Iloilo and Iloilo Ferries Should Develop Zamboanga City as a Distribution Hub

I think one of the reasons for the success of Metro Cebu as a manufacturing and industrial center is first they did not simply rely on Metro Manila for its manufactured goods. Actually, they had the confidence that they can compete with the national manufacturing and industrial center and history proved them right. Metro Cebu can stand on its own and can compete with Metro Manila (and CALABARZON) in the supply and sales of manufactured goods in the south of the country and that means the Visayas and Mindanao in general.

Metro Cebu has some key advantages. One is that is the fact that the Visayan islands and Northern Mindanao (not the region but the northern part of Mindanao that borders Mindanao Sea from Surigao to Zamboanga del Norte) are practically their backyards. Second is Cebu has great shipping companies, their overnight ferries mainly, that connect to this wide area, taking in their goods for distribution at low rates and with the ease of transporting goods that the manufacturers simply need to bring their trucks to Cebu Port and everything will be automatic and only the destinations and consignees need to be worked out. And mind you Cebu does not have the traffic of Metro Manila nor its mulcting policemen, traffic aides and thugs or its thieving youth that prey on trucks while in traffic. Third maybe is this wide area is predominantly Cebuano-speaking like Cebu (never mind the crazy, unintellectual local language classification called “Binisaya”of Mindanao which is no different from Cebuano and is not recognized by any respectable language classification group outside the country).

Iloilo

Iloilo City (From http://www.iloilo.gov.ph)

I was wondering if Iloilo is developed as a manufacturing center if it can compete with Cebu should an Iloilo Ferries be established to help distribute its goods. My view is they will have a hard time competing with the premier port of entry of Northern Mindanao which is Cagayan de Oro. Iloilo might even have difficulty competing in Iligan and Ozamis because Iloilo is still farther and the cargo rates will probably be higher and I do not know if Iloilo Ferries will be willing to subsidize to achieve parity with the rates of the Cebu shipping companies. But then Iligan and Ozamis loyalty is still to Cebu because the links of the businessmen there are historically connected with Cebu and some are even just the expansion of Cebu businesses and businessmen. And if we will speak in a polite manner, it is generally known that Cebuanos and Ilonggos are not exactly the best of buddies.

Now, Dipolog and Dapitan is closer to Iloilo than the rest of Northern Mindanao. But then it is closer too to Cebu and the closest to Cebu actually like Surigao. And besides the ships to Dapitan have the intermediate port of Dumaguete to boost cargo volume and hence make shipping rate to Dapitan not that expensive for Dapitan and Dipolog as the two cities don’t have the volume of the likes of Ozamis which is a bigger and more important distribution center whose tentacles reach as far as Pagadian and Zamboanga Sibugay plus the western portion of Lanao del Norte. In Dipolog and Dapitan, Iloilo will still be underdog compared to Cebu.

But there is a great distribution center in Western Mindanao whose population is nearly as big as Cagayan de Oro and whose tentacles reach many provinces. This is Zamboanga City, the regional distribution center of the western part of Mindanao whose link with Cebu is not that strong compared to the likes of Dapitan, Ozamis, Iligan, Cagayan de Oro, Butuan and Surigao. It does not have the multiple nightly ships of the cities and ports I just mentioned. In fact it only has a weekly ferry from Cebu plus a few cargo ships. It is also not Cebuano-speaking, in the main, although Cebuano is also spoken there but not by the businessmen and traders.

Zamboanga City’s distribution network reaches Basilan, Sulu, Tawi-tawi, Zamboanga Sibugay and the western portion of Zamboanga del Norte and that is a wide area in itself and more than the size of one normal administrative or political region. Plus Zamboanga City itself is the size of a province and they have their own city districts. To illustrate its size, going east over 80 kilometers has to be negotiated before one reaches the Zamboanga Sibugay boundary.

Zamboanga_City_Skyline_2009

Zamboanga City (From Zamboanga.com)

In Zamboanga City I think Iloilo has a good chance versus Cebu in the distribution game should Iloilo go the way of Cebu in manufacturing (and they should I think) and be supported by Iloilo Ferries (if it materializes and it should, I think also). In distance Iloilo is nearer to Zamboanga than Cebu, its traders are not from Cebu although they base now their scions in Cebu to avoid kidnapping which is always a threat in Zamboanga City (and in Cebu they are able to enjoy their wealth unlike in Zamboanga). In short, Zamboanga City is not dominated by Cebu, tradewise.

