Carlos A. Gothong Lines Incorporated Is Still Fighting Back

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

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

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

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Butuan Bay 1 by Vinz Sanchez

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

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

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

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

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

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

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Panglao Bay 1

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

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

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

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A Good Class of Ferry is Going Away Soon

I love speed in ships but maybe not that much and so maybe that is the reason I am not too attached to High Speed Crafts or HSCs. That is also the reason why I tend to look at the size and the engine capacity ratio of a ship and see which is more efficient.

A certain class of ferry which belongs to the great ferries (ferries with at least 10,000 gross tons) caught my attention and respect. While we had many ferries that are in the 150-meter class, that class basically used engines of 20,000 horsepower and more. They were capable of 20 knots locally and even more when they were still new abroad.

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Subic Bay 1

But then there was a class of ferries that arrived here that were in the 160-meter class whose engines were below 20,000 horsepower. They were a little less speedy but they proved to be capable of 18.5 knots locally and in a Manila-Cebu run that meant an additional sailing time of just one more hour. And, of course, in capacity they were a little more than the capacity of the 150-meter ferries.

There were only four examples of this class locally. The fast Princess of Paradise of Sulpicio Lines is not included there and so are the St. Pope John Paul II of 2GO which is the former SuperFerry 12 of Aboitiz Shipping Corporation and its sister ship, the Princess of the Universe of Sulpicio Lines and the Mary Queen of Peace of Negros Navigation (which is a shade under 160 meters at 159.5 meters length) for they all packed engines of over 20,000 horsepower.

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Princess of the World by Britz Salih

I am referring here to Manila Bay 1 of Carlos A. Gothong Lines Inc. and its sister ship, the late SuperFerry 6 nee Our Lady of Akita and also the Subic Bay 1 and its sister ship the late Princess of the World. Manila Bay 1 had a length of 162.1 meters and 18,000 horsepower from two NKK-Pielstick engines and here she was capable of 18.5 knots early on. The SuperFerry 6/Our Lady of Akita had exactly the same length, engines and speed here.

Subic Bay 1 of Carlos A. Gothong Lines Inc. has a length of 166.5 meters and 19,700 from two Mitsubishi-MAN engines. Her sister ship the late Princess of the World of Sulpicio Lines had the same length and engines but the rated power is only 18,800 horsepower. They are “thinner” at 24.0 meters breadth compared to the 26.4 meters of SuperFerry 6 and Manila Bay 1 and so they were capable of over 19 knots when they were first fielded here.

How insignificant was their speed disadvantage? Well, WG&A paired the SuperFerry 6 and the SuperFerry 10, the former Mabuhay 1 of William Lines in the Manila-Iloilo-General Santos-Davao, Manila-Cebu-Cagayan de Oro and Manila-Zamboanga-Davao routes. And many know that the SuperFerry 10 ran at up to 20 knots.

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SuperFerry 6 (Credits to PAF and jethro Cagasan)

The SuperFerry 6 did not last sailing as she was hit by engine fire off Batangas in 2000 while sailing from Davao and General Santos City and the Princess of the World was also hit by fire in 2005 off Zamboanga del Norte while en route to Zamboanga from Manila and Iloilo. Both did not sink, however and there were almost no casualties.

What lasted long were the two ships of Carlos A. Gothong Lines Inc. (CAGLI), the Manila Bay 1 and the Subic Bay 1. Well, it seems ships not painted well last longer? However, the Manila Bay 1 was also hit by fire in the bridge but the fire was controlled early. The two ships of CAGLI did not sail as ROPAXes (RORO-Passenger ships) for long as they were suspended by MARINA from carrying passengers because of numerous complaints about long delays in departures and very late arrivals (I was actually a victim of that too when I arrived in Pier 6 at 8pm for a 10pm departure and the ship left at 4:30am and we arrived in Nasipit at night instead of afternoon). From that suspension, CAGLI turned the two into RORO Cargo ships just carrying cars and container vans.

