Recent Developments in Bicol Passenger Shipping

A Backgrounder

A few years ago, Montenegro Shipping Lines Inc. (MSLI) of Batangas entered the Matnog-San Isidro route using the government-owned San Isidro Ferry Terminal in San Isidro, Samar. Before that the company already plied before the Masbate City-Lucena route but got suspended when their MV Maria Carmela burned just before reaching Lucena and there were protests in Masbate backed up by their politicians. But aside from that route, Montenegro Shipping Lines had a route from Masbate City to Pilar using basic, short-distance ferry-ROROs and hybrid LCTs (Pilar port can’t accommodate anything bigger because of its shallowness) and fastcrafts. In that route they were able to outlast the fastcrafts of Lobrigo Lines and the route became their staple and stronghold after they were driven out of the Batangas-Calapan route because the SuperCats there were simply superior than them.

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San Isidro Ferry Terminal

They then entered the Matnog-San Isidro route across San Bernardino Strait using the government-owned San Isidro Ferry Terminal. I knew it was a creeping move on their part and entry to the San Isidro route is easy since no ferry is using that route ever since Archipelago Philippine Ferries and Philharbor Ferries and Port Services left that port when they built their own port in Dapdap which is much nearer to Matnog than San Isidro. I knew MARINA, the maritime authority will easily grant a franchise since there is no ferry using that terminal and the 50-kilometer restriction has already been lifted by MARINA per Pres. Gloria Macapagal Arroyo’s instruction. Before, on parallel routes no franchise will be issued if the competing port is less than 50 kilometers away (but it seems that did not apply to the likes of western Leyte ports and the ports of near Dumaguete).

I was not worried for Bicol ferry companies as long as Montenegro Lines is in San Isidro because that route carries a significant penalty in distance as BALWHARTECO port which is being used by the Bicol ferry companies is just 11 nautical miles in distance while the San Isidro port is 15 nautical miles in distance from Matnog Ferry Terminal. I knew Montenegro Lines had to give near parity in rates if they want patronage. And they will have to field a faster ferry which they did and they suffered the fuel penalty. It was obvious that in using San Isidro Ferry Terminal that they are handicapped in competing with the Bicol ferry companies (Sta. Clara Shipping Corporation, Penafrancia Shipping Corporation, 168 Shipping Lines and Regina Shipping Lines).

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Dapdap port

But then it happened that the Archipelago/Philharbor operation which operated the Maharlika and Grand Star RORO ferries was tottering they opened up Dapdap port for Montenegro Lines. And that is where I began to worry for the Bicol ferry companies as Montenegro Lines is a big shipping company (they even tout they have the most number of ferries which is actually true) and if transfer pricing was used by the big oil companies and by the bus group Vallacar Transportation Inc. locally then they can engage in price wars and the smaller Bicol ferry companies will suffer. With the move to Dapdap port and with the lessening of Archipelago and Philharbor ferries it is as if those twin companies are giving Montenegro Lines free business. Dapdap port is a little farther than BALWHARTECO port which the Bicol ferry companies are using but the difference in distance is minimal at about 11 nautical miles to 11.5 to 12 nautical miles. Of course, the shipping companies have their regular and locked patrons but there are a lot of non-committed vehicles especially the private vehicles (as differentiated from company vehicles) which pay the full, published rates unlike the regular and locked patrons.

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Jubasan port

A little later when the Sta. Clara Shipping Corporation (SCSC) built its own port in Jubasan, also in Allen, for their and their sister company Penafrancia Shipping Corporation’s use, BALWHARTECO then opened its gates to Montenegro Lines and so the company finally had access to the most advantageous port in Samar (this port is in direct line to the vehicles from Catarman and Rawis). It seems the creeping strategy of Montenegro was finally working. In shipping it is not necessary that a company will get the most advantageous port or route at the start. With patience and resources, better arrangements and opportunities soon open.

Developments and the Current Situation

I was watching what will be the fate of the Bicol ferry companies especially since the long bond and partnership between BALWHARTECO and Sta. Clara Shipping Corporation, the biggest Bicol ferry company was broken with the building of the Jubasan port against the wishes and objection of the owners of BALWHARTECO (this episode almost reached the courts since the owner tried to stop the construction as he was the Mayor of Allen where the ports are located and bitterness was really high). Well, none sank, most even grew and that was a surprise for me.

