New Developments in Masbate Port

I had been to Masbate port twice in recent days in this month of July of 2017. The first one was when my ship Super Shuttle RORO 3 of Asian Marine Transport Corporation (AMTC) was on the way to Batangas and dropped anchor in Masbate first. The second was when I took the route via Pilar and Masbate ports on the way back to Cebu. Those two visits afforded me a chance to compare and weigh developments in Masbate port since last January of 2017 when I was also able to visit the port.

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Masbate port

The first notable thing is all works in expanding Masbate port has already been completed. The lineal distance of the port is a little longer now. On the other hand, talking of infrastructure, the Masbate port terminal building deteriorated in the same span of time as it is no longer air-conditioned and yet the dear terminal fee which is more expensive than the much better Cebu and Batangas ports remained the same when Masbate port does not even have shuttle buses and does not really have the capacity to take in all the passengers of the buses. And so it copied the Batangas port model which means bus passengers have to go down when the bus enters the port in order for them to pay the terminal fee and then board the bus again or walk to the ferry. The former is the preferred mode now.

Another new thing is Masbate port has an X-ray machine now for the baggage but it is not operational yet. Another useless piece of equipment just to justify the terminal fee and to have another reason for “cattle-herding” the passengers. It seems what is good enough for the buses is not good enough for PPA (Philippine Ports Authority), security-wise, because buses don’t bother checking the baggage of the passengers because they know the chance of them being victims of terrorist attacks is next to nil, at least in Bicol. And I think if one asks the ferries they will say they are not bothered if there is no X-ray machine. The buses and the ferries do not have the ISPS thinking that all passengers are possible terrorists. Actually that is simply ridiculous and is just the product of “praning” minds.

One more notable thing is that the passenger motor bancas are now practically gone from Masbate port and they have already transferred to the municipal port of Masbate near the public market and the bus/van terminal because of the high passenger terminal fee being charged by the port when passengers have no actual need for the terminal as they go direct to their vessels. Actually, last January I saw a terminal building (it was named as a community fish landing center) being built in Masbate municipal port and I saw that it is already finished when I went to the bus and van terminal.

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The problem now in Masbate municipal port is congestion, I was told, especially in the rush hours of the morning and the early afternoon. The boat landing areas there are actually the facility being used by the so-many small passenger motor bancas and motor launches headed to the different barrios across Masbate Bay. Add to that that that is also the docking area of the passenger motor bancas to barrios just outside Masbate Bay and up to Baleno town. Now the bigger motor bancas to Ticao island, Pilar port and Burias island are also lumped there now. That also includes a few cargo motor boats that were once passenger motor boats.

Actually, some small motor launch operators also built docking areas just beyond the northern end of Masbate port. I was told these transfers were the reaction to the terminal fee that costs P30. A terminal fee of that amount for a P10 boat fare? So right now just a very few motor bancas use Masbate port. One effect is congestion of the port was gone in one stroke. So I wonder now if there was any need to lengthen the port after all. Maybe they could have just donated the construction materials to the boat landing areas at the end of the port. The surface there is still dried muck which is obviously undulating and slippery. Well, if the funds were really meant to benefit the public.

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A makeshift boat landing area adjacent Masbate port

Regarding steel-hulled ferries, the competition in Masbate port is heating up and truck volume was obviously bigger than last January. Not in the buses though as July is already part of the lean months. Sta. Clara Shipping Corporation fielded their Cargo RORO LCT there, the LCT Aldain Dowey which was identified in PSSS (Philippine Ship Spotters Society) as the former LCT Ongpin. So now they have a total of three ferries in Masbate and I was told in summer Sta. Clara Shipping even fielded a fourth ferry. Their LCT is of the same length as their Jack Daniel and Anthon Raphael, their two ROPAXes there which are the best in the fleets of Sta. Clara Shipping Corporation and sister company Penafrancia Shipping Corporation (this is before the fielding of the former Tamataka Maru ships from Japan).

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Their LCT is the first to leave at noon and in the afternoon they are the only ferry departures from Masbate at 2pm and 4pm. Their three ferries are the biggest in Masbate because what their competitors have are only basic, short-distance ferry-ROROs because they use the shallow Pilar port whose depth cannot handle bigger ferries. By the way in terms of rolling cargo traffic the Pio Duran route now of Sta. Clara Shipping and Penafrancia Shipping is the favorite now since Pio Duran in Albay is nearer to Manila than Pilar of Sorsogon while the rolling cargo rate is just about the same.

With the exception of the ROROBus which is related to Montenegro Shipping Lines Inc. practically all the other buses to Masbate are handled by Sta. Clara Shipping Corp. and Penafrancia Shipping Corp. as the third operator Denica Lines, a Pilar native does not load buses. Loading buses from Luzon meant extending discounts, rebates, free tickets and free meals and Denica Lines does not play that game because they say they have their share of rolling cargo too. And I saw that when we left left Pilar port aboard their Marina Empress at 3am and the car deck was full. From Masbate port their three ROROs Odyssey, Regina Calixta-II and Marina Empress all left full. Denica Lines has already bought the Regina CalixtaII of Regina Shipping Lines (RSL) of Catanduanes and so they have three ROROs also now while Montenegro Shipping Lines Inc. (MSLI) is down to two ROROs from three. Maybe because it is lean months now and maybe they have one undergoing refitting in a shipyard.

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If we assume that Montenegro Lines has a third RORO in Masbate then a total of 8 ROROs make a daily crossing now to Luzon plus there is a Cargo RORO LCT for a total capacity of about 100 truck/bus units (of course, since there are smaller vehicles mixed in, the actual total is higher). Many of these come from as far as Cebu island. Buses will be at least a fourth of that total. One will wonder why there is such a large number of people on the move when within Masbate island there are not that many number of buses although there is a significant number of commuter vans.

Montenegro Lines have three fastcrafts and a catamaran in Masbate including their newest and fastest, the City of Angeles which is a catamaran. They also have there one of their biggest fastcrafts, the City of Masbate. Their future rival, the two fastcrafts of Denica Lines are still not ready and are still being refitted in Pilar port. Meanwhile, I wonder if the Masbate-Pilar motor bancas are already in terminal decline. There are just so many ROROs and High Speed Crafts. Although the motor bancas are faster than the basic, short-distance ferry-ROROs, they are noisier. They might be noisy, however, but still they are better than the “Stairs Class” of Montenegro Lines.

But in trucks and buses Sta. Clara and Penafrancia are already beating Montenegro Lines by about 3:1. Denica Lines could also be level now with Montenegro Lines in trucks and buses. By the way, sedans, SUVs, AUVs are not that many in the Masbate crossing to Pilar and Pio Duran and jeeps are practically unknown.

However, there is a rumor in Masbate port that a new player will come and serve the Masbate-Pio Duran route and it seems it is not Medallion Transport which was gone from the route after their Lady of Carmel sank in 2013 off Burias island. It remains to be seen if this rumor will come true.

The Super Shuttle RORO 3 of AMTC is also back in Masbate port and it connects to Batangas and Cebu plus Cagayan de Oro but their schedule is irregular as in there are no definite day for arrivals and departures as it is more of a container carrier now. There are also still a few motor bancas to Bulan when where before that was the dominant route to Bicol from Masbate.

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There are also off-hours docking now in Masbate port as Denica Lines has an early evening departure from Pilar. To the credit of Masbate port they let the passengers stay in the port terminal as the arrival of that is midnight and there is still no transportation to the towns outside Masbate City (and that gave me an idea). And Sta. Clara Shipping sends back its ship from Pio Duran if there are a lot of shut-outs (vehicles left unloaded in port) and that becomes another off-hours docking. That was the reason why they fielded their LCT because shut-out were already happening frequently (I saw that last January when one Mega Bus cannot be accommodated and they asked passengers of that to get down the ship and it was an event not good to look at — I pitied the passengers).

Masbate port is changing. Traffic is obviously up and I think the port will only get more important in the future when more traffic will shift to it from San Bernardino Strait if the rates become lower. Maybe then competition will further heat up and we will see the full blooming of Masbate port.

But they have to get that passenger terminal fee down. It is much higher than Zamboanga port when that port is better than Masbate port and the passenger terminal is not really needed by most of the ship passengers. A sore point really and that must change.

The Ship Design Conflict Within WG & A

On the first day of the year 1996, the “Great Merger” officially happened. This brought the fleets and all assets of William Lines Inc. (WLI), Carlos A. Gothong Lines Inc. (CAGLI) and Aboitiz Shipping Corporation (ASC) under one single company and management except for some very old ferries of Aboitiz Shipping Corporation (the likes of Legazpi) and a some ferries and container ships of Aboitiz Jebsens (that was a separate company) which were the container ships acquired from the Ukraine. This was supposedly a preemptive move so local shipping can compete against the purported entry of foreign competition in the inter-island routes which proved to be a bogey or a false story later. How some old shipping families believed that foreigners can enter with a Anti-Cabotage Law in effect that forbids foreign shipping firms from sailing in local routes is beyond me because repeal of any law passes through Congress and our Congress is usually not keen on passing laws that grants free passage to foreigners and if those three liner and container shipping companies are willing, the regional shipping companies and other companies might not be willing and they can also raise a ruckus. But anyway the unlikely merger happened and a very big shipping company was formed from previously competitors.

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Dona Virginia (Credits to Palawan Wildlife Rescue and Conservation Center and Manu Sarmiento)

Any merger usually results in excess assets and in shipping that includes ships aside from management personnel and employees and logistical assets like containers, container yards and buildings. This was easily obvious with the WG&A merger. Since there were excess liners some of it were sent to its regional subsidiary Cebu Ferries Corporation (CFC) like when the Mabuhay 6 (the Our Lady of Good Voyage) and the Our Lady of Lipa were sent there. Meanwhile, all the cruisers liners were offered for sale. They also tried to dispose old and unreliable ROROs like the Dona Cristina, Don Calvino and the Dona Lili that were formerly regional ferries. Actually even some recent liners were also offered for sale. The total was about 10 and that was already about a third of the combined fleet. That also included a handful of container ships.

I knew it early there was a conflict with the disposal of ships when I had as a cabin mate in SuperFerry 7 the cargo manager of William Lines in North Harbor and he was furious because to him it seems that the liners of William Lines were being targeted. Well, that might have been the unintended result of getting Aboitiz Jebsens as fleet and maintenance manager because they will use their old standard in choosing ships (that company was subsequently renamed to WG&A Jebsens to reflect the changed circumstances).

