more expensive if it is via Cagayan de Oro. All these alternatives to the ship I am mentioning are all more expensive and the wear to the body is maybe twenty times that of the ship. One reaches his destination fagged out, dehydrated, hungry and stinky.

The Gensan-Zamboanga land trip is no less arduous than the Davao-Zamboanga land trip. Look at the map and one can see the distance is almost the same. If it is via Cagayan de Misamis the distance is even greater. It is only Cotabato-Zamboanga which is a little nearer but the distance is still about 450 kilometers and the waiting time for the commuter van to leave is long as it is basically alas-puno. There is a certain minimum number of passengers before a van will leave (it will cancel the trip if filling up takes too long or the minimum is not reached). And mind you those commuter are not even airconditioned. And in the Pagadian-Zamboanga stretch, the Rural Transit bus is oh-so-slow because there is no competition. Expect up to 12 hours for a 280-kilometer route.

This is the cruel condition left to the passengers when the only remaining liner company in Southern Mindanao jilted and left them. There was a merger again later between the last two liner companies which produced 2GO but still the liners did not return and there is no hope on the horizon that they will return.

Now if only MARINA will relent and allow again some cargo or container ships to take in passengers again that will be better but I don’t see it happening. All they know is to say they are open for new liners companies applying but entering the liner business is too unattractive for all the shipping companies. There are more regulations, more investments needed including in service people and supplies, passenger can balk at delayed arrival or of anything in the service if it is below par. And if there is an accident, for sure, the press and the social media will be baying at their door.

If MARINA knows anything about liner shipping and the plight of Southern Mindanao passengers they should even encourage Asian Marine Transport Corporation (AMTC) to take in passengers because their Cargo ROROs need no modifications to carry people. But does MARINA really know anything about passenger liner shipping? They didn’t even understand that with their too strong restrictions on Sulpicio Lines they will be killing a liner company and that there won’t be a replacement anymore.

Now that is the sad fate of us Southern Mindanao passengers.

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The Dumaguete-Dapitan RORO Connection – A Connection That Took Too Long in Coming

Dumaguete and Dapitan have been blessed with relatively good ports (by Philippine standards) since decades ago because they have Manila connections. True liners and Manila passenger-cargo ships like the former “FS” ships called on them regularly in the past. But what puzzled me is the short-distance RORO connection between them took too long to materialize. Looking at the map, this is the obvious connection point between Mindanao and Negros (and Cebu by extension through the Negros-Cebu connections) because of the relatively short distance (the second shortest after Leyte-Surigao but that is too far away). Compared to the Sorsogon-Samar, Leyte-Surigao and Batangas-Mindoro short-distance ferry connections, the Dumaguete-Dapitan short-distance RORO connection came many, many years too late.

If there was ever a RORO connection before between the two ports, it was the ROROs of the overnight ferries serving the Cebu-Dumaguete-Dapitan route. However, the peculiarity of the Cebu overnight ferry companies is that they stress break-bulk cargo (like those in sacks and cartons) and loose cargo (those not in containers like pieces of GI sheets or rolls of wire) and not rolling cargo (which means vehicles) or containerized cargo. So these Cebu overnight ferry companies like Trans-Asia Shipping Lines, Cokaliong Shipping Lines or George & Peter Lines, to name a few that called on Dumaguete and Dapitan ports didn’t see the need for short-distance ferry-ROROs loading trucks. Maybe that was the reason they did not acquire that type of ferry. But actually it is that type that was really fit for the Dumaguete-Dapitan route and just shuttling between the two ports like what is the practice now.

The Cebu overnight ferry companies which were established later than the three were the ones which saw the need for short-distance ferry-ROROs. The prime example of that is Lite Ferries which had a passenger-cargo LCT at the start and later acquired ROROs in the 40-meter and 50-meter class for dual short-distance and overnight ferry operations. And maybe that is the reason why Lite Ferries is flying high now because they were able to tap a business and a paradigm overlooked by their overnight ferry competitors. Probably this is the reason too for the fast success of a late entrant, the Medallion Transport which started with basic short-distance ferry-ROROs and doing a lone short-distance route. Later they branched into overnight routes using small ROROs. Now they already have true overnight ferry-ROROs.

