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.

"Maharllika 1" Ferry unloading Bus

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.

Mindoro Express ( now Maharlika Cinco )

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?

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The Trip From Tacloban to Surigao del Sur (Part 1)

The smaller tour group of the Philippine Ship Spotters Society (PSSS) reached Tacloban on the midnight of the second night of the tour. Waiting for Mark to get a ride, we finally parted at about 3:30am of December 13 with Mark on the way to Bato, Leyte for a shipspotting of Bohol and James on the way back to Cebu via Palompon. Me and Joe’s destination was unmentioned but we were actually on the way to Cortes, Surigao del Sur, near the capital of Tandag to visit a shipmate of Joe and shipspot along the way.

There are really not many ports on the Tacloban-Panaon island axis if one follows the road to Mahaplag. From Tacloban, Joe and me had to take the Mahaplag route mainly because it was still dark and Joe also wanted to see the Agas-agas bridge. Besides, a trip via Silago will take longer and I want us to be on the 8am ferry in Benit because that will afford us the greatest chance of visits to the unexplored ports of Surigao without nightfall overtaking us. We had the thought of passing it on the way back, halfheartedly, because our tentative route on the way back now was via Isabel, Leyte to pick up a puppy.

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Liloan Ferry Terminal and Liloan bridge

We reached Liloan at about 6am and Joe tried entering the Liloan Ferry Terminal. I dissuaded him because I feared we will get in trouble with the LGU collectors of illegal exactions and we will lose more time if a scene erupts and anyway I don’t want to take the ferry there because I thought it will reach Lipata Ferry Terminal not sooner but later. I told Joe we can cover Lipata Ferry Terminal from the Liloan municipal port which is located just a kilometer from the other end of the Liloan bay.

I was not mistaken and we were lucky because as tipped by member Mervin Go Soon of Baybay (whom we met on the Oroquieta Stars on the way to the PSSS tour-meet assembly in Tacloban), the former Maharlika Cinco of Archipelago Ferries was there. The other tip of Mervin that the Grand Star RORO 3 was doing a Liloan Municipal Port to Surigao route also proved true because she was there besides the former Maharlika Cinco. We noticed no work was being done on the former Maharlika Cinco which would become the Gloria Five of Gabisan Shipping. I was wondering then who is operating the Grand Star RORO 3. I thought it was “M Shipping” whose AUV we encountered on the road (I was mistaken on that assumption as Mervin very recently told me that Grand Star RORO 3 was also bought by Gabisan Shipping and I wonder now if she is the Gloria One advertised by the company in Liloan port).

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Across the bay, we saw that it was only the Millennium Uno of Millennium Shipping which was docked in Liloan Ferry Terminal. With its slow speed and the triple distance of Liloan compared to Benit port, it would have been disaster to our schedule had we taken it (so our bet not to enter Liloan Ferry Terminal was right after all). There was also anchored in the bay the Cargo RORO LCT GT Express 1 of GT Shipping which was doing a route to Surigao so that trucks wouldn’t queue long like in the past. I noticed the old Liloan municipal port terminal was already converted into an office by the municipality. But the old arrastre office was still there.

At the end of our short, alloted time in Liloan we made a run for Benit in San Ricardo town at the tip of Panaon island. I did not want a photofinish and I told Joe we need to put in some allowance on time lest we were shut out of the ferry (“shut out” in maritime use here means one’s vehicle or cargo fails to be loaded to a ship) and probably have to backtrack to Liloan and so we did not look for a place to eat anymore (anyway there was probably none that is inviting as Liloan is just a small town). Along the way we saw the abandoned port of San Francisco which once docked the copra ships of great shipping line Go Thong in the past.

We next came to “The Saddle”, a renowned mountain pass that Joe wants to conquer (it was called by that name because it resembles a horse saddle if viewed from the sea). It was not shipspotting but there were views of the sea from there and we knew right after that will come the town of San Ricardo but Benit port will still be some distance from it.

