Philtranco Always Tried Horizontal Integration

Horizontal integration is the setting up or the acquisition of a company at the same level of the value chain and that is meant to help the company compete. It can be a competitive strategy where economies of scale, more efficiency and increase of market power are the objectives. Companies engage in horizontal integration to benefit from possible synergies. But sometimes the resolution of a problem or a bottleneck prods a company into horizontal integration.

Philtranco Service Enterprises, Inc. (PSEI), the leading bus company in the Philippines then tried this strategy over a generation ago. From running a big fleet of buses from Manila to the southern part of the Philippines up to Davao City, they established their own RORO companies in the San Bernardino Strait crossing that linked Sorsogon and Samar. However, the results were certainly very mixed, to say the least, and controversial.

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The Cardinal Ferry 1. Research by Gorio Belen of PSSS in the National Library.

Since 1979, Philtranco buses (they were still known as Pantranco South then) have been rolling across already to Eastern Visayas via the San Bernardino Strait using the newly-fielded RORO Cardinal Ferry 1 of Cardinal Shipping. Newport Shipping which had ferries and cargo ships from Manila to Samar then followed with their Northern Star and Laoang Bay.

This reaction of Newport Shipping was very understandable as Newport Shipping was not really doing well with their Manila to Samar route and maybe they felt they have to defend their home turf as the owner of Newport Shipping is from Laoang, Northern Samar. They might have also felt that this new intermodal route might kill them in the long term and so they have to join the fun.

"Maharllika 1" Ferry unloading Bus

MV Northern Samar. Formerly the MV Northern Star before she was refitted. Photo by Lindsay Bridge of PSSS.

Before the ROROs arrived it was the motor boats of Bicolandia Shipping Lines (this company has legal-fiction companies like E. Tabinas) which dominated the route across San Bernardino Strait. But with the buses now rolling the passengers no longer have to cut their bus trip to Matnog and they do not take a local bus to Allen, Northern Samar to take the lancha (motor boat). Convenience is what the intermodal system offered. Cargo of the passengers that was once a hassle became less with the bus for it afforded less handling and haggling.

Immediately, there was a surplus of bottoms in San Bernardino Strait as the government-owned Maharlika II (later replaced by Maharlika I whom it replaced earlier) was also plying the official Matnog to San Isidro, N. Samar route. Moreover, the passengers to Eastern Visayas did not immediately shift to the buses especially the passengers to Leyte. They were still content with the liners of Sulpicio Lines and William Lines which had calls in Calbayog, Catbalogan, Tacloban and other ports in Leyte and Southern Leyte. In terms of comfort the bus is actually inferior to the liners which has its own toilets and baths, are equipped with bunks with mattresses and even linen (called “beddings”) plus the meals are free and the rice servings are generous. However, they only call in ports unlike buses which roll through the various towns.

Maharlika I

The Maharlika I. Photo from Edison Sy of PSSS.

In the aftermath of that surplus of bottoms, Cardinal Shipping and Newport Shipping teetered especially when Eugenia Tabinas got into the RORO act starting when she was able to acquire the Northern Star in 1981 which she then renamed into the Northern Samar. Eugenia Tabinas was in a strong position as she dominated the intra-Bicol routes with her motor boats and so she can compete in one of her routes at just break-even.

However, with many buses crossing San Bernardino Strait, Philtranco thought they could save money if they operated their own ROROs where they will always have priority. And so they also got caught in the RORO act (they were still strong then and they have just re-fleeted into Hino) and they thereby acquired the Laoang Bay of Newport Shipping which was renamed into the Black Double. In 1984, this became the Philtranco Ferry 1 of Philtranco Services.

1984 0915 MV Philtranco Ferry I

The Philtranco Ferry I. Research of Gorio Belen of PSSS in the National Library.

It is here that things began to get interesting and lively. Eugenia Tabinas or Bicolandia Shipping smelled that Philtranco was operating without a Certificate of Public Conveyance (CPC) and complained to MARINA, the Maritime Industry Authority which is the country’s maritime regulatory agency and which has quasi-judicial powers. Philtranco countered that since they were only loading their own buses then there is no need for them to get a CPC. Now, if MARINA agrees with that then Philtranco will be the only sea carrier without a CPC and that has great implications.

