The China-built LCTs

It seems that just like in buses, in due time China-made LCTs might rule our waves just like China-made buses are now beginning to rule the Luzon highways. The process will not be that sudden though because ships last longer than buses and it is much more costlier to acquire ships. We too have that attachment to our old ships and we don’t suddenly just let them go. But then who knows if some crazy people try to cull our old ferries? I am sure many of the replacements of them will be Cargo RORO LCTs and ROPAX LCTs from China. They are simply that cheap and the terms are good. One thing sure though is the replacements will not be local-built ships. Local-builds generally cost much more than China-builds and the price of the ship is a key decision point.

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A Meiling LCT a.k.a. deck loading ship

A decade ago, China-built LCTs were practically unknown in the country as we were building our own LCTs in many shipyards around the country. Then the first palpable show of LCTs happened early this decade was when a lot of brand-new LCTs suddenly appeared and anchored for long in North Mactan Channel waiting for business. Some of these were rumored to be destined for the mines of Surigao which was then booming. That area already had China-owned and -built LCTs to carry ores to China just like some other provinces which allowed black sand mining had China-owned LCTs docking. But then here, I am talking of China-built LCTs that are locally-operated or owned. However, the Surigao mining boom when world metal prices spiked a decade ago because of China demand was one of our key introduction to China-built LCTs.

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Row of LCTs in North Mactan Channel

Then the demand for ore of China suddenly weakened and so those brand-new China-built LCTs that showed in Mactan Channel owned by Cebu Sea Charterers (of the renowned Premship group), Broadway One Shipping and Concrete Solutions Incorporated went into regular cargo moving. Later, the two companies plus others like Primary Trident Solutions (owner of the Poseidon series of LCTs), and Adnama Mining Resources which also acquired China-made LCTs went into Cargo RORO LCT operations like the Cebu Sea Charterers which meant conveying rolling cargo or vehicles between islands. The Cebu to Leyte routes was the first staple of the Cargo RORO LCTs. Cargo RORO LCTs were also fielded in the key Matnog-Allen and Liloan-Lipata routes to ease backlogs of trucks waiting to be loaded. They became the augmentations to short-distance ferry-ROROs in heavily crowded routes during peak season or when there are disruptions after typhoons.

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Cargo RORO LCTs in Carmen port

The old overnight passenger-shipping companies of Cebu more than noticed the emergence of the Cargo RORO LCTs and felt its threat to their trade and so they also joined the bandwagon in acquiring China-built LCTs. Roble Shipping first chartered LCTs from Asian Shipping Corporation before buying their own and those were China-made LCTs. However, it was Lite Ferries that made a bet in acquiring new China LCTs to be converted into passenger-cargo LCTs after some modifications. Outside of Cebu the shipping company 2GO, under the name NN+ATS and brand “Sulit Ferries” chartered China-built LCTs from Concrete Solutions Incorporated, which are the Poseidon LCTs for use in their Matnog-Allen route.

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A ROPAX LCT operated by Sulit Ferries (LCT Poseidon 26)

Meanwhile, LCTs were also tried by Ocean Transport & Key West Shipping as container ships. When they started they also chartered LCTs from Asian Shipping Corporation like Roble Shipping. They were successful in using LCTs as container ships and they were always full (and maybe to the chagrin of the CHA-RO messiah Enrico Basilio). This mode might be a no-frills way of moving goods through container vans but it is actually the cheaper way as LCTs are cheap to operate. Later, Ocean Transport & Key West Shipping also acquired their own LCTs with the blessings of Asian Shipping Corporation. Ocean Transport & Key West Shipping might have been successful in showing a new mode of transport but the self-proclaimed “shipping experts” never took notice of them nor studied their craft and mode.

