The Biggest Shipping Combine in Bicolandia

The Bicol Region has a handful of shipping companies of significant size and that includes the Candano Shipping Lines that is probably the most well-known before and it has clout because they also own the only significant shipyard in the Bicol region, the Mayon Docks in Tabaco, Albay. But among this handful, the biggest is the shipping combine of Sta. Clara Shipping Corporation and Penafrancia Shipping Corporation which have practically the same group of partner-owners. This handful does not include the Archipelago Ferries Philippines Corp. which no longer acts as a Bicol shipping company and is in fact willing to forget and shut the doors on their Bicol roots because they know it is not something they cannot be proud of.

Sta. Clara Shipping Corporation, like Penafrancia Shipping Corporation is into RORO ferries and not cargo ships. Sta. Clara Shipping Corporation antedates Penafrancia Shipping Corporation because of the peculiar circumstances wherein they were born. Sta. Clara Shipping Corporation was formed in 1999 in order to challenge the then-dominant (dominant as in a near-monopoly) Bicol ferry company, the Bicolandia Shipping Lines which was known by other names like Eugenia Tabinas, E. Tabinas or Eugenia Tabinas-San Pablo (well, using legal-fiction companies is not uncommon in inter-island shipping). When Sta. Clara Shipping Corporation came into the Bicol shipping picture with its superior ships, Bicolandia Shipping Lines argued they are entitled to “protection” using what was known as the “prior operator rule”. That was interpreted by shipping companies being challenged as an equal to a near- and legalized monopoly — they argued that nobody else can enter their routes (ahem! ahem! and wow!). If there is a need to increase ships, they argued that they should be the ones that should add ships (hey, aren’t the saying they “bought” the route already?).nm-dominic-san-juan

In this fight, Sta. Clara Shipping Corporation had the backing of the Eastern Visayas mayors especially those from Leyte because their populace had already enough of the lousy service of Bicolandia Shipping Lines which practiced the “alas-puno” system wherein ships depart when it is already full or near-full, in contravention of the published times of departures. However, the Bicolandia Shipping Lines lost in the sala of the maritime regulatory agency, the Maritime Regulatory Agency or MARINA which actually has quasi-judicial powers and can become the court of first instance in maritime cases. That was the turn of the decision because that time the liberalization policy of Fidel V. Ramos on shipping was already the new norm.

Bicolandia Shipping Lines then appealed to the higher court, the Court of Appeals and upon losing again there they brought the case to the highest court of the land, the Supreme Court which also ruled against them. The Supreme Court held any incentive given by government does not mean a company gaining monopoly rights (obviously, I say). Having lost in the courts and being also losing in the seas of Bicol not only to Sta. Clara Shipping Corporation but also to other newcomers like Regina Shipping Lines (which also has deep pockets, heavy political clout and a bus company) and 168 Shipping Lines, Bicolandia Shipping Lines offered to sell themselves lock, stock and barrel. Maybe it was a good move instead of finding themselves depreciated or worse bankrupt in the long run. Sta. Clara Shipping Corp. was losing because its ships were already older than competitions’ and besides having tried the patience of the customers with their always-delayed departures they had already lost the goodwill of the public.

It was Sta. Clara Shipping Corporation that had the pockets deep enough to buy Bicolandia Shipping Lines lock, stock and barrel. They might be new but their stockholders were already established in other businesses and that even included shipping. But instead of buying Bicolandia Shipping Lines and integrating its fleet with theirs, Sta. Clara Shipping Corporation decided to form the Penafrancia Shipping Corporation for said acquisition. Penafrancia Shipping Corporation has almost the same ownership group as Sta. Clara Shipping Corporation. When the acquisition was complete Sta. Clara Shipping Corporation and Penafrancia Shipping Corporation acted just like one company much like one or the other is a legal-fiction company. Their scheduling are united and their ticketing, berthing, crewing and supplies are unified too. That also goes through for their customer relations, the corralling of vehicles to contracts, negotiations and arrangements with the different ports and LGUs (local government units) and the maintenance of friendly relations with MARINA, the maritime regulatory agency. Drydocking and repairs are also unified.dh