Along the way, Black Double got unreliable as she was built in 1962 and diesel engines were not yet as reliable (with changes in design and technology that changed in the mid-1960s especially when Daihatsu marine engines became dominant). She was sold to Badjao Navigation and she became the Badjao and she plied a route from Cebu island to Leyte.

While the case was pending (as it reached the higher courts as MARINA quasi-judicial decisions can be appealed in the Court of Appeals and the Supreme Court), Philtranco acquired the salvaged Mindoro Express from Prince Valiant Navigation which then became the Christ The Saviour and Christ The King. The RORO became the Luzvimin Primo because she was now under the Luzvimin Ferry Services, the new ferry company of Philtranco.

Mindoro Express ( now Maharlika Cinco )

The Mindoro Express just before she became the Christ The King and Luzvimin Primo . Photo by Edison Sy of PSSS.

In due time (which means a long time), the Supreme Court sustained the ruling of MARINA that a shipping company cannot carry passengers without a CPC and the ferry service of Philtranco stopped. By that time Philtranco was already toppling and it was fast losing its Hino buses.

Philtranco then fell into the hands of transportation mogul Pepito Alvarez who then equipped Philtranco with his new MAN and Nissan buses. Soon, he was able to reach a deal with the administration of President Fidel V. Ramos to operate the already-weak Maharlika ferries which in that time consisted only of Maharlika I and Maharlika II (this one was not in San Bernardino Strait but in Surigao Strait).

After settling in, Pepito Alvarez added the Maharlika Tres, Maharlika Cuatro and Lakbayan Uno (this was later sold to Millennium Shipping). And then the Luzvimin Primo became the Maharlika Cinco. Later, the Maharlika Seiz and Maharlika Siete were also also added to be followed by the Grand Star RORO 1 and Grand Star RORO 3 which came from Phil-Nippon Kyoei. This time Philtranco was already careful about the CPC. In these moves, Pepito Alvarez worked through his protégé Cristopher Pastrana.

Liloan ships

Maharlika Cinco and Maharlika Seiz. Photo from the PPA.

The horizontal integration of Philtranco was not necessarily beneficial for the passengers unless maybe in its early years when the dominant Bicolandia Shipping Lines engaged in what is locally-known as “alas-puno” system of departures when a ferry will only leave if it was already full of rolling cargo (and that was the cause of their downfall later). With that system, the buses and its passengers lose time and it could be in the hours.

But when ROROs bloomed in San Bernardino Strait, horizontal integration became a negative because Philtranco buses have to wait for the ferries (Maharlika ferries were not so reliable and it tried many routes in the country including in Catanduanes, Masbate, Marinduque, Batangas and Panay and so its presence in San Bernardino Strait and Surigao Strait was actually diluted and trips were few) as Philtranco buses have no freedom to sail in competing ferries.

I was once a passenger aboard a Philtranco bus from Davao. Our driver was driving fast so we can board the morning RORO of Maharlika in their Dapdap port (owned by sister company Philharbor). We arrived at 8:30am only to see the ferry has just left. There was only one Maharlika RORO then there and we waited for its return. Finally, we left Dapdap port at 1:30pm and everybody was so pissed up including the drivers as we saw several ferries leaving the competing BALWHARTECO port ahead of us. If our Philtranco bus had freedom, we would have been aboard the first of those that left BALWHARTECO port and saved several hours of waiting time.

Dapdap port

Grand Star RORO I and Maharlika Tres in Dapdap port. Photo by Mike Baylon of PSSS.

The Philtranco driver/conductors also didn’t like that they have no freedom to load the buses in competing ROROs. The reason is they can’t avail of the “rebates” offered by the competing shipping companies. This comes in the form of free ferry tickets that can be sold by the driver/conductors to their passengers. Even if only half the tickets are free that can come up to an average of P1,500 for the driver/conductors in additional income.

When Archipelago Philippine Ferries, the name of the shipping company established by Pepito Alvarez) weakened and they just had a limited number of ROROs running, Philtranco finally allowed its buses to ride the competing ferries as passengers began to shun them. However, when the FastCat ROROs came for Archipelago Philippine Ferries, the Philtranco buses were no longer allowed that again. There was also the experiment where the Philtranco buses were no longer boarded aboard the FastCat ROROs and only the passengers and their cargo were loaded. In that system, a Philtranco bus will be waiting at the opposite port.

Philtranco 1833 and 1710

Philtranco buses that disembarked from a FastCat. Photo by Mike Baylon of PSSS.