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Don Calvino (Credits to George Tappan and Gorio Belen)

One has to look into recent history to understand this. Aboitiz Shipping Corporation as a liner company did not acquire any liners from 1974 to 1988 and the one they acquired in 1988 was inconsequential as it was just the small and old cruiser liner Katipunan of Escano Lines which became the Legaspi 1. By that time Aboitiz Shipping Corporation had just a few old liners sailing, a combination of former “FS” ships which were on its last legs and a few old cruisers including the pair acquired from Everett Steamship, the Legazpi and the Elcano which were also clearly obsolete already and getting unreliable. It looked to me that without their partner Jebsens Maritime that was influential in their container shipping (which was actually good), they might not have had their blockbuster SuperFerry series.

If one looks at the SuperFerry series of Aboitiz Shipping Corporation, one will easily see its distinguishing characteristics. They are all ROROs (or more exactly ROPAXes) with car ramps at the bow and at the stern, the container vans are all mounted in trailers, trailer caddies hauled them in a fast manner and if possible the two car ramps are both employed so one is dedicated for loading and the other for unloading. Radios are also employed for communication to orchestrate the movement of the container vans so a trailer caddy hauling a container aboard will have a container being unloaded on the way down and markers are used so loading of container vans will not be helter-skelter which can mean difficulty in unloading a container van in an intermediate port.

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Maynilad by Britz Salih

To remedy their serious lack of liners due to non-purchase in the recent years past, Aboitiz Shipping Corporation and Aboitiz Jebsens designed their liners to have short interport hours as in 2 to 3 hours only, the former the preferred time. In Manila and in the endport, the port hours were also very short. With this kind of operation the SuperFerries had a high number of hours at sea on a weekly basis which meant maximum utilization. While a Sulpicio Lines liner will only have a round-trip voyage if the route is Southern Mindanao, an Aboitiz ship will still have a short trip to the likes of Panay within the same week or else do a twice a week Northern Mindanao voyage. With this style, their 4 SuperFerry ships were in practicality the equal of 5 or 6 ships of the competition. Of course with this kind of use of ships a heavy load of preventive maintenance is needed and that happened to be the forte of Aboitiz Jebsens.

When the Chiongbian and Gothong families agreed to the Aboitiz proposal to have Aboitiz Jebsens as fleet and maintenance manager they should have already known was in store and that is the liners should perform the Aboitiz Jebsens way and that meant those which can’t will fall into disfavor and might be the target for culling because with the Aboitiz Jebsens system a lesser number of liners will be needed to maintain their route system and frequencies. Of course at the start WG & A will try to employ all the liners that were not relegated to their subsidiary Cebu Ferries Corporation. But then new liners were still coming onstream, the liners William Lines, Gothong Lines and Aboitiz Shipping ordered when they were still separate companies. WG & A created new routes and frequencies but in a short time they realized what cannot be maintained because there are not enough passengers or cargo like the routes to Tacloban and Dipolog (Dapitan actually) and the Manila-Dumaguete-Cotabato and Manila-Cebu-Surigao-Davao routes.

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Tacloban City (Credits to Times Journal and Gorio Belen)

With that “weak” and “inefficient” ships will be targets for culling aside from the old liners and there was no question that cruiser liners will be first in the firing line. That type cannot carry much cargo and their cargo handling in the interport is longer as cargo booms are not as fast in loading and unloading unlike trailer caddies. So it was no surprise that the cruiser liners Misamis OccidentalTacloban City and Iligan City, formerly of William Lines were almost immediately up for sale. The small ROPAX Zamboanga City was also offered for sale because her engines were big relative to her size and capacity (16,800-horsepower engines) and she had no ramps at the bow. That also went true for the slow Maynilad (14-15 knots only on 16,800 horsepower). The problem with these is they were all former William Lines ship, the reason why some former William Lines people were upset. But they accepted Aboitiz Jebsens as the fleet manager and so that will almost inevitably be the result.

Some lesser liners survived. The “Our Lady” ships of Gothong Lines survived because for their size and capacity their engines were small and that speaks of efficiency and though while a little slower they were fit for the short routes like the northern Panay routes (Dumaguit and Roxas City) or in the periphery like Masbate and Eastern Visayas. The northern Panay route also became the refuge of the Our Lady of Naju, a former Gothong ship which was also a cruiser. The passengers and cargo of the route were not big and so a big cruiser liner like the Dona Virginia will not fit. But of course all that favored the former Gothong ships. It might just have been a quirk of fate and not necessarily because the Gothong representative to the WG & A Board of Directors who is Bob Gothong is close to the Aboitizes. But then I wonder how the Our Lady of Lipa survived. For her size she has big engines and speed was not really needed in the Dumaguit/Roxas City route. Was it because they wanted to show up their competitor the old but beautiful cruiser liner Don Julio of Negros Navigation? I thought when the old cruiser liner Misamis Occidental was refurbished to become the cruiser ship Our Lady of Montserrat, a former William Lines vessel she might have fitted the route (she was even re-engined and became all-airconditioned like the Our Lady of Naju). Was her speed not really enough for the route? Or WG & A wants a ship that is really superior to the competition?

Our Lady of Banneux

Credits to Keppel Cebu and Ken Ledesma

It was not surprising then that in the early merger years that former William Lines officers and employees would think it was only their vessels which was on the firing line or chopping block.

The beautiful SuperFerry 11 which was fielded after the merger was also not that favored. Her engines are just about okay for her size, she has the speed but then like the Zamboanga City she has no car ramps at the bow because she also came from A” Lines of Japan. She was also destined for William Lines if the merger did not happen. The beautiful Maynilad would have easily been a SuperFerry in terms of size and accommodations if not for her grave lack of speed. Being excess later the SuperFerry 11 and Maynilad were passed to Cebu Ferries Corporation and they were the biggest ships that company ever had. That was after WG & A created an entirely new route for them, the Manila-Ormoc-Nasipit route which in first report was good. But then along the years WG & A and successor company Aboitiz Transport System (ATS) developed a reputation for being very soft in holding and maintaining routes. In Cebu Ferries the SuperFerry 11 was renamed to Our Lady of Banneux and the Maynilad was renamed to Our Lady of Akita 2 after her top passenger deck was removed. The two happened to be ex-William Lines ships also! Although not clearly disfavored (as she made the SuperFerry grade), the Our Lady of Banneux which can run at up to 19 knots had a grounding incident in Canigao Channel from which she never recovered again.

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The ship Zamboanga by Wilben Santos

So actually the William liners were the great casualties of the merger due to redundancy and incompatibility and that was because they were unlike the original SuperFerry liners and they simply cannot make the SuperFerry grade (well, just like the former “Our Lady” ships of Gothong Lines only one of those made the SuperFerry grade, the former Our Lady of Akita which became the SuperFerry 6). Of course their former Mabuhay 1 and Mabuhay 3 which made the SuperFerry grade lived longer. The former Mabuhay 2 was not lucky as she was hit by fire early which led to complete total loss. In the longer run only the Mabuhay 1 and Mabuhay 3 survived and the Mabuhay 3 as SuperFerry 8 was even leased to Papua New Guinea because of the surplus of liners in WG & A.

The liners of Carlos A. Gothong Lines Inc. (CAGLI) were more lucky as they found niche routes and small engines played into their favor. Moreover many of the former Gothong Lines ships were in regional routes and they lived long there including their former small liners the Our Lady of Fatima and the Our Lady of Lourdes which were sister ships. That even included the venerable Our Lady of the Rule and their old Our Lady of Guadalupe which has unreliable engines and I even wonder how she lasted so long. In the regional routes some former ships of William Lines survived like the Our Lady of Good Voyage and the Our Lady of Manaoag.

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Dona Lili (Credits to PNA, Phil. Daily Express and Gorio Belen)

When the Chiongbian family of William Lines divested in 2003 only 2 of their former liners remained in WG & A aside from a few container ships. They were paid off in cash from the passenger and container ships that were scrapped. There were still many Gothong ships in the fleet of WG & A when they divested as most survived the culling but they preferred newly-acquired ships when they restarted independent operations.

And that was the story of the ship design conflict in WG & A which have been one of the reasons why the “Great Merger” unraveled so soon.

Camotes Sea and Bohol Strait Are Graveyards of Failed Shipping Companies (Part 1)

The Camotes Sea and Bohol Strait are two of the busiest shipping lanes in the country. These are the seas connecting Leyte and Bohol to the trade and commercial center of the central part of the country which is Cebu. Ships from Cebu going to Samar, Masbate, Mindanao and even Luzon have to pass through these seas also along with the foreign ships calling in Cebu. Over-all, the related Camotes Sea and Bohol Strait as sea connections are only rivaled by Manila Bay and the Verde Island Passage in the density of ships sailing and the three are the busiest shipping corridors in the country. There are many shipping companies operating here, both ferry and cargo. However, in terms of absolute numbers, this is also the area with the most number of failed shipping companies in the last 15 or 20 years when a Ph.D. from Philippine Institute of Development Studies (PIDS) said there is no competition or there is no effective competition or there is just mild competition in most routes here. Of course, she was definitely wrong if we sift through the evidence and among the most persuasive of evidences will be the number of shipping companies that failed. Why would they fail if there is no or only mild or no significant competition? Did they commit suicide? Of course not!

The greatest failure in this area is, of course, the big Cebu Ferries Corporation (CFC), the subsidiary of the giant merged shipping company WG&A Philippines which was probably the biggest regional shipping company ever. Their old ships were gone and dead before their time is up because those were sent to the hangmen of ships, the shipbreakers. Their newer ferries, the MV Cebu Ferry 1, the MV Cebu Ferry 2 and the MV Cebu Ferry 3 (the Cebu Ferry series) were transferred to the successor company 2GO Travel and those ferries were sent to Batangas and they are jokingly called the “Batangas Ferries” because they were no longer in Cebu.

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Cebu Ferry 1 leaving Cebu for Batangas

Once upon a time, this company ruled the roost here when they had so many ferries, many of which were hand-me-down liners or equal to liners in caliber. These hand-me-downs were actually much better and bigger than the overnight ferries of their competition. Their only drawback were their big and generally thirsty engines which was needed for speed requirement of the liner routes. Before the Cebu Ferries series came, some ten ships that passed to the Cebu Ferries Corporation fleet were sent to the breakers and most of them were still sailing good when they were sent to the cutters.

For more on this shipping company, I have a separate article:

https://psssonline.wordpress.com/2016/05/15/the-grand-start-of-cebu-ferries-corporation-cfc/

Probably the next biggest casualty in this area is the Palacio Lines (a.k.a. FJP Lines) which had its origins in Western Samar. In their heyday they had routes from Cebu to Bantayan island, Masbate, Northern Samar, Western Samar, Leyte, Bohol, Siquijor, Negros Oriental and Misamis Occidental. They lost some routes because of paradigm changes like in Bantayan island when they were torpedoed by the short-distance ferry-ROROs from Hagnaya (which is a much shorter route than their route from Cebu City). Palacio Lines was slow in betting on ROROs and they did not immediately see that the paradigm will shift to the intermodal system (as they still acquired cruisers even in the early 1990s).