Sta. Clara Shipping Corpo and Penafrancia Shipping Corporation operates four routes which are all short-distance ferry routes using ROROs. Their primary one is the Matnog-Allen route and the other routes are the Tabaco-Virac route, the Masbate-Pio Duran route and the Liloan-Lipata route, their recent expansion. In serving these routes, Sta. Clara Shipping Corp. has six ROROs and Penafrancia Shipping Corp. has four ROROs. The two companies do not operate cruisers and practically all their load are rolling cargoes which means trucks, buses, panel trucks, jeeps, cars and SUVs and even long vehicles and heavy equipment (though they don’t prefer the last two).

The six ROROs of the Sta. Clara Shipping Corp. are the following:

King Frederick: IMO 8704315. Built in 1987 by Kanda Shipbuilding Co. in Kawajiri yard, Japan. 58.6m x 14.0m x 3.8m. 694gt, 357nt, 304dwt, 750 pax. 2 x 1,200hp Daihatsu, 13.5kts when new.

Nelvin Jules: IMO 8504404. Built in 1985 by Kanda Shipbuilding Co. in Kawajiri yard, Japan. 58.6m x 14.0m x 3.8m. 694gt, 357nt, 304dwt, 750 pax. 2 x 1,000hp Daihatsu, 13.5kts when new.

Hansel Jobett: IMO 7927075. Built in 1979 by Kanda Shipbuilding Co. in Kawajiri yard, Japan. 51.1m x 14.0m x 3.4m. 610gt, 288nt, 208dwt, 580 pax. 2 x 1,000hp Daihatsu, 13.5kts when new.

Mac Bryan (ex-Ever Queen of Pacific): IMO 7034452. Built in 1970 by Shimoda Dockyard Co. in Shimoda yard, Japan. 54.0m x 12.0m x 3.8m. 499gt, 239nt, 2 x 900hp Niigata, 14kts when new.

Nathan Matthew (ex-Asia Japan): IMO 7326582. Built in 1973 by Naikai Zosen Corp. in Taguma yard, Japan. 64.0m x 13.1m x 3.3m. 1,030gt, 359nt, 443dwt. 2 x 2,000hp Daihatsu, 16kts when new.

Jack Daniel: IMO 8848604. Built in 1990 by Fujiwara Zosensho Co. in Omishima yard, Japan. 65.0m x 14.0m. 965Gt, 252dwt. 2 x 2,150 Niigata, 17kts when new.

The four ROROs of Penafrancia Shipping Corp. are the following:

Don Benito Ambrosio II (ex-Princess of Mayon): IMO 7629520. Built in 1967 by Hashihama Zosen in Imabari yard, Japan. 64.0m x 11.3m x 3.6m. 1,010gt, 686nt, 175dwt, 494 pax. 2,000hp Daihatsu + a Yanmar replacement engine, 13kts when new.

Don Herculano (ex-Princess of Bicolandia): unknown IMO Number. Built in 1970 by Shin Nihon(?) in Japan. 46.4m x 12.0m x 2.8m. 1,029gt, 454nt, 855pax. 2 x 1,000hp Daihatsu, 13.5kts when new.

Eugene Elson (ex-Eugenia): IMO 6601517. Built in 1965 by ImabariShipbuilding Co. in Imabari yard, Japan. 41.7m x 14.6m x 3.0m. 488gt, 118nt, 138dwt, 484 pax. 2 x 550hp Daihatsu, 11.5kts when new.

Anthon Raphael: IMO 8921781. Built by Naikai Zosen Corp. in Setoda yard, Japan. 61.4m x 14.0m x 3.2m. 1,093gt, 688nt, 270dwt, 400pax. 2 x 1,700hp Daihatsu, 15.5kts when new.

Note: Sta. Clara Shipping Corp. and Penafrancia Shipping Corp. do not use single-engined, single-screw ships because of its weakness in handling the strong swells of Bicol especially during the habagat (southwest monsoon) season.