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Leaving behind Benit, its collectors of illegal exactions and “The Saddle”

Approaching Benit port, before the turn inside, I told Joe that if the San Ricardo LGU collectors of the illegal exactions flag him down that he continues driving as if he did not see anything. The ruse worked and upon entering the people of Montenegro Lines and the arrastre rushed us saying we will be the last vehicle that will be loaded. There were already shortcuts in the processing of papers and we were already on the ramp before all the papers were even processed. The ship left even before 8am and I saw two vehicles that arrived minutes after us were no longer accommodated (and there was actually still some space for at least one of them). So it was still a photofinish alright and a lucky accommodation. Sometimes that is one gets from being disciplined in the travel approach. I told Joe before that many said I am lucky with trips and it seems it was holding. Actually, it held during the 1,000 kilometers me and Joe ran with two ferry crossings and with many ports visited.

Our ship was the Maria Vanessa of Montenegro Lines, sister of the Maria Felisa (actually no other shipping company serves the Benit-Lipata route). Since we both lacked sleep, me and Joe barely toured the ship. Instead we immediately looked for a cool, comfortable and quiet place and soon we were asleep although the voyage usually takes only 1 hour and 15 or 20 minutes. We two really needed that rest even if it was so short. We did not even care for food as all we wanted is sleep.

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Lipata Ferry Terminal

That short sleep reinvigorated the two of us and there was no hassle in the disembarkation process nor in getting out of the Lipata Ferry Terminal. We did not try anymore to tour the port since we will be exiting Mindanao through that port anyway. What we wanted was food as our stomachs were grumbling already. It was already mid-morning and we only had hamburger the previous night in Tacloban terminal and no breakfast at all.

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“Voyagers” (Photo by Joe Cardenas)

Going out of the port, I espied a new place which looked like a diner to me although it looks more of a lodging place. I was able to convince Joe to backtrack and what a discovery! Well, they really serve meals and snacks and it turned out that the owner is a master mariner abroad and so the place was themed by maritime things. The was not the usual rush of people, it was quiet and clean and it does not look or smell like the usual roadside stands. The name of the place is “Voyagers” and we recommend it. Me and Joe took a little time to unwind and relax there before we proceeded to the city (i.e. Surigao City). 

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In the city, we first went to what is called the “Boulevard”. It is a boulevard indeed, a seaside one. It is adjacent to the main port of Surigao and it is there where the so-many big motor bancas of Surigao to Dinagat, Siargao and other islands dock. We were lucky since we were early they were still all there and since the sea was calm so many came. I walked the entire length of the Boulevard getting shots of all the bigger boats. Offshore, a few LCTs were moored, as always. LCTs are a fixture of Surigao now because the mines employ them.

From there me and Joe proceeded to the main port of Surigao which is called Verano port. Joe wanted to enter but I told him there is almost no chance of a free pass as it is an ISPS port which means visitors are not welcome. To buy a ticket for Siargao so we can enter means a bit heavy “entrance fee”. Might have been affordable for our pockets but I was always mindful of the time and I do not want the quest for the unexplored ports of Surigao be compromised (why is it that long-distance shipspotting is always balancing of compromises?). Besides I was more interested in the old docking area of boats nestled on the side of Verano which was not obvious or visible from outside it. So I just contented myself with some shots of Verano ships from the gate. There are not many of them at a given time anyway and two i even caught while departing.

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A view of Verano Port from the nearly-enclosed marina beside it

I then nestled myself into the narrow opening that leads to what I found to be a dirty marina where many bancas and motor boats were anchored (there were more than 15 of them). This looked like to be the old port as can be deduced from the road on the other side of where I was. It is now almost encircled by Verano port but I knew from observation inside Verano that passenger-cargo motor bancas emanate from it which I found to be bound to the smaller islands that belong to Surigao City.

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The MARINA nestled by Verano Port

Many of the vessels in that nearly-enclosed marina were actually fishing bancas. But it seems nobody cares anymore for that port and marina. It is dirty and it looks as if there is no order there and even the roads and pathways leading to it look unmaintained. I did not dare exploring anymore as the walkways looked dangerous to me.

From there me and Joe exited Surigao City not through the main road but through some shortcuts which Joe saw on the GPS map. We did not try anymore the Surigao-Lipata coastal road whose turn we missed earlier. The unexplored municipal ports and the mining ports of Surigao were the ones that were already pulling us. Their magnetites seem to be strong….

(More on the next installment.)