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Denica ferries in Masbate port

In Masbate, Denica Lines, which was basically only in motor bancas and cargo motor boats before fought back magnificently with the acquisition of the MV Odyssey to be followed by the MV Marina Empress which were just poor discards of other shipping companies. Both suffered engine troubles at the start and Denica Lines had to spend money for the two. Then this year Denica Lines was able to purchase a third basic, short-distance ferry-RORO, the MV Regina Calixta II of Regina Shipping Lines of Catanduanes which was already buying bigger ferries. The MV Regina Calixta II is unrenamed as of this moment as changing names is actually not peanuts with regards to MARINA.

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Denica fastcrafts refitting in Pilar port

And last year Denica Lines got two rundown fastcrafts which they are slowly refitting right in Pilar port. So right now or soon, it seems Denica Lines is already ready to slug it out with Montenegro Lines toe-to-toe in the Masbate City-Pilar route. Meanwhile, Sta. Clara Shipping Corporation and twin company Penafrancia Shipping Corporation is doing roaring business in the parallel Masbate City-Pio Duran route especially since Medallion Transport was driven away from that route after their MV Lady of Carmel sank. The truck loading in that route is so good that Sta. Clara Shipping Corporation bought the LCT Ongpin, lengthened it and fielded it in the route as the LCT Aldain Dowey. And that is aside from two 60-meter ROPAXes they maintain in the route. So if the ferries of Denica Lines and Sta. Clara Shipping Corporation in the route from Masbate City to the Bicol mainland is totaled then Montenegro Lines is outmatched already except in the High Speed Crafts segment which competes with the big motor bancas of different companies.

In the Matnog-Samar routes, the Bicol ferry companies are more than holding its own although both has not grown except in frequency. If there was growth it was taken by Archipelago Ferries Corporation which fielded a brand-new FastCat in the Matnog-San Isidro route which is also doing good business. But in terms of net, Archipelago Ferries is not ahead as the business they gained with the fielding of FastCat might not be greater than the business they lost with the disposal of the Maharlika and Grand Star RORO ferries (and they are paying docking fees in San Isidro Ferry Terminal while their own Dapdap port is unused). In my comparisons, I still consider Archipelago and Philharbor as Bicol ferries since they started as such although with the good FastCats now they are trying to erase their connection to the lousy Maharlika and Grand Star RORO ferries because obviously they are ashamed of their record there.

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FastCat in San Isidro Ferry Terminal

And Montenegro Lines did not gain either in the Matnog-Allen route as the Bicol ferry companies was able to hold their own relative to them. If there was growth it was taken by the subsidiary of 2GO, the SulitFerry which operates a brand-new ROPAX LCT, the LCT Poseidon 26 and another one or two Cargo RORO LCTs depending on the season. Finally, 2GO discovered what was eating up their container shipping and passenger liner business and decided to compete (“if you can’t beat ‘em, join ‘em”). Lacking enough resources, they started conservatively by just chartering new LCTs from Concrete Solutions Incorporated (CSI), owner of the Poseidon LCTs, whose fleet seems to be ever growing.

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The Poseidon 26 of Concrete Solutions and SulitFerry

In the routes to Catanduanes, there was obvious growth and changes. Initially, the most striking perhaps is the appearance of the two High Speed Crafts (although technically one is already a Medium Speed Craft) of the Cardinal Shipping Lines Incorporated, the MV Silangan Express 1 and the MV Silangan Express 3. I had my doubts early on about the viability of the two but it turned out they were doing okay. One reason maybe is their reasonable fares which is just about one will expect from a Tourist accommodation in a regular ferry and not double the Economy fare like what is charged in other parts of the country. The two HSCs of Cardinal Shipping also run in the hours not served by the regular ROPAX whose schedules are dictated by the arrivals of the buses (which means a morning departure from Tabaco and a noon departure from Catanduanes).