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Sta. Clara Shipping Corporation and Penafrancia Shipping Corporation are very good in locking in the buses. That means the buses are contracted to be loaded in them in contracts. That also means these buses are paying what is called in the trade as “special rates” or even “super special rates” or even better. In this trade, the charge on buses are way lower than the published rates because the fares of the passengers makes additional revenue. With these contracts, the buses have guaranteed loading even in peak season and the ships will even wait for them if they are a little late. The driver/conductors need not even go to the windows to transact. The “Super Angels” of Sta. Clara Shipping Corporation will then just go to them inside the car deck of the ship and if it is a company account then all they have to do is just sign and it will be settled company-to-company.

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Sta. Clara Shipping Corporation also gives the driver/conductors what is called in the trade as “rebates”. That consists of complimentary tickets that can then be sold to the passengers and the equivalent money will go to the driver/conductors as extra income for their kabuhayan (meals and many other things for their upkeep and pleasure). This practice is recognized and tolerated by the bus companies as incentives to their their driver/conductors but the general riding public does not know that (that, however, is open knowledge in the ports). So even without a contract the driver/conductors themselves will herd their buses to Sta. Clara Shipping Corporation and Penafrancia Shipping Corporation except for Philtranco driver/conductors who are locked in to Maharlika ships without the discount their counterparts in other companies enjoy. In this world, the greatest advertisement is actually cold cash.

And I give respect to Sta. Clara Shipping Corp. for developing this practice of rebates to the bus companies and drivers/conductors. With it, development of routes is easier because the bus company need not shoulder all the expenses of bringing the bus across the strait since by rules and previous decisions they cannot charge that to the passengers. Oh, well, only slyly in case, in such a way that passengers won’t notice. But how can the passengers there in Bicol notice when fares are discounted almost whole year round? Well, with this practice the ships of Sta. Clara Shipping Corporation and Penafrancia Shipping Corporation are almost always full of vehicles. This duo really knows their business.

The duo are also very good in locking in the trucks. The system works the same as in buses but the discounts are not that steep because there are no passengers as additional revenue. And in terms of priority in loading they come second to the buses because unlike the buses they don’t have that tight schedule to meet and there are no passengers that will complain when a ferry is missed. There are also company accounts where only the signature of the driver is needed (no payments are made) and it is settled company-to-company. There are discounts for the suki (regular customers) which can be enjoyed by the truck crew especially by the driver. As suki these trucks get priority boarding over other trucks and private vehicles.hj

This then brings us to the complaints of the driver-owners of private vehicles which only cross during vacations. When they arrive in the port they think the system is on a first-come, first-served basis and they grit their teeth and vent their frustration even over the media when they see buses and trucks that came later than them board first. Their charge is “favoritism” but they do not understand that like in many other things reservations trump their case and these suki or company accounts are just like reservations. Actually, dozens of kilometers away these priority boardings already confirm their coming arrival and in case of buses or panel trucks the reservations can be year-round and if it will not be availed they cancel the reservations over the cellphone so their space can be given to others. Reservations works in the airlines, the shipping industry, in theaters or concerts, in restaurants and in many other industries. It is otherwise called as “bookings”.

Sta. Clara Shipping Corporation and Penafrancia Shipping Corporation are very good in cultivating the drivers. Aside from rebates, they can arrange a lot of personal services aboard the ships be it massage, manicure, services that are more personal, a good sleeping place and that also include free meals that are good. When I had access to their hospitality area inside Hansel Jobett I saw three viands for lunch including sugpo (tiger prawns) and those were free and the mess was airconditioned. That area was beneath the car deck on the engine level and I was surprised it existed. If Hansel Jobett has that then King Frederick and Nelvin Jules also have that since the three ships are related in design. It is not accessible to ordinary passengers but I was a VIP then (ehem! ehem!) and they gave me use of one the cabins. It was the equivalent of a first-class cabin of a liner although smaller.

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Sta. Clara Shipping Corporation are also very good in cultivating relationships with owners. Aside from hefty discounts and priority boardings with their trucks (and no hours lost waiting in ports means extra available trucks, satisfied customers and less labor cost) there are other benefits too like company-to-company singilan (reconciliation of accounts) which in effect means a loan. I heard settling takes months and that is extra working capital for forwardersand truckers while that might just be empty space for the ship otherwise. Even if the truck crew has no more money to board the ship they will not be denied boarding. Now that is one big utang na loob.

