Ouano Wharf: A Place For Refittings

Retrieved from the old PSSS Website
written by: Mike Baylon

Whenever news that a vis-min shipping company would buy a new ship, one of the most asked questions is “Where would that ship be refitted?” For an archipelagic country like the Philippines, sea travel and short inter-island ferry services and trips are the swiftest way of transporting yourself to and from an island. But didn’t you ever how and where are these ships remodelled and refitted?

Ouano Wharf at Day


Ouano Wharf at Night ©Jonathan Bordon

Ouano Wharf Located at Mandaue City in the Island of Cebu is one of the busiest wharf of the country, is known to be the home of new ships bought from other countries like Japan, Korea and China are remodelled.

The history of Ouano Wharf was traced back during the early 70’s and was made into reality by industrialist Ernesto Cabrera Ouano Sr. He was a visionary who started his fortune in business with vast tact of salt beds and later converted the area into an “Industrialized Zone” making it one of the most busiest wharfs in Cebu. Along the piece of land is the ancestral house of the Ouanos. The Ouanos also owns a yacht that would carry the replica of the Holy Infant Jesus or better known as the Sto. Niño de Cebu during the yearly fluvial procession.

Busy Ouano Wharf ©Mark Ocul

Cebu, being the centre of the shipping industry of the Philippines, has the most number of inter-island shipping companies where their fleet would range from 40-100 meter ships and some of these companies operate a wide range of routes where there’s a need for a better and a faster ship.

Japan is one of the main sources of 2nd hand ships that are now being used by most of the local shipping companies in their operations. A delivery of a ship from Japan to the Philippines would last 5-7 days, depending on the route being used and on the speed of the ship. Most of the companies here in Cebu like Lite Shipping, Cokaliong Shipping Lines, Gothong Southern, Trans Asia Shipping Lines Inc., and Cebu Ferries Corporation would have their newly acquired 2nd hand ship remodelled and refitted in Ouano Wharf. Probably, the rental of the place is much cheaper than a regular shipyard, and accessibility to the main road is just 300 meters away.

One of the common things you will notice in Ouano wharf is that any shipping company can dock there and would probably have their ships repaired and remodelled there. The shipping company will also hire their own security guard to ensure peace and order on their ships. The company is also the one who will choose their own contractor and bring their own equipments, have their own power source by the use of generators and have the ship design by the Naval Architect hired by the owner.

Ouano Wharf Aerial View ©Raymond Lapus

Most of the ships that are bought from Japan are mostly for rolling cargoes and there is just a small passenger deck attached on the ship. Most of them too, has a bow ramp which is usually used when docking while they are still used by their own individual operators in Japan.

Take for instance, the Big Three of Cokaliong Shipping Lines Incorporated: MV Filipinas Cebu, MV Filipinas Ozamis, MV Filipinas Iligan. They all had a bow ramp in Japan and there was just a little space on a deck where passengers could stay. When they acquired their ships, they immediately had it dock in Ouano Wharf and had their new closed bow attached their. In addition, supplementary decks were also added in order for the ship to cater the demands of passenger accommodations. Cokaliong Shipping Lines Incorporated hired their own contractor.

Another good example is the Big Three of the Cebu Ferries Corporation. The MV Cebu Ferry 1, MV Cebu Ferry 2 and MV Cebu Ferry 3. They were all refitted in Ouano wharf when the company acquired them. The 3 decks of MV Cebu Ferry 2 and MV Cebu Ferry 3 were just added when they were being refitted their. On the original design, these 2 ships are just mostly used for rolling cargo and there were basically no room for passenger accommodations.

Cebu Ferry 2 reffited at Ouano Wharf

Filipinas Ozamis reffited at Ouano Wharf ©Vincent Paul Sanchez

The examples mentioned above are very good examples why most of the vis-min shipping companies would choose Ouano wharf as a place where they can refit their ships. There is freedom for the company to choose things that will be done to the ship in order for it to look good and be loved by the riding public.