Some might argue that Iloilo does not have a complete array of goods. But I would also argue neither is Cebu like for example Cebu has no cigarette manufacturing and that is an important grocery goods, saleswise. Cebu does not manufacture canned fish either. Actually, it is maybe only the National Capital Region plus its spillover to CALABARZON that has the complete line-up of goods (I am not so sure of that because we import goods we cannot produce).

Iloilo, I think, should aspire to be a great manufacturing center like Cebu and not rely on sugar like before. The time when sugar was still gold was long gone and it worked only anyway because of the US quota system where a fixed volume of sugar was purchased by the USA at support prices which was higher than the world market price. That was when there were few producers of sugar cane but now so many produce that crop already like Thailand and since their production and sugar mills are more modern their prices are lower. Sugar production is actually a losing enterprise locally and sugar prices have to be kept artificially high, nearly double the world market price so that sugar mills and haciendas can continue to produce sugar. I don’t think this system can go on as the Philippines is a member of the WTO (and we can be called for such practice) and soon the Filipinos will learn the true nature of our sugar prices and how expensive it is compared to the prevailing world market price.

Iloilo can have a wide natural market for manufactured goods. That includes Panay and Negros islands and maybe Western Mindanao, the area and not the political or administrative region. Plus Palawan and there is no harm in trying Masbate and the Bicol Region plus maybe Southern Mindanao which is already far from Cebu and Metro Manila, if Iloilo Ferries will dare support operations there and why not? General Santos City and South Cotabato have a lot of Ilonggos so much so that Ilonggo is practically the lengua franca there and not Cebuano. So an extension there might not be unnatural after all nor too far.

Western Visayas has a lot of elite families which can finance the industrialization of Iloilo and maybe Bacolod too like it was the local elite of Cebu which financed its industrialization. It is even easier to borrow capital now or tap the stock market or go the joint venture way as long as the project is sound and there is market that can be tapped. But for all its plans and ambitions there must be a dedicated shipping company willing to support the distribution of Iloilo goods and that is where Iloilo Ferries would have to come in.

There shouldn’t be just two strong manufacturing and industrial centers in the Philippines which are Manila and Cebu at the moment. If we want more development, more rural development and development all around there should be more strong manufaturing and industrial centers and Iloilo should be among those. I just hope Iloilo would have that vision and ambition like I hope Davao would also catch that and not just be known for Cavendish bananas, the new counterpart of sugar cane and which is gold now.

The ball is in your court, Iloilo and Iloilo Ferries.

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The MV Manila City

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Gorio Belen research in the National Library

William Lines, from their very start and even when their fleet was not yet big always stressed the Southern Mindanao routes, a stress that was even over that of their stress in Northern Mindanao. They have their reasons and it might be economic. Maybe the political came later. It is known that Mr. William Chiongbian, the owner and founder was for a long time a Congressman of Misamis Occidental and was even Governor. Panguil Bay and Iligan Bay was the only consistent stress of William Lines in Northern Mindanao. In Southern Mindanao his brother James Chiongbian was a Congressman for long time of the southern portion of the old Cotabato province.

In Southern Mindanao, for decades William Lines maintained the Manila-Cebu-Tagbilaran-Dumaguete-Zamboanga-Dadiangas-Davao route and even early the company devoted six ships of their fleet in that route to maintain a thrice a week departure from Manila. Even when the former passenger-cargo ships from Europe arrived, William Lines simply plugged it in those routes in place of the former ex-”FS” ships. Later, that basic route had variations like dropping Tagbilaran in one or two of the schedules or inserting Iligan in that schedule or going first to Davao than Dadiangas.

When the era of fast cruiser liners arrived with only one intermediate port in the route, William Lines acquired and fielded the fast cruiser MV Manila City in the Manila-Zamboanga-Davao route in 1976. This was actually the second MV Manila City in the Wiliam Lines fleet after the first MV Manila City which was an ex-”FS” ship. Later the second MV Manila City dropped anchor in General Santos City on the way back to Manila. Gensan was the base of Mr. James Chiongbian and the passenger and cargo of Gensan are too big to ignore when it was just on the way.

The MV Manila City was first in competition with the fast cruiser liner MV Dona Ana (later MV Dona Marilyn) of Sulpicio Lines which was augmented later by the fast cruisers MV Don Enrique (later MV Davao Princess and MV Iloilo Princess) and MV Don Eusebio (later MV Dipolog Princess) in 1978. These Sulpicio ships were doing the Manila-Cebu-Davao route. The MV Manila City was faster but she was doing the longer route. All of them were capable of completing the whole route in just a week. Later, in 1979, the Dona Ana was pulled out from the Davao route and she was placed in the twice a week Manila-Cebu route when the flagship of Sulpicio Lines, the MV Don Sulpicio was hit by fire near Batangas while on a voyage.