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Brizu, a container carrier LCT by Ocean Transport

Asian Shipping Corporation (ASC) which really has a lot of LCTs for charter and probably with the most number in the country started by building their own LCTs right in their yards in Navotas just like some other smaller shipping had their LCTs built in Metro Manila wharves. Asian Shipping Corporation have not completely turned their back of own-built LCTs but more and more they are acquiring China-built LCTs which come out cheaper than local-builds. Shipbuilding on the lower technology level like LCT-building is at times can also be viewed too as selling of steel and China is the cheapest seller of steel in the whole world. Their engines and marine equipment are also on cheap end.

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ASC Ashley of Asian Shipping Corporation

Another big operator of China-built LCTs that must be noted is the Royal Dragon Ocean Transport which owns the Meiling series of LCTs. Many of their LCTs can be found in Surigao serving the mines there. Right now, China-built LCTs are already mushrooming in Central and Eastern Visayas but in other parts of the country they are still practically unknown except in Manila or when passing by or calling. Ironically, it might actually be a typhoon, the super-typhoon “Yolanda” which devastated Leyte that might have given the China LCTs a big break because they were used in Leyte and in the eastern seaboard routes (in San Bernardino Strait and Surigao Strait) when there a big need for sea transport after the typhoon and their potential was exposed. The super-typhoon also showed the need for Cargo RORO LCTs separate from short-distance ferry-ROROs.

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Owned LCTs by Roble Shipping

Ocean Transport of Cebu, as stated earlier, now also have their own China LCTs to haul container vans from Manila after initially chartering from Asian Shipping Corporation. The same is true for Roble Shipping which initially chartered Cargo RORO LCTs from Asian Shipping Corporation for Cebu-Leyte use. Now other Cebu passenger shipping companies are also beginning to acquire their China LCTs. And that even includes Medallion Transport. Actually there are so many LCTs now from China that don’t have a name but just sports a number (i.e. LCT 308, etc.). But among Cebu overnight ferry companies, it is actually Lite Ferries who is betting the biggest on China LCTs that carries passengers too after some modifications.

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PMI-3, a Cargo RORO LCT of Premium Megastructures Inc.

In the following years I still see a lot of China-built LCTs coming and that will include LCTs that have provisions for passenger accommodations. If the government cull the old (but still good) ferries, I bet that type will suddenly mushroom especially in the short-distance routes. But of course it will not have the speed nor the comfort of the basic, short-distance ferry-ROROS. But who knows if that is actually the wish of some decision-making foggy old bureaucrats who don’t ride ships anyway? They will just be giving China yards and engine makers a big break. And a final note – LCTs from China are also called as “deck loading ships”. So don’t get confused.

Now let us just see how these China imports grow in size and importance.

A Report on the Recent Situation of Bicol Passenger Shipping

When I talk of Bicol passenger shipping that includes those that have routes to Samar for in the main Bicol ships do those route with the notable exception of Montenegro Shipping Lines which are dayo (foreigner) to Bicol but have a base in Masbate port. In the main, I don’t refer to the Cebu-Masbate steel-hulled ferries because those routes are just one of the operations of Cebu shipping companies with the notable exception too of Montenegro Lines which has a national operation of short-distance ferry-ROROs.

The biggest shipping companies in Bicol are the sister companies Sta. Clara Shipping Corporation and Penafrancia Shipping Corporation which are legal-fiction companies of each other. They have combined operations, single crewing and maintenance and their ships rotate within their common routes. The only difference is the ships bought out from the defunct Bicolandia Shipping are all in Penafrancia Shipping Corporation (PSC) and Sta. Clara Shipping Corporation (SCSC) is what made Bicolandia Shipping cry, “Uncle!” (which means give up na).

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The twin shipping companies have a total of 10 ROPAX ships plus a Cargo RORO LCT which is a recent acquisition to match that of NN+ATS (more on this later). Their best ship, the beautiful Jack Daniel (no, there isn’t free tasting of the famous drink) was acquired not so long ago and it is almost a fixture in the Masbate-Pio Duran route where her beautiful and luxurious lounge can be fully used and appreciated by the passengers since it is a three-and-a-half-hour route.