Now, Philtranco’s fleet is whittled and it is already far from its number in the 1980s after they re-fleeted from Leyland to Hino. And the tables turned already. It is so-many FastCats that needs them now and not the other way around.

Now, did you know that founder A.L. Ammen tried horizontal integration too?

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The Ferry That Won’t Die

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

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Photo credit: Joel Bado

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

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

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

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Photo credit: To the lady in the photo

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

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

Maharlika Cinco

Photo credits: Philtranco Heritage Museum and Dennis Obsuna

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

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

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

Mindoro Express ( now Maharlika Cinco )

Photo credit: Edison Sy

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

Mindoro Express ( now Maharlika Cinco )

Photo credit: Edison Sy

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

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Photo credit: PDO-Visayas of PPA

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

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

Comparison

Photo credits: Edison Sy and Joel Bado

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

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

Decrepit Maharlika Cinco

Photo credit: Rex Nerves

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

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

Maharlika Cinco

Photo credit: Rex Nerves

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

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

The Blue Magic Ferries and Starhorse Shipping Lines

These two shipping companies are actually successors of the once-dominant Viva Shipping Lines and its legal-fiction companies Sto. Domingo Shipping Lines and DR Shipping Lines which once dominated the seas of the old Southern Tagalog region before four provinces of it were spun out as the MIMAROPA region. These two companies were founded by the sons of the founder of Viva Shipping Lines, the widely-known Don Domingo Reyes or “DDR” to many. This founder was a powerful man during his time as he was the landsman in the Bondoc Peninsula in Quezon of the martial law dictator then. Don Domingo Reyes’ main base was Bondoc Peninsula although most people thought it was Batangas City and Lucena as he has his bases of his shipping there and people did not know of Villa Reyes in San Narciso, Quezon where he built his first wooden motor boats that were called batel in the region.

A laid-up Viva Shipping Line RORO by Edison Sy

The Blue Magic Ferries was first to be established among the two. This came into existence when the operations of Viva Shipping Lines, etc. were already winded down and its ships being disposed already. Almost all of the older ships of the Viva Shipping combine were sold and most to the ship breakers. Maybe that will be the logical fate since the Southern Tagalog region has a surplus of ferries then when two Zamboanga shipping companies (the Aleson Shipping Lines and A.S. Sakaluran) and a Cebu shipping company (ACG Joy Express Liner) even tried their fates there (none was successful, however).

Some fastcrafts of Viva Shipping Lines somehow survived and these combined with the remains of ACG Joy Express Line. This company started in shipping with the Sea Cat vessels that first operated out of Cebu and had routes to Bohol and whose founder is a well-known scion of Cebu who is Alvin C. Garcia (hence the initials). From what I can gather, Blue Magic Ferries is a sort of partnership between two sons of Don Domingo Reyes and Alvin C. Garcia.

Blue Water Princes 2. Blue Magic Feries Blue Line Shipping.

Blue Water Princess 2 by JM Litada

Blue Magic Ferries was able to accumulate at least five ferries with two ROROs and two fastcrafts and a catamaran High Speed Craft (HSC). The ROROs were the Blue Water Princess 1 which was known as ACG Joy 8 in ACG Joy Express Liner before. The other RORO was the Blue Water Princess 2 which was the former Asia Brunei of the Trans-Asia Shipping Lines. The High Speed Crafts of Blue Magic Ferries that I was able to verify were the Blue Water Queen, the Blue Water Lady and the Blue Water Lady II. The first was the former Our Lady of Mt. Carmel of DR Shipping Lines which was purchased from Sun Cruises of Manila. The second was the former Sea Cat 25, a catamaran of ACG Express Liner and the last was the former Our Lady of Fatima of Sto. Domingo Shipping Lines.

Blue Magic Ferries based itself in Lucena, an old base of Viva Shipping Lines, their predecessor company (later Starhorse Shipping Lines based itself too in Lucena). From there they operated routes to Marinduque and Masbate which are also old routes of Viva Shipping Lines. Lucena then was not virgin territory and in fact there were many shipping companies operating routes from there including Montenegro Shipping Lines, Phil-Nippon Kyoei and Sta. Cruz Shipping. Meanwhile, Kalayaan Shipping Lines had a route to Romblon. [Note: Phil-Nippon Kyoei and Sta. Cruz Shipping are both defunct now.]