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Don Martin Sr. 8 not sailing before she was sold to breakers

Later, there were complaints about their ships which progressively got older and less reliable and soon competition was outstripping them. And finally the pressure from these (like Cokaliong Shipping Lines and Lite Ferries) ultimately did them in. They stopped sailing and soon they sold their remaining ferries one by one. This included their MV Bantayan (sold to Orlines Sea-Land Transport), MV Calbayog (sold to Starlite Ferries) and MV Don Martin Sr. 6 (supposedly sold to a Lucena concern). Meanwhile, their biggest ship, the MV Don Martin Sr. 8 was sent to the breakers. And the cruiser ships of the company were even laid up earlier. Their cargo ship, the MV Don Martin which was the first vessel of the company was also sold and this ended up with Quincela Shipping in Manila.

Former fleet: Calbayog, Bantayan, Don Martin Sr. Don Martin Sr. 3, Don Martin Sr. 6, Don Martin Sr. 7, Don Martin Sr. 8, Don Martin

The Rose Shipping Company which is also known as Vicente Atilano (after the owner) is probably the next most prominent loser in the shipping wars in this place. Originally they were a Zamboanga del Sur shipping company from the old town of Margosatubig. Leaving that area, they tried their luck here and they fully engaged in the wars in the Leyte routes especially against Aboitiz Shipping Corporation. One of their weakness, however, is their total reliance on cruiser ferries. Being obsolete, this type of ship progressively cannot compete with the ROROs in revenues (but not in comfort and service). Rolling cargo revenue is actually bigger and more significant than passenger revenues. They then stopped sailing and most of their ships had no takers even if for sale because almost nobody looks around for cruisers anymore. Their only notable ship sales were the MV April Rose which went to Atienza Shipping Lines in Manila and the MV Yellow Rose which went to Medallion Transport. Their MV Cherry Rose and MV Pink Rose were broken up while their MV White Rose and MV Tiffany Rose are missing and are presumed to be broken up. Their MV Pink Rose and MV Red Rose can’t also be found now and in all likelihood have been scrapped too by now.

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The Pink Rose in her last days

Maypalad Shipping which was earlier known as K&T Shipping is one of the older shipping companies in the area. They have disparate routes from as far as Lanao del Norte, Leyte, Southern Leyte and Samar. They seemed to have never really recovered from the sinking of their MV Kalibo Star which was their newest ship then and progressively their ships got older. They were also victims of routes that bit by bit weakened because of competition from other routes (like the Liloan route losing to the Bato and Hilongos routes and the Tacloban route losing to the Ormoc and Baybay routes). In due time, they had no good routes left and their ships were also unable to compete in the bigger routes.

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Part of the Maypalad Shipping fleet after it ceased operations

Among these bigger failures, it is Maypalad Shipping which has a fleet of cargo ships but upon being defunct all of these got anchored too in Mactan Channel. Their MV Cebu Star and MV Guiuan were broken up now while their MV Cabalian Star, MV Leyte Star and MV Tacloban Star could all also be gone now. Their MV Samar Star is the only sure extant ship now along with one freighter which may be too far gone now. Three other cargo ships of their wer also broken or sold to breakers and their LCT is also missing.

Roly Shipping and Godspeed Shipping and Ernesto Alvarado are actually legal-fiction entities of the other. They had routes before to Leyte and Bohol. But being a cruiser ferry company, they slow lost to the ROROs since this type of ship earns more revenues because the rolling cargo revenue is such that they can actually afford not to carry passengers as shown by the Cargo RORO LCTs. Some of their earlier ships were gone a long time ago (the MV Flo Succour, the MV Reyjumar-A, the MV Isabel 2 and the MV Tubigon Ferry). The tried to fight back with fast cruisers, the MV Roly 2, the MV Mega Asiana and the MV Tagbilaran Ferry but ultimately they lost too and quit a few years ago when the banks seized their ships and were laid up. The pressure of tightening competition was simply too great and the revenues were not enough to sustain operations. There were also allegations of internal rot.

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Mega Asiana and Tagbilaran Ferry cannibalized

Jadestar Shipping is another cruiser ferry company which just had a single route, the Cebu-Tubigon route. Then the ROROs of Lite Shipping came to Tubigon, four schedules in all daily. With a full load of rolling cargo these ships will not need any passengers to earn. And then a new paradigm came, the cheap but not-so-speedy but fastcrafts of the legal-fiction entities Sea Highway Carrier and SITI Inter-island and Cargo Services which were more popularly known as Star Crafts. Squeezed by two better competitors, Jadestar Shipping found they could not sustain operations and quit a few years ago (in connection with this, Island Shipping which also operated cruiser ships in the Cebu-Tubigon route also quit showing cruisers cannot beat ROROs).

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Jadestar Seis now in Ibnerizam Shipping fleet in Zamboanga

Some of the ships Jadestar Shipping were sold to other shipping companies like the MV Jadestar Tres which went to Wellington Lim and became a cargo ship and the MV Jadestar Seis which went to the Ibnerizam Shipping of Zamboanga). Two of their ships was broken up earlier and this were the MV Jadestar Nueve and MV Jadestar Doce. Head-on, the cruisers can only compete now in Zamboanga (but then that is another situation).

Former fleet: Jadestar, Jadestar Dos (cargo), Jadestar Tres, Jadestar Seis, Jadestar Nueve, Jadestar Doce.

Kinswell Shipping made a big splash when they started in 2002 because what they introduced were China-built vessels that were not of the usual design or hull material. Some of these are actually very small and not bigger than boats and were a little queer. But their Medium Speed Crafts (MSCs) could have been winners had they been handled well. One sold one, the MV Gloria G-1 is sailing well for Gabisan Shipping and the comparable Star Crafts were also successful.

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The derelict Kinswell boats

They tried many routes and the name of the ships reflected where they were sailing. The smallest ones were the first to quit sailing as it found no great patronage because they simply bobbed too much in unsettled seas. Now they are jut anchored near the Tayud shipyards. Being fiberglass they will not sink or rust and so up to this day those remain as floating markers outside Cansaga Bay. All their three bigger ships, the MSCs were sold, the MV Kinswell, MV Kinswell II and lastly, the MV Kinswell Cebu. They have no more sailing ships left.

Former fleet: Kinswell, Kinswell II, Kinswell Cebu (2), Kins Bantayan, Kins Ormoc, Kins Danao, Cadiznon 3, Kins Camotes.

San Juan Shipping of Leyte is another hard-luck company. They were doing relatively well with their first two ferries, the MV Sr. San Jose, a beautiful cruiser and the MV John Carrier-1, a small ferry even though competition to the Leyte route was already stiffening. Now, I wonder how they were sweet-talked into purchasing the MV Dona Cristina of the Cebu Ferries Corporation. This overnight ferry was a former regional ship of the Carlos A. Gothong Lines, Inc. (CAGLI) whose old ships invariably has a history of engine troubles (except for MV Our Lady of Mt. Carmel). However, it was already WG&A, the merged shipping company which sold the ship to them. Maybe they thought that since the name WG&A was glistening then, then the ship must be good.

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The remains of San Juan Ferry (Photo by Kontiki Diving Club-Cebu)

This ship which became the MV San Juan Ferry in their fleet and became the flagship and biggest ship. San Juan Shipping spent money to refurbish this ship. However, the ship brought misery to them when a explosion hit the ship and caught fire while on trials off Liloan, Cebu. The ship then sank. San Juan Shipping never recovered from that debacle especially since competition then to Leyte was very fierce. They then sold out to Lite Ferries lock, stock and barrel and it was there that Lite Ferries gained a foothold to Leyte.

M.Y. Lines is unique in a sense that when wooden motor boats were already on their way out they sort of made a revival out of it. They had two big, wooden motor boats in a fleet of three but one, the beautiful MV M.Y. Katrina was wrecked in a typhoon and scrapped. They bounced from one route to another and was never able to fully settle especially since they were using non-ROROs when ROROs had already come into full force and was proving its superiority. They tried to find niche routes in northwestern Leyte but was never able to really discover one. One thing that torpedoed them there was the opening of the Bogo-Palompon route and the rolling of Ceres buses from Cebu to that corner of Leyte. Later, their ferries were seized by the banks and laid up.

Former fleet: M.Y. Katrina, Michael-3, Sunriser

(To be continued)

Will The New Starlite Ferry And Oroquieta Stars Battle In The Future?

It has been announced in the news a few months ago that Starlite Ferries of Batangas send a ship of their to Ormoc, the premier gateway to Leyte from Cebu. Many know that the Cebu-Ormoc is a high-density route. However, at the time this article was written (May 2017) no new Starlite ferry has arrived in Ormoc. I do not know but maybe they are serious but they could still be awaiting a ferry from Japan that has overnight accommodations, i.e. equipped with bunks and maybe cabins too. Starlite Ferries must have realized by now that the stronger schedule to Ormoc is the night sailing and not the day voyage.

Meanwhile, Ormoc is a very important route for Roble Shipping and for sure they will not take a challenge there lying down. Currently they are using their bigger but older ferries in the Ormoc route and primarily this is the Joyful Stars, the former Cebu Princess of Sulpicio Lines. This ship might have been a former liner and hence has better accommodations than the usual overnight ferry but she is already old although not yet obsolete or unreliable. But people and passengers have a bent for taking the newer and more modern ferry and so if the new Starlite ferry arrives the Joyful Stars might have a hard time coping.

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An example of the new Starlite ferry (Photo by Irvine Kinea)

I and many other members of PSSS (Philippine Ship Spotters Society) have been wondering why the new ship of Roble Shipping, the Oroquieta Stars which is the former Taelim Iris has been staying long already in the Hilongos route when according to press releases of Roble Shipping before she is destined for the Oroquieta, Misamis Occidental route and hence the name of the ship. We thought at first she was in Hilongos to “acclimatize”. But over half a year has already passed and she is still there. Now I am thinking, is she actually waiting for a future competitor that got Roble Shipping’s attention?

I am guessing that if finally Starlite Ferries serves the Cebu-Ormoc route then Roble Shipping will transfer the Oroquieta Stars to this route to do battle. And if this happens, I expect a good battle between them. This will be a good fight between a surplus ship that is not yet old with new interiors versus a ferry that is completely brand-new. That will be a good test if a brand-new ferry really has an edge in a head-on fight. After all, the owners of the brand-new ships tout that they have the edge. An actual fight will prove if that is really true and I and PSSS will be glad to see if they can prove it.

In size the two ferries will be a near-match. The new Starlite ferries are nearly 67 meters in LOA (Length Over-all) on the average. Meanwhile, the Oroquieta Stars has an LOA of 77.4 meters but in LPP (Length Between Perpendiculars) she is only 68.0 meters versus the 63.3 meters of the new Starlite ferries. The reason for the big difference in the LOA and LPP of Oroquieta Stars is she has a long bow. In estimating capacity, the LPP is more important than the LOA and so in LPP their gap is just 4.7 meters which is just the length of a sedan or an SUV.