Sta. Clara Shipping Corp. had a long, beneficial and mutually supportive relationship with BALWHARTECO, the operator of the premier port in Allen, Northern Samar which is a private port. They grew together and had a relation like brothers. Sta. Clara Shipping Corp. and Penafrancia Shipping Corporation brought in traffic to BALWHARTECO not only because they had the most number of ships but with the support of the duo to buses and trucks the traffic volume increased and BALWHARTECO earns with wharfage and other port fees.

With their cooperation together, the duo and BALWHARTECO were able to trump the other ports in Northern Samar that link to Matnog. First to be defeated was the official government port, the San Isidro Ferry Terminal. Though vehicles see San Isidro first it had an Achilles heel — it was by far the most distant port from Matnog at 15 nautical miles compared to the 11 nautical miles of BALWHARTECO and the 12 nautical miles of the Dapdap port of Philharbor which was the second to be defeated and not by distance alone since the distance difference is not significant.dba-nj-edsel

In port and ferry patronage, one that wins is the one with the most number of ships because that means there will be no long waits before departures. And it is reassuring to drivers if there are always ships in port and with multiple ones (which means a choice). That became the weakness of San Isidro port and Dapdap port even though they come into view earlier as the vehicles won’t come to them if it sees that there are no ships in port. The driver soon had the mentality to go straight to BALWHARTECO since there are always ships there.

With the acquisition of Bicolandia Shipping Lines plus other ship acquisitions, Sta. Clara Shipping Corp. became the dominant shipping company in Bicol engaged in RORO operations. They defeated the Archipelago Ferries+Philharbor Ferry combine which were more known as the Maharlika ships. That duo had no focus, were lousy in maintaining ships and were also lousy in competing, all the diseases prevalent in former crony companies. That combine supported another lousy sister company, the Philtranco Service Enterprises Inc. but their pairing actually doomed them both. Philtranco buses would wait in the port even though there are no Maharlika ships in port thus losing hours, And with a captive bus company, Archipelago Ferries+Philharbor Ferry did not learn how to play well the rebate-vehicle locking game (in fact they never seemed to learn it).

The stockholders of Sta. Clara Shipping Corporation+Penafrancia Shipping Corporation might not really need to take profit, so to speak. They are very good in their other businesses and their owners are established businessmen with some dominant in their regional sphere. Some are even engaged in shipping too. In shipping, I glimpse the method they use in their other businesses especially the locking game.

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Soon, the duo’s owners engaged in horizontal expansion. They were able to establish a partnership with the Villono Shipyard in Tayud, Cebu. With the creation of that partnership, they withdrew patronage of the Mayon Docks in Tabaco City, Albay and brought their ships for drydocking and maintenance in the far-off Tayud. Maybe one of the benefits of this partnership is they then had a reputation of taking care well of of their old ships. Well, with a profitable operation and well-heeled owners that might not be a surprising thing.

The duo has also shown they can defend and hold turf and can also expand. The stronger Montenegro Lines (Montenegro Shipping Lines Inc. of Batangas) came but they did not buckle. At the same time they were also able to expand like when they tried the Pasacao-Masbate route being promoted by MARINA (they soon withdraw from this route). The also tried the Bulan-Masbate route which made no sense for bus passengers and for the trucks as it is farther from Manila (they can’t operate in the Pilar-Masbate route because they have no basic, short-distance ferry-ROROs and the Pilar port is shallow). However, they struck gold in the Masbate-Pio Duran, Albay route. With rebate support the buses were able to roll into Masbate even though the land kilometerage within Masbate island is short to be able to recoup the rolling cargo rate (this was the failure of the Maharlika ferries + PSEI attempt a decade before them). Recently they also went to Liloan-Lipata route.

In recent years, the duo tried another horizontal expansion, the building and operating of a port in Allen, Samar too where BALWHARTECO is also located.