Blue Water Queen

Blue Water Queen by Edison Sy

Trouble first struck Blue Magic Ferries when the Blue Water Princess 1 was hit by storm waves while on a voyage from Lucena to Masbate which was an old route of Viva Shipping Lines. It seems the ship’s rolling cargo slid unbalancing the ship which then tried to seek refuge in western Bondoc Peninsula but capsized when the ship struck the shallows. This unfortunate incident happened in 2007 and it resulted in some casualties. To a beginning struggling company this type of incident can be hard to surmount especially if the company has other problems.

From a TV grab of Sydney Morning Herald

Starhorse Shipping Lines came later than Blue Magic Ferries around 2008 and started by leasing ships from DBP Leasing Corporation, the government’s ship leasing company. They named these into a series called “Virgen de Penafrancia”. That name is not surprising since Viva Shipping Lines originally started with the “Penafrancia” series of batels and then into a series of ROROs called the “Viva Penafrancia”. It was able to secure a route by accepting the promoted but harebrained route of MARINA (Maritime Industry Authority, the Philippines maritime regulatory agency). That route is from Laiya, San Juan, Batangas to Marinduque which does not make sense on two counts. One, the distance is double than that of from Lucena and those who know the sea knows it will not be able to compete in rates and fares with the ferries from Lucena. Second, the direction of the route means the ferry will be broadsided by the habagat (southwest monsoon) waves, the same problem usually encountered by the Lucena-Masbate ships which once nearly capsized a ferry in the Pasacao-Masbate route. Starhorse Shipping Lines was founded by Victor Reyes, the eldest son of Don Domingo Reyes. [Victor Reyes was recently deceased.]

Soon, as expected, Starhorse Shipping Lines was able to secure a transfer to the Lucena-Marinduque route and they chartered more ferries from DBP Leasing Corporation until their series reached the numeral “VIII” (however there was no “III” and “IV” but reports then said they purchased the Don Martin Sr. 6 of the defunct Palacio Lines of Cebu and Samar but this is missing now). So for a time, Starhorse Shipping Lines was able to accumulate more ferries from DBP Leasing Corporation, most of which were LCTs. This time around Starhorse, the successor, emphasized cleanliness and passenger service, two terms that were unknown in the predecessor company. However, they were in the route where the new dominant shipping company of Southern Tagalog and MIMAROPA, the Montenegro Shipping Lines Inc. was operating. In the early days of Montenegro Lines, their predecessor company Viva Shipping Line applied the pressure on them, shall we say. This time around, it was already the pleasure of Montenegro Lines to return the favor.

M/V Pinoy Roro-1 Folio

From a folio by Irvine Danielles

Greater trouble erupted for Blue Magic Ferries at the same time Starhorse Shipping Lines started operations. It seems they found out then that they have no Certificates of Public Convenience (CPC or franchise) which supposedly should still be in the possession of the Reyes family. Actually, things are really puzzling for me. From records I can gather, some 24 ships of the Viva Shipping Lines combine were confirmed sold (I can name the 24 individually) and some was as late as 2006. However, the family can show nothing for it in terms of ability to purchase new ships (especially by Starhorse Shipping Lines). And what happened to the franchises? These thing do not disappeared in an instant as it is the residual of any defunct transportation company and can even be sold for cash or hoarded. Were the proceeds returned to a “patron saint”?

Blue Magic Ferries stopped operations in 2008. The Blue Water Princess 2 was sold to Navios Shipping Lines where she became their first vessel, the Grand Unity. Blue Water Lady II was sold to DIMC Shipping of Dumaguete where she became the Delta III. The fates of the other ships are unknown to me. Some might still be laid up and one was reported to be in a Navotas yard.

Starhorse Lines M/V Peñafrancia II

Virgen de Penafrancia II by Arnel Hutalla

Starhorse Shipping Lines isn’t doing too well lately. They have returned to DBP some ships (ironically some is already with their competitor Montenegro Shipping Lines) and now they are down to two, the Virgen de Penafrancia I and Virgen de Penafrancia II which are both LCTs. Heads-on, LCTs are usually at a disadvantage against short-distance ferry-ROROs although their Korean-made LCTs seem to be better than the ordinary LCT.

One of the two, Blue Magic Ferries is now out. I wonder if Starhorse Shipping Lines can hold on and i hope they can. They are trying but sometimes the death of the founder proves insurmountable.

Blue Magic Ferries and Starhorse Shipping Companies are two successor companies I have a hard time figuring out. I wonder if there are smokes and mirrors even in the predecessor company.