In Breadth, however, the new Starlite ferries has a big edge at 15.3 meters versus the 12.0 meters of the Oroquieta Stars. This difference is actually one lane of vehicles and so the new Starlite ferries will probably carry more vehicles and ROROs earn more from vehicles compared to passengers. But then I would add early that Oroquieta Stars has a “homecourt advantage”. There are vehicles practically locked to them, they have been long in the business connecting of Cebu and Leyte and hence they know more people and customers and they are also good in offering low rates which is actually the primary decision point of those who decide loading of vehicles.

In passenger decks, both ships have two decks and so in passenger capacity they will not be far from each other, theoretically. But Roble Shipping is known for offering hard fiberglass seats on their routes and these maximizes passenger capacity and so probably in this category the Oroquieta Stars will have a dubious edge. These seats is what I call the “cruel seats”. Imagine sitting on them for 5 hours on the average for a just few pesos less than the fare charged for a bunk.

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Ormoc Port (Photo by James Gabriel Verallo)

In terms of comparison of cubic capacities of the ship in Gross Tonnage and Net Tonnage, I do not want to use them because such comparisons are usually meaningless in the Philippines because if there is “gross” it is because the declarations of them are grossly inaccurate in many cases. And besides the ship with a deeper keel will have a higher Gross Tonnage. By the way the new Starlite ferries are touted to be more stable because of its large Depth which is 9.4 meters. However, the Oroquieta Star’s Depth is nearly like that at 8.1 meters.

Regarding engine horsepower, the Oroquieta Stars have a significant edge at 4,900 horsepower versus the 3,650 horsepower of the new Starlite ferries. This is the reason why the former has a higher design speed, the speed that can be sustained when new at 16 knots versus the 14.5 knots of the latter. In an evening voyage this metric will not matter much since Ormoc is just some 60 nautical miles from Cebu and so it will just be a matter who arrives earlier in an unholy hour. In Ormoc at this hour there are no good connecting trips yet by land. In Cebu it might matter a little because buses leave at all hours of the night. But in daytime this will be an edge for Oroquieta Stars.

Plus of course bragging rights are always associated in being the faster one. And maybe the prestige of the new Starlite ferries will suffer a little because newer ships are supposed to be faster. But then those who know better knows speed is simply a function of the engine power. Even though Oroquieta Stars is already 23 years old, I think she will still have a slight edge in speed although forcing older engines always carries a risk. In mechanical reliability though, the ROROs built in the 1980s and later have proven they are still very reliable at 30 years of age or even greater.

In interiors a newly-refurbished ship is almost as good as a brand-new ship especially in the particular case of Oroquieta Stars which was converted from being a vehicle carrier. That means a lot of the accommodations are actually new. And if there is enough power from auxiliary engines then there is no reason why the air-conditioning of a ship would be weak.

In passenger service, well, it is proven that graduates of hotel and restaurant courses are better than nautical course graduates as the former have a lot of edge in training with regards to that. Whoever invests more in this will be the winner. If one is as good as the passenger service of 2GO or FastCat then they will probably have an edge. But if one just relies on cadets or apprentices, they will be a sure losers. They might be too cheap (as in they work for free) but I find them rough in the main and at times uneducated.

In the food service, whoever invests more will also be the winner too. The parameters here are the taste and variety. Actually what I found tasty were those who offered microwaved freeze-dried food because those are food that were actually standardized and tested. That is unlike the carinderia food which are always highly variable in quality and taste. Of course none will probably be able to offer the extras of the true liners of 2GO (I mean not counting the former Cebu Ferries). But knowing Pinoys, if one will offer unlimited rice that will be a certain edge.

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I imagine if the two will face off it will be a tight fight. Can the new Starlite ferry prove they really have an edge? Actually I doubt it. They might be more thrifty on fuel and needing less parts and service but they have a higher amortization because brand-new ships are not cheap and all were acquired through loans. In a straight fight with discounting the brand-new ships will have a hard time. Actually to say the new Starlite ferries are better against the likes of Oroquieta Stars is just like saying it is better and hence by implication will best or defeat the former Cebu Ferries of 2GO and that is actually hard to prove as everybody knows. That is what I mean that good second-hand ferries that were refitted well and has good maintenance and has very well-trained service personnel can easily match a brand-new ship.

And this will probably point to the weakness of the new Starlite ferries. They are new but they have no technical or technological edge versus the ferries built in the 1990’s like those used by 2GO. This is not like in buses and planes where a 20-year bus or plane can’t compete with a new one. If new ferries will have an edge it will be against ships that are already over 35 years old. And so this might not be yet the time the new Starlite ferries will have an edge over the Oroquieta Stars.

Whatever, these are mainly theoretical yet. What I want is a true test so conjectures and analyses can be proven or disproved.

Bring it on!

 

The Sister Ships Stephanie Marie and Starlite Annapolis

These are two sister ships with different owners, routes and home ports in the Philippines and probably their paths do not cross and few are aware one has a sister ship or ever more saw both of them. I wrote about them not because they are that superlative but I think they have some uniqueness and I would like to compare them to a sister ship series that has just started arriving in the Philippines. These are mainly represented by the new ships of Starlite Ferries which all arrived here brand-new from Japan from a big loan package and ostensibly a push for shipping modernization in the Philippines.

One thing I noticed about the new Starlite ferries is their breadth which is on the large or wide end. Few are the 60-meter ferries that have 14 meters as breadth (most have breadths just in the 12 to 13 meter range) but the breadth of the new Starlite Ferries is 15.3 meters. There are just a few ferries in the Philippines that are in the 60-meter class that have 14 meters in breadth but the sister ships Stephanie Marie and Starlite Annapolis have the widest breadth at 14.2 meters and so the new Starlite ferries has an extra 1.1 meters over them.

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The car deck of Stephanie Marie (Photo by Mike Baylon)

Now if this extra breadth converts to an extra lane of rolling cargo I am not sure of that. The average width of a truck or bus is just 3 meters and so in the two older sisters ships that might mean 3 buses or trucks abreast as other portions of the breadth consist of the hull and pathways. At their breadth the buses and trucks will not be too near each other which is important in choppy seas to avoid damage.

But rolling cargo loading in the Philippines is generally mixed with smaller vehicles like sedans, AUVs, SUVs, jeeps and light trucks. Now I don’t know if in a mix the new Starlite ferries will have a higher total number of vehicles (the lengths of the two sets of sister ships are almost the same). In a maritime database the declared rolling cargo capacity of the new Starlite ferries is 21 trucks. I don’t know how this was computed. At 3 abreast then it must be a row of 7 trucks. But the LOA (Length Over-all) is only 67 meters. Is this the Japan 8-meter truck standard and not our long trucks?

I am also interested in the breadths of ROROs because that figure is also needed in estimating the rolling cargo and not just the length. A little extra breadth is actually crucial in packing it in. In the new Starlite ferries they advertised that their stairs are wider. Did the extra 1.1 meters just went into that?

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Stephanie Marie is more wide than tall

Before the arrival of the new Starlite ferries, I looked at Stephanie Marie and Starlite Annapolis as the benchmarks in the 60-meter class of ROPAXes. Viewed from the outside it is obvious they are a little wide and their bow design even emphasizes that. Even from the stern these two sister ships looks wide than tall and to think they both have three passenger decks. Well, this illusion is true even from the bow.

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Just how wide is the Stephanie Marie and Starlite Annapolis? Well, let me state that in many 80-meter ROROs 14 meters is the common breadth like in Reina del Rosario, Filipinas Cebu, Filipinas Ozamis, Filipinas Iligan and Filipinas Butuan (well, the last two is just a shade under 80 meters), to name a few more famous ferries. In fact the 14.2 meters breadth of Stephanie Marie and Starlite Annapolis are wider than most Cebu overnight ships. 14.2 meters is even the breadth of the 90-meter Super Shuttle RORO 2. Actually before the arrival of the former Cebu Ferries ships Starlite Annapolis has the biggest breadth in the Batangas to Mindoro and Roxas to Caticlan ROPAXes. But then those three former Cebu Ferries average over 90 meters in LOA and so they are substantially bigger than the sister ships and that is the reason why now those three are already regarded as liners.

Maybe in that count the two sister ships can be considered superlative. And that is also the characteristic of the new sister ship series of Starlite Ferries, their wide breadth. If that translates into a technical advantage I am not sure of that but probably not. Anyway she has bigger engines than most ships of her class at 3,650 horsepower.

The Stephanie Marie of Aleson Shipping of Zamboanga City came earlier than her sister in 1998. She was built as the Marima III in Japan and she has the ID IMO 8427278. This ship was built by Kanda Shipbuilding in Kawajiri, Japan in 1979 which means if 35-year old ships are phased out then she would have to go. She has two masts, a steel hull, cargo ramps at the bow and stern, a single car deck and three passenger decks.

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Stephanie Marie port profile

Stephanie Marie‘s LOA is 63.2 meters with a Length Between Perpendiculars (LBP or LPP) of 60.9 meters. Her Gross Register Tonnage or GRT in Japan was 910 tons but when that was converted into Gross Tonnage or GT here, the modern measure, it fell to 770 even when an additional passenger accommodations were built. Most likely the “MARINA magic meter” came into play here which shrinks the GTs of the ships for considerations. Her declared Net Tonnage or NT is just 316 and that is probably an underestimation too.

The passenger capacity of Stephanie Marie is 956 and this is high because she is a short-distance ferry-RORO just equipped with benches and there are no bunks. She had a large air-conditioned cabin at the front of the ship for the Tourist Class and the very front is actually a lounge and at the side of that is a sort of an open office. Her route is Zamboanga City to Isabela City, the capital of Basilan which has a distance of 14 nautical miles and she does two full voyages a day. A big ship for the route she is seldom full and that gives the passengers a lot of space. But even then she is a profitable ship and there is space in case there is a rush of passengers and vehicles especially since she holds the last trip to Isabela City.

Meanwhile, her sister ship Starlite Annapolis of Starlite Ferries in Batangas City held the Roxas-Caticlan route for Starlite Ferries for a long time although she is rotated too in the Batangas-Calapan route. Those were not her original routes as when the ship first came here in 1999 her first owner was Safeship/Shipsafe, two legal-fiction shipping companies that just operate as one and she was known as Princess Colleen. Her original route was actually Batangas to Romblon, Romblon. However, when their ship Princess Camille capsized in Romblon port in 2003 the company went into a downward spiral and when she became defunct the Princess Colleen was sold to Starlite Ferries. Princess Colleen was the biggest ship of Safeship/Shipsafe.