SCSC and PSC ply all the Bicol routes except for some parallel routes like the Tabaco-San Andres and Masbate-Pilar routes (more on this later). Which means they ply the Tabaco-Virac, Matnog-Allen (now through their own Jubasan port) and Masbate-Pio Duran routes. They don’t ply the Masbate-Pilar route as their ships are too big for the shallow Pilar port which lies in an estuary. In Catanduanes, it seems they now have a modus vivendi with Regina Shipping Lines (RSL) which now is doing the Tabaco-San Andres route exclusively through Codon port (but that route is not necessarily weaker than the Tabaco-Virac route as buses and trucks going to northern Catanduanes prefer that route because the remaining distance is shorter). Additionally, SCSC and PSC also operate the Liloan-Lipata route (however, after the Surigao quake RORO operations were transferred from Lipata Ferry Terminal to the Verano port of Surigao).

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The new development in Catanduanes shipping is the arrival of a new player, Cardinal Shipping which fielded the High Speed Craft (HSC) Silangan Express 1 which has good schedules and a very interesting fare which is even less than one might expect for a Tourist accommodation in a ROPAX (P320 fare in airconditioned accommodation versus the P230 Economy fare of a ROPAX ship). That is very cheap compared to the fastcrafts of Montenegro Lines in Masbate that charges double of the Economy fare of the ROPAX. The route of Cardinal Shipping is also Tabaco-Codon like that of Regina Shipping Lines or RSL.

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Another ferry was also added to the fleet of Regina Shipping Lines (RSL) when they acquired the former Maharlika Cuatro from Gabisan Shipping which purchased it from Archipelago Ferries. It was in Mayon Docks of Tabaco City last January but as of this writing she is already running as the Regina Calixta VI. RSL now also has an operation in the Batangas-Abra de Ilog route through Aqua Real Shipping and Calixta-III.

Tabaco port is also building an extension again and this is probably the third already. I am thinking, what for? In all my visits there I never saw Tabaco port full and I don’t think port visit is increasing there. There is also not that need for a big back-up area. There are no container vans unloaded there and ships that visit are generally small. To compare now, Masbate port is even busier than Tabaco port and Legazpi port is even their rival in port calls (as they both serve the province of Albay).

I thought before that the refurbishment of Legazpi port was not needed but it seems I was mistaken. There are more ships docking there now and those are bigger than the ones which dock in Tabaco port. For one, when Cebu freighters visit Albay, they use Legazpi port and not Tabaco port because it is nearer from Cebu. And most freighters that use Tabaco are just Bicol ships which are smaller than Cebu ships. I was even surprised by the big, Malaysian coal barge I saw in Legazpi port.

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Like before there are no ROPAXes in Legazpi (as I argued before a population of 100,000 in an island is needed to keep a RORO afloat if there is no strong tourism and Rapu-rapu island does not meet that criteria). Instead it has lots of big passenger motor bancas to Rapu-rapu and Batan islands plus Cagraray island too. The new passenger terminal building of Legazpi looks beautiful and modern. Like in Tabaco, the port and port terminal building (PTB) is open to the public and there is no cloud of suspicion that hovers unlike in ISPS ports. It was just like in the past when ports are just like part of public domain. That openness was the thing changed by this damned ISPS.

With the completion of the bridge from Albay mainland to Cagraray island through the Sula Channel, the old small Michael Ellis LCT to Misibis is now gone. A connecting bridge to an island is always better than a connection by an LCT. Maybe with that Cagraray island will develop faster.

Sta. Clara Shipping Corporation and Penafrancia Shipping Corporation now have their new Jubasan port completed in Allen, Samar and so they already withdrew from using the BALWHARTECO port, their old port of entry to Samar, to the great disappointment and anger of the owner which nearly resulted into a court battle. I wonder if the judge-son-in-law of the owner was able to make clear to the patriarch that if it is all straight law then they would lose eventually and they might even be vulnerable to counter-suits they being the LGU holders (like a graft counter-charge).