For 15 long years from 1976 until her death in 1991, the MV Manila City was the only fast cruiser of William Lines in the Southern Mindanao route and she had to contend with the MV Don Enrique and MV Don Eusebio of Sulpicio Lines. For most of this period the MV Manila City was augmented by the other cruisers of William Lines including the former passenger-cargo ships from Europe. Two of them, however, the MV Davao City and MV Zamboanga tried a direct route to Davao. The MV Dumaguete and MV General Santos City also did a Manila-Zamboanga-Davao route. The late 1970’s was no longer an era of too many intermediate ports. Even Sulpicio Lines was also in this new trend in this era.

From 1979, however, William Lines also joined the new paradigm and bandwagon which was containerization. The new container ships made direct sailings with no intermediate ports like a direct route to Davao or General Santos City. With that there was less need to send passenger-cargo ships to Southern Mindanao. However, the MV Manila City continued on its old route and sailed faithfully.

The MV Manila City was a ship built in 1970 by Mitsubishi Heavy Industries in its main yard in Shimonoseki, Japan. Her original name was MV Nihon Maru. She was young when she was sold to William Lines in 1976 at only 6 years of age and use. Her former owner in Japan was Mitsubishi Shintaku Ginko and her ID was IMO 7005798.

The ship’s external measurements were 106.3 meters by 14.0 meters by 6.2 meters and her original gross register tonnage was 2,998 tons. She had a maximum speed of 20.5 knots when new from her twin Mitsubishi engines that totaled 8,800 horsepower (this was high at its time and actually the highest for the local liners from 1976 to 1980). So she was actually bigger and as fast the flagship MV Cebu City of William Lines. She was dubbed as the “Sultan of the Sea” by William Lines.

In the Philippines, the MV Manila City had a gross tonnage of 2,961 with a net tonnage of 1,648. The ship had the highest gross tonnage in the William Lines fleet before the arrival of the MV Dona Virginia. She had a passenger capacity of 1,388 which is again higher than the flagship MV Cebu City. The ship was billed as fully air-conditioned. It seems in the 1970’s this was already the standard for a luxury liner (of course they also touted the passenger service and the food plus the entertainment).

As advertised:”The ship is equipped with the latest navigational and life-saving equipment including self-lighting lamps, an automatic signal transmitter and the latest in compasses and radars. It is fully automated, with the engine room controlled from the bridges.” (From Times Journal, September 24, 1976).

The ship had a raked stem and a cruiser stern. She had two masts, two side funnels and three passenger decks. She had an observation deck atop her bridge which is accessible by passengers. Her loading capacity in Deadweight Tons was 3,766 tons which was higher than the DWT of MV Cebu City.

The MV Manila’s first schedule was:

LV Manila, Wednesday 10AM
AR Zamboanga Thursday 2 PM (18.3 knots average speed)
LV Zamboanga Thursday 12 MN
AR Davao Friday 5 PM (18.3 knots average speed)
LV Davao Saturday 9 PM
AR Zamboanga Sunday 2 PM
LV Zamboanga Sunday 12 MN
AR Manila Tuesday 4 AM

In later years, the departure of MV Manila City from North Harbor changed. At one time she also dropped anchor in Odiongan before proceeding to Zamboanga. This was in the late 1980’s when William Lines was maximizing its routes by dropping by on additional ports in Panay and Romblon.

On February 16, 1991, the MV Manila City was on drydock in Cebu Shipyard Engineering Works (CSEW) in Mactan island. While in a graving dock and hot works were being done on the ship by a sub-contractor, the ship caught fire. The next day the ship sank and was declared beyond economic salvage and repair. The vessel was insured was P45,000.000 (in 1991 currency). She was broken on January 1992.

The MV Manila City was replaced initially by the MV Zamboanga City, a RORO liner, in her route. In 1992, her replacement vessel, the MV Maynilad which was a much bigger vessel came. However, this ship, though beautiful and well-appointed was a disappointment in speed since she can only do 15 knots when new which was significantly below the speed of the vessel she replaced. She can also do the route in also one weak, though.

The MV Manila City was a good ship. It is just too bad she did not last long like her contemporaries in the Southern Mindanao route.