The Ferry That Won’t Die

A few months ago, out of a sudden, a PSSS (Philippine Ship Spotters Society) member espied a ship docked in Hilongos port. Even though it was dark he was able to recognize the silhouette since he has already sailed with it in crossing Surigao Strait. It was a surprise to the PSSS community since many thought she was already dead since it has been three years since she disappeared from the Liloan-Lipata route. The last that was heard of her was that she was in a General Santos City shipyard. That time the new FastCats of Archipelago Philippines Ferries were also due to arrive (and it did) and so they have no more need for their old and unreliable Maharlika ferries. In fact, they were also disposing off already their Grandstar RORO ferries which was even a later acquisition of theirs from Phil-Nippon Kyoei.

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Photo credit: Joel Bado

The ferry was the Maharlika Cinco which has long held the Liloan-Lipata ferry route for Archipelago Philippine Ferries. She was actually their most reliable ferry in the route, she was always there as if she had never heard of the two-year rule for mandatory drydocking. Maharlika Dos might be in and out of service like Millennium Uno but Maharlika Cinco will always be there.

If one who doesn’t know her will think she is just another bland ferry then maybe he will be surprised if he will know that this ferry has a colorful history. Maharlika Cinco had actually bounced between routes and owners, has had a trip to the seabed, had her superstructure ripped, etc. Her bounces were actually too fast that international maritime databases has a hard time catching up with her thus it has lots of errors.

This ferry was first known as the Sata Maru No. 3 of Kinkowan Ferry KK and home ported in Kagoshima, Japan. She was supposed to be built by Mitsubishi Heavy Industries in Kobe, Japan but instead she was subcontracted to a shipbuilder that was not well-known, the Tokushima Sangyo in Komatsushima, Japan. Her keel was laid in November 1971 and she was launched in April 1972. She possessed the permanent ID IMO 7205221.

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Photo credit: To the lady in the photo

The ship is a RORO with ramps at the bow and at the stern. She measures 70.9 meters in length over-all (LOA) with a beam of 12.5 meters and a load capacity of 500 deadweight tons. Her original gross register tonnage (GRT) was 997 tons. She has a raked stem, a transom stern with two masts and two side funnels. Sata Maru No. 3 was equipped with two Niigata diesels with a total of 2,600 horsepower giving her a top speed of 14 knots when new.

In 1981, when Kinkowan Ferry quit operation she went to Nankai Yusen KK. A few years later she was sold to Badjao Navigation in the Philippines and she became the Christ The Saviour. Badjao Navigation had a route from Cebu to Samar among others but it was not really successful. Maybe like Newport Shipping that had a route from Manila to Samar she thought that it would be better if they will do a Matnog-Allen route which was growing then. By this time she was already known as the Christ The King. However, ROROs in the route multiplied fast.

Maharlika Cinco

Photo credits: Philtranco Heritage Museum and Dennis Obsuna

In time, Badjao Navigation quit the shipping business and she passed on to Luzvimin Ferry Services of the Philtranco Service Enterprises Inc. (PSEI), an intermodal bus operator with routes from Manila to Visayas and up to Mindanao where she became the Luzvimin Primo. Maybe when Badjao Navigation was still doing the Matnog-Allen route she was just under Provisional Authority (PA) because soon after Luzvimin Ferry Services started operations the ruling shipping company of San Bernardino Strait protested, the Bicolandia Shipping Lines, and pointed out that her competitor has no Certificate of Public Conveyance (CPC) or franchise.

Luzvimin Ferry Services defended itself by saying that their ferries were just meant to carry their buses. The case was first heard in MARINA, the local maritime regulatory body which has quasi-judicial powers but eventually it reached the courts (the higher court even) which held that any ship transporting vehicles must secure a franchise from MARINA. And that was the end of Luzvimin Ferry Services and the career of the former Badjao Navigation ferries in San Bernardino Strait.

In about 1990, Christ The King next found itself in Batangas under a new company, the Prince Valiant Navigation where she was known as the Mindoro Express. When she went to that new area there was also a ruling shipping company there which was even tougher in challenging newcomers and sometimes the challenge is even outside the legal plane. I don’t know exactly why but soon she was doing a route to Palawan. There she sank in Honda Bay near Puerto Princesa port.

Mindoro Express ( now Maharlika Cinco )

Photo credit: Edison Sy

It turned out she was eventually refloated and brought to Keppel Batangas shipyard where a shipping owner who later became a PSSS member caught her in cam. This was in late 1991. From his analysis, he thinks the sooty exterior in the starboard side indicated the ship had a fire. He says firefighting water on just one side of a ship can capsize a ship. The ship bore other damages too like a missing port funnel and deformations in the structure.