This led to the split of Sta. Clara Shipping Corporation+Penafrancia Shipping Corporation and BALWHARTECO. Sta. Clara Shipping Corporation said they resented the coming of 168 Shipping in BALWHARTECO (or was it the entry of Montenegro Lines that broke the camel’s back actually?) which supposedly was against an agreement (sorry, I cannot verify this). Or maybe they also saw how profitable is a port operation and the formula they already saw in the operation of BALWHARTECO. And so they built their own port in Jubasanbut this was stopped by the Mayor of Allen who happened to be the owner of BALWHARTECO. Construction continued even though the gates were shuttered and the knowledgeable knew the Mayor will lose since a Mayor’s permit can be demanded thru a court mandamus (or even ask the Department of Interior and Local Government for his suspension). The Mayor actually has no legal leg to stand on and jurisprudence said they always lost. And so Sta. Clara Shipping Corporation was able to finish the port and it is now operating.

However, I have doubts if that is a good move in the long term. They no longer have the backing of BALWHARTECO and the Mayor of Allen town and it might just lead to a war between them. After all they both know the formula and bad blood exists now. Admittedly, Sta. Clara Shipping Corporation might have the edge as they have the ships and can do transfer pricing, that is, charge low in the rolling cargo to attract the vehicles and they can “correct” in port charges. Both of them know how to make a port attractive – loading even if the truck has no budget (but here Sta. Clara Shipping Corporation can do it both ways not only in port charges but also in shipping charges), diesel fuel loan, other rebates, the presence of shops along with eateries, lodging and a blaring disco along with many personal services to the drivers.

The problem of the two is they are not competing in a vacuum. They actually have a threat in the Fastcats, the big Montenegro Lines and the new Cargo RORO LCTs. Montenegro Lines will always be around as it has a big fleet and a deep bucket and probably supported by a heavyweight (literally and figuratively) former powerful figure, a “patron saint”. Recently, it was able to get a franchise for the Masbate-Pio Duran route and that can cut into the income of Sta. Clara Shipping Corporation and Penafrancia Shipping Corporation. Montenegro Lines can also apply for the Tabaco-Virac route especially since Regina Shipping Lines abandoned this in favor of the Tabaco-San Andres route (hence, there is an apperance of a “monopoly”). After all this is the era of liberalization. And Sta. Clara Shipping Corporation can find itself in the shoes of Bicolandia Shipping Lines before, that is defending turf via the “legal” way. Actually they are already doing the denial game with their blocking of the entry of FastCats in Allen.

The FastCats could be the more serious threat in the long run as it has new ships, a new paradigm that could be dangerous if it is able to run many trips a day which they will certainly do. What they are showing is they will not play the old game of running just a few trips a day. It seems they will try to run to the ground the opposition because that is the only way they can win because they are carrying a lot of amortization weight.

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Actually it seems duo lacks the ships now especially since they have to respond to the moves of Archipelago Philippine Ferries Corporation with its FastCats which is a different animal than they competed with in the past. Montenegro Shipping Lines presence in Bicol is also increasing as Archipelago Ferries collaborated with them and recently they even were able to get a franchise in the Masbate-Pio Duran route. In Liloan-Lipata route they had to bring a better RORO to be able to compete with the speed and newness of FastCats. The will have to respond in Masbate-Pio Duran by maybe with also plying a route to Pilar port which is improved now. They will need three ships in Masbate, one in Liloan, two in Tabaco and that will leave them with just four ships in Samar and not all might be running because of drydock requirements and the sometimes trouble like what happened to the Nathan Matthew recently which is docked in San Isidro port for repairs. Remember one of the most important factor to attract drivers is the always-presence of ships waiting in the port. They might be stretched too thin now unless they acquire new ships (they have the financial capability for that).

Another new threat also and a possible paradigm change is the new Cargo RORO LCTs that are plying routes in Matnog-Allen and in Liloan-Lipata. NN+ATS (euphemistically called “2GO” but that is near the truth) operates them by chartering big China-made LCTs. Cargo RORO LCTs is the recent bane of short-distance ferry-ROROs and overnight ferry-ROROs because these can offer rates as much as half off the current rates because they have no investment in passenger comfort and service, they are fuel misers albeit slow and they have to discount to gain rolling cargo.