The Start and Impact of Containerization on Local Shipping

Containerization or the use of container vans to transport goods began in the Philippines in 1976, a decade after containerization began to take hold internationally. The new method was started by Aboitiz Shipping Corporation when they converted their 1,992-gross ton general cargo ship “P. Aboitiz” into a container carrier. This was followed by the conversion of their general cargo ship “Sipalay” in 1978. These first two container ships had limited capacity in terms of TEU (Twenty Foot Equivalent Unit) which is the common measure of container capacity that can be carried by container ships but it more than showed the direction of cargo loading in the future. And it also showed that general cargo ships can be converted container carriers.

By 1978 and 1979, containerization was already in full swing in the Philippines when major competitor shipping companies William Lines Inc., Sulpicio Lines Inc. and Lorenzo Shipping Company also embraced the new paradigm and competed. This new wave was also joined at the same time by two other small and new shipping companies, the Sea Transport Company and Solid Shipping Lines. Except for these two, our pioneers in container shipping were passenger liner (which means there are fixed schedules and routes) shipping companies.

The leading liner shipping company then which was Compania Maritima declined to follow suit into containerization along with Gothong Lines while the others like Sweet Lines, Negros Navigation and Hijos de F. Escano followed a little later in the early 1980’s. Gothong Lines, however, was into small ROROs early and these can also load container vans. Sweet Lines later founded a separate cargo-container company, the Central Shipping Company.

Like Compania Maritima, Madrigal Shipping, another old shipping company also did not follow into containerization. The smaller passenger liner companies also did not or were not capable into going to containerization. Among them were Galaxy Lines, N & S Lines, Northern Lines, Bisayan Land Transport, Newport Shipping, Cardinal Shipping, Dacema Lines, Rodrigueza Shipping, etc. Soon all of them were gone from Philippine waters and one reason was that they failed to adapt to the new paradigm and shippers were already demanding for container vans.

Before the advent of container vans, dry cargo were handled bulk or break-bulk. Bulk is when the whole ship is loaded with grains or copra. But bulk shipment is not possible in the passenger-cargo ships then as major parts of the ship is devoted to passengers and its requirements. Along with passengers, the passenger-cargo ships then carried various merchandise as in finished goods from the city like canned goods, “sin” products and construction materials. On the return trip, it would carry farm products like copra, abaca, rice, corn or dried fish. Since it was mixed, it was called break-bulk. It was mainly handled by cargo booms and porters and stowed in the ships’ cargo holds. Since it was mixed and has no containers aside from boxes the handling was long and tedious and it was vulnerable to pilferage and damage by handling and by the weather.

With the coming of container vans the weaknesses of the old way of loading that led to damage and pilferage were minimized by a big degree. Actually, the arranging of the goods was even passed on to the shipper or trader and all the container shipping company had to do was haul aboard the container. The new system needed much less labor (who can be balky at times and disputes with them can lead to delays or intentional damage) than before and the loading is faster because containers can simply be stacked one atop the other. This was difficult with breakbulk because of possible contamination and because the cargo had no containers it was difficulty to simply stack them and this even led to lost cargo spaces.

One initial result of containerization was the need for dedicated container ships as the passenger-cargo ships of that era, the cruisers were not meant for the loading of container vans (although they can carry a few and loaded LOLO). Since our local volume was low, our shipping companies preferred not to order purpose-built container ships. Instead, the discovered path was just to convert general cargo ships into container ships. The needed conversion was actually minimal and since these ships were already equipped with cargo booms then it was easier for everything. Only, the booms needed to be more stout as in it has to have more lifting capacity because of the added weight of the steel of the container van. Container vans were handled LOLO or Lift-On, Lift Off.

With the coming of ROROs with its ramps and car decks starting in 1980, cargo handling became easier. Break-bulk cargo especially the heavier ones can now be handled by the forklifts and transferred to the car decks (which then became cargo decks also but not as cargo holds). Shipping companies have used forklifts before but mainly just in the ports. Now, the first ROROs also carried forklifts in the car decks and the stowing of container vans in the car decks of the ROROs began. These were mainly XEUs (Ten-Foot container vans) which can easily be handled by medium-sized forklifts. Still many of cargoes in the first ROROs were break-bulk.