In comparison, in the Sorsogon-Samar, Leyte-Surigao and Batangas-Mindoro short-distance ferry connections, the shipping companies there started as short-distance ferry companies. They were then able to specialize in this kind of service and type of market which means they carry vehicles almost exclusively including the intermodal buses. Their passengers are mostly passengers of the buses loaded on them. The intermodal trucks they load especially the wing van trucks are long-distance carriers and those eventually developed into the competitors of container shipping with the support of this short-distance ferry-ROROs which became the “bridges” between the islands.

If these short-distance ferry companies have a near-contemporary that tried in that Dumaguete-Dapitan route it was the obscure shipping company Jones Carrier Inc. But that company did not last long as it had too many diverse routes, its ships were too small and old and maybe they were undercapitalized and not strong enough for the long run needed to establish and hold and a new shipping connection. And most likely the presence of the three overnight ferry companies from Cebu also impacted them. On the other hand, I also wonder why the “locals” Maayo Shipping, DIMC Shipping or Tanjuan Shipping which all have routes to or near Dumaguete did not try that route. Or maybe even the nearby Millennium Shipping which just sold its LCTs to Maayo Shipping rather than compete. At the start of a company or route in those earlier times an LCT is enough like what Lite Shipping did in the Argao-Loon route connecting south Cebu and mid-Bohol. But maybe except for the Millennium Shipping of the Floirendos, maybe it is capitalization and lack of vision that was the problem of these Dumaguete ferry companies.

Looking back, maybe it was overnight shipping company Palacio Lines which could have taken advantage of the opportunity offered by the short-distance RORO shipping in this route. They were not unfamiliar with Dumaguete as they had a ship then going to Dumaguete from Tagbilaran and Cebu but it was a cruiser ferry. They were then using their first ROROs on overnight routes much like what the Cebu overnight ferry companies as in concentrating on breakbulk and loose cargo. Maybe if they only looked north and south of them, they might have gotten the idea that short-distance ferry-RORO service is the wave of the future. After all they were a shipping company from Calbayog City in Samar and a little north of that was the Sorsogon-Samar short-distance ferries and down south to them were the Leyte-Surigao short-distance ferries that were both making good. But then they seemed to have been also be too protective of their route to Oroquieta which is not far from Dapitan.

Actually, if one analyzes, it might not only be the overnight ferry companies which might be at fault in the late RORO connection between Dumaguete and Dapitan. For after all, as a general principle, if there is a demand then a supplier responds. But then maybe the shippers were also not aware that there is a better mode than the one they were used to. Actually, the goods from Mindanao sent over that connection eventually find their way to Cebu, the biggest market after Manila. But for too long I noticed the shippers tend to rely on Zamboanga and Ozamis ports. Of course, the bad roads then in the Zamboanga provinces was a hindrance along with the presence of some banditry. So before, Dapitan might have looked too far and unsafe for those from Zamboanga City. And those from Baganian Peninsula, Pagadian and Panguil Bay were too used, too dependent on Ozamis port, their old port of departure (well, with Ozamis, they have a Manila and Dumaguete connection, too).

It took a push from President Gloria Macapagal Arroyo for the Dumaguete-Dapitan connection to come true and hold. Half of the push needed was actually the cementing of the roads of Zamboanga Peninsula. The roads should have been completed much earlier since AusAid (Australian Agency for International Development) is funding the road construction but that stalled for many years because AusAid only wanted to employ Korean construction companies, for quality reasons. However, the local politicians wanted local contractors (for “percentage” reasons, of course). A compromise was worked out and the roads were finally completed (though the Filipino-built sections were obviously substandard). Moreover, the military took control of the mountain pass near Vitali and security was improved after that. After those, travel at night was already possible and that was key to using Dapitan port especially from Zamboanga City. Soon, Dapitan port no longer look too distant. Passengers, instead of waiting for the ship that was not daily even then were soon taking the bus to Dipolog to connect to Dapitan. The trucks followed suit soon, too.

The shipping companies which pioneered the RORO connection between Dumaguete and Dapitan were actually “foreigners”, which mean they were not natives of the area. The first two in the route were the Asian Marine Transport Corporation (AMTC), a Cebu shipping company and Aleson Shipping Lines, a Zamboanga City shipping company. Later, Montenegro Shipping Lines Inc. (MSLI) also came and they are a shipping company from Batangas. The common characteristic of the three is they have a good understanding of short-distance ferry shipping, an understanding which was clearly lacking in the earlier Cebu overnight ferry companies. And all three have the type of ROROs needed here, the basic, short-distance ferry RORO which the old Cebu overnight ferry companies simply didn’t have.