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With the withdrawal of SCSC and PSC from their port, BALWHARTECO invited Montenegro Lines to just use their port exclusively. Before, Montenegro Lines used both BALWHARTECO and the Dapdap port of Philharbor, the sister company of Archipelago Ferries which once operated the Maharlika and Grand Star RORO ferries. With the withdrawal of Montenegro Lines from Dapdap port now that port no longer has ferry operations. What is left there are the passenger motor bancas to the island off it which is Dalupiri island.

Before this, Philharbor invited Montenegro Lines to use Dapdap port since Archipelago have sold already their Maharlika ships and was already in the process of disposing their Grand Star RORO ships. If there is no other ferry company that will use the port it will fall vacant since the route allowed by MARINA to the new FastCats of Archipelago Ferries was the Matnog-San Isidro route. Before their withdrawal only Montenegro ferries were still using Dapdap port.

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It seems BALWHARTECO made a good offer to Montenegro Lines. They are known to be flexible and accommodating as their record of the past decades will show. Meanwhile, the Alvarez group which controls Archipelago Ferries, Philharbor and Philtranco is not known for that. They are instead known for quick retreats when subjected to the pressure of competition.

So I was not surprised by the result. Here is the queer situation of a port owner and operator with no ships of their sister companies docking because it is using a different port and a route that is significantly longer (which is the Matnog-San Isidro route). As a change, instead of being a ‘port to nowhere’ the San Isidro Ferry Terminal is now active again (she was active before Montenegro Lines left her for Dapdap and BALWHARTECO ports).

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It seems Montenegro Lines was the winner of the BALWHARTECO-Sta. Clara turmoil. Previously they were using four ferries in the Matnog-Allen route, two in Dapdap and two in BALWHARTECO. Recently they are now just using three ferries. It seems that was enough to have a ferry always on standby in the port which has more traffic (in the day that will be Allen and in the night that will be Matnog).

Another winner in the route is the NN+ATS outfit which is now openly admitted as an operation of 2GO. They are using chartered Cargo RORO LCTs from Primary Trident Solutions, owner of the Poseidon LCTs and now they even fielded a ROPAX LCT, the LCT Poseidon 26. They are operating that LCT under the banner of SulitFerry and the acronym is also “SF”, a reminder of their SuperFerry past before those liners were promoted into saints.

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With the Cargo RORO LCTs, the queue endured by the non-regular trucks in the Matnog-Allen route has come to an end as they are the priority of the Cargo RORO LCTs. These ships does not take in buses with its passengers and so no passenger accommodations are needed. The truck crews are just expected to stay with their vehicles for the duration of the voyage. MARINA is actually too suspicious of Cargo RORO LCTs having areas that can take in passengers on the sly.

The arrival of the Cargo RORO LCTs has affected the dynamics in the Matnog-Allen route. It has definitely taken traffic from the ROPAXes and the weight is significant because the non-regular trucks pay the highest rates. Actually, the rates paid by the regular trucks is heavily discounted and it is not always paid in cash (which means credit).

Another thing, from being second-class citizens the non-regular truck is now king but their loyalty now is on NN+ATS. What a turn-around too. From being largely ignorant of Matnog-Allen route because they were too confident of their CHA-ROs (Chassis-RORO) aboard their container ships and liners, now 2GO is already a player in intermodal route which helped kill their liners.

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It is also good that they use chartered LCTs whose crew is from Primary Trident Solutions. These crews are not graduates of the ‘shooing away’ seminars of 2GO, they have no knowledge of ISPS (and probably they don’t care too) and so like in the past they are very friendly to the passengers which they do not think or treat like potential “terrorists” like what is taught in 2GO seminars.

But even with NN+ATS and SulitFerry around and the concentration of Montenegro operations there, BALWHARTECO port is not too busy like in the past when to think 168 Shipping is still there with its three Star Ferry ships. Really, the weight SCSC and PSC is great especially since they have a lot of trucks and buses under contract.