Some liners of the 1980’s had cargo booms at the front of the ship while having RORO ramps at the stern like the “Zamboanga City” and the “Dona Virginia” of William Lines. It carried container vans at the front of the ship and those were handled LOLO while at the stern they loaded container vans. Actually, some big cruiser liners of the late 1970’s can carry container vans on their upper decks at the stern like the “Don Enrique” and “Don Eusebio” of Sulpicio Lines, the “Cagayan de Oro City” of William Lines and the “Don Claudio” of Negros Navigation”. It was handled LOLO by the cargo booms of those ships.

At the tail end of the 1970’s and at the start of the 1980’s what was prominent was the race of the leading liner shipping companies to acquire general cargo ships and convert it to container ships. Aboitiz Shipping Company was the early leader and they fielded thirteen container ships between 1976 and 1989. Their series was called the “Aboitiz Concarrier” and latter additions were called the “Aboitiz Superconcarrier” and “Aboitiz Megaconcarrier”. William Lines rolled out in the same period eight container ship plus two Cargo RORO ships which can also carry passengers. They named their series as the “Wilcon”. Sulpicio Lines was not to be outdone and they fielded fourteen and these were dubbed as “Sulpicio Container” or “Sulcon”.

In the same period, Lorenzo Shipping, a former major, also rolled out eleven container ship in a series called “Lorenzo Container” or “Lorcon”. Some of these were former general cargo ships of theirs. Sea Transport Company were also able to field eight with place name of their ports of call followed by “Transport” like “Davao Transport”. None of the other liner shipping companies which followed into containerization like Sweet Lines and Negros Navigation had half a dozen container ships. Instead, they began relying on their new RORO ship acquisitions but that was also done by Sulpicio Lines, William Lines, Aboitiz Shipping and Gothong Lines.

The main effect of the rush to acquire container ships was the slowing down of the acquisition of passenger ships. Actually, this might even had an effect on their purchase of RORO passenger OR ROPAX ships. With the collapse of many shipping companies in the crisis decade of the 1980’s, this resulted in a lack of passenger ships at the end of that decade. But there were many container ships as in about sixty and that fleet pushed many shipping companies in the cargo trade out of business in the 1980’s. Two main factors pushed them into the precipice – the economic crisis which made it hard to acquire ships and the loss of patronage because the paradigm in cargo handling had changed. Break-bulk was now already marginalized and frowned upon. Shippers and traders have had enough of pilferage and goods damaged in transit.

With marginalization, the other cargo liner companies had more difficulty filling up their cargo holds. Voyages became fewer and sailing times ballooned. They became dead duck for the container vans loaded into the fast RORO liners which had fixed schedules. Soon they were on the way out or they had to move to tramper shipping where there are no fixed routes and schedules. During this period cargo liners were even included in the schedule boards of the passenger liners. Their only deficit compared to passenger liners was as cargo ships they had less speed. And since cargo is handled LOLO they also spent more time in the ports.

Now, long-distance break-bulk shipping is almost gone. It is only lively now in the regional routes like the routes originating from Cebu and Zamboanga. In many cases, places and routes they have already evolved into intermodal shipping – the use of trucks which are loaded into short-distance ROROs. In this mode the trucks are the new “containers” or “vessels”. Since that is in competition with container shipping, it is now container shipping which is beginning to be marginalized by the intermodal truck especially if it is supported by the cheap Cargo RORO LCT.

Things change. Always.

In The Middle of the 1960’s We Needed New Liners and Europe Filled That Need And Not Japan

With the exception of De la Rama Steamship Company, the Philippine liner shipping companies that were born or resurrected after World War II were dependent on the former “FS” (for Freight and Supply) ships from the US Navy. That type of ship was the backbone of our postwar passenger fleet; it was also the most numerous. One reason for that was so many of that type was built during World War II and most were deployed in the Pacific Ocean campaign of the US. Having to pay for the Philippine prewar ships they requisitioned for the war effort that type became the most common replacement given by the US together with the former “F” ships. Aside from direct replacement, the US also had to dispose so many of them and instead of bringing them back to the US where they have no use of them, many were just given to the Philippine government as aid and reparations. The Philippine government then put them up for sale at near-bargain prices (about $60,000 only; where can you get a ship that cheap?). Of course, as always, political considerations mattered and so those who have political connections had the inside track in the purchase of these vessels.