Mindoro Express ( now Maharlika Cinco )

Photo credit: Edison Sy

Much later, sometime about 2002, a ferry for Archipelago Philippine Ferries turned up in the Liloan-Lipata route to double their unreliable 18-year old Maharlika II. The name of the ship was Maharlika V. To almost everyone including me they thought this was just another ferry that just arrived from Japan. It seems even Philtranco bus drivers did not recognize her (or they were playing poker?). One thing though is she seems a little rusty but I think nobody thought much of it since being a bit rusty was an Archipelago Philippine Ferries trademark. And maybe nobody gave a damn as long as the ship was reliable. After all, the Liloan-Lipata route was home to unreliable ferries until Super Shuttle Ferry 5 appeared on the route.

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Photo credit: PDO-Visayas of PPA

Fast forward to December 2008, the Philippine Ship Spotters Society (PSSS) was born. With its growing photostream from the members’ contribution, it afforded members (and the world) a view of the different ships from all over the Philippines from ferries to freighters to tankers and tugs and everything in between. A member then contributed a photo of Maharlika Cinco when their family had a vacation in Southern Leyte and they crossed Surigao Strait. That was 2009.

It was here that the PSSS member who caught a photo of Mindoro Express in Keppel Batangas in 1991 realized that if the superstructure of Mindoro Express is cropped then it would look almost exactly the same as Maharlika Cinco and he alerted me. When a collage of the two was posted in PSSS the riddle of Maharlika Cinco‘s origin was solved. The two were exactly the same ship. Later, upon researching, the two ships had identical IMO Numbers and that was the final confirmation since IMO Numbers are unique numbers and only one hull can possess a particular number.

Comparison

Photo credits: Edison Sy and Joel Bado

Maharlika Cinco continued sailing but in this decade her engines were already beginning to get less reliable. Not soon after she disappeared from the route with the last news saying she was in a General Santos shipyard with an uncertain return. With Maharlika Cuatro and a rejuvenated Maharlika Dos (she was regenerated when her sister ship Maharlika Uno went to the breakers), it looked like Archipelago had no more use for her. To me, I no longer expected to see her again. Her metal before she disappeared also seemed to be on the soft side already. Soft metal plus unreliable engines plus no more use to me looked like equal to goodbye.

It was like waking to a stupor when somebody called me from Hilongos to report that discovery of an apparition of a ship in the night. The PSSS member then proceeded to investigate. She would be the Gloria V of Gabisan Shipping which has a Hilongos-Cebu route. Yes, it was a buy one, take one deal. They also acquired the Maharlika Cuatro which stopped operation in the aftermath of the Maharlika Dos sinking. He asked what was the former name of the ship. “Mindoro Express”, they said, as if they can fool the PSSS ship spotter (and our ship spotter laughed). Maybe they were ashamed to admit it was the Maharlika Cinco because Liloan is too near and the ship does not really have a sterling reputation there.

Decrepit Maharlika Cinco

Photo credit: Rex Nerves

They latter admitted a difficult sailing from General Santos City via Zamboanga (they were afraid of the rough waters in the eastern seaboard of Mindanao). The engines failed several times and they had to seek shelter and assistance. The trip took long but finally they made it to Hilongos in one piece. No, sorry, they would not honor a ship tour. It’s understandable.

After some preliminary work, Maharlika Cinco disappeared from Hilongos. From checking, PSSS members said she was not in Tayud, the great shipyard row of Cebu (she is too big not to be noticed from offshore). Then she was discovered in Liloan municipal port. They would finish the refitting there. They brought it over there since in Hilongos she would often be forced to undock if a ship is coming.

Maharlika Cinco

Photo credit: Rex Nerves

Gabisan Shipping intends to sail her in the Cebu-Hilongos route. They say one of the Gloria cruisers will be sold and the Maharlika Cuatro which is in Tayud is for sale. It seems even Gabisan Shipping, a staunch believer in cruisers is also getting aboard now in the RORO bandwagon to Leyte. After all the Cargo RORO and the other ROROs are making a killing. Speculation says she will be spruced up to be able to compete with the Graceful Stars of Roble Shipping.