Now those who know shipping knows the replacements of the two ships are already around, the RORO Cargo ships Panglao Bay 1 and Dapitan Bay 1 (which is still being refitted as of the writing of this article in June of 2017). In fact, last April, a member of PSSS (Philippine Ship Spotters Society) saw the Subic Bay 1 being towed by a tug headed south and probably destined to a South Asian breaker. Manila Bay 1 might be following her soon when Dapitan Bay 1 enters service and if it does, it will be the end of an era of the 160-meter liners with just 18,000 horsepower engines and 18.5 knots of speed locally.

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Manila Bay 1 and her future replacement Dapitan Bay 1

In terms of cargo capacity they are superior to the 150-meter, 20,000 horsepower ROPAXes especially since they are “fatter” which means their breadths were greater. The four might have not looked sleek or modern as they still have the lines of the Japan big ROPAXes built in the late 1960’s and early 1970’s (well, they were actually built in that period!). But their interiors, if their brochures are studied, says they were not inferior to the sleeker 150-meter ROPAXes.

It is just too bad that two of the four did not last long (but both were highly praised when they were still in service) and the other two were converted into RORO Cargo ships and that is the reason why the lingering appreciation for them is not high and they are even identified by most as a separate separate class. And I just rue they did not really stand out when to think they could have been great.

So this piece is just a paean to them, a reminder too and also a farewell.

RORO Cargo Ships and Vehicle Carriers Can Be Good ROPAX Liners

In shipping, wherever that be in the world, fuel consumption is a critical factor because it takes up 40% of the operational costs of the ship. Here it might even be higher as our ships are old and our mariner rates are so low and apprentices comprise about half of the crew and they are the ones that pay and not the shipping company. So when fuel prices went really high a decade ago even the Fast ROPAXes of Europe capable of 30 knots slowed down to save on fuel. High Speed Crafts (HSCs) suffered also, had to slow down too and some stopped sailing for they were simply unprofitable even at very high load factors.

We too had been victims of that fetish with speed that in the 1990’s and so, many liners capable of 20 knots, locally, came into the country. The list of this is long and I would list it: Filipina Princess, Princess of Paradise, Princess of the Stars, Princess of the Universe, Princess of the World, Princess of the Ocean and Princess of New Unity, all of Sulpicio Lines; SuperFerry 1 of Aboitiz Shipping; Mabuhay 1 and Mabuhay 3 of William Lines; Our Lady of Lipa, SuperFerry 12, SuperFerry 14, SuperFerry 15, SuperFerry 16, SuperFerry 17 and SuperFerry 18 of WG&A; SuperFerry 20 and SuperFerry 21 of Aboitiz Transport System; St. Francis of Assisi, St. Joseph The Worker, St. Peter The Apostle, Mary Queen of Peace, St. Ezekiel Moreno, St. Michael The Archangel and St. Francis Xavier of Negros Navigation. SuperFerry 16 then came back to become the St. Therese of the Child Jesus of 2GO. A total of 26 liners. Now isn’t that too many? And most are 150 meters in length or over and the average passenger capacity is over 2,000 with 3 even breaching the 3,000 mark.

I argue that most proved to be oversized.

That speed came from oversized engines, usually 20,000 horsepower and over which means more fuel consumption and I was not happy with that trend in speed and the trend of upsizing the ships because I know that in the past when liners became bigger than the ex-”FS” ship, many ports with previous connection to Manila were left out because the liners were already too big and their drafts too deep for the small and shallow ports. Then later, the fast cruisers became the new paradigm and more ports have to be left out because to shorten voyage duration the interports were reduced. Gone were the old routes which featured four, five or even six ports of call and with voyages lasting several days.

Those big, fast liners might have been okay when ship passengers were still overflowing when there were still no budget planes and intermodal buses as competition. But that was not okay for the passengers left behind in the abandoned ports. It just created a generation or two of passengers not catered to by ships and grew up not relying on them.

And in the end the liner companies paid dearly for that. Even with advertisements they can no longer be coaxed into riding ships (even if they are painted pink). And that became a disaster for liner shipping when passengers thinned. Too few port calls mean less passengers and cargo – when the ships were already big and guzzling fuel and heavily needing those. And that just helped sink the liner sector of our shipping which has not recovered until now.