Many of the Philippine liner shipping companies were so enamored with these former “FS” ships that they practically purchased no other vessel type for the next twenty years after the war. Among those were William Lines Incorporated, Southern Lines Incorporated (they also had former “F” ships too) and General Shipping Corporation. In other liner shipping companies’ fleets like that of Philippine Steamship Navigation Company/Everett Steamship, Hijos de F. Escano Incorporated and Manila Steamship Company, the former “FS” ships were in clear majority. Even in the venerable Compania Maritima’s fleet half of those were former “FS” ships. Meanwhile, half of fleet of Madrigal Shipping Company was composed of former “Y” ships which were related to the former “FS” ships. These were former tankers converted into passenger-cargo ships. There was no Negros Navigation Company route then yet to Manila. What had a route then to Manila was the small Ledesma Shipping Lines. Negros Navigation Company became a liner company when they and Ledesma Shipping Lines merged.

Being “enamored” with former “FS” ships also had a reason. They were cheap and while they may be basic sea transportation, the passengers were willing to put up with its deficiencies. And for whatever deficiency, sometimes good food is enough to make passengers overlook it. And so whenever a former “FS” ship becomes available in the market the liner shipping companies readily snapped it up. That goes true even for the fleet of the shipping companies that quit the shipping business like Manila Steamship in 1956 (along with some much smaller shipping companies).

The future great Carlos A. Go Thong & Company was not among the recipients of ships from the US as reparation. Their first ships were salvaged “F” ships that they bought. They only had their first ex-”FS” ships when they bought out the Pan-Oriental Shipping Company of the Quisumbings of Mandaue which then went into motorcycle assembly (the Norkis-Yamaha concern). Like Go Thong, the style of the other smaller passenger liner shipping company was to lengthen the hull of the former “F” ships so these will be “FS” ships equivalent. That was the origin of the first flagship of Go Thong, the Dona Conchita. However, some other small liner shipping companies which did not have enough capital or were just sailing minor routes simply sailed straight their small ex-”F” ships. Some other were also using converted minesweepers and PT boats. Many of the shipping companies in regional routes were using converted “F” ships and converted minesweepers.

These former “FS” ships like the other war surplus ships from the US like the “C1-M-AV1” ships were classified as “passenger-cargo” ships. Obviously, they carry passengers and cargo but it actually has a deeper meaning. In those days, passenger liner shipping companies don’t normally operate pure cargo ships like these recent decades. It is actually these passenger-cargo ships that carry the bulk of cargo in the inter-island route in liner operations (which means there is a fixed route and schedule). The passenger capacities of the ships then were small (there were no 1,000-passenger capacity liners then yet and tops then was just about 700 passenger capacity and normal was just about 300). What was more prized then sometimes were the cargo holds of the ships. Handled by booms (there were no container vans yet) the interport hours were long and departures especially in the interports were not prompt. As long as there is cargo to be loaded, the ships would not leave. Unloading of cargo then in the interport can already take several hours and with so many interport calls the longest-distance ports like Davao takes one week to be reached.

In the mid-1960’s the workhorse fleet from former US Navy ships were already long in the tooth. There were no more of that type to replace the hull losses and our population and trade was growing. Mindanao too has already experienced great migration from the Visayas and so migrants had to travel and goods had to be exchanged. Obviously there was a need to refleet or add to the fleet. The only company that was still able to acquire former “FS” ships from the US in the 1960’s was the newly-established Philippine President Lines, a shipping company well-backed from the highest circles of government. Most of what they were able to acquire were former “AKL” ships of the US Navy. These were former “FS” ships retained by the US Navy after the war and refurbished for use in supplying the many scattered islands and bases of the US in the wide Pacific Ocean. These ships were among the last of its type released by the US.

Some liner shipping companies which had easy starts because of political connections, specifically, Southern Lines Incorporated and General Shipping Corporation shirked from the challenge and quit shipping and simply sold their ships. Southern Lines’ ships went to various liner shipping companies while that of General Shipping Company was divided between Aboitiz Shipping Corporation and Sweet Lines Incorporated. Amazingly, this gave birth to two separate events and entities. Once again, Aboitiz Shipping Corporation had a fleet of its own (before they were just a partner in the Philippine Steamship and Navigation together with Everett Steamship of the US; before the war they were partners with Hijos de F. Escano in La Naviera Filipina). The second event and entity was the regional shipping company Sweet Lines Incorporated became a long-distance liner company. General Shipping Corporation, meanwhile, followed another bandwagon and moved into foreign routes using ships chartered from the National Development Corporation of the Philippine government. It was not difficult for them because they were well-connected politically.