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The Regina Calixta VII (ex-Maharlika Cuatro). Photo by Dominic San Juan

One Catanduanes ferry company and a native of Catanduanes which made a great stride recently was Regina Shipping Lines or RSL. This company has already disposed their basic, short-distance ferry-ROROs and instead bought bigger ferries. Part of their new acquisitions were the former MV Maharlika Tres, acquired from Atienza Shipping Lines and the former MV Maharlika Cuatro from Gabisan Shipping Lines. The two double-ended ferries became the MV Regina Calixta VI and and MV Regina Calixta VII in their fleet. The company was also able to acquire the former MV Grand Star RORO 3 which became the MV Regina Calixta VIII in their fleet. Rounding off the fleet is the MV Regina Calixta V which they acquired from China.

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The Regina Calixta VIII (ex-Grand Star RORO III)

The former ferries from Archipelago Ferries and Philharbor Ferries are no longer the sad ferries of Christopher Pastrana, the boastful. All feature Tourist accommodations now (there was none before) with a disco motif and sounds where good videos are played during the trip and all feature good, brand-new seats in Tourist (Regina Shipping Lines was in buses before and they know these things). Even the engines were refitted that the former MV Maharlika Tres is already running faster than her design speed (the maximum speed when new). The owner of Regina Shipping Lines simply opened his checkbook unlike Christopher Pastrana (who opened the checkbook of DBP instead) and the Mayon Docks of Tabaco City forthwith did the make-overs of the former lousy Archipelago and Philharbor ferries derided in the eastern seaboard. Now those ferries are already the favorites by the passengers.

There was also another change in the Masbate ferries. This was when Asian Marine Transport Corporation (AMTC) sold their MV Super Shuttle Ferry 19, a double-ended ferry that was off-and-on doing the Bogo-Cawayan route. She was bought by the D. Olmilla Shipping Corporation, refitted also in Mayon Docks and she became the MV Cawayan Ferry 1. She still plies the same route and schedule.

Meanwhile, Sta. Clara Shipping Corporation was able to acquire last summer two former Tamataka Maru ships from Japan, the MV Tamataka Maru No. 85 and the MV Tamataka Maru No. 87 in a buy one, take one deal and the two ferries were refitted in Nagasaka Shipyard in Tayud, Cebu (Sta. Clara Shipping Corporation is a stockholder in the said yard). The MV Tamataka Maru No.85 is now running the new route of Sta. Clara Shipping Corporation, the Liloan-Lipata route across Surigao Strait, an expansion route outside Bicol acquired by the company some two or three years ago. The ship is now renamed as the MV Adrian Jude and she is meant to compete with the MV SWM Stella del Mar of the Southwest Premier Ferries, a new operator in that route using a brand-new ferry similar to and the sister ship of the new vessels of Starlite Ferries of Batangas.

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The Adrian Jude. Photo by Capt. John Andrew R. Lape

The former MV Tamataka Maru No.87 is also ready now, she is already in Bicol and waiting but unrenamed yet according to the last information I received a day ago. She is meant to ply the new route of Sta. Clara Shipping Corporation from Masbate to Cebu, another new expansion route of the company but the exact route is still being applied for. Sta. Clara Shipping Corporation is one Bicol company aside from Denica Lines which has shown aggressive growth in the past years.

Meanwhile, it seems Montenegro Lines has lost its aggressiveness. Their fleet size in Bicol is practically the same although they rotate ships especially in the Matnog-Samar route (except for the MV Reina Emperatriz there and the MV Maria Angela in Masbate). Their only addition in Bicol is their new catamaran MV City of Angeles, a High Speed Craft in the Masbate-Pilar route.

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The City of Angeles

I was trying to analyze the lack of zest and the lack of pep of Montenegro Lines in the recent years especially in the context of Bicol shipping. It seems that when their “patron saint” went out of power and was made an enforced guest, Montenegro Lines’ drive faltered. It also seems that the blessings usually going to Montenegro Lines already went to another shipping company and so Montenegro Lines had to scrounge for additional ferries whereas before, they were buying ferries as if the supply of it won’t last (now it is the new favorite which is precisely doing that). Now, i don’t really know how come their blessings went away.

I do not know. Things can always change and it seems Montenegro Lines is no longer that great a threat to the Bicol ferry companies which showed spunk in the recent years except for 168 Shipping Lines, the owner of the local Star Ferry ships which seems to be languishing with no ship additions.