What I see is a lot of labu-labo (free-for-all) in Bicol in the coming years. Many will be bruised and I don’t know which will fall to the ground. Well, I just wish it will not turn out that Sta. Clara Shipping Corporation bit more than what it can chew.

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Photo Credits: Dominic San Juan, Edsel Benavides, Aris Refugio, Mike Baylon, PSSS

The Short-Lived Return of Madrigal Shipping Company to Passenger Shipping

The Madrigal Shipping Company is a shipping company with a long history although few are still familiar with the name. They started before World War II with the name Madrigal & Company and was probably the Philippines biggest shipping company at that time if listing is limited to Filipinos. However, they were mostly in cargo shipping unlike the rival Compania Maritima of the Fernandezes which concentrated on passenger shipping. The founder of the company, Vicente Madrigal was considered the top Filipino industrialist-businessman then by the reckoning of many and probably is the richest Filipino then. He was also politically very well connected to Malacanang and is a political heavyweight himself being a Senator of the Commonwealth of the Philippines. The Madrigal Shipping Company was connected to the many businesses of Vicente Madrigal and it moved their goods like abaca (Manila hemp), coal, ore, copra and also sugar. However, when World War II happened Madrigal Shipping Company lost their entire fleet save for one. Most were captured by the Japanese which were then subsequently lost to American attacks.

After World War II, the company was renamed to Madrigal Shipping Company and started shipping again in 1946. The company has a mixed passenger-cargo and cargo fleet and the latter has the bigger ships. The passenger-cargo ships of the company was smaller and it might have something to do with the routes it was sailing. Madrigal Shipping Company concentrated its branch of passenger shipping on routes to Bicol and Northern Luzon. The route to Bicol would extend to as far as Larap port in Jose Panganiban town in Camarines Norte and the Northern Luzon route would call on Salomague (in Ilocos Sur), Batanes and Aparri. They also had a passenger-cargo ship that would go round the entire Luzon starting from Manila to Northern Luzon before proceeding to Bicol ports and round the Sorsogon tip of Luzon on the way back to Manila.

The passenger-cargo fleet of Madrigal Shipping Company cannot be called luxury liners by any means as they were simply basic passenger-cargo ships. They can even be described as primarily cargo ships with passenger accommodations and the accommodations are generally of one class only, the Economy class. Half of their passenger fleet consisted of former “Y” ships, the smaller cousin of the ex-”FS” ships which were former tankers. In the postwar shipping fleet of the Philippines only they and Luzon Stevedoring Company (LUSTEVECO) operated ex-”Y” ships but the latter operated them as they were originally were – as tankers. In Madrigal Shipping Company, their ex-”Y” ships were converted in passenger-cargo ships with cargo holds. These ex-”Y” ships seemed to be the replacement ships for the Madrigal ships commandeered by the US for the war effort. The other half of the postwar passenger-cargo fleet of Madrigal Shipping Company consisted of old ships from Europe. The company has a penchant for buying old ships from Europe just like another major shipping company, the Manila Steamship Company.

In 1955, in the aftermath of the capsizing and sinking in Babuyan Channel of their ex-”Y” ship Cetus which was trying to beat a typhoon, Madrigal Shipping Corporation sold all their ex-”Y” ships to North Camarines Lumber Company (no typographic error; this is also a shipping company). I wonder if this has a connection to their reputed superstitiousness. However, it was a favorable sale from the Bicol point of view since North Camarines Lumber Company also has the same passenger routes to Bicol and so no ship was lost on that region. Maybe Madrigal Shipping Company made sure of that as the patriarch Vicente Madrigal was actually born in Bicol and had many businesses there.