These are some of the ships that were recently refitted in Ouano when a company acquired them:

Lite Shipping Corporation
MV Lite Ferry 8 (ex-Sta. Maria of Negros Navigation, ex-GP Ferry 1 of G&P Lines, built in Japan)
MV Lite Ferry 9 (ex-Daian 8, built and acquired in Japan)
MV Lite Ferry 10 (ex-Ferry Ezaki, built and acquired in Japan)
MV Lite Ferry 11 (built and acquired from Japan)
MV Lite Ferry 15 (built and acquired from Japan)
MV Lite Ferry 23 (ex-Ferry Misaki, built and acquired from Japan)

Trans Asia Shipping Lines Inc
MV Trans Asia 3 (ex-New Shikoku, built and acquired in Japan)
MV Trans Asia 5 (ex-Butuan Bay 1of Carlos A. Gothong Lines Inc, built and acquired from Japan)

Cebu Ferries Corporation
MV Cebu Ferry 1 (ex-Ferry Kumano, built and acquired from Japan)
MV Cebu Ferry 2 (ex-Asakaze, built and acquired from Japan)
MV Cebu Ferry 3 (ex-Esan, built and acquired from Japan)

Cokaliong Shipping Lines
MV Filipinas Dinagat (ex-Soya Maru, built and acquired from Japan)
MV Filipinas Iligan (ex-Ferry Fukue, built and acquired from Japan)
MV Filipinas Cebu (ex-Mikawa Maru, built and acquired from Japan)
MV Filipinas Ozamis (ex-Suruga, built and acquired from Japan)

Negros Navigation
MV St. Michael the Archangel (ex-Blue Diamond, ex-Queen Mary, acquired from Korea, built in Japan)

Ouano Wharf isn’t just a normal place where ships are being refitted. There are also Motorbancas and LCTs who are plying some short distance routes. MB Ave Maria 5, a Motorbanca, is doing a Ouano(Cebu)-Poro, Camotes-Ormoc route and LCT Sta. Filomena and LCT Sto. Niño de Bohol is doing a Ouano(Cebu)-Tubigon, Bohol route.

Basically, there are more ships that were refitted in Ouano during the past, probably. But no matter what happens to the shipping industry, may it rise or fall, one thing will always be in the minds of Ship Spotters – Ouano Wharf is a part and will always be a part of the history of the shipping industry in the vis-min region of the Philippines.

The Intermodal in the Philippines

Retrieved from the Old PSSS Website
written by: Mike Baylon

Intermodal is the use of more than one form of transport in a trip or journey. In the Philippines, that usually means island-hopping using a vehicle (public like a bus or private) and a RORO. Intermodal could be for business like shipping, a container van or cargo truck. It could also be for personal pleasure like bringing one’s own vehicle for touring or visiting relatives in the provinces.

Batangas Port ©Edison Sy

35 years ago, the intermodal as we know it today barely existed. There were only a few LCTs that connected some nearby islands especially in the Visayas. The connections between Luzon, Visayas and Mindanao were not yet in existence. In fact the highways we take for granted today were still being built. The completion of that, the construction of connecting ports and the emergence of the RORO ships were the set conditions for the intermodal system to fully arise.

The idea to connect Luzon, Visayas and Mindanao were first crystallized in the Pan-Philippine Highway project dream during Diosdado Macapagal’s term. This did not get off the ground for lack of funds and basically only feasibility studies were made. The idea was then taken over by Ferdinand Marcos. War reparations equipments and soft loans from Japan were used. Hence, the project was renamed the Philippines-Japan Friendship Highway.

The Proposed Pan-Philippine Highway ©Gorio Belen

It was already Martial Law when the road constructions went into full swing. More foreign loans were contracted and applied to the project. At Marcos’ behest, the project was renamed the Maharlika Highway. Most Filipinos later identified this project with Marcos (and this probably resulted in the everlasting irritation of Diosdado Macapagal’s diminutive daughter).

At the middle portion of the road construction period the connecting ports of Matnog (in Sorsogon), San Isidro (in Northern Samar), Liloan (in Southern Leyte)and Lipata (in Surigao City) were built. Those were entirely new ports and specifically designed as RORO ports to connect Sorsogon to Samar and Leyte to Surigao. Two ROROs were also purposely-built, the “Maharlika I”, launched in 1982 and fielded in the Matnog-San Isidro route and the “Maharlika II” launched in 1984 and fielded in the Liloan-Lipata route.