This is simply a ferry that wouldn’t die and I don’t know if she has a charm embedded in her hull. If she will survive now, I just hope the MARINA plan which is fanned by some politicians and columnists that 35-old ferries will be retired will not snuff out her life. Finally.

It Is a Dogfight Now in the Surigao-Leyte Routes

In the early days there was only one RORO route connecting Surigao and Lipata across Surigao Strait and this was the Lipata-Liloan route using Lipata Ferry Terminal and Liloan Ferry Terminal. There was an earlier route using Surigao port and Liloan municipal port (run by Cardinal Ferry 2 of Cardinal Shipping) but that was in the earliest years and was gone in due time when the Ferry Terminals were built. And there was that really old routes using motor bancas to link Surigao to San Ricardo and Cabalian which are existing until today. And if Dinagat is considered still a part of Surigao then there is still a motor banca connecting that to Liloan.

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In the 1990’s, the RORO crossing between Lipata and Liloan was languid. At its worst there were only two trips each day and that happens in the off-peak season or when some ferries are hit by mechanical troubles or was in the drydock. This crossing then between Surigao Strait was known to be the base to some of the lousiest ferries in the country but to their credit they do not sink. Empirically, as has been noted in the Philippines there is no correlation between lack of maintenance and sinking. It really depends on the seamanship.

The Maharlika ferries then connecting Lipata and Liloan was known to sail even if only one of two of its engines is running. And Maharlika Dos will just stop sailing if its two engines were not running anymore and then clog Liloan Ferry Terminal. And to think this was a ferry built just the decade before. It even seems then that Maharlika Cinco was more reliable when to think she already had an excursion to the bottom of the sea in Coron as the Mindoro Express.

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The Millennium Uno of Millennium Shipping was no more reliable then being very old already and there were instances she simply conks out and is not heard for months. Many will then surmise she was cut up already and when many think she was gone she will reappear suddenly. I was not too surprised by the performance and lousiness of these ferries because I had already observed the pattern that this was an affliction of many Marcos transport companies. Maintenance is lousy and there is no management to speak of if based on management books.

Three trips then in a day in one way was just enough for the traffic. Two trips is bad especially if one arrives in an off-hours because that will mean hours of interminable wait. Baddest is if one just misses a ship. That happened twice to me when I missed the 12nn ship in Liloan and I have to wait for the next trip which was 11pm. Mind you there is really nothing to go to, nothing to do in Liloan and the nearest semi-urbanized town Sogod is more than 40 kilometers away. There was also no cellphone signal then there in Liloan. There were also many times I reached Liloan in late afternoon and the next ferry was still that 11pm ferry because the 5pm ferry is missing.

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There are not many vehicles crossing then yet and the only buses crossing were the Philtranco buses to and from Manila (it was Pantranco South earlier). The long-distance trucks still have to discover this route then. Most trucks crossing then were Mindanao trucks that have goods to sell north.

Slowly the traffic grew. There were even those that bring their vehicles to Manila so they will have a car there. And slowly the trucks from Manila began using this route as well as the trucks that have a commerce between Southern Mindanao and Cebu. The Bachelor buses also started their route to Tacloban and Ormoc.

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Photo Credit: Bemes Lee Mondia

That then proved that the old ferries of the route – Maharlika Dos, Maharlika Cinco and Millennium Uno were inadequate. The first challenge and the first improvement was the arrival of the Super Shuttle Ferry 5 of Asian Marine Transport Corporation (AMTC) which arrived in the late 1990’s. The Super Shuttle Ferry 10 replaced it later. Along the way, Asian Marine Transport Corporation also rotated other ferries there.

The fielding of a lone AMTC ferry was just enough to fill up the needed lack of ferries in the route especially since Maharlika Dos and Millennium Uno never had sustained periods of reliability. It was also welcome since it was cleaner, faster and had an airconditioned accommodation plus it did not smell.

Things changed when Benit port at the southern tip of Panaon island was built by Gloria Macapagal Arroyo, she who is wont for duplicate ports. However, Benit is not a simple duplicate port since its crossing distance is much shorter and so at the very start it was a threat to Liloan like when Allen displaced San Isidro port in Samar.

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At the start, nobody plied a route to Benit. Maybe the incumbent ships of the route didn’t want a change because after all they can charge more in the longer route. But that proved shortsighted.