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Starlite Annapolis port profile (Photo by Raymund Lapus)

Princess Colleen was built as the Yoshinagawa of the Blue Line by Kanda Shipbuilding in Kure, Japan in 1982 and so she is the younger of the two sisters. Her permanent ID is IMO 8125624. She has the same external dimensions as the Stephanie Marie but her original Gross Register Tonnage was bigger at 946 tons. Unlike her sister, however, Starlite Annapolis reflected the increase in her passenger accommodations and so the declared GT here is 1,176 (GT is a dimentionless number hence “tons” is not used) which is nearer to reality. Like her sister ship, she is a three-passenger-deck ship. In the number of masts, hull material, cargo ramps and car deck, she is like her sister ship and visually it is obvious they are sister ships although the passenger deck lay-out of the two ships is a little different.

The declared passenger capacity of Starlite Annapolis is only 704 passengers which is significantly lower than her sister. The reason is Starlite Annapolis has bunks and maybe that is important for the 4-hour crossing of the Tablas Strait at night. Like the Stephanie Marie, the Starlite Annapolis also has a lounge at the front and the cafeteria is superior than of her sister ship. Maybe that is needed because the transit time of Starlite Annapolis is longer whereas the crossing time of Stephanie Marie is just over an hour and there is no night voyage.

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Stephanie Marie engine room (Photo by Mike Baylon)

In the engine department both ships are equipped with two Daihatsu engines with a total of 3,200 horsepower which is a little high for ROROs their size (and may I note the engine room is too loud when cruising unlike the more modern ROPAXes). Maybe their owners in Japan wanted a little more speed and so their design speeds are both 15 knots which is higher than the design speed (the maximum that can be sustained) of the new Starlite ferries although its power is greater (is that the penalty of having a larger draft?). Of course after three decades of service there is no way the two sisters ships can still run near those speeds and they will be lucky to develop 13 knots now. They might be old, however, but the two are still reliable and profitable ships. I just worry about Starlite Annapolis because her owner is one of the bashers of old ships and he might just simply decide to retire her if he wants to be true to his words.

If there is no forced phasing-out of old ships unlike what is pushed by those who have vested interests, I am sure both these ships will last 40 years or more if the record of the ROROs older than them is studied when some examples are already 50 years now. That is one blessing of having Daihatsu engines which have proven to be very sturdy and long-lasting and parts are easy to source or to re-manufacture. Regarding the hull, I am sure its integrity is still good especially since anodes are in wide use now and it is easy to replace damaged hull plates.

I will still be watching these sister ships in the next few years for I am impressed with them.

Haters of Old Ships Should Train Their Guns on Liners

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Image from ABS-CBN News

This article is actually intended for the reading (dis)pleasure of the likes of Arben Santos, Christopher Pastrana, Alfonso Cusi and Rey Gamboa who in the past three years or so have been attacking old ships as if they are unworthy or worse as thought of “floating coffins”. They try to make the connection that old ships are bound to sink although they cite no study or empirical evidence to support such conjecture. They also intentionally neglect to cite that human error could simply be the cause of the sinking or hull losses of local ferries and this is what is posited by one experienced Captain. I would really like to read the BMI or Board of Marine Inquiry findings of these mishaps but sadly they are not public. BMI is made by Coastguardmen but the Philippine Coast Guard cannot even feed media reliable and complete statistics on sinkings or hull losses. I wonder if termites or sea water got to those findings first.

There was a conference arranged by the Maritime Industry Industry or MARINA two months ago where are all the shipping companies and shipyards were invited. Sensing the topic will be the culling of old ships, the shipping companies came prepared and with their lawyers (well, I understand one of the functions of lawyers is to protect their clients’ rights). The shipping companies asked if MARINA has a study showing old age was the cause of ship sinkings. Of course MARINA has no such study or studies and so the answer of MARINA was simply, “Noted”. Watta funny answer! I thought they were the experts. At the least that is their line of work. Now I don’t know if they are making a study. Well, I am glad there was a BMI in the past because although their records might not be complete, at least it prevents the twisting of events and results in the past. Now, they better find those records now and fast.

Of course, I would like to help them. Or better yet I would like the public to know the empirical evidence on ship losses so they can judge for themselves. In rearranging my database of maritime hull losses I only took note of the the sinkings and hull losses of the past 25 years or from 1992. 25 years is one generation and so it is long and broad enough and there is sufficient sample. 1992 was also the start of the term of President Fidel V. Ramos which introduced shipping liberalization in the country and he rolled out incentives in the importation of ships. His term was the start of the sharp rise in the importation of ships including ferries. Many will remember too that in his term High Speed Crafts (HSCs) which means catamarans and fastcrafts became a new and successful shipping paradigm in the country.

In my sample I just concentrated on steel-hulled ferries. Why ferries? Because it is ferries that capture the public’s attention and their ire if it sink (of course our media is sensationalistic but without substance). I excluded High Speed Crafts because the comparison to steel-hulled ferries might be inexact (and anyway only four were lost in the same period). I also excluded the wooden-hulled crafts like the motor boats (officially called motor launches) and more so the passenger-cargo motor bancas. Their rates of loss are simple much higher than steel-hulled ferries and the reason is pretty obvious and they will simply skew the comparisons.

In the last 25 years some 56 steel-hulled ferries were lost to various reasons (and that is an average of more than 2 a year) and that includes not only sinkings and founderings but also hull losses due to fire and wrecking. Included were ships lost even when they were not sailing but were caught by typhoons in anchor and which became complete total losses or which capsized and never were salvaged. Of these 56, 16 were liners, 20 were overnight ferries and another 20 were short-distance ferries. And for me that is a very surprising finding. Why? Because pro rata the liners which are the biggest and most well-equipped sink at a greater rate than their smaller counterparts. There are not that many liners but sure there were much more overnight ferries and even more short-distance ferries.

How did that happen?? I don’t have a complete explanation myself. And to think many of the liners have MMSI Numbers hence AIS-equipped. For sure their masters are real Captains whereas in lesser ships a Second Mate will qualify as Captain. And of course their crews are better trained than the crews of the two other classes. Most of our ships that have P&I (Protection and Indemnity) insurance, the most comprehensive insurance are the liners among the ferries. It might be incomprehensible but that is the raw statistics. Liners sink at a faster rate than overnight ferries and short-distance ferries (is that believable?). By the way most of the 56 lost ships are ROROs (Roll-on, Roll-off ships). There were actually very few cruisers among them.

So if Arben Santos, Christopher Pastrana, Alfonso Cusi and Rey Gamboa are really interested in safety, the lesson is maybe they should be more critical, should have a more wary eye of the liners (LOL!). Now I just wonder how Dennis Uy will tell them off. But as they say numbers don’t lie. But for the four gentlemen mentioned I just hope they make their own study first before they open their mouths the next time. Shut down the propaganda and be more objective. They might say liners casualties are rare now. But that is simply because there are so few liners now. And voyages are suspended even if it just a tropical depression with winds of 45kph and swells of less than 1 foot.

For the perusal of the public here are the lost steel-hulled ferries since 1992. This is much, much more complete than what was presented by media which do not know how to do research.

Lost Steel-hulled Ferries Since 1992:

LINERS

OVERNIGHT FERRIES

SHORT-DISTANCE FERRIES

Cebu City (1994)

Aleson III (1994)

Baleno 168 (2013)

Iloilo Princess (2003)

Asia Malaysia (2011)

Baleno Nine (2009)

Philippine Princess (1997)

Asia South Korea (1999)

Baleno Six (2006)

Princess of the Orient (1998)

Asia Thailand (1999)

Baleno Tres (2011)

Princess of the Pacific (2004)

Blue Water Princess 1 (2007)

Ciara Joy (2003)

Princess of the Stars (2008)

Cebu Diamond (1998)

Ivatan (2000s)

Princess of the World (2006)

Dumaguete Ferry (1990’s)

Ivatan Princess (2004)

St. Francis of Assisi (1999)

Hilongos Diamond 2 (2004)

Lady of Carmel (2013)

St. Gregory The Great (2013)

Kalibo Star (1997)

LCT Davao del Norte (1990s)

St. Thomas Aquinas (2013)

Kimelody Cristy (1995)

LCT Gwen Vida (2008)

SuperFerry 3 (2000)

Labangan (1996)

Maharlika Dos (2014)

SuperFerry 6 (2000)

Maria Carmela (2002)

Northern Samar (2006)

SuperFerry 7 (1997)

Princess Camille (2003)

Ruby – 1 (1993)

SuperFerry 9 (2009)

Pulauan Ferry (2000’s)

Ruperto Jr. (1990s)

SuperFerry 14 (2004)

Rosalia 2 (1999)

San Miguel de Ilijan (1990s)

Tacloban Princess (2009)

Sampaguita Ferry 2 (1990s)

Sta. Penafrancia 7 (2006)

San Juan Ferry (2000)

Starlite Atlantic (2016)

Super Shuttle Ferry 7 (2014)

Super Shuttle Ferry 2 (2013)

Super Shuttle RORO 1 (2012)

Super Shuttle Ferry 17 (2014)

Wonderful Star (2000s)

Viva Penafrancia II (2000)

In the classification I looked more at the route of the ship and not if it has bunks or none. I did not include in the list the Mega Asiana and Tagbilaran Ferry that were cannibalized inside a shipyard nor the Roly-2 which capsized in a shipyard but over land. Not also listed were the Dona Virginia and the Our Lady of Banneux which were no longer repaired after grounding and were instead sold to the breakers. The last two were actually liners. In the same manner, I did not include the Starlite Voyager which was sent to the breakers after a grounding incident. Also not listed was the Ocean King II which capsized but not under water and was salvaged to become a RORO freighter. And I did not also list the casino ship Mabuhay Sunshine which was formerly a cruise ship. If all these are counted, the total would have been 64 and 18 would have been liners and 23 would have been overnight ferries and 22 would have been short-distance ferries.

I challenge the four haters of old ships to prove which of those 56 (or 64) steel-hulled ferries were lost due to old age. Well, the might even have determining what were the causes of the loss of the 56.

Two of the ships mentioned above belong to Alfonso Cusi and another one belongs to Christopher Pastrana. 7 of the 16 lost liners belong to the highly-respected WG&A/Aboitiz Transport System/2GO. 6 lost liners belong to the much-maligned Sulpicio Lines.

The Claim of Carlos A. Gothong Lines That They Were First Into ROPAXes Was Most Likely True (But There Was Controversy)

Carlos A. Gothong Lines, Inc. (CAGLI), in their online published history claims they were first into ROROs. The more correct term is probably ROPAX or RORO-Passenger but many people just use the acronym “RORO” and that is what is commonly most understood by many. It was said that when new patriarch Alfredo (Alfred) Gothong went on self-imposed exile in Canada, he was able to observe how efficient were the ROROs there and he might have been talking of the short-distance ferry-ROROs including the double-ended ferries in the Vancouver area. It is in that area where Canada has many of those types.