Matnog Port ©Joe Andre Yo

Two key connecting bridges were also constructed. To connect Samar and Leyte, the beautiful San Juanico Bridge was built over the narrow strait separating the two islands. And to connect Leyte to Panaon Island, the Liloan bridge was built over the narrow, river-like, shallow channel separating the two islands.

San Juanico Bridge ©George Tappan

The Marcos government made a lot of hoopla about the Luzviminda (Luzon-Visayas-Mindanao) connection. Officially, when the Maharlika ferries sailed the administration then claimed it was the first time that Luzon, Visayas and Mindanao were connected in our history by the intermodal. But in reality the private sector was ahead by a few years and used their own ROROs and LCTs to connect Luzviminda using existing and makeshift ports and wharves, some of which were privately-built. The Bicolandia Shipping of Eugenia Tabinas of Tabaco, Albay and the Millennium Shipping of the Floirendos of Davao were among the key pioneers here that lasted.

Soon other RORO connections also came into existence bridging the other islands. In the Southern Tagalog routes, it was the Manila International Shipping and Viva Lines which were the pioneers. They mainly used Batangas and Lucena as base ports and they connected the two provinces of Mindoro, Romblon and Marinduque. In the intra-Visayas routes Gothong Shipping, Aznar Shipping and Maayo Shipping were among the early pioneers that lasted along with Millennium Shipping. Except for Gothong, all were short-distance ferry companies and basically carried vehicles crossing the islands.

Dalahican Port, Lucena City ©Raymond Lapus

It must be pointed out that even in the 80’s, liner companies (like Negros Navigation, Sulpicio Lines and most especially Gothong Shipping) and some overnight ferry companies (notably Trans-Asia Shipping) already have ROROs that serve the overnight and some short-distance routes. Though basically carrying LCL and palletized cargo their ships can carry vehicles if needed. However, unlike the short-distance ferry companies that was not their thrust. But their RORO liners are sometimes the only way to bring vehicles from Manila to an island not connected by the short-distance ferry companies. Hence, car manufacturers and dealers were among their clients. This presence impacted a lot the long-distance LCT/barge+tug companies like Lusteveco (Luzon Stevedoring Co.), a niche carrier established by the Americans.

Asia Korea of Trans-Asia Shipping Lines ©Gorio Belen

In the 80’s, containerization of local shipping went full blast. It began with 10-foot and 20-foot container vans moved by forklifts. But in the 90’s, the 20-footers dominated with a significant number of 40-foot vans that are mainly transshipments for foreign ports. To speed up loading and unloading the container vans were mounted in trailers pulled by tractor heads or prime movers. This mode is also considered intermodal.

While that intermodal form was gaining supremacy in the long-distance routes, the combination long-distance bus/truck plus short-distance RORO was also gaining ground in the 90’s. In the first decade of the new millennium that intermodal type was already beginning to surpass the long-distance shipping-based intermodal. This new combination has changed and is still changing the Philippine shipping seascape. The long-distance buses (along with the budget airlines) took the passengers of the liners. And the long-distance, intermodal trucking began to take the container business of long-distance shipping companies.

Calapan Port ©Raymond Lapus

In the last decade, long-distance liner shipping companies whose base is Manila has been driven out of some important islands and their frequencies were reduced in others. While Manila as an inter-island gateway port is being reduced in significance, Batangas has become a very important gateway port. Because of this long-distance shipping from Manila to Panay has been reduced to just the port of Iloilo. But even in this route the frequencies are much reduced now while the frequencies of the buses and trucks are in full upswing. Occidental Mindoro ferries from Batangas also lost out and Mindoro passenger shipping from Manila is now almost over (this does not include Lubang island).

The intermodal bus/truck plus short-distance RORO combination has also invaded Cebu, traditionally our second most important port. There are now long-distance trucks from Manila coming to Cebu and some of these are even Cebu-based. These trucks have already short-circuited the traditional Cebu shipping bailiwick Eastern Visayas. To compete Cebu manufacturers and distributors are already using their own delivery trucks to the nearby islands esp Negros, Bohol, Leyte and Masbate. Trucks from those islands also reach Metro Cebu.