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The PSSS (Philippine Ship Spotters Society) was impressed by the new Jubasan port of Sta. Clara Shipping Corporation. It was not small and unlike most private ports that will start with portions being unpaved in Jubasan it is a completely paved port. As such it is cleaner having no mud and people and patrons would not find it hard moving around (now one would wonder why after all these decades BALWHARTECO port is still mainly unpaved). They also maintained the slope of the land and so rain water immediately drains into the sea instead of forming puddles. There are a lot of eateries inside and it is a step up compared to what can be found in BALWHARTECO port including the presence of chairs and tables outside the eateries which are good for lounging around and sundowning.

Jubasan port is more orderly and it looks more modern. Maybe with the shipping company being the operator it should end up that way as they have full control. By the way, Jubasan port will also have a lodge like in BALWHARTECO port. The structure is already there, that is the area above the eateries but it is not yet operating when PSSS visited the place. Now I don’t know if they will also have a disco like in BALWHARTECO port. Jubasan port also does not have the so-many hawkers of BALWHARTECO port.

Matnog meanwhile has minimal changes. I thought when they twice reclaimed new land the docking space will improve. It did not. There are two new RORO ramps on the left of the finger port (as viewed from the sea) but when I passed through it twice no ship was using it. Actually the docking space of Matnog port did not increase and on high tide a ship will still try to dock askew in the wharf for lack of docking space. During the late afternoon and evening peak hours not all the ships can dock and it has to undock after disgorging their rolling cargo and anchor offshore.

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I still cannot fathom how the PPA (Philippine Ports Authority) inputs ship calls in their planning that they cannot see their docking area is not enough for the number of ships calling. They have two new RORO ramps but they bulldozed rocks beneath it. And so maybe the ships fear damage if they use those. Why can’t they just use the causeway-type of wharf like what is used in BALWHARTECO and Dapdap ports which can dock more ships for their given length of wharf space? The only reason I can see why PPA is too inept in port design is because they really can’t attract qualified people. And to compensate for this lack, their annual reports will be full of praises for themselves and their “achievements”. And now their top honcho says the Makati Car Club will test the RORO system. Now what does Porsche and Ferrari owners know about port design and the RORO system if one is not Enrique Razon? It was not designed for their kind of cars and heels.

Masbate port is actually more impressive than Legazpi or Tabaco in terms of activity. Unlike the two ports which looks semi-fringe in location (as in facing the ocean already), Masbate port is in the center of a nexus and connecting many islands. There are simply more ships there and more types from overnight ferries to short-distance ferry-roros to fastcrafts to motor bancas plus the usual freighters. The new port terminal building is now operating and so there is more try of control now to ensure everybody uses it (this is what I call as “cattle herding”). And I don’t like that system treating passengers not like people but like commodities.

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Actually, they can simply sell a ticket to anyone who wants to buy, passenger or not, like in Zamboanga port. With so many buses boarding their port terminal building is not sufficient (now tell me when did PPA learned how to input numbers). If the old system where buses simply park somewhere in the port and soon board afterwards was enough why try to force down the passengers down the bus so they will pass through the passenger terminal building when it does not have enough capacity anyway even in airconditioning? If terminal fee is all they want then they can just put in a table by the ship ramp. An explanation: bus passengers here already have their ferry tickets issued by the bus conductor so actually they do not need to queue as the buses offer free ferry tickets to their passengers. If the buses can be efficient why can’t the PPA? The reason is simple – they are a government entity.

What I noticed is it seems more passenger motor bancas are now using the Masbate municipal port cum fish landing area. Actually it has the advantage that it is just near the integrated bus, jeep and van terminal of Masbate City. The passenger motor bancas for Burias can also be found here. If I may have a suggestion, it is better if the passenger motor bancas just dock by the integrated terminal. Nothing beats that. If only they will see what is logical (but they might lose the votes of the cargadores and the tricycle drivers).