One loss, however, is something that cannot be averted and has long been expected. This is the discontinuance of the LCT to Cagraray island from the Albay mainland across the very narrow Sula Channel which has been a ship shelter for centuries now. A new bridge has been built connecting the fabled island which hosts the well-promoted Misibis Resort, the best resort in Albay province.

But as a whole Bicol ferry shipping was on the rise in the recent years and that is surely a good thing for the region.

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The FastCats That Could Be Paradigm-Changing

When the FastCats first arrived I did not know how to assess them properly. It was brand-new but truckers and buses which are charged disproportionately higher (because they say of the weight) decide on the price point and not on the newness and amenities of the ship. Actually, rebates in the form of complimentary passenger tickets (which is then sold), outright discounts and cash bonuses are stronger inducements to them. The superior speed of the FastCats might not also be decisive because that can be trumped by longer waiting hours in the ports if the departure gaps are significant. And by large on many buses and trucks it is not the decision of the drivers where to board as that is a company decision if there are company-to-company arrangements and accounts. It might only be in private cars and SUVs where the FastCats might have a better pull but then most drivers will not wait if the departure time is still two or more hours away.

The amortization weight of the FastCats also played into my mind. These medium-speed ships were all loaned from the DBP (Development Bank of the Philippines) from a JICA loan window meant to modernize our shipping. I do not know the loan terms and that part not on the top of the table but it could be in the vicinity of P3 million a month, a rough guesstimate. That would translate to about P80,000 a day (it could be less if the amortization terms are longer and it could be higher if shorter or if the if it is not a soft loan) on top of operational costs and other costs incremental to operating a ship (think fuel and parts) and a shipping company (think offices and office staff) plus the mandatory taxes, insurance and registration. Add to that the expenses and downtime of drydocking which will also be in the millions of pesos.

A Moderator of Philippine Ship Spotters Society (PSSS), our Math Professor induced me to Calapan to have a firsthand look. After observation and calculation, I immediately conceded that if the route is Batangas-Calapan with its high traffic the FastCats will be profitable since ferries sail there 24/7 except on rough weather and storms. But I had my doubts then on other routes where the traffic is not so strong. Weaning away patronage from competitors is not that easy because it is not really a free market since many trucks and buses are already locked in in contracts with some shipping companies especially those which are good in the rebate, discounting and hospitality (like free meals) game. These shipping companies generally have their ships fully or nearly-fully amortized hence their break-even point could be lower even if their fuel cost is higher .

The FastCats are catamaran ROROs but unlike what they say they were not the first to field this type of craft since the Starlite Ferry and Lite Ferry 23 came ahead of them. The FastCat are not High Speed Crafts (HSCs) because they only sail at 17 knots. Hence, their classification will fall to Medium Speed Craft or MSCs. It seems the choice of their name was meant to fool those who are not very knowledgeable of sea crafts.

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The FastCats originated from a design of Sea Transport Solutions of Australia but all were built in China by different yards. These vessels feature aluminum alloy hulls for less weight which help in boost speed, lower fuel consumption and in resisting corrosion. A catamaran design means less drag but it can also be wicked in cross-swells. The FastCats do not carry their own ramp thus saving more weight and instead there is a hydraulically-activated ramp in the port which connects to the ship. The disadvantage however is they need a dedicated docking area because the ramp-in-the-port precludes the use of others of that space and so applying for a port are sometimes complicated by this requirement. The ramp can also be damaged by storm waves as shown by what happened in Calapan port.

The dimensions of the FastCat are 50.6 meters in length over-all, 47.2 meters in length between perpendiculars, 17.8 meters in breadth and 4.2 meters in depth. Originally the ship has 683 to 704 gross tons when these left China but with the added passenger deck for the Economy class on the bridge level (they call the bridge the “wheelhouse”) the gross tonnage rose and in the case of FastCat M6 it Is already 967 gross tons. The gross tonnage of the others would then not be far from that. The original net tonnage was 207 to 212 but definitely it is now far higher than that because of the additional Economy section. Generally, the declared DWT is 300 tons.

The passenger capacity of the vessel is between 275 to 290 divided into Tourist and Economy. The Tourist has cool airconditioning and airline-type seats with enough leg space and it is located on the deck below the Economy. The ship’s canteen which reminds one of a convenience store is also located there and its offerings are much better than the basic, short-distance ferry-ROROs around. The passenger service is much better too in all aspects. It seems the service personnel were recruited from Hotel and Restaurant Management course grads instead of the plain able-bodied seamen of competitions’. The passenger accommodations are located in only one side of the ship making for an unbalanced look. The bridge is located at the middle of the ship above the car deck.