Polambato Port, Bogo City, Cebu in the North ©James Gabriel Verallo

Bato Port, Santander, Cebu in the South ©Jonathan Bordon

Toledo Port, Toledo City, Cebu in the West ©James Gabriel Verallo

Cebu Port in the East and Central ©Mark Ocul

In general, even in the face of these inroads the overnight ferries of Cebu using break bulk or palletized loading have held forth and are still expanding. In the main their northern Mindanao, bailiwick is still intact save for Pulauan port in Dapitan City in Zamboanga peninsula.

In Mindanao, there are only three ports with significant rolling cargo – the Pulauan port in Dapitan, the Lipata port in Surigao City and the Balingoan port in Misamis Oriental. In Pulauan ships generally connect to Dumaguete but many connect further to Cebu. In Lipata port, the traffic there is generally going north to Tacloban and further up to Luzon and not to the direction of Cebu. The RORO route to Camiguin from Balingoan, Misamis Oriental has long been developed and was initially buoyed by tourism. Recently, that route has already been extended to Jagna, Bohol.

Pulauan Port, Dapitan City ©Mike Baylon

Lipata Port, Surigao City ©Aristotle Refugio

Balingoan Port, Balingoan, Misamis Oriental ©Michael Denne

In the Visayas, the important intermodal connections going east of Cebu passes through the following: the Bogo-Palompon route, the Danao-Isabel route, the Mandaue-Ormoc route and the Mandaue-Hindang route. The ROROs in these routes mainly carry rolling cargo, usually trucks.

In Bohol, the main intermodal ports of entry from Metro Cebu is Tubigon, Jetafe and Clarin. However there is an important connection between Argao, Cebu and Loon, Bohol. There are also important connections between Negros and Cebu islands. From southern Cebu there are a lot of connections to ports near Dumaguete. In the north, the Toledo-San Carlos and Tabuelan-Escalante routes are important connections. There are also ROROs connecting Cebu island to Bantayan island, Masbate island and Camotes islands.

Tubigon Port ©Mike Baylon

Negros island is mainly connected to Panay island through the Bacolod-Dumangas route. And Panay is connected to Mindoro and Batangas through the Dangay port in Roxas, Oriental Mindoro.

From the Bicol peninsula, ROROs connect to Catanduanes (from Tabaco City) and Masbate island (from Pio Duran, Albay, Pilar and Bulan in Sorsogon). However, the main connection of Bicol now to Samar is through the town of Allen, Northern Samar via two ports of entry – Balicuatro and Dapdap. There is also an alternative route now from Benit port, San Ricardo, Southern Leyte to Lipata, Surigao City. And Leyte connects to Ubay, Bohol via Bato, Leyte and Maasin, Southern Leyte.

There are still a lot of minor RORO connections I have not mentioned. These are mainly connections to smaller islands like Lubang, Alabat, within Romblon province, to Ticao, Dinagat, Siargao, Samal, Balut, Olutanga, Siquijor, Guimaras and Semirara islands. If necessary, the ROROs in Zamboanga City can take in rolling cargos to Basilan and Jolo islands and ports in Tawi-tawi province. There is also an important RORO connection between Mukas and Ozamis City which obviates the need to go round the whole Panguil Bay.

Zamboanga Port ©britz777

The short-distance RORO sector is still growing and more routes are still being created. In its wake should come the buses, trucks, jeeps and private vehicles normally. However, in the last few years, the Arroyo government has oversold the intermodal system and in its wake is creating a lot of “ports to nowhere” and RORO routes that do not make sense. “Ports to nowhere” are ports where practically no ships call.

Strong Republic Nautical Highway(Visayas) ©Raymond Lapus

But as the cliché goes, that is a different story altogether.

More Photos of Intermodal Ports, Click here

THE “PORTS TO NOWHERE”

In the Philippine Ship Spotters Society (PSSS), “Ports to Nowhere” are ports that have no ships or have no meaningful traffic. In the whole country, there might be 200 or so such ports if useless municipal ports are included. Mar Roxas, by his department’s reckoning counted over a hundred. He counted ports whose meager revenues was not even enough to cover the operational costs. This was what the author of this article meant when he first used the term “ports to nowhere” many years ago even before the creation of PSSS. He equated “ports to nowhere” to ports whose incomes cannot cover the salaries of the personnel, the transportation and communication costs, security costs, electricity and let alone the maintenance of the ports. Usually, these are the ports that have no regular calls. Fishing bancas are not counted as usually they are not charged any docking fees and are just accommodated as a matter of courtesy.