However, they held on to their other passenger-cargo ships but of course their routes and frequencies were affected by the sale since they did not purchase replacement passenger-cargo ships. In cargo shipping they were still strong and still buying cargo ships but in passenger-cargo shipping this sale of ex-”Y” heralded their slow retreat. This retreat might also be in anticipation of paradigm changes. Even in those days it is easy to foresee that the rail and the trucks will challenge the ship in Luzon in due time. Being in politics (the daughter Pacita of Vicente Madrigal succeeded him in the Senate) and conversant with government plans they might even have the inside track in foreseeing the future. By the 1970’s only one passenger-cargo ship was still sailing for Madrigal Shipping Company, the Viria and before the end of that decade they were already out of passenger shipping. However, the cargo shipping of the company remained but it also declined in due time. It however sprang a surprise later when together with a Taiwan shipping company it bid for the state-owned National Shipping Company of the Philippines which was then being privatized.

In 1988, to the welcome surprise of many Madrigal Shipping Company came back to passenger shipping as the A.P. Madrigal Steamship Co., Inc. This time it was truly liner shipping and not just like the basic passenger-cargo shipping of before. They did that when they fielded the Madrigal Tacloban in 1988 (this was later known as the Madrigal Romblon), the Madrigal Surigao in 1989 and the Madrigal Masbate in 1990. The notable thing about the three is they were all cruiser ferries and the negative thing is by that time nobody is buying or fielding cruiser ferries anymore because it was already obsolescent and the RORO (Roll On, Roll Off) ships have already proven their superiority over the cruisers (well, maybe not in safety or stability).

The first two ships were actually sister ships named the Tai Shan and the Nam Shan and they were originally Hongkong ferries. They were acquired by A.P. Madrigal Steamship Co., Inc. as bareboat charter with option to purchase from Cortes Shipping of Zamboanga. Tai Shan became the Madrigal Tacloban here while Nam Shan became the Madrigal Surigao. Madrigal Tacloban‘s applied route was Manila-Catbalogan-Tacloban while Madrigal Surigao‘s applied route was Manila-Maasin-Surigao. It was also a welcome move by many since these routes are exactly the same routes just recently vacated by Escano Lines which went out of passenger shipping (they however stuck to cargo-container shipping).

However, some shipping lines including Sulpicio Lines Incorporated and Aboitiz Shipping Company opposed their applications because of the so-called “prior operator” rule which was the usual “basis” for opposing a new entrant to a route. Actually, the two mentioned shipping companies were fearful because A.P. Madrigal Steamship Co., Inc.’s ships were better than their ships in those routes (however, Aboitiz Shipping Company had long ago abandoned their Catbalogan and Tacloban route). And besides Sulpicio Lines Inc. had no Catbalogan/Tacloban ship at that moment because of the sinking of Dona Paz. But however the opposition at the start, A.P. Madrigal Steamship Co., Inc. was eventually allowed by MARINA, the maritime regulatory agency to sail the applied routes.

Even then, there was actually already a problem in these routes as these are also the same routes slowly being threatened already by the intermodal trucks and buses borne by the short-distance ferry-ROROs that were already serving as the “bridges of the sea”. Maybe this was the reason behind what was cited by Aboitiz Shipping Company that they experienced a 60% drop in passenger volume. However, as cruisers that can’t carry much cargo (they were even described as “pure cargo”) maybe Madrigal Shipping Company thought that won’t be much of a problem for them. Maybe they were just intent on beating the competition with superior ships, in their view. Their ships have more beautiful lines anyway. And as bare-boat charters their risk is not high as they can just return the ships if they did not turn in a profit.

Madrigal Tacloban (Madrigal Romblon) and Madrigal Surigao were sister ships and both were built by Niigata Shipbuilding & Repair Incorporated in Niigata, Japan in 1972. The two both measured 78.6 meters by 12.1 meters by 5.6 meters in L x B x D. The LPP was 70.0 meters but Madrigal Surigao had a higher GT at 2,147 while Madrigal Tacloban had 2,136. The NT was 1,035 and the DWT was 312 tons. Both had two masts and two passenger decks on a steel hull with semi-bulbous stem and a retrouvaille stern. They were not equipped with cargo booms. The sister ships were both equipped with twin Niigata diesel engines with a combined 5,100 horsepower that propelled them to a top speed of 17.5 knots. The two ships looked identical.