The first FastCats are powered by 4 Cummins engines with a total of 2,600 horsepower while the latter ones are powered by Cummins clones built in China with the same power output. From a report I got the FastCats have 4 screws which means they are not using synchronizers. That means less weight, less complication, less power lost and there is no possibility of an unbalanced and difficult run if ever one engine loses power (as they will just shut down another engine on the opposite bank). The bridge of the FastCats are also modern like that of a High Speed Craft (not the ones from Malaysia) and for me the most notable feature is it produces its own power and is not dependent on the power supplied by the engine room (and that is a lot of safety margin).

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The FastCats were built by different companies in different yards in China. They total ten but the owner of Archipelago Philippine Ferries Corporation recently announced they will order more and will apply for routes in our neighboring countries and on additional routes in the country. The ship series was originally intended to be named “FastCat M1” to “FastCat M10” but heeding the Chinese aversion to the number “4” there is no “FastCat M4” and instead there is a “FastCat M11”. The first one in the series of sister ships arrived in 2013 and the last one arrived in 2016.

Analyzing the FastCats and comparing it to other ROROs of the same length what I noticed is the 17.8 meters breadth of the FastCats means an extra RORO lane. At 2,600 horsepower the FastCats do not use a bigger engine than many ROROs of the same length. That means the extra speed comes not in overpowering these catamaran ROROs. It was instead coming from the less weight due to the aluminum alloy hull, the less drag of the catamaran design and the minimalist superstructure. The last one might be the key along with the use of aluminum. The old-style ROROs really have a lot of steel being carried around. That will tell on fuel consumption and it will weigh down the speed. That is the reason why most ROROs in the 50-meter class with about the same or a slightly higher power output runs at only 13-14 knots. And for sure with the higher vessel weight and conventional hull design plus the age they consume much more fuel than the FastCats.

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And that is the reason why the FastCats can, at the start, match the fares and rolling rates of the competing ROROs although they are carrying a much higher amortization rate. Anyway they cannot charge significantly higher because the better amenities and passenger service will only primarily attract the private vehicle owners driving sedans and SUVs.

However, total revenues of any transport will primarily depend on the kilometers or nautical miles run. That is true for airplanes, that is true for the buses and that is also true for ships. That is one of the reasons why budget airplanes are successful now because they practically fly round-the clock with just a few hours of lay-over and to be able to do that they use double crewing. That is also the reason why Philtranco loves the Manila-Davao run because night and day the bus runs and the more kilometers and hours it run the more is its revenues.

And that brings to the tactic that Archipelago Philippine Ferries is and will be using to have enough revenue in routes not as strong as Batangas-Calapan — they will run the opposition to the ground by running the FastCats with as many trips as possible in a day like in the 44-nautical mile Dumaguete-Dapitan route where they now have 3 round trips in a day (there is no guarantee, however, that this will not change). Somehow, something has to give way and since they are running they will be able to gain load and passengers. There is really no reason for them to wait for the next ferry unless they are contracted to it as they are not faster. Everybody loves time saved as long as the rates are about the same.

FastCats can do that many trips a day because they are faster. That is the same line of reasoning why regional container ships normally sail now at 20 knots, the same speed as our SuperFerries that became saints of 2GO. With such speed they can make more voyages in a year and that means more revenues. Or put it another way the shipping operator can make the same revenue with less number of ships. Neat, huh?

Faster time is also a come-on on ferries that have close time departures. If there is a FastCat that is promising a 2.5hr sailing time in a route then dumb is the passenger of private car owner which will opt for a 4-hour sailing. Well maybe if he is related to the owner or the Captain then it is forgivable. That is the reason why then I do not take the slow Maharlika II in the Liloan-Lipata route since Super Shuttle Ferry 18 will overtake it even if it left later and I have the benefit of a ship with better accommodations. But in shorter routes the sailing time difference will be not that much great and the come-on of greater speed will be less. The time consumed waiting in the port will be the more decisive factor then.