Tubod Port ©Mark Ocul

In the past our towns had municipal ports and it was mainly fishing bancas which used them. In the coastal towns that have no roads then, these ports also hosted passenger-cargo motor boats. Whatever, many municipal ports then were no more than fish landing areas and were not suitable for steel-hulled ships. Most are of pile-type and many have piles made of timber and even the wharf floor is made of wood. Slowly as the ports were modernized concrete piles and wharf were used. Concrete was more durable as they did not rot unlike timber and wood.

Gradually, over time, some ports were extended and usually those ports that have connections to major cities were given priority. Some of these were considered district ports and these were usually deeper and some were sheltered. During the end of the 1960’s, regional ports were declared and they were improved and expanded so they can handle foreign and bigger ships.

Tabaco Port, a regional port ©Dominic San Juan

Ironically, after the build-up of ports, the downward slide of our shipping started. This started with the fall of abaca fiber to nylon fiber. Suddenly one of our major export crops fell and once upon a time this was the most major crop being traded from the 1880s up to the 1950’s. This was followed by the downturn in the ‘70s of the export of metallic ores due to the emergence of the plastic industry. In the same decade the trade and exploitation of our forests declined because the precipitous fall of our forest cover already showed its effects. Then in the early 1980’s, the trade and export of copra and coconut oil began to decline. Substitute edible oils appeared in the world market and coconut oil mills sprouted in the regions and ironically it was the government which pushed for this. So, one after another, the major crops being shipped declined.

The final nail came in the 1980’s with the policy that any shortfall in cereals (as in rice and corn) will simply be imported and in sufficient quantities so that the price can be depressed or brought down. This policy was even extended to the manufacture of animal feeds and so manufacturers can just import corn, soybeans and green peas. Suddenly, crops being traded between the regions were supplanted by imports being brought by foreign ships direct to regional and private ports ports and bypassing Manila entirely.

Nasico Eagle ©Mike Baylon

When the instant snack sector boomed in the 1980s local shipping did not benefit. This is so because the ingredients for the instant snack were coming direct from abroad to the regional ports. The snacks ingredients were actually imported animal feeds like yellow corn, powdered potato and greens peas. They can import those for “chicheria” use here since the animal food grade of the US for these commodities is even higher than our local grade, ironically. All of these factors depressed shipping and this sector never fully recovered after the ravages of the great financial crisis of the 1980’s.
With the decline of our commodities, the so-many foreign shipping companies that have ships calling in our country slowly pulled out from the 1980’s. The log ships and ore ships also stopped calling in the same decade. What replaced that in effect was our export of workers and domestic helpers but they ride the planes and not the cargo ships.


1979 Manila Bulletin Shipping Schedule ©Mike Baylon

The final nail in the coffin for shipping was the emerging dominance of the intermodal transport system especially with the arrival of the surplus and wing van trucks in the 1990’s. This was coupled with incentives which made it easy for bus operators to acquire new units. This was amplified by the great drive of industrialist Pepito Alvarez who pushed new buses with financing to the operators. Meanwhile, incentives were also laid out for shipping and many used this to acquire short-distance ROROs. And so suddenly there were enough ROROs to connect the near islands. By this time vehicles were already rolling as the major roads were already concreted including in Mindanao.

Balicuatro Port Buses ©Mike Baylon

When our national fleet was getting smaller both in ferries and in cargo ships the government through the Philippine Ports Authority held on to the completely wrong mantra that “if ports are built then ships will come”. They and their booster Aquilino Pimentel compared this to roads that when built even ahead of time will slowly have traffic. This is so because people will migrate along the route, people will try to take advantage of the land and forest and also, many roads are actually shortcuts.

It is a completely different thing in ports and shipping because the correct mantra is “ships come when there is something to load”. In the eastern seaboard of Mindanao, Samar and Luzon there were a lot of ports before and many were privately-built. Those ports existed because they were trying to exploit the forests and the mines then. When the forest was gone and when metallic ore trade fell those many ports suddenly became disused and became “ports to nowhere” and slowly they dilapidated. Ports dilapidate faster than roads because of the weathering action of the winds and waves and of the sun. Add to that our many typhoons that damage ports especially since we don’t construct breakwaters.