Today, all these three shipping companies are still in the Dumaguete-Dapitan route and thriving, adding ships and frequencies. Now, Montenegro Lines and Aleson Shipping have even invaded the Siquijor route using ROROs from Dumaguete and so maximizing their ships and personnel stationed there. Meanwhile, DIMC Shipping, Maayo Shipping and Tanjuan Shipping all seem to have steam and two of them are obviously floundering while another, the Maayo Shipping company was selling off excess ships (the coming of a competitor in their route is the primary reason for that). Palacio Shipping is even gone now as in they are already defunct and their ships have been sold already. Well, talk of a wrong bet, lack of vision and maybe even too much conservatism.

Why would the Dapitan-Dumaguete route hold? Actually, there is plenty of cargo emanating from that portion of Mindanao and going to Central Visayas. After all Cebu is the second biggest market after Manila and it has sea connections to many islands for further distribution of goods. One of the biggest and most valuable produce being sent from way back by Zamboanga Peninsula to Cebu is fish, the frozen and the canned varieties. Most of the frozen fish emanate from the many “pulo”. This is what they call there Basilan, the Pangutaran group, Jolo, the Tawi-tawi group and the many other islands off Zamboanga. The Sangali Fishport, the regional fishport is also located in Zamboanga City and it is there where many basnigs, trawlers and purse seiners fishing in the Moro Gulf unload their catch. Zamboanga City meanwhile is host to seven canneries. Dapitan is now the ports of choice in bringing the frozen fish through fish carrier trucks. However, a ship is still preferred for canned fish as it is heavy. Meanwhile, Spanish sardines in bottles also became a hit produce in the Dipolog area and they use Dapitan port in bringing their goods to the Visayas.

There is also plenty of freshwater and brackish fish from the fishponds of Zamboanga Sibugay especially those located in the marshes of Sibuguey Bay. Meanwhile, fishing vessels catching off Zamboanga del Sur, Lanao del Sur and Maguindanao unload in Pagadian and Tukuran ports and fish carriers pick them up these catches. Practically all of them now use Dapitan port to bring the fish destined for Negros island and Cebu province instead of Ozamis port. This portion of Mindanao has finally discovered the superiority of the intermodal truck (including the intermodal fish carriers) which can deliver goods along the way and not be dependent on distributors or wholesalers. That flexibility and ubiquity was also discovered by the company and distributor trucks from Cebu. Instead of just relying on distributors based in Ozamis City like before, their trucks now normally roll to up to Ipil, the capital and trade center of Zamboanga Sibugay and along the way they deliver their products to the markets, stores and groceries. Now, there are even intermodal buses with routes from the Visayas to Zamboanga City. First to roll was the Bacolod-Zamboanga Ceres Lines bus and recently they also have a Cebu-Zamboanga bus service too.

In recent years, it is obvious that the Dapitan-Dumaguete route has impacted the Cebu-Zamboanga and Cebu-Sindangan routes heavily. There is now just one regional passenger ship left sailing the Zamboanga-Cebu route, the Zamboanga Ferry of George & Peter Lines where before Trans Shipping Lines Inc. (TASLI) and George & Peter Lines put emphasis in that route. There is also one liner of 2GO from Dumaguete and Manila, a liner route that was previously abandoned. Meanwhile, Cokaliong Shipping Lines has already abandoned the Cebu-Sindangan route.

Intermodal trucks rolling long distances to other parts of Mindanao and Negros island also use this connection and some even go as far as Panay island. This is especially true after the liner service to Southern Mindanao was halted by Aboitiz Transport System (ATS). With that halt, the shippers of Southern Mindanao also began rolling their trucks. Private vehicles running to or from Cebu to Mindanao also use this connection since the rolling rate from Cebu to Ozamis, Iligan and Cagayan de Oro is very high (rolling sea rates by kilometer is far, far higher than rolling a vehicle in the highway). And again, rolling cargo is not the specialization or priority of the overnight ferries. For many, this western route is preferred over the eastern route that passes through Leyte and Surigao unless the destination or origin is eastern Mindanao or southern Mindanao.

Unless threatened by the direct Samboan-Dapitan route (or a possible Samboan-Dipolog route), the Dumaguete-Dapitan route will continue to grow.

That we will have to see in the future.