That is why the FastCat is dangerous for the old-style ferries and even to new Starlite Ferries. Speed is their ace. I have heard that even in the Batangas-Calapan route some now opt for the FastCat rather than the SuperCat because at 17 knots versus 22 knots the travel time difference in the 24nm route is not that great and yet there is a significant difference in fare as in almost double while their facilities are just about the same. So even the High Speed Crafts which gulp a lot of fuel and do not carry any significant volume of cargo is threatened by them.

A view of some of the old-style ferries of the competition or possible competition, same size class and engine size:

King Frederick 56.8 m x 14.0m, 2400hp, 13.5 knots when new

Nelvin Jules 56.8 m x 14.0m, 2400hp, 13.5 knots when new

Maria Zenaida 54.0m x 11.4m, 2400hp, 12.5 knots when new

Reina Genoveva 59.9m x 11.0m, 2600hp, 14 knots when new

Reina Hosanna 59.9m x 11.0m, 2600hp, 14 knots when new

Super Shuttle Ferry 12 53.0m x 10.4m, 2700hp, 14 knots when new

Lite Ferry 15 60.3m x 11.4m, 2600hp, 14 knots when new

Starlite Navigator 57.3m x 13.5m, 2400hp, 14 knots when new

Lite Ferry 1 48.7m x 11.0m, 2000hp, 13.5 knots when new

Lite Ferry 7 50.8m x 10.8m, 2000hp, 14 knots when new

Maria Helena 49.0m x 12.2m, 2000hp, 14 knots when new

Maria Rebecca 49.9m x 13.2m, 2000hp, 13.5 knots when new

Hansel Jobett 51.1m x 14.0m, 2000hp, 13.5 knots when new

Star Ferry III 46.4m x 11.5m, 2000hp, 13.5 knots when new

Those ferries are already 1.5 knots down, on the average, from their speed when new. And those 2,000hp ferries will be using more fuel now per nautical mile than the 2600-horsepower FastCats. Even when new it is not sure they were consuming less fuel because of their higher weight and drag. Those 2,600-horsepower ferries will be definitely consuming much more fuel now than the FastCats.

Note also the difference in the breadth which translates to lane-meters of rolling cargo. Those ferry sampling have on the average a greater passenger capacity than the FastCats especially since all except one have two passenger decks. But on ROROs the rolling cargo earn a disproportionate share of the revenues compared to passengers and FastCats have one or two more lanes for vehicles compared to that sampling. And if the passenger capacity of the FastCats will prove lacking then another passenger compartment can be added to the vacant side of the vessel. So sometimes it is said that the FastCats are not full but their rolling cargo load might already “full” if compared to the load of that sampling which has a narrower and smaller vehicle deck than the FastCats.

There are short-distance ferry-ROROs that are in the 60-meter class that can run at 14-14.5 knots true speed if they want but on the average these feature engines that are on the average are bigger as in nearly 1,000 horsepower more. The fuel consumption difference compared to the FastCats will even be greater and actually they might be one truck longer than the FastCats but still the rolling cargo capacity of the FastCats are bigger. A sampling:

Maria Felisa 57.4m x 13.0m, 3600hp, 15.5 knots when new

Maria Vanessa 57.4m x 13.0m, 3600hp, 15.5 knots when new

Maria Oliva 64.3m x 13.5m, 3200hp, 16 knots when new

Maria Ursula 61.4m x 14.0m, 3400hp, 16 knots when new

Reina de los Angeles 60.9m x 12.8m, 3600hp, 16 knots when new

Anthon Raphael 61.4m x 14.0m, 3400hp, 15.5 knots when new

For sure this set consumes a lot more fuel than the FastCats and there is still a 2.5-3-knot disadvantage.

The only one in this size which will not be too a laggard compared to the FastCats is the Jack Daniel of the Sta. Clara Shipping Corporation. She is 65.0m x 14.0m and sailed at 17 knots when new but her engine has 4,300 horsepower already, well over the 2,600 horsepower of the FastCats. Maybe the aluminum hull and the catamaran design did a lot of magic to keep the FastCats separated from the pack.