LG Flatscreen TV for Entertainment

Starhorse Shipping goodluck charms by Irvine Kinea

As a last note, I have learned that Viva Shipping Lines still have some ships in storage in Lucena and San Narciso, Quezon. Will there be a rebirth? Or is it already too late and the family is too fractured now?

I am still interested in the further developments of these successor companies of Viva Shipping Lines.

In the Philippines, No-Name, Shoddy Ferries Have a Better Safety Record Than Internationally-Certificated Ferries

A candidate for Ripley’s “Believe It or Not”? That’s true and so better read on.

Yesterday, it was in the news that Christopher Pastrana, The Boastful is hosting the 41st Interferry Conference that will be held in Manila starting today, October 15. There will be many sponsors for that and it is usually attended by shipping owners, shipbuilders, marine engine makers, various suppliers and other entities connected to shipping to exchange notes and learn about the latest trends and products. By the way, Interferry is not the sole organizer of maritime conferences.

A news item said the FastCats of Pastrana can provide safe ferries as do the ferries of Starlite and the implication is because those are new. Well, not so fast as it is not just the newness of the ship that is a factor in safety. May I remind too that Pastrana lost the Maharlika Dos to capsizing and sinking near Panaon island in 2014 after its engines failed and his Maharlika Cuatro, though just nearby, did not come to its rescue. And Starlite Voyager grounded and reached BER status when it was on the way to a shipyard in 2011. Are they blaming now the oldness of their vessels that sank?

I was angry when Maharlika Dos capsized and sank in 2014 because Pastrana broke the 35-year record of Bicol steel-hulled ferries not sinking while sailing ever since the RORO Cardinal Ferry 2 of Cardinal Shipping came in 1979. The Northern Samar sank in 2006 in a storm but she was not sailing and was just moored in Tabaco port. This perfect record extends to Surigao Strait because no steel-hulled ferries ever sank there since Cardinal Ferry 2 came in 1980, a record that Maharlika Dos broke infamously.

And to think the eastern seaboard short-distance ferry routes are home to the some of the most shoddy ROROs in Philippine waters led by the Maharlika ships of Christopher Pastrana and the Millennium Uno of Millennium Shipping. Well, the ships of Bicolandia Shipping then were also not topnotch and are old. But no matter what these ferries don’t sink even though the eastern seaboard straits are among the most dangerous in the country. As I have said in an earlier article it is seamanship that carried them through. The seamen there would not let their ships sink because they know that among their passengers might be their kins, their friends, their school mates or somebody known to them. But Maharlika Cuatro‘s captain didn’t know that and so he let Maharlika Dos wallow in the ever-strengthening swells until it capsized. And now since he got new FastCats, Pastrana always boasts now about safety and misses no chance to deride the “lack of safety” of his rivals. What gall!

Before Pastrana or even Cusi of Starlite Ferries, another boastful owner, gets carried away let me state that going by the records and empirically there are a lot of ferry companies which are their rivals which have a perfect safety record, i.e. they did not lose ships to sinking. In Bicol, Sta. Clara Shipping, Penafrancia Shipping, Regina Shipping Lines and 168 Shipping Lines have never lost a ferry of theirs. That goes true to the defunct ferry companies that served Bicol like Cardinal Shipping, Newport Shipping, Badjao Navigation and the short-serving Luzvimin Ferry Services. Well, even Denica Lines have not lost a steel-hulled ferry so far.

Going to Quezon, the safety record of the decrepit-looking ships of Kalayaan Shipping have a perfect safety record as do the defunct Sta. Cruz Shipping. Alabat Shipping also has a perfect safety record as do Phil-Nippon Kyoei when they were still existing. Noting these ferry companies, I purposely omitted those that have short service records like Starhorse Shipping.

In Western Visayas, Milagrosa-J Shipping and Tri-Star Megalink both have perfect safety records even though Milagrosa-J Shipping regularly crosses the Sulu Sea which has rough seas and strong winds many months of the year. And to think their sea crafts are small and are already old. It is really in the seamanship.

Batangas shipping companies have no great safety record especially Besta Shipping. But I would like to point out that for a ferry company which has a fleet of over 30, Montenegro Shipping Lines lost only one ferry in 20 years even though they can be found almost anywhere in the Philippines including those that have rough seas. They only lost the Maria Carmela when somebody threw a cigarette butt into a copra truck and thereby igniting a conflagration which was rather unfortunate. And Montenegro Lines have some of the oldest ships hereabouts.