Since no surplus ships were still available from the US then a new source had to be found. Japan by this time was still building their merchant fleet because these were the years of Japan’s “economic miracle” of galloping growth and so no surplus ships were still available from them at that time. The only logical place to look at would then be Europe as the US as a nearly solid continental country has many locomotives and rail wagons but not passenger liner ships. Before this time Compania Maritima has already shown the way in sourcing surplus passenger-cargo ships from Europe. It was easy for them since they have Spanish origins and connections.

I will start from the companies that made moves in acquiring passenger cargo-ships from Europe starting from the one which made a big move. It was the shipping company Carlos A. Go Thong & Co. that was not a recipient of US reparations which took a big gamble in acquiring passenger-cargo ships from Europe. I don’t know but maybe there should not be a great deal of surprise there as they did not get any favors from the US or the government before which means they will have to pull their own bootstraps up themselves if they want to move up. And over a period of six years until 1969 they acquired a total of 9 European passenger-cargo ships for local waters (the Gothong, Dona Pamela, the Dona Gloria, Tayabas Bay, the Dona Rita, the Dona Helene, the Don Lorenzo, the Don Camilo and the first Don Sulpicio. Aside from the nine, Go Thong was able to acquire the big ships Subic Bay, Manila Bay and Sarangani Bay. The first two were C1-A ships of US built but acquired from Europe while the last was a former ship of De la Rama Steamship. Also acquired in the same period was Dona Anita, the former Governor B. Lopez of Southern Lines which has airconditioning and the Dona Hortencia, a former Northern Lines ship of Japanese origins.

Three of these ex-European ships were former refrigerated cargo ships and that means a lot because with refrigeration facilities then Go Thong can then build First Class sections, lounges and restaurants that have airconditioning. So cold drinks will be available anytime too (when the bulk of Filipino homes don’t have refrigerators yet) along with the capacity to carry loads that should remain frozen or chilled. These things were simply not possible with the ex-”FS” ships and besides these former ships from Europe were bigger, a little faster and they have big cargo holds which means more capacity for generating profitable runs. With 14 ship acquisitions Go Thong was already more than Compania Maritima in the inter-island routes before they broke up in 1972 even though they are using their big ships to Europe and the Far East.

For a major, William Lines Inc. had a rather tepid response. They only acquired two surplus ships from Europe (the sister ships Virginia and Zamboanga City, the first) in the mid-1960’s but they bought two former “FS” ships (the Dona Maria and Don Jose) let go by the other liner shipping companies (yes, they have a definite liking for that). The new liner company Sweet Lines Inc. acquired only one surplus passenger-cargo ships from Europe in this period (the Sweet Bliss) and that is understandable as they were just a new liner company. However, they also bought two passenger-cargo ships discarded by the other liner companies (these were not former “FS” ships).

Meanwhile, Aboitiz Shipping Corporation, at the same time did not purchase any passenger-cargo ship from Europe. But in Philippine Steamship Navigation Company (PSNC) they had three passenger-cargo ships which has airconditioning and refrigeration which only arrived in 1955 (The Legaspi, Elcano and Cagayan de Oro). In effect, for them this is their equivalent of the passenger-cargo ships from Europe. The Philippine President Lines and its successor company for local routes Philippine Pioneer Lines purchased only one passenger cargo ship from Europe (the Aguinaldo) as they were already concentrating on their international routes (and that ship was soon passed to their foreign operations). In fact, they soon transferred their local operations to their subsidiary Philippine Pioneer Lines.

Special note should be given to two liner shipping companies that took a different tack and the higher road — those that purchased brand-new liners instead of surplus. One of them was Hijos de F. Escano (later known as Escano Lines). What they did was to take out loans and they ordered three brand-new passenger-cargo liners from West Germany which already had airconditioning. These are the Fatima, Agustina II and Fernando Escano II. Negros Navigation Company, meanwhile, which is establishing itself as a liner company outdid them and took a different supplier. They ordered brand-new liners with airconditioning starting in 1962 which was followed by one each in 1965 and 1967. Those ships were the second Princess of Negros, the Dona Florentina and the beautiful Don Julio, the second. The difference was they ordered their liners from Japan except for the first which was ordered from Hongkong.

Compania Maritima also ordered one brand-new liner with airconditioning from West Germany, the Visayas. Compania Maritima also acquired two big cargo-passenger ships from De la Rama Steamship, the Lingayen Gulf and the Sarangani Bay. They also acquired a local-built liner from General Shipping Corporation that had already airconditioning which they renamed as the Mactan. As a footnote, Sweet Lines Inc. also ordered one brand-new liner from West Germany, the Sweet Grace which for me was rather surprising for a new liner company given that older but more “conservative” liner companies did not go into this direction.