Which brings us to the new Starlite ferries. These are 66.8-67m x 15.3m ferries and that means a car deck capacity nearly equal to the FastCats. These definitely has more passenger capacity at 750 persons but as I have said if a new passenger compartment will be built on the other side of the FastCats the current passenger capacity of 300 of the FastCats will nearly double to 600 which will not be much behind than the new Starlite ferries. These new Starlite ferries have a speed of 14.5 knots and 3,650 horsepower are needed to produce that speed. So for a possible equality in passenger and rolling cargo capacity the new Starlite ferries are using more fuel for even less speed. Now I begin to understand why there are a lot of catamaran ROROs in other countries with aluminum hulls. They are simply more efficient. And these are the aces of the FastCats.

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If all can run 100 to 150 nautical miles average in a day (that is about the back-and-forth run of the Cebu ferries to Ormoc) then they might be able to amortize their fleet, my guess. In Batangas-Calapan they have no problem with that quota. In Cebu-Ormoc, the Oceanjets and SuperCats do over 200 nautical miles in a day, to think and they are profitable (with maybe a 2/3 load) even though they guzzle a lot of fuel. That will take a lot of wrestling customers away from other shipping companies. Well things do not happen in a vacuum. With amortized ships the others could choose to lower the fares and the rates (now that will be good for the the riding public and shippers; after all rolling and cargo rates in the Philippines is really high).

But then I don’t place too much emphasis on that now. If the amortization is only P80,000 a day, if a FastCat runs 8 trips in a day that will be only P10,000 per trip and if that is Batangas-Calapan that will just mean taking out the revenues from two trucks! And it might just be one truck in longer routes! Above and beyond the operational costs like fuel, labor, etc. Dangerous, dangerous! For the competition, that is. That also shows how high our rolling rates are (as I always asked since when did MARINA learn how to properly compute rolling and container rates?)

However, in the Liloan-Lipata route I heard a disquieting report. One FastCat has left and the remaining one also cheats now on the schedule as in they compact the schedules if there is not enough load (well, useless to run and run if the load cannot justify it). The reason is the Cargo RORO LCTs there are suctioning the trucks like vacuum. That is also a phenomenon noted in the various Cebu-Leyte routes and even in the various Cebu-Bohol routes. Cargo RORO LCTs can offer rates as low as half of the conventional ROROs and for trucks that is a decisive come-on. And that is the reason why and Cargo RORO LCTs seem to be also a new paradigm change.

And besides many commercial vehicles (trucks, buses and panel trucks like those of LBC, etc.) are already locked in through company-to-company arrangements and through the use of super special rates and special rates plus other inducements. As I said it it not really a free market and the only ones that actually pay the published rates are the newcomers and the seldom travelers. The published rates are actually artificially high so as to cover all the discounts that the RORO ferry companies are giving to their regulars. This is actually a sucker’s world but the newbies do not realize that.

Which of the two paradigm changes will prevail? And will the old RORO ferry companies hold on through the locking game? Well, only the future can tell (how can we guess all their moves, counter-moves, guts and instincts?). But I love paradigm changes. With those things begin to get interesting.

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Photo Credits: Carl Jakosalem, Nowell Alcancia, Mike Baylo, PSSS

The Long-Careered Delta III

The people of Central Visayas know this fastcraft because for a number of years she was sailing from Dumaguete to Siquijor which was probably her most successful route locally. She would leave at early morning and people at the port and at the Dumaguete Boulevard would watch her powerful wakes and wash that only a High Speed Craft can make. She also have that striking livery which was unlike other fastcrafts.

When I first saw her in Dumaguete, I was deceived. It did not enter my mind that Delta III was a fastcraft I once probably knew and might have even ridden. But thanks to the PSSS collaboration with grosstonnage.com of Angelo Blasutta which was a very good database when it was still functional, I was able to trace who she was. I must admit though that there are still a few uncertainties in her career especially since one company that owned her in the past, the Viva Shipping group had name and ownership changes in the fastcrafts they owned.

Another faction in my deception is the livery made her seem bigger, I think, and the truth is I did not think she would have survived the downs of the shipping companies which once owned her. Add to add her age. Fastcrafts are not known to live very long unlike the conventional ferries. In most cases, when the engines go that is also the end of this kind of craft. High speed engines also do not last as long as low speed engines (in metallurgical engineering they it is the total number of revolutions made that determines when the engine will give way). Another angle is the engines might still be alive but the revenues might no longer be enough for the fuel consumption That is quite true in High Speed Crafts whose engines are no longer efficient. And that is the reason why so many High Speed Crafts built in the 1980’s and 1990’s are on the market today because they are no longer profitable to operate.