Gloria Macapagal Arroyo then gave the operation of the port to Montenegro Shipping Lines, her favorite shipping company. Maybe to forestall any loss she made it a buy one, take one deal. She also gave the operation of the very profitable Matnog port to Montenegro Lines! As they say in the Philippines, iba na ang malakas!

Montenegro Lines then proceeded to operate a Lipata-Benit route. Suddenly, the former pliers of the Lipata-Liloan route found they have been outflanked. The crossing time to Benit is just over a third of theirs. And woe to them, the Manila bus companies which had a route to Liloan extended their route to San Ricardo (which has jurisdiction over Benit). But don’t think the Manila buses goes to Benit port. They don’t. One still has to take a 2-kilometer habal-habal ride to the port.

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Montenegro Lines made a killing in the Benit route. Their rates are almost the same as the Liloan rates and yet they only travel 3/8 of the distance. If that is not tubong-lugaw, I don’t know what is. The passenger fares are also much higher per nautical mile than the Liloan fares. And ever since from then the ridership and load of the Liloan ferries have been on the decline. There was even a time when all buses – Philtranco, Bachelor and the various colorum buses were taking the Benit route.

Then came the Typhoon Yolanda tragedy. With the surge in relief and rehabilitation efforts suddenly there were complaints of mile-long queues of trucks. It was not only because of Yolanda. By this time the forwarders and shippers have found that sending a truck especially a wing van truck to Mindanao is cheaper than a container van and it arrives earlier. This was also the time too when Manila port congestion and Manila traffic became issues and the forwarders and shippers found it was better to send a truck down south than try to beat the traffic and congestion in Manila. And the benefit is double if the origin is LABAZON (CALABARZON without Cavite and Rizal). By the time the cargo is loaded in a container ship in North Harbor the comparative truck will already be making deliveries in Mindanao.

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And so MARINA approved the fielding of Cargo RORO LCTs which was designed to take in the trucks and its crews. Supposedly it does not take in passengers but it seems there are exceptions. The people call it “2GO” there because the operator is NN+ATS. The Cargo RORO LCTs are just chartered but they are the brand-new China LCTs which are called “deck loading ships”.

Along this way, AMTC lost its route service because they lacked ships and they pulled out the Super Shuttle Ferry 18 so it will retain its Roxas-Caticlan route. Sta. Clara Shipping/Penafrancia Shipping then appeared in the Liloan-Lipata route. I thought there was an equilibrium already.

But lo and behold! the much anticipated and already announced FastCats of Archipelago Philippine Ferries (which were also the owner of the lousy Maharlika ships appeared) and they brought not one but two new catamaran FastCats which are faster and has higher rolling capacity than the old ferries in the route. They might have really been entitled to two since previously they had two ships there but one already sank, the Maharlika Dos and the others were sold, the Maharlika Cuatro and Maharlika Cinco (the first was a replacement for the latter).

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Lately, it seems FastCat pulled out one of its crafts but is still sailing 3 round trips a day (or at least two on weak days). And being fast and new it is pulling in the vehicles. Meanwhile, the Cargo RORO LCTs are suctioning the trucks as it is the cheapest transit available. With those two developments even Montenegro Lines in Benit is affected. But more affected are the other ferries in Liloan that they now resort to “callers” in the junction leading to Liloan port. How fortunes change! In the past just when a ship is arriving there was already a queue of vehicles for them.

Added to the fray is Millennium Shipping which is not quitting yet. The Grandstar RORO 3, previously of Archipelago Philippine Ferries appeared and it is using the Liloan municipal port. Reports say it is Millennium Shipping that is operating it already aside from their Millennium Uno.

Times have changed. Where before three or four trips a day seemed adequate it seems there are about 15 trips a day now but not all are full. The way I sense it with the Cargo RORO LCTs and FastCat it is already a dogfight now and there might even be an excess of bottoms already.

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Photo Credit: Joel Bado

Well, that is good as the public might benefit. However, I have doubts as I noticed MARINA never ever learned how to compute rates even in light of cheap fuel. I wonder if fuel consumption is ever factored in their rates.

I just wonder if AMTC and Ocean King I are thankful they are no longer in the route.