I argue that for the passenger loads and cargo sizes now our liners sailing are simply too big and that is the reason why they can’t or won’t call in the smaller ports served by liners until the end of the millennium like Ormoc, Surigao, Tagbilaran, Dapitan and others. It should go down in size and maybe add ports of call and damn if transit times are longer. What is more important is that the ships become fuller so that it will be more profitable. Anyway, those who want fast travel will simply take the budget planes. But still there are still many people which prefer the ships to the planes.

Moreover, the remaining liners now have engines too big to be profitable on marginal routes and smaller ports. I think the engines also have to be downsized. If fuel prices go up once more the liners won’t be profitable again.

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Our Lady of Sacred Heart by Chief Ray Smith

In downsizing and saving on fuel, there is one type of ship that is actually fit for us. These are the former RORO Cargo ships and Vehicle Carriers and we have several  examples of that in the past. Actually for the same size and length, RORO Cargo ships have smaller engines than ships which were ROPAXes from the start. They were not really built for speed but for economy while having a decent speed. And moreover on RORO Cargo ships not much steel has to be added as additional decks.

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Our Lady of Medjugorje by Nat Pagayonan

In the past when liners were not that yet big and fast we had very successful liners whose origins were as former RORO Cargo Ships. I think the most famous of these were the sister ships Our Lady of Sacred Heart and the Our Lady of Medjugorje of Carlos A. Gothong Lines Incorporated (CAGLI) which both came in 1990. Beautifully renovated, few suspected their true origins. Weighing the amenities of the ship, they were not inferior to liners of their size. And nor in speed although they have engine horsepowers less than the liners of their size.

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Butuan Bay 1 by Vinz Sanchez

It was the revived Carlos A. Gothong Lines (when they split from WG&A) which brought in the next batch of RORO Cargo ships for conversion into liner ROPAXes when they acquired the Butuan Bay 1 and the Ozamis Bay 1 in the early 2000’s. But what puzzled me is they forgot how to convert them into beautiful ROPAXes like before and almost everybody that rode them said they were ugly. And that maybe helped doom the return of Gothong Lines into passenger shipping. When Butuan Bay 1 became the Trans-Asia 5 it became a beautiful ship with first-class interiors. Butuan Bay 1 should have been like that from the very start and if it were, the trajectory of Gothong Lines might have been different (of course they had other problems too).

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Ozamis Bay 1 by Mike Baylon

It was the Asian Marine Transport Corporation or AMTC that next brought RORO Cargo ships here for conversion into RORO liners. In their Super Shuttle RORO series, they started with the first three converted in to ROPAXes and these were the small Super Shuttle RORO 1, Super Shuttle RORO 2 and Super Shuttle RORO 3. However, the conversions were also not done well and were not worthy of the beautiful small liners of the past. Were they scrimping too like the revived Carlos A. Gothong Lines? Or were they thinking more of the cargo than the passenger revenue?

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Super Shuttle RORO 1 by Fr. Bar Fabella

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Super Shuttle RORO 2 by Nowell Alcancia

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Super Shuttle RORO 3 by Mike Baylon

The next batch of Super Shuttle ROROs which were former RORO Cargo ships or variants from the Super Shuttle RORO 7 to Super Shuttle RORO 12 were all big, all former RORO Cargo ships but all were no longer converted in ROPAXes because maybe the first three of AMTC were not particularly successful. I was able to board all of them and their interiors were all good. The cabins for the vehicle drivers were still in good condition and being used along with ships’ drawing rooms and the good, functional galleys. Some even have gyms. Actually what was only needed is to maybe convert the top deck or another deck into good passenger accommodations. Our shipbuilders were good at that in the 1950’s and 1960’s when refrigerated cargo or cargo-passenger ships from Europe were converted into liners for Sulpicio Lines, William Lines and Sweet Lines aside from Compania Maritima.