The move to ROROs happened when the then-combined shipping companies Carlos A. Gothong Lines, Inc. (CAGLI) and Lorenzo Shipping Corporation parted ways in 1979 (in actual although the agreement was from 1978) after some 7 years of combined operations which they did to better withstand the shocks of the split that created Sulpicio Lines and the downfall of their copra and oil trading (in strategic partnership with Ludo Do & Lu Ym of Cebu) when the Marcos henchmen moved in into the copra trade and oil refining. When Carlos A. Gothong Lines and Lorenzo Shipping were still combined the former’s ships were mainly doing the Visayas and Visayas-Mindanao routes while the latter’s ships were mainly doing the Southern Mindanao and Western Visayas routes.

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1979 Gothong + Lorenzo shipping schedule (Credits to Times Journal and Gorio Belen)

The year 1979 was very significant for Philippine shipping in so many ways. First, it was the year when containerization went full blast when the leading shipping companies (Aboitiz Shipping, William Lines, Sulpicio Lines, Lorenzo Shipping plus the earlier Sea Transport) went into a race to acquire container ships. That also meant a lull in passenger-cargo ship acquisitions since more and more it was the container ships that were carrying the cargo to the major ports. Before the container ships, it was mainly the passenger-cargo ships that were carrying the inter-island cargoes. The shift to containerization resulted in passenger-cargo ships being laid up in 1980 and 1981 and later it accelerated the process of breaking up of the former “FS” ships.

1979 Nov Schedules

1979 container shipping ads (Credits to Times Journal and Gorio Belen)

Second, it was the year that the road plus ship intermodal system truly started when a Cardinal Shipping ROPAX appeared in San Bernardino Strait to connect Luzon and Visayas by RORO. It was the first step but in the next years ROPAXes linking the islands within sight began to mushroom (this is not to negate the earlier intermittent LCTs that also tried to bridge major islands within sight of each other the RORO way).

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A 1980 ad of Cardinal Shipping (Credit to Gorio Belen)

In their split, Carlos A. Gothong Lines and Lorenzo Shipping had two completely different responses to the new paradigm of containerization. The latter tried to join the containerization bandwagon and aside from the acquisition of general cargo ships from Japan for refitting into container ships it also tried to retrofit their earlier general cargo ships into container ships. Maybe Lorenzo Shipping does not have the financial muscle of the others but it tried to make up for this by ingenuity (and maybe Aboitiz Shipping which first tried this approach was their model).

However, Carlos A. Gothong Lines had a different approach. They bypassed the acquisition of container ships and instead went headlong into the acquisition of small ROPAXES (but bigger than the basic, short-distance ferry-ROROs). Most likely their situation as primarily an intra-Visayas and a Visayas-Mindanao shipping operator influenced this. In these routes, there was no need for containers ship as almost all cargoes there are either loose cargo or palletized cargo that are loaded mainly in overnight ships.

There is controversy which shipping company fielded the first RORO in the Philippines (setting aside the earlier LCTs). Negros Navigation claims their “Sta. Maria” was first in RORO liners. That ship came in 1980 and it was a RORO liner, obviously. But as far as ROROs or ROPAXes, there is indubitable proof that Cardinal Shipping fielded the “Cardinal Ferry 1” in 1979 in the San Bernardino Strait crossing.

To make the debate murkier still, the “Northern Star” (a double-ended ferry at first before she was converted and she became the latter “Northern Samar”) and “Badjao” of Newport Shipping arrived in 1978 but they were not doing RORO routes then. By the way, the San Bernardino RORO service became only feasible when the roads in Samar were already passable so it cannot come earlier.

Carlos A. Gothong Lines might win the debate, however, because in 1976 they already had the small RORO “Don Johnny” which they used as a passenger-cargo ship from Manila to Leyte but not as a RORO. This ship later became the “Cardinal Ferry 2” of Cardinal Shipping that was the first to bridge the Surigao Strait as a RORO (that was not an LCT) in 1980 with a fixed schedule and daily voyages. And even though the former vehicle carrier “Don Carlos” arrived for Sulpicio Lines in 1977, still Carlos A. Gothong Lines was technically ahead in ROROs.

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The Don Carlos (Credits to Times Journal and Gorio Belen)

From 1980 and ahead of the other shipping companies, Carlos A. Gothong Lines already bet big on ROROs when they fielded such type one after the other. In 1980, the “Dona Lili” and “Don Calvino” arrived for Carlos A. Gothong Lines although there are those who say the former arrived earlier. Negros Navigation might have been right in stressing that their “Sta. Maria” was a RORO liner and was first because the two ROROs of Carlos A. Gothong Lines were just overnight ferries. Nevertheless, both were ROROs or ROPAXes.

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The Dona Lili (Credits to PNA, Daily Express and Gorio Belen)

The “Dona Lili” was a ship built as the “Seiran Maru” in 1967 by Taguma Zosen in Innoshima, Japan. The ferry measured 69.0 meters by 12.0 meters with an original 856 gross register tonnage, a net register tonnage of 448 tons and deadweight tonnage of 553 tons. She was powered by two Daihatsu engines totalling 2,600 horsepower with gave her a sustained speed of 15.5 knots. The permanent ID of the ship was IMO 6713609.

In comparison, the “Sta. Maria” of Negros Navigation was not much bigger at 72.0 meters by 12.6 meters and 1,110 gross register tonnage. Their speed was just about the same since “Sta. Maria” has a design speed of just 15 knots. So one ship was not clearly superior to the other. It just so happened that the routes of the companies dictated the particular role of the ships. By the way the “Sta. Maria” is still existing as the “Lite Ferry 8” so shipping observers still can benchmark her size, visually.

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The Don Calvino (Credits to PAL, George Tappan and Gorio Belen)

The “Don Calvino” was built as the “Shunan Maru” by Naikai Zosen in Onomichi, Japan in 1968. The ship measured 62.6 meters by 13.4 meters with an original gross register tonnage of 881 tons. She was powered by twin Hitachi engines of 2,660 horsepower total and a design speed of 14.5 knots. Her ID was IMO 6829484. As a note, the “Dona Lili” and the “Don Calvino” had long lives and they even outlived their company Carlos A. Gothong Lines which disappeared as a separate company when it joined the merger which created the giant shipping company WG&A.

Another RORO also arrived for Carlos A. Gothong Lines in the same year 1980. However, the ship did not live long. This ferry was the “Dona Josefina” which was built as “Kamishiho Maru” in 1968 by Mitsubishi Heavy Industries in Shimonoseki, Japan. This ship had the external dimensions 71.6 meters by 13.0 meters and her gross register tonnage was 1,067 tons which means she was slightly the biggest of the three that came to Carlos A. Gothong Lines in 1980 and almost a match to the “Sta. Maria” of Navigation in size (incidentally the two ships both came in 1980). This ship was powered by twin Daihatsu engines of 2,600 combined like the “Dona Lili” and her sustained top speed was 15 knots. Her permanent ID was IMO 6823399.

Acquiring three medium-sized ROROs in a year showed the bet of Carlos A. Gothong Lines on ROROs or ROPAXes instead of container ships. Actually in overnight routes, it is ROROs that is needed more because it simplified cargo handling especially with the employment of forklifts which is several times more efficient than a porter and does not get tired. When Carlos A. Gothong Lines acquired RORO cargo ships starting in 1987 with the “Our Lady of Hope” , it was when they had Manila routes already and those cargo ships were used in that route.

Carlos A. Gothong Lines then had a short pause but in 1982 they purchased the ROPAX “Don Benjamin”. This ship was the former “Shin Kanaya Maru” and she was built in 1967 by Shimoda Dockyard Company in Shimoda, Japan. This ship measured 61.0 meters by 13.7 meters and the gross register tonnage was 685 tons and her permanent ID was IMO 7022875. She was powered by a single Nippon Hatsudoki engine of 2,550 horsepower and her design speed was 15 knots. Her engine was the reason the ship did not have a very long career here.

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The Don Benjamin partially scrapped (Photo by Edison Sy)

In 1983, Carlos A. Gothong Lines acquired two more ROROs, the “Dona Casandra” and the “Dona Conchita” which were both ill-fated here. The “Dona Casandra” was the former “Mishima Maru” and built by Hashihama Zosen in Hashihama, Japan. She was smaller than the other ROROs of Carlos A. Gothong Lines at 53.8 meters by 11 meters but her register tonnage was 682 tons. Her engines were twin Daihatsus at 2,000 horsepower total and that gave her a top speed of 14 knots, sustained. She possessed the IMO Number 6729476.

The other ship, the “Dona Conchita” was significantly bigger than the others as she had the external dimensions 82.0 meters by 13.4 meters and Japan gross register tonnage of 1,864 tons. This ship was the former “Osado Maru” and she was built in 1969 by Ishikawajima Heavy Industries (IHI) in Tokyo, Japan with the IMO Number 6908187. This bigger ship with a design speed of 16.5 knots was supposedly what will bring Carlos A. Gothong Lines back in the Manila route. However, both “Dona Casandra” and “Dona Conchita” sank before the decade was out.

While Carlos A. Gothong Lines was acquiring these ships, they were also disposing of their old ferries including ex-”FS” ships they inherited from their mother company Go Thong & Company before the split in 1972. What they did, the selling of old ships to acquire new was actually the pattern too in the other national shipping companies. The war-vintage ships then were already four decades old and were already in its last legs and its equipment and accommodations were already outdated compared to the newer ships that were already beginning to dominate the local waters.

After 1983, Carlos A. Gothong Lines’ ship acquisitions went into a hiatus for three years (but they already acquired six ROROs, much more than the total of the other shipping companies). Well, almost all ship acquisitions stopped then. The crisis that hit the Philippines was really bad and nobody knew then where the country was heading. But in 1986 when the crisis began to ebb and more so in 1987 and 1988 they acquired another bunch of RORO ships, bigger this time including RORO Cargo ships. That was the time that they attempted to become a national liner shipping company again after they became one of the Big Three in Visayas and Visayas-Mindanao shipping (the other two were Sweet Lines and Trans-Asia Shipping).

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The Our Lady of Guadalupe (Credits to Manila Times, Rudy Santos and Gorio Belen)

But then, the return of Carlos A. Gothong Lines as a national liner shipping company is worth another story, as they say.

Abangan.

The Flagship and Great Liner Wars Going Into the Middle ’90s

If the deadly-for-shipping decade of the ’80s ended in 1990, in 1992 and more so in 1993 there was a palpable change of mood in the local shipping industry. There was optimism, a new outlook and the surviving shipping companies were raring to go instead of just trying to keep their heads above water. There was a new administration ruling in Malacanang under President Fidel V. Ramos which has called for shipping modernization (it was not just modernization but also to address our lack of ferries then). It rolled out incentives for shipping including a program to acquire new ships. The power crisis and the coup d’etat attempts against the previous administration were over and business was picking up. An uptick in business is also a call for shipping expansion, so it was thought then.