FERRIES THAT HAD SECOND LIVES

There are lucky ships that lived two lives. Some met accidents and were properly repaired. Some simply grew old but were modified and modernized. If not for the presence of IMO Numbers which are permanent hull numbers and reflected in maritime databases tracing them would have been difficult but not impossible.
Some ships meet accidents like grounding and capsizing and this can easily happen to LCTs and barges which being flat-bottomed do not have the best stability in a heavy sea. But grounding and capsizing is not a big deal for them as they can be easily refloated, towed and repaired especially since they are equipped with watertight compartments that limit damage when the hull is breached. Having a high density of beams also helps to limit damage due to deformation of structures.
If LCTs and barges are vulnerable then more so are the tugs. They can even capsize while pulling a stuck-up ship. Just the same this type is resilient to damage and can easily be refloated and repaired. Even if they are washed ashore or beached in a typhoon they will sail again like a phoenix. No wonder tugs live very long lives although they are small.
Ferries are a different matter. They are not that resilient. Cargo ships are not much luckier too at times since it can be difficult to refloat them especially when loaded by a heavy cargo. With a cargo of cement that is next to impossible. Tankers are not that lucky too. In a fire or an explosion it is a clear goodbye.
We have a few ships that grew old that were modified after laying up idled for years in some obscure part of a shipyard. One of those is the “Star Ferry-II”of 168 Shipping which was formerly the “Ace-1” of Manila Ace Shipping. Laid up for lack of patronage and suitable route she one year appeared in the Matnog-Allen route. I interviewed a crewman and he told me the captain told them it was rebuilt from various parts thus confirming the suspicion of a PSSS moderator that somehow she has a resemblance especially at the bridge area to the “missing” “Ace-1” which formerly plied the Batangas-Mindoro route.
M/V Ace 1 ©Edison Sy
Star Ferry II ©Joe Cardenas
What is remarkable in her rebirth as “Star-Ferry-II” is she will defeat the claim of “Millennium Uno” of Millennium Shipping as the oldest conventional RORO sailing in the Philippines which means LCTs which are technically ROROs are excluded. “Ace-1” was built in 1961 while “Millennium Uno” was built in 1964, a clear lead of three years. Both are old and weak now but the debate between them will continue.
Nobody that will lay sight at “Lapu-Lapu Ferry 1” of Lapu-Lapu Shipping will ever think she is an old ship. And nobody will ever suspect she is the old second “Sweet Time” of Sweet Lines that seemed to have just disappeared in the Cebu-Bohol route. She was rebuilt in Fortune ShipWorks in Consolacion, Cebu in 2002 but what an incredible rebuild since she no longer has resemblance to her former self. She still retains, however her old Hanshin engine.
Sweet Time ©Edison Sy
Lapu-Lapu Ferry-I ©Mike Baylon

When the overnight ferry-cruiser “Honey” of Lapu-Lapu Shipping disappeared there were questions where she went. After some time a “new” “Lapu-lapu Ferry 8” appeared in the Lapu-Lapu Shipping wharf between Pier 1 and Pier 2. Later, we were able to confirm she was indeed the former “Honey” but what a change. There was also no resemblance to the old ship except for the bridge area as noted by another PSSS moderator. What is amazing is her length increased from 20.1m to 35.8m and her breadth increased too from 6.8m to 7.3m.

Lapu Lapu Ferry 8 ©Mike Baylon

It seems among shipping companies it is Lapu-Lapu Shipping which is the master of ship transformations. Their third ship, the “Rosalia 3” was converted from a former ferry sailing the Bantayan route which stopped operations when ROROs began ruling Bantayan Island. Actually as “Rosalia 3” it is already her third iteration since originally she was a single-screwed fishing vessel. Converted to a passenger ship two more engines and screws were added. At full trot she can actually do 16 knots according to her captain and competitors wonder where such a humble-looking cruiser is drawing her mojo.

Rosalia 3 ©Mike Baylon

In Zamboanga there are ships too that disappeared and then reappeared in a different guise. One of this is the “KC Beatrice” of Sing Shipping which was formerly the “Sampaguita Lei” of the defunct Sampaguita Shipping. Having her prominent features changed she does not look the dowdy old ferry she formerly was. Her engine was also changed. She disappeared for nearly a decade and she re-emerged in 2005.

Sampaguita Lei ©Mike Baylon

Another ship in Zamboanga City that was came back like magic was the long-missing “Rizma” of A. Sakaluran. There were two PSSS founders who were checking her being completed three years ago in Varadero de Recodo in Zamboanga City yet we did not suspect she was the former “Rizma”. We were just wondering then what former ship is “Magnolia Liliflora” as looking at her hull even in the dark we can make out she has an old hull. Now she proudly flies the flag and colors of Magnolia Shipping.