Another ferry, the Madrigal Masbate came to A.P. Madrigal Steamship Co., Inc. from Taiwan Navigation Company Ltd. of Taipei but this ship was actually homeported in Kaohsiung. This was a beautiful ship with magnificent and modern lines that was built as the Tai Peng by Hayashikane Shipbuilding and Engineering Company Limited in their Nagasaki shipyard in Japan in 1971. The ship measured 77.5 meters by 12.6 meters by 5.5. meters with an LPP of 70.0 meters. She had a GT of 1,992, an NT of 743 and a DWT of 474 tons. The ship had two masts, two passenger decks with a steel hull with a raked stem and a cruiser stern. She was powered by a single Kobe Hatsudoki marine engine of 4,900 horsepower which gave her a top speed of 17 knots.

When all three were already sailing, the renamed Madrigal Tacloban which was now Madrigal Romblon was doing the Manila-Odiongan-Malay (this is better known as Caticlan now) route. Meanwhile, Madrigal Surigao was running the Manila-Odiongan-Maasin-Surigao route. And it was Madrigal Masbate which was sailing the Manila-Catbalogan-Tacloban route. Although they were already set by 1990, the Madrigal ferries, however, did not sail long. This was already the era when more liners were coming fast including great liners with four passenger decks, a passenger capacity of well over 2,000 with a true gross tonnage of 10,000 and over and of speeds nearing 20 knots and with hotel-like accommodations, amenities and service.

And A.P. Madrigal Steamship Co., Inc. was unlucky to bet in routes that were already being eaten up by the intermodal form of transport where trucks, buses and private vehicles are transported between island by the short-distance ferry-ROROs and whose travel times are shorter with flexibility of routes and ubiquity of departures. Moreover to some former ship passengers travelling by intermodal bus it is a new adventure and tourism too to places they have never seen before. To the traders and shippers, the intermodal option meant no more hassles with North Harbor port and the crooked Manila policemen. That also meant no more pilferage and delays and they are no longer at the mercy of the arrastre.

After just a few years, A.P. Madrigal Steamship Co., Inc. quit passenger shipping (however, they were still in cargo shipping). The sister ships Madrigal Romblon and Madrigal Surigao were sold to the breakers and they were broken up in 1994. It was an early death as the ships were only 22 years old. It was also a premature death because if they waited a little longer they might have gone to Sampaguita Shipping Lines which soon geared up to buy former liners to be used in the then-developing Zamboanga-Pagadian route and the Zamboanga-Jolo or Bongao route. They would have better choices than the ships they acquired from WG&A, the former Tacloban City and the former Iligan City as they were newer and have sailed far less nautical miles.

Madrigal Masbate was far luckier than the sisters. In 1994, another Zamboanga shipping company that was buying better overnight ferries (and the shortcut to that is to buy hand-me-down liners), the SKT Shipping Line (later the Kong San Teo shipping company or KST Shipping Line) purchased the laid-up Masbate Madrigal. She was fielded in the premier route to the east Zamboanga then, the Zamboanga-Pagadian route. Appropriately, she was named the Pagadian City. She was by far the best ship in the route, the most beautiful and the most gorgeous ever to call on Pagadian port, as the locals would concede and included in the comparison were the Manila liners which called on Pagadian port in the 1950’s and 1960’s.

Zamboanga City was actually a beehive of acquiring new ferries in the mid-1990’s including new-build fastcrafts. They actually had the most acquisitions of Malaysian fastcrafts then which was equal in number to the Cebu HSCs. Bullet Express and Weesam Express plus the fastcraft Sea Jet actually all originated in Zamboanga and just migrated to the Visayas. In 1996, the latter great Aleson Shipping Lines of Zamboanga was also gearing up. It was actually a dogfight then in Zamboanga between Sampaguita Shipping Lines, SKT Shipping Lines and Aleson Shipping which was latter won by the latest-named. Too unfortunate Madrigal Romblon and Madrigal Surigao were not snagged up in Zamboanga then.

After this episode, Madrigal never went back to liner shipping again. Well, I hope they will try again. After all we have almost no liners left now. They will be applauded this time if they do.

[Photo Credit: Manila Bulletin through Gorio Belen]