Among those that did not make moves were Madrigal Shipping Company and De la Rama Steamship, two formerly revered names in shipping. Madrigal Shipping Company were then already disposing ships either to the breakers or to other companies. Among the local liner shipping companies, they, together with the already-defunct-then Manila Steamship Company had the penchant for buying really old ships from Europe before and so its expected life is not long. Moreover, Madrigal Shipping Company was by this time already losing in their quixotic routes to Northern Luzon and Northern Bicol and it was just practically using the remaining life of the ferries they have not disposed off. They had only one ship acquired from Europe in this period that they did not immediately dispose of and this was the Viria. Like the rest of their acquisitions this was small because their routes were minor compared to the rest. Hence, this acquisition was not comparable to the European acquisition of the others.

Meanwhile, De la Rama Steamship at the middle of the 1960’s was beginning to function just as international shipping agents. They have already disposed then of almost all their ships including those chartered from the National Development Corporation and they have long disposed of their former “FS” and “F” ships. Two of their big ships went to Compania Maritima in this period.

The smaller passenger liner companies with lesser routes and revenues proved incapable of moving up to the European category of ships, brand-new or surplus. However, four upstart companies tried to join this trend. The new Dacema Lines Incorporated was able to purchase two old passenger-cargo liners from West Germany in 1967, the Athena and the Demeter. The new E. K. Litonjua Steamship Company Incorporated/Eddie Steamships (Philippines), Incorporated was able to do likewise with three old passenger-cargo ships from various countries, the Sultan KL, the Aurelio KL and the Eddie KL. Another upstart, the Northern Lines Incorporated was able to acquire two passenger-cargo ships in this period (along with cargo ships), the Don Salvador and the Don Rene and surprisingly the source of their ships was Japan. Another newcomer, the MD Shipping Corporation was also able to procure a surplus passenger-cargo ship from Norway, the Leon. Except for the Northern Lines ships the ship mentioned did not really last long because they were already old when they can here.

These moves or non-moves determined the fate of the liner shipping companies for the next ten years. With the bold move of Carlos A. Gothong & Co. they moved up fast in the totem pole of the local liner shipping companies that by the start of the 1970’s they were not only barking at the heels of Compania Maritima but has already achieved parity or were even slightly ahead already in the inter-island routes. On the other end of the pole those that did not acquire any or practically had no acquisition were already gone from the inter-island routes in the next ten years and this included Philippine Pioneer Lines and the successor company Galaxy Lines. Madrigal Shipping Company by then had also disposed of almost of their ships and had almost no more ships sailing. The ships of the two companies many of which were ex-”FS” and ex-”Y” ships went to minor liner companies NCL/NORCAMCO Lines (the former North Camarines Lumber) and N&S Lines.

All these moves or non-moves in the middle of the 1960’s determined the fate and the positions of the liner shipping companies from the late 1960’s to the early 1970’s. Go Thong, a relative newcomer in liner shipping moved up a lot in liner shipping tier with their big acquisition. The liner shipping companies that made enough acquisitions in the mid-1960’s chugged along and generally did not lose rank for the next decade, relatively. Among these were Compania Maritima, William Lines Inc., Sweet Lines and Escano Lines. Philippine Steamships and Navigation Co. declined. The ex-”FS” ships were no longer as competitive in the 1970’s and the “C1-M-AV1” ships did not prove resilient and the the Type N3 ships even less durable. Negros Navigation Company was on the way up as they have new ship. The smaller liner companies that were still dependent of ex-”FS” ships (and the related ex-”Y” ships) and the ex-”F” and former minesweepers and were not refleeting were already on the way down. That included Bisayan Land Transport, NORCAMCO, N&S Lines, Rodrigueza Lines and many other small operators.

As recap, twenty years after our inter-island fleet basically relied on war-surplus ships from the US, the first augmentation we had were ferries sourced from Europe as ships from Japan were still rare in the mid-1960’s because they were in the midst of their own economic boom. Up to the end of the 1960’s and early 1970’s we will still source liners from Europe (like the legendary Sweet Faith). It will in the next decade when Japan will be our main supplier of surplus passenger ships.

So from war-surplus ships from the US in the end of the war and up to early 1960’s to European surplus ships in the 1960’s to Japan surplus ships in the 1970’s – these were what marked the early periods of our postwar liner shipping, the period most people now are no longer aware of. This article seeks to fill that void.

[Photo Credit: coasters-remembered.net]