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The Masbate-Pio Duran route is now stronger compared to the Masbate-Pilar route in terms of RORO operation. It is actually the shorter route to Manila and it can accommodate bigger ships whereas Pilar can only accommodate basic, short-distance ferry-ROROs. Medallion Transport has withdrawn from this route as a fall-out of the sinking of their Lady of Carmel. SCSC and PSC was the big winner in this and they now have made permanent two of their biggest ships in this route which have length of over 60 meters versus the 30 meters plus of the basic, short-distance ferry-ROROs of Pilar.

In the Masbate-Pilar route, Denica Lines now has two ROROs that are running simultaneously and they were able to create a late departure from Bicol (or is it an early one?) when they created an early evening Pilar-Masbate schedule. Denica Lines also have two fastcrafts for refitting now that is moored in Pilar port. Obviously, they want to get a slice of the pie of the MSLI fastcraft business. If they price it like the Silangan Express to Catanduanes then MSLI will be forced to cut their high fares.

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In Pilar, I noticed they now have a Pilar-Mandaon passenger motor banca running. Plus they have pre-dawn departures now from Pilar for three destinations – Masbate City, Aroroy and Mandaon (Mandaon is a gateway to Romblon). They were able to expand Pilar port but its operation is just still like a municipal port as there is no good port lighting (are their charges for the ROROs and passengers not enough?). By the way, the ROROs from Pilar start earlier now. Good for those with still long land travel still remaining in Masbate island.

As before there are a lot of passenger motor bancas in Masbate port going to Pilar, Ticao island, the west bank of Masbate Bay. But maybe the Baleno bancas are gone because there is a van going there now up to Aroroy. The passenger motor bancas are still fighting even though it is already the era of the ROROs and the buses and the trucks aboard them. With no porterage and running at hours when there is no RORO they are still surviving. Well, the buses dictate the schedules of the ROROs and so I can’t see them running 24 hours as the buses have only certain hours of departures from Masbate and Manila.

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Some things of note. One, the Super Shuttle Ferry 19 of Asian Marine Transport Corporation has been sold and Olmillo Shipping has taken over the Bogo-Cawayan route. A new development too in this area was the fielding of Island Shipping of a ROPAX LCT in the Hagnaya-Cawayan route. The MSLI ferry is still running the Bogo-Cataingan route and ditto for Lapu-lapu Shipping that runs the Cataingan-Cebu route. In the future, however, the Bogo and Hagnaya ferries will most likely transfer to the new Maya RORO port because it is simply nearer to Masbate. Meanwhile, the big passenger- cargo motor bancas running between Masbate and northern Cebu are still running and their business not threatened after the initial cut made by the arrival of the ROROs.

Recently, Trans-Asia Shipping Lines don’t have a ship anymore to Masbate from Cebu, a victim of their lack of ferries. Cokaliong Shipping Lines has not fully filled up the slack and it has only a once a week Cebu-Masbate sked but they are always fielding a new good overnight ferry of theirs in the route. Meanwhile, for a year now Asian Marine Transport Corporation (AMTC) doesn’t have an operation anymore to Masbate since their SuperShuttle RORO 3 had engine problems. It has been over a year since 2GO withdrew their liner that passes through Masbate on the way to Ormoc and Cebu. Can’t really beat the intermodal buses and trucks now and as the saying goes if one can’t beat then join them and so they already had that NN+ATS in the Matnog-Allen route.

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Burias motor banca arriving in Pasacao

In other Bicol routes, passenger motor bancas still connect Burias island to Pasacao and Pio Duran while Ticao island has passenger motor bancas sailing to Bulan and Masbate ports. Masbate is also connected by passenger motor bancas from Cataingan to Calbayog in Samar and to Roxas City in Panay from Balud and Milagros and to Romblon from Mandaon. Caramoan through Guijalo port also has passenger motor banca to San Andres in Catanduanes through the Codon port. San Miguel island is connected by passenger motor bancas to Tabaco port.

And that above is what comprises Bicol shipping all in all. Not tackled here are the minor routes served by small passenger bancas that go to small islands that does not have a municipality and to coastal barrios which has no roads.

[Written based on January 2017 data.]