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I remember that 1992 and 1993 were signal years for Philippine shipping. That was when great liners (Frank Heine and Frank Lose defined this as liners of over 10,000 gross tons) started arriving in local shores and the flagship wars of the local shipping companies began in earnest. It took the competitors of Sulpicio Lines four or five years before they were able to respond to the knock-out punch delivered by Sulpicio Lines in 1988 when they acquired the trio of Filipina Princess, Cotabato Princess and Nasipit Princess. William Lines, then the closest competitor of Sulpicio Lines for the bragging rights of which is Numero Uno rolled out the splendid-looking with impressive interiors, the tall Maynilad in 1992. However, she had an Achilles heel which cannot be remedied – she severely lacked speed, a requirement for great liners and she was just in the 140-meter class, no matter how much superstructure they tried to build into her.

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Maynilad by Britz Salih

Aboitiz Shipping Corporation fielded the SuperFerry 2 in 1992. She was much like in the interiors and size of the SuperFerry 1 at being in the 130-meter class also but her passenger capacity was maxed. However, she was not in the 20-knot class unlike the SuperFerry 1 and Filipina Princess. Twenty knots was already the speed considered necessary then for great liners locally, if they wanted bragging rights. Negros Navigation fielded the San Paolo in 1992 and the Princess of Negros, their new flagship, in 1993. But both were just in the 110-meter class and their speeds were just about equal to SuperFerry 2 at most. Aboitiz Shipping Corporation also fielded the SuperFerry 3 in 1993 but she was also in the 110-meter class like the San Paolo and the Princess of Negros. Moreover, her speed was a little inferior to the two.

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Mabuhay 1 by Britz Salih

In 1993, William Lines and Carlos A. Gothong Lines Inc. (CAGLI) showed two great liners that were a direct challenge to Sulpicio Lines. William Lines fielded the great Mabuhay 1 which was also in the 180-meter class like the Filipina Princess but was more modern-looking. The Our Lady of Akita of Gothong Lines was not as sleek-looking but she was also big being in the 160-meter class. When the two arrived, it was only Filipina Princess which was breaching the 150-meter mark among local liners in length.

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Our Lady of Akita by Britz Salih

News of incoming liners to the Philippines usually become rumors in Japan shipping circles even before the ships prepare to leave Japan waters and that could even be months in advance. After all, it is just a small, close-knit circle and news of a newbuilding of a ship that will replace a sailing one on the same route are also known by the time the keels are laid. And that is about half a year or more before they are even delivered. So speculations are always rife as to where the ships that will be replaced will be headed (in terms of country) and who is the agent and the buyer.

In Japan, a company bet big on the “Highways of the Sea”, the big, fast overnight ROROs which connected the northern and southern parts of Japan to its central part and metropolises. The Terukuni group and its shipping company Nihon Kosoku Ferry built the all-big (only one is less than 180-meters length in a series of seven) Sun Flower series of luxury liners successively between 1972 and 1974. Not only all were grand but all were very well-appointed and tops in comfort. Like floating “hotels of the sea”, they were the Japan equivalent of the legendary Stena series of luxury ferries in Sweden and in Europe.

Terukuni and its shipping company did not earn money from the series and became financially distressed and so changes in the ownership structure came about. Even so, the Sun Flower series became highly regarded. At times, the more important thing was the impact, the lasting impression and the regard created in the public’s mind. The Sun Flower series was well-remembered in Japan to almost the equivalent to being able to lay down a template.

The Philippines was lucky we had Japan connections and so a few of these great and grand liners of Japan came to our shores. Some will notice that the great liners that came later like SuperFerry 20 and SuperFerry 21 (the two were also Sun Flowers) and St. Michael The Archangel and St. Francis Xavier (which are sister ships of the first pair) are no longer as luxurious. Tastes and conditions have changed. In the 1990’s, the new “Highways of the Sea” were just functional ferries and no longer offered First Class. They might rival their 1970’s predecessors in size and speed but they were no match in the arena of appointments and luxury.

Two of these 1970’s beautiful Sun Flower ships came at the same year in the Philippines – amazingly to compete with each other! Sun Flower 5 came to William Lines and became her Mabuhay 1, the progenitor of the highest class of William Lines liners. At 185 meters, she was of the same size as the former reigning queen of Philippine shipping, the Filipina Princess of Sulpicio Lines. But Mabuhay 1 was more-modern looking and she had better appointments. Both were 20-knot class in speed but Filipina Princess was still speedier. After all, she still has an edge of nearly 6,000 horsepower in power output.

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Princess of the Orient by Britz Salih

But Sulpicio Lines was not to be denied. The biggest of the Sun Flower series which was the Sun Flower 11 came to Sulpicio Lines and became the Princess of the Orient in 1993. This ship had that distinctive two funnels in one line in the center of the ship, a feature not present in the other Sun Flowers. She was also in the 195-meter class. As such, she will hold the title of being the biggest liner in the Philippines at that time. However, she might have been bigger and taller but she cannot do 20 knots unlike the Mabuhay 1. [As a footnote to this class, another one of the Sun Flowers came in 1999, a true sister of Mabuhay 1. That was the Princess of New Unity of Sulpicio Lines which was the Sun Flower 8 in Japan].

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Princess of Paradise by Aris Refugio

And it was not only the Princess of the Orient that came for Sulpicio Lines in 1993. That year she also acquired the big, fast, tall and well-appointed Princess of Paradise from China (but she was originally sailing in Japan). With her fielding, she will be the next holder of the title “Speed Queen” among the liners, the successor to the Filipina Princess in this category.

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St. Francis of Assisi (saved from the net by ‘rrd80’)

The Princess of Paradise was also in the 160-meter class like the Our Lady of Akita but the former was more modern-looking. The two will battle not only in the Cagayan de Oro route and also the Cebu and Nasipit routes. Meanwhile, the Mabuhay 1 and Princess of the Orient will battle in the premier Cebu route (with Filipina Princess still calling in Cebu on the way to Davao). Mabuhay 1 will also show her colors once a week in Iloilo. It is to this challenge to their home port that Negros Navigation responded in 1994 with the equally-impressive and fast St. Francis of Assisi, their next flagship. She was not that big at 140-meter class but she can also do 20 knots and she was very well-appointed, too.

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Princess of the Pacific by Britz Salih

The third ship that came to Sulpicio Lines in 1993 for its wars for the Number 1 position among our shipping companies was the Princess of the Pacific. She was made tall but she was only 137 meters in length, about the length of the new Aboitiz liners. She had the same speed of 18.5 knots like the Princess of the Orient (and better than SuperFerry 2) but she was not that well-appointed. She also docked in Iloilo on her way to Zamboanga and General Santos City. It seems that like in 1988, to fend off competition Sulpicio Lines acquires a bunch of impressive, new liners.

When Mabuhay 1 came to take over flagship duties for William Lines in the premier route to Cebu, in a short time their former flagship Sugbu previously holding that route quietly disappeared. She headed to Singapore for reincarnation as the third ship of the Mabuhay series in 1994, the Mabuhay 3. When she came back, few were able to recognize her as she was lengthened and the superstructure changed and with modifications she was now capable of 20 knots.

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Mabuhay 3 as Super by Vincent Paul Sanchez

Suddenly, in 1993 we truly had great liners in size and in appointments. They all breached 160 meters in length and they were all in the 10,000-gross ton class. In amenities, luxury and passenger service they were a step ahead of the previous big liners. With their more modern design, even the great Filipina Princess suddenly looked old (but not in speed!).

In this year, we were beginning to reach the pinnacle of local passenger liner shipping. More liners will then come together with a “Great Merger” that produced WG&A. From a lack of bottoms at the start of 1990, it seemed to me that before the decade was out we already had a surplus of liners. This can be shown when older liners especially the cruiser liners were sent to the breakers. Some, however, were acquired by regional shipping companies like the Sampaguita Shipping of Zamboanga. This was also apparent in sending old RORO liners to the overnight routes of Cebu Ferries Corporation.

It was not a one-alley fight, however. Intermodal buses were beginning to muscle in especially in the eastern seaboard and a new budget airline, the Cebu Pacific Air was born. On the cargo side, forwarding and trucking companies were mushrooming powered by the arrival of fast surplus trucks in the Subic free port. And this included the wing van trucks which will soon be the bane of the container vans.

From the pinnacle, where is one headed especially if blind to parallel competition?

Montenegro Lines is Challenging in the Zamboanga-Jolo Route

A few months ago, I got the incredulous (at least for me) update that Montenegro Shipping Lines Inc. (MSLI) will be fielding their ship Maria Rebecca in the Zamboanga-Jolo route which is the next foray of the shipping in an exclusive Mindanao route after their Surigao-Dapa, Siargao route in northeast Mindanao (and so the logical next step is a southwestern Mindanao route?).

MV Maria Rebecca

Photo by Arnel Hutalla

A lot of questions come into my mind with their move. First is the question of security. This part of the country has bombings and extortion, of course. Western Mindanao is also known for another kind of taxation, one that does not have receipts. I was wondering, did Montenegro Lines already paid what is “due” them? If not their move is a hazardous proposition especially since they are newcomers and strangers to the place.

The alternative taxation “due” there from businesses probably does not give discounts or grace periods. However, I know the “patron saint” of the company is really strong and influential. Now, how that translates into more lenient or secure terms in that area, that I don’t know. Whatever, their move there is certainly brave. But if something bad happens, I will say it is stupid.

In shipping terms, the more important angle here is that of shipping competition and again I wonder deep about the move of Montenegro Lines. The Zamboanga-Jolo route is actually a crowded route. It is not an underserved route. It might even be an overcrowded route and bringing in a RORO is no advantage either.

The biggest competitor of Montenegro Lines in the Zamboanga-Jolo route is the dominant shipping company of Western Mindanao which is Aleson Shipping Lines, a homegrown shipping company which is even bigger than any Cebu-based overnight ferry company. Practically every night and at least six nights a week, Aleson Shipping Lines will have a ship from Zamboanga to Jolo and vice-versa and six of those will be dedicated ships in the route.

Aside from those, two other competitors of Aleson Shipping Lines with ROROs have up to four voyages to Jolo on the way to Siasi and Sitangkai in Tawi-tawi. These two are the Magnolia Shipping Company and Ever Lines. Actually these two don’t care that much for passengers to Jolo as their bread and butter is cargo. It is the Tawi-tawi route that they care about and they just pass by Jolo for the passengers going further from there.

Like Aleson Shipping Lines, they have ROROs but their rolling cargo is sparse. Cargo to Jolo is basically loose cargo. Trucks and cars are seldom loaded because after Jolo there is not much to go to because of the security situation and because of the ridos. Without proper security those vehicles might just be mincemeat for the extremists that teem in Jolo island. If those can kidnap foreigners that are not even in their land then imagine what they can do to a vehicle chugging along their un-maintained roads.

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Maria Rebecca and an Aleson ferry (Photo by Britz Salih)

Aside from Aleson, Magnolia and Ever with ROROs, the Zamboanga-Jolo route is also home to the Zamboanga cruiser ferries. The shipping companies that operate these are Sing Shipping, Ibnerizam Shipping and Evenesser Shipping and between the three they operate a total of four active cruiser ferries, the Mama Mia, KC Beatrice, Prince Glory and Bounty Cruiser. So on a given night two of the four will be headed to Jolo and two will be headed back to Zamboanga.

Zamboanga is also home to what I call the “Moro boats”, wooden motor boats (before they were wrongly renamed as “motor launches”) that are unique to the area and almost proprietary to the Muslim Filipinos. Several shipping companies operate this kind of vessel between Zamboanga and Jolo and among these the two with the most boats are Katrafar Shipping Lines which operate the Katrina boats and L5 Shipping/Maing Dimdi which operate the Sea Dayang/Sea Sayang boats. Malik Manajil also operates the Karmina boat.

These three operators sail some 8 Moro boats between them although not that regularly because their main load is copra and passengers come as secondary. Most of the time though they will have a boat docked in Zamboanga and at times three or even four of them will be there.

There are also a few unregistered Moro boats that run between Zamboanga and Jolo that use Zamboanga port. Unregistered Moro boats are not novelties in Zamboanga because in truth most of those are actually unregistered with MARINA (Maritime Industry Authority), the local maritime regulatory agency. And in Baliwasan there are also be a few Moro boats running irregularly plus some that sail to the other towns in Jolo island and the other islands of Sulu province. 

Aside from all those mentioned, SRN Fastcrafts, the operator of the Weesam Express fastcrafts also runs the Zamboanga-Jolo route with a day trip of their Weesam Express 1.

So all in all, maybe in a day some eight vessels are due to depart in Zamboanga for Jolo (if none is drydocked) and the Maria Rebecca of Montenegro Lines will be the ninth every other day. Now, is that 49.9-meter ferry already converted into an overnight ferry? By the way, her size is about average of the steel-hulled ferries that sail in the Zamboanga-Jolo route.

So what gives? Sulu only has a population of a little over 800,000 and some of the islands and towns in that archipelago have direct links to Zamboanga. It does not have tourism but it has lots of copra and rubber, crops that can be left behind when there is fighting. Plus, it has cottage industries producing additional millions and those are not the normal kind.

But nine vessels going there in a day? Come on!

The First “Great” Merger: The Failed Saga of WG&A and CFC

When WG&A was formed it was ostensibly to combat the entry of foreign shipping companies on local inter-island routes. That was the time of many so-called “deregulation” initiatives of Fidel V. Ramos. But even then I had doubts about this as an cabotage law was in effect in the Philippines. Cabotage effectively prevents foreign shipping companies from plying local routes. And to repeal it an act of Congress is needed and I heavily doubted then that the Philippine Congress will go along with that.

It is generally accepted that it was Aboitiz Shipping that proposed this big merger. Rumors had it that the biggest shipping company, Sulpicio Lines, which was also Cebu-based was also invited but it refused and preferred to go it all alone.

The merger brought together the second, third and fourth-biggest shipping companies in the Philippines reckoned by passenger and cargo operations out of a total of five long-distance liner companies (but may I note which is in fourth place might be disputed by Negros Navigation). It had the effect of lowering the number of long-distance passenger shipping companies from five to three.

The merged company and its subsidiaries were the biggest shipping combine that ever existed in the Philippines in terms of fleet and in terms of route network. It significantly brought to that Visayas-Mindanao and intra-Visayas routes and High Speed Craft(HSC) operations. For the former, the Cebu Ferries Corp. (CFC) was formed and for the latter SuperCat was retained.

Brought into the merger were the following ferries (including their former routes):

WILLIAM LINES INC.
Mabuhay 1 (Manila-Cebu and Manila-Iloilo)
Mabuhay 2 ((Mnl-Surigao-Butuan-Tagbilaran-Mnl and Mnl-Tagbilaran-CDO)
Mabuhay 3 (Manila-Davao-Dadiangas-Manila and Manila-CDO-Iloilo-Manila)
Mabuhay 5 [after a few voyages permanent fielding overtaken by merger]
Dona Virginia (Manila-Dumaguete-Ozamis-Iligan v.v.)
Maynilad (Manila-Zamboanga-Davao)
Masbate I (Manila-Masbate-Catbalogan-Tacloban)
Zamboanga City (Manila-Puerto Princesa v.v.)
Tacloban City (Manila-Batan-Dumaguit-Dipolog v.v.)
Iligan City (Cebu-Iligan v.v.)
Misamis Occidental (Cebu-Ozamis v.v.)
Mabuhay 6 [unfinished]

CARLOS A. GOTHONG LINES INC.
Our Lady of Akita (Manila-CDO-Butuan v.v. and Manila-Cebu v.v.)
Our Lady of Medjugorje (Manila-Dumaguete-Ozamis-Iligan-Cebu v.v.)
Our Lady of Sacred Heart (Manila-Roxas-Palompon-Isabel-Cebu v.v.)
Our Lady of Lourdes (Manila-Dumaguit-Palompon-Cebu v.v.)
Our Lady of the Rule (CDO-Cebu v.v. and CDO-Jagna v.v.)
Our Lady of Naju (Cebu-Ozamis v.v.)
Our Lady of Fatima (Nasipit-Cebu v.v. and Nasipit-Jagna v.v.)
Our Lady of Mt. Carmel (Iligan-Cebu v.v. and Iligan-Dumaguete v.v.)
Our Lady of Guadalupe [reserve/unreliable; formerly Cebu-Surigao v.v.]
Our Lady of Lipa (Cebu-CDO v.v.)
Dona Cristina (Cebu-Tacloban v.v. and Cebu-Palompon v.v.)
Dona Lili (Cebu-Surigao v.v. and Cebu-Maasin v.v.)
Don Calvino [reserve/unreliable; formerly Cebu-Iligan v.v.]
Our Lady of Akita 2 [unfinished]

ABOITIZ SHIPPING CORP.
SuperFerry 1 (Manila-Iloilo-GSC-Davao v.v. and Manila-Iloilo v.v.)
SuperFerry 2 (Manila-Cebu-CDO v.v.)
SuperFerry 3 (Mnl-Zamboanga-Cotabato v.v. w/ Boracay (summer) and Mnl-Dumaguit-Roxas v.v.)
SuperFerry 5 (Mnl-Cebu-Iligan-Dumaguete-Mnl) and Mnl-Dumaguete-CDO-Cebu-Mnl)
Elcano (was not used; obsolete/unreliable; supposedly not brought by ASC to the merger)
Allowing for database inaccuracies, the following cargo ships were brought to the merger:

CARLOS A. GOTHONG LINES INC.
Our Lady of Peace (112.9m x 18.0m, 17kts, b. 1974)
Our Lady of Hope (99.0m x17.3m, 17kts, b.1979)

ABOITIZ SHIPPING CORP.
Aboitiz Concarrier V (69.0m x 10.9m, b. 1968)
Aboitiz Concarrier XIV (71.0m x 10.9m, 13kts, b. 1965)
Aboitiz Superconcarrier I (115.1m x17.3m, 14kts, b. 1970)
Aboitiz Superconcarrier II (102.0m x 16.3m, 12.5kts, b. 1970)
Aboitiz Superconcarrier III (105.5m x16.3m, 12.5kts, b. 1976)
Aboitiz Megacarrier 1 (139.7m x 19.3m, 14kts, b. 1975)
Aboitiz SuperRORO 100 (108.2m x20.0m, 16kts, b. 1983)

WILLIAM LINES INC.
Wilcon II
Wilcon 4
Wilcon 5
Wilcon VI
Wilcon VII
Wilcon 8
Wilcon 11
ROCON I

Excluding HSCs which were just beginning to arrive in the Philippines, the combined fleet of WG&A was nearly 50 vessels, slightly more than double the fleet of Sulpicio Lines, previously the biggest shipping company in the country.

SHIP TRANSFORMATIONS AFTER THE MERGER
Mabuhay 1 became SuperFerry10
Mabuhay 2 became SuperFerry 7
Mabuhay 3 became SuperFerry 8
Mabuhay 5 became SuperFerry 9
Mabuhay 6 became Our Lady of Good Voyage
Our Lady Akita became SuperFerry 6
Our Lady of Akita 2 became SuperFerry 11 (and later the Our Lady of Banneux)
Masbate I became Our Lady of Manaoag (in 1998)
Misamis Occidental became Our Lady of Montserrat (in 1997)

VESSELS TRANSFERRED TO CEBU FERRIES CORP.
Our Lady of Lipa (later transferred to WG&A)
Our Lady of the Rule
Our Lady of Lourdes
Our Lady of Fatima
Our Lady of Mt. Carmel
Our Lady of Guadalupe
Dona Cristina
Dona Lili
Don Calvino
Misamis Occidental
Our Lady of Good Voyage (later)
Maynilad (later and also renamed Our Lady of Akita 2)
Our Lady of Banneux (later)
Our Lady of Manaoag (later)

Like all mergers and acquisitions (M&A), the terms “synergy”, “rationalization” and “streamlining” was bandied about as if these terms are positive terms in business. But soon these words brought chills to the rank and file because the sum of the 3 words is actually only one — “chopping block”. This is the field of bean counters where shipping passion is simply thrown out of the window.

Immediately, the Aboitiz Jebsens system was adopted. That means relying on bigger, faster ROROs and short in-port hours which equates to high utilization of ships. That called for good ship engines, a field of expertise of the now-renamed WG&A Jebsens. That system, however, also meant the death knell for the cruiser liners as their cargo booms meant long in-port hours and their having no car decks means low capacity for container vans.

The new style was to put all cargo in container vans and all container vans are mounted in trailers. For fast handling, tractor heads from trucks were no longer good enough. Only dedicated, automatic prime movers with the capability to raise the trailers were used. Calls on in-between ports generally were only 2-3 hours and ships don’t stay overnight at the farthest port of call of a voyage.

With so many ROROs sailing high hours per week (with some ships sailing 145.5 hours out of a 168-hour week), WG&A was confident it could sell less-efficient and slower ropax and container ships without affecting capacity and frequency. Soon some of the vessels were already for sale.

VESSELS SOLD SOON AFTER THE MERGER
Tacloban City (cruiser)
Iligan City (cruiser)
Dona Cristina (slow, small RORO)
Don Calvino (slow, small, unreliable RORO)
Dona Lili (slow, small RORO)
Wilcon 6 (old cargo ship)
Aboitiz Concarrier V (old cargo ship)
Aboitiz Megacarrier 1