Zamboanga is home to some of ferries that will not look so clean internally and many are also old. But two sailing companies there, Ever Lines and Magnolia Shipping, probably the Number 2 and Number 3 there have perfect safety records as they have not lost a ship even in their freighters. And Sulu, Tawi-tawi and Celebes Sea have strong seas when there is a storm somewhere in eastern Philippines or when the monsoons are blowing hard. Minor shipping companies of Zamboanga like Sing Shipping and Ibnerizam Shipping also have perfect records. The defunct Basilan Lines/Basilan Shipping of the Alanos also did not lose a ship although their Dona Ramona was bombed in Lamitan City.

Mae Wess of Davao has not also lost a ship as do the KSJ Shipping of Surigao. And as far as I know, the currently operating ferry companies of Camiguin – Philstone Shipping, Davemyr Shipping, and Hijos de Juan Corrales have not lost a ship too and it seems that also goes true for the defunct P.N. Roa and and Jade Sea Express. In Panguil Bay, Daima Shipping has not also lost a ship even though their Our Lady of Mediatrix was burned because of the firebombing of two Super 5 buses aboard her in 2000.

In Cebu, for all the size of their fleet Lite Ferries may not lost a vessel (was the Sta. Lucia de Bohol lost at sea?). FJP Lines/Palacio Shipping, defunct now, also has a perfect safety record. There are other defunct shipping companies of Cebu which has not lost a ship through accident and that includes VG Shipping, Roly Shipping/Godspeed, Kinswell Shipping, Jadestar Shipping, Goldenbridge Shipping, Maayo Shipping, Cuadro Alas Navigation, PAR Transport plus many smaller ferry companies. In the recent era, Gabisan Shipping are known for safety and the ability to “read” the waves and have not yet lost one.

If I go by routes, there was not a ferry lost in Roxas-Caticlan and Dapitan-Dumaguete even though their seas can sometimes be rough. No steel-hulled ferry was ever lost in any route in Bicol too except for the Blue Water Princess 2 which is a Quezon ferry going to Masbate and the Rosalia 2, a Cebu craft going to Cataingan, Masbate. There are many, many other routes in the country which has not seen a ship sink even though they are not using a new ship. It is all in the seamanship really. To say a new ships is “safer” is just like claiming a new car will not be involved in a collision.

Some of our HSC companies too are very safe. Oceanjet, the Number 1 now in HSCs, has not lost a ship ever and they did not always use new crafts. Weesam Express also has a perfect record. Even the defunct Bullet Express, the fastcrafts of the Viva Shipping Lines combine and the fastcrafts of A. Sakaluran have perfect safety records. The are a lot of other HSC companies which had perfect records but their service record was short like Star Crafts. Not included here is SuperCat which has lost one.

And which brings me to our liners which in the recent years are internationally-certificated, have P&I insurance and are mostly spic-and-span but unfortunately have a bad safety record. In the last 20 years, WG&A/CFC lost SuperFerry 3, SuperFerry 6 and SuperFerry 7, all to fire and Dona Virginia and Our Lady of Banneux due to grounding. Aboitiz Transport System (ATS) also lost the SuperFerry 14 to a terrorist act and the St. Gregory The Great to grounding. Sulpicio Lines lost the Princess of the Stars and Princess of the Orient to capsizing and lost the Princess of the World, Philippine Princess and the Iloilo Princess to fire and the Princess of the Pacific to grounding. Negros Navigation also lost the St. Francis of Assisi to fire.

Between the end of the World War II and 1995 I know of 75 (that is seventy-five) liners which were lost and mainly at sea. That is 75 in only 30 years! Can anybody believe that? So how can I be impressed by liners and international certificates in safety? Or in their being spic and span? The records say otherwise. And believe me I can easily name the 75 as I have my own database about maritime hull losses. This 75 does not even include regional ships like the Boholana Princess which was an overnight ship when she was lost.

The Don Juan and Cebu City were brand-new ships when they were fielded in the Philippines. But they sank in collisions at night. So Pastrana and Cusi be better warned by their boastfulness of their new ships. They better be more humble before shipping companies which have not ever lost a ship.

Newness of a ship is not a guarantee of anything except in shininess.

voyager-homma

Photo credit: Masahiro Homma