Delta III is one of the oldest fastcrafts still running locally. She was built by Sumidagawa Shipyard Company of Tokyo, Japan in 1979 and she was first known as Shiokaze and her ID was IMO 7913945. grosstonnage.com says she was once known too as Marine Star and that was probably when she was still in Japan.

This fastcraft is not big although she is bigger than the smallest fastcrafts around like the Santander Expresses or the FastCraft Aznars which sail near the seas where Delta III sail. She is 26.7 meters in length over-all and she measures 25.9 meters in length between perpendiculars. Her breadth is 5.8 meters and she has a depth of 2.6 meters. Her dimensional weights are 152 gross tons and 43 net tons and her deadweight tonnage is 14 tons. Two of her sister ships were the Sachikaze and Oikaze which both went to Sun Cruises of Manila as the Island Cruisers and which then went to Viva Shipping Lines in 1994 to battle the newly-arrived SuperCats then in the Batangas-Calapan route. She is also sister ship to the Sazanami which went to Viva Shipping Lines also.

The Delta III has an aluminum alloy hull and she has a raked stem and transom stern. She has a single mast and and one passenger deck in serrated arrangement. Her original powerplant were most likely Detroit Diesels of over 2,000 horsepower and the original speed will be about 25 or 26 knots.

In 1995, she came to the Philippines to Viva Shipping Lines as the Our Lady of Fatima II. She was one of the six fastcrafts that came into the fleet of Viva Shipping Lines combine. There are confusions though in the maritime databases because of the renamings and the situation that not all fastcrafts and even those from Japan have IMO Numbers.

When Viva Shipping Lines began spiralling down in 2002 because of overcompetition, internal troubles and loss of patronage, she went to the fleet of the Blue Magic Ferries which was a successor company to Viva Shipping Lines and owned by the scions of that company. This company is headquartered in Lucena City, Quezon and is using the old base there of Viva Shipping Lines. Blue Magic Ferries tried to continue sailing from Lucena in alliance with the rump of ACG Express Liner, a Cebu shipping company which tried its fate in Batangas but which also lost. In Blue Magic Ferries Shiokaze was known as the Blue Water Lady II. Along this way, the fastcraft was re-engined to twin Caterpillar engines of 2,200 horsepower which lengthened her life and she was again capable of 25 knots.

In 2007, the struggles of Blue Magic Ferries intensified when their RORO ferry Blue Water Princess which came from ACG Express Liner capsized off Bondoc Peninsula of the province of Quezon in foul weather while doing a Lucena-Masbate route. In 2008, Blue Magic Ferries stopped sailing because of a franchise problem supposedly emanating from a dispute between the scions of the founder of Viva Shipping Lines.

After a lay-up in Lucena, the Blue Water Lady II was sold to DIMC Shipping of Dumaguete where she became the Delta III. She plied a regular route between Dumaguete and Siquijor even though at times DIMC Shipping had problems with competition. This was exacerbated when the invading ROROs of Montenegro Shipping Lines Inc. came which was later followed by the ROROs of Aleson Shipping Lines. DIMC Shipping then earned bad repute by outright cancelling of trips when there are only a few tickets purchased for a trip and citing some weak reasons.

In 2014, DIMC Shipping quit and sold their last vessel, the Delta III to a Siquijor-based competitor, the GL Shipping Lines which was successful despite of “foreign” vessel entries to the island. She was renamed then as the GL Express 2. In a sense too, she is a replacement to the sunk GL Express of the company, the former Canoan Jet which in actuality was just a Medium Speed Craft already then. 

Where is this long-careered fastcraft headed? Honestly, I don’t know. All I know is I want her to continue to survive and continue sailing. As things stands now, she might already be in better hands as GL Shipping, to which Siquijodnons seem to have parochial loyalty. This company is thriving especially since she has the shorter route to Siquijor, Siquijor compared to competition.

GL Express 2 is now one of the oldest fastcrafts still existing in the country, a longevity earned despite going through many ownership changes. May she sail more in the future.