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Super Shuttle RORO 7 by James Gabriel Verallo

The Super Shuttle RORO 7 and Super Shuttle RORO 8 were the two AMTC ships that were intriguing for me. At 145 and 146 meters length the size is good especially since this is a tall ship with at least 4 RORO decks. The original top sustained speeds are 17 and 17.5 knots from only 6,900 and 7,800 horsepower which is even less than the horsepowers of the Our Lady of Sacred Heart and the Our Lady of Medjugorje which both had top sustained speeds of 17 knots when new and did 16 knots here even with additional metal and age. If 16 knots can be coaxed from the small engines of the two AMTC ships then it might have been enough especially if compared to the speeds the former Cebu Ferries series converted liners are doing now. It will have a good container load with a decent passenger size if one deck is converted into passenger accommodations and the cabins for drivers are used for passengers here. I was hoping AMTC will go in that direction but they did not. It turned out AMTC was no longer interested in liner shipping and was more interested in container shipping and especially the loading of brand-new vehicles destined for car dealers in the south.

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Super Shuttle RORO 8 by Aris Refugio

A design speed or original top sustained speed of 15 or 16 knots might not do because converted here with additional metal and with age already they will probably just run at 13 or 14 knots and that is slow for a liner. 15 knots locally is still acceptable but 16 knots is better as proven by the Our Lady of Sacred Heart and Our Lady of Medjugorje. But then on the other hand the last time the former Cebu Ferry 2 ran as a liner to Cebu from Manila she was just being made to run at 14 to 15 knots. Does it mean that speed is already acceptable? That will mean a 28 or 29 hour run to Cebu versus the 22 hours of the big liners. But then passing through interports will mask that. Just feed the passengers well. And I always wondered why liners to Cebu don’t pass Roxas City anymore when it is just on the way. Of course the big ones can’t. At least 2GO tried Romblon port with the St. Anthony de Padua (the former Cebu Ferry 2) the last time around. But then maybe small liners shouldn’t be doing the Cebu route.

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St. Anthony of Padua by Mike Baylon

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St. Ignatius of Loyola by Mike Baylon

It was Aboitiz Transport System which next brought in RORO Cargo ships for conversion into ROPAXes with their Cebu Ferry 2 and Cebu Ferry 3. Originally these two ships were refitted to be overnight ferries but later when they were transferred out of their Cebu base they were refitted again to become liners. The two are known now as St. Anthony of Padua and St. Ignatius of Loyola under 2GO. Aside from the two, there are other RORO Cargo ships which were converted into ROPAXes but they were not liners but overnight ships. Among these are the Graceful Stars and Oroquieta Stars of Roble Shipping.

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The future Trans-Asia (1) by Mike Baylon

I think there are many RORO Cargo ships around that are about 120-130 meters in length that have a design speed of 18 or 19 knots which can still run here at 16.5 to 17.5 knots and they might just be perfect. I don’t know if that is the case of the Warrior Spirit which recently arrived to become the third Trans-Asia (1) of Trans-Asia Shipping Lines. This might be good as a test case. The length of 126.2 meters is perfect and the design speed is 19 knots from twin engines is also perfect. Trans-Asia Shipping Lines has a good record in conversion. But then she will just be an overnight ship but a big one at that. But the coming Panglao Bay 1 of Carlos A. Gothong Lines might not prove to be a test case as she will not be converted to ROPAX, per report.

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Panglao Bay 1 by Mark Ocul

Trying these former RORO Cargo ships for conversion into ROPAXes might be a safe bet. These RORO Cargo ships might be low-risk in acquisition as their purchases might just be above breaker prices. So if it does not make money the worth of metal as scrap might still pay for the acquisition price. In the future Trans-Asia (1) they are even cutting off metal so windows can be made. That is different from the experience of the Cebu Ferries ships were a lot of metal has to be added because decks have to built.

I think it is good time to try acquiring RORO Cargo ships as our future liners. They might turn out to be good bets and worthwhile liners a la Our Lady of Sacred Heart and Our Lady of Medjugorje.