An example of wrong advanced preparations was the 12 fish ports that Luis Villafuerte was able to wangle for Bicol from Ferdinand Marcos in 1983-84. Those were supposed to be dual-use ports as in other ships can also use them. When the ROROs came 25 years later the ports were already damaged and dilapidated. If only bureaucrats and politicians open their closed eyes they should easily see that empirically and historically their mantra is completely wrong.

Old Port of Pio Duran, Albay ©Mike Baylon

One of the reasons for the rise of “ports to nowhere” is building or improving of ports is used as political patronage to show a local politician “was able to wangle a project”. Of course, in the corrupt Philippines almost all public works have percentages for the pockets of powers-to-be which are euphemistically called as “S.O.P” and that is a very great incentive. National powers meanwhile give that in exchange for political support. The worst excesses of this syndrome were in the previous administration which needed all the support it can buy to stave off impeachment. And the gall of it all was the contract with a French company using soft loan to acquire pre-fabricated ports to be built especially in our eastern seaboard which no longer has shipping! This is a very classic example of a “ports to nowhere” mentality. That lady responsible for that was also wont to transfer national ports to LGUs in exchange for political support and votes. As rightly observed by the next administration those ports deteriorated fast because there was no maintenance and were just being used as milking cows.

Bato Port ©Mike Baylon

The good development is the current dispensation reversed the policy of “ports to nowhere” creation and even took back some ports “donated” to LGUs and it also canceled the contract with the French company even under threat of a court case. The current administration is actually judicious with building new ports reasoning we have more than enough. And that is true because the truth is there are even more private port and this mushroomed after the incentive given by Marcos in the early ‘80s. These port can also handle ship commercially, a policy upheld by the Supreme Court when it was challenged by the PPA.

There is also another set of factors that speed up the creation of “ports to nowhere”. When the ships grew in size, both the ferries and the cargo ships, suddenly many old district ports can no longer accommodate the bigger ships for lack of depth. Also when containerization came the old wooden wharves were no longer able to handle the higher weight. Express ferries and container ships also came and so many intermediate ports were left behind. And finally, highways sprouted throughout the country. Towns that were reachable only by ships before now have roads. Because of that many routes both for passenger and cargo ships disappeared. That is part of the reason why so many shipping companies of the past are gone now.

To summarize, it was the retreat of shipping which first created the “ports to nowhere”. Subsequently this was exacerbated by a wrong and corrupt push from Malacanang for selfish motives full not only of political motives but also to build private fleets. With no more largesse to touch these recent times, these fleets fast growths suddenly slowed in the current dispensation when before they were buying ships as if there is no tomorrow.

Tagpopongan Port ©Aristotle Refugio

Ports to nowhere are just a big waste of taxpayer’s money. It is just like throwing billions of money to the wind. And the madness has not even completely stopped. They still completed ports like the Pulupandan port which cost P700 million and it has almost no traffic since 30 years ago. 24 kilometers north of that, they want to build a port in Bacolod for the same price because of just some politician’s pique at the successful private port operator BREDCO. To get one congressman to support that, another congressman offered that congressman to build a port in her district some two dozen kilometers to the north of Bacolod. When further down the road in Sagay, another port was just recently completed.

In Bislig, the port of PICOP was still operational and yet the government still built a new port. And soon after, another port was built which they promptly closed down because there was no traffic. In Samal, they also completed a port which is not even worth as a palay or corn drying area now. We must really be a country of mad people. And I marvel at the gall of politicians and bureaucrats and at the stupidity of “goalkeeper” NEDA. Recently, I read that improvement in the port in Tandoc, Camarines Sur was finished. Amazingly, there is no actual road to the place and access to that is via a motor banca. It seems the “goalkeeper” was just looking at some imaginary roads in the map and doesn’t even know how to pay for a satellite images to check if there really is a road. It can only be one of two things for NEDA – outright dumbness or corruption too. With such a distant and remote place with few inhabitants, who would dare ships through there when the port of Pasacao is nearer to the main commercial and population center?

Lawigan Port, Bislig ©Janjan Salas

Wastage and corruption are big banes to our country. In shipping that primarily manifests in the “ports to nowhere”.