Magnolia Liliflora ©Mike Baylon

There are ships that went through worse fates before being resurrected — they sank, were salvaged and were refitted. One was the “Mindoro Express” which sank in Palawan after being pulled-out from the Matnog-Allen route where she was known as “Christ The King” and “Luzvimin Primo”. She was raised up, repaired and refitted in Keppel Batangas, superstructure was chopped and she re-emerged as the “Maharlika Cinco” of Archipelago Ferries/Philharbor in Liloan-Lipata route. She is now missing again and last report was she was seen laid up in a shipyard in General Santos City.

Mindoro Express ©Edison Sy
Maharlika Cinco ©Joel Bado

It was the same situation for “Joy-Ruby” of Atienza Shipping which was the former “Viva Sto. Nino” of Viva Shipping Lines. She sank stern first nearing the port of Coron and she was stuck up with the bow jutting from sea. She was salvaged and repaired and she reappeared as the “Super Shuttle Ferry 15” of Asian Marine Transport in 2008 and plying the Mandaue-Ormoc route.

Super Shuttle Ferry 15 ©Mike Baylon

More than a decade ago, “Melrivic Three” of Aznar Shipping sank right after leaving the port of Pingag in Isabel, Leyte on the way to Danao. One of the passengers was to later become a PSSS moderator. He says the ferry did not completely sink and was later retrieved from the sea and repaired. This ship is still sailing in the same route.

Melrivic Three ©Jonathan Bordon

If you can’t put a good man down, as they say, that could also be true for ships. “Our Lady of Mediatrix” of Daima Shipping became the unfortunate collateral damage of the bombing of two Super Five buses aboard her while she was about to dock in Ozamis port one day in February 2000. White phosphorus bombs were used and the two buses completely burned along with other vehicles on board. The bridge of the double-ended ferry got toasted along with the car deck but the engine room was intact. Laid up for some time she was towed to the shipyard in Jasaan, Misamis Oriental where she was lovingly restored and she emerged again as the “Swallow-2” of the same company. Her bridge was altered, people know her story but they don’t mind and they still patronize her although about 50 people died in the carnage she went through.

Our Lady of Mediatrix ©BBC News Asia
Swallow-2 ©Mark Ocul
Compared to the tales of “Mindoro Express”, “Joy-Ruby”, “Melrivic Three” and “Our Lady of Mediatrix” ,the story of some LCTs of Asian Marine Transport and Jomalia Shipping that partially capsized near port sounds tame. There is actually not much difficulty in raising them up. Practically, those cases are not really stories of ships living second lives.

There were also other lengthening or renewing of lives of ships. Siquijor-I is supposedly a former fishing vessel and training ship of Siquijor State College that was already laid up. How she ended as a property of the Governor then is another matter. And then there is the SuperFerry 1 which within one year of sailing was hit by engine fire. She was towed to Singapore where she was re-engined and repaired. She came out then much faster.

Siquijor Island 1 ©Jonathan Bordon
SuperFerry 1 ©Aristotle Refugio

A special case was the partially capsized “Ocean King II” which was hit by a rogue wave in Surigao Strait. She was able to make it to Benit port where the Coast Guard made a big but wrong show of rescue (using rapelling ropes instead of just getting bancas nearly and urging all to evacuate at once when the ship would no longer sink as she is touching bottom). She lain there for some time until she was towed to Navotas. We all thought she will be cut up there until one day she emerged as a cargo ship and now named as “Golden Warrior”.

Ocean King II ©rrd5580/flickr
Dragon Warrior ©Aristotle Refugio

There are others that merit attention here. “Gloria Two” and “Gloria Three” of Gabisan Shipping were supposedly rebuilt from fishing vessel hulls and done in Leyte. That is also the case of “April Rose” of Rose Shipping which is now with Atienza Shipping. And the “Bounty Ferry”of Evenesser Shipping is supposedly built from a launch from the US Navy if tales are to be believed.

Bounty Ferry ©Britz Salih

Whatever the case may be, there are many ways of giving ships second lives. There is not much technical difficulties involved unless it is fully submerged and far from land. If near land what it needs is just some concern, a dash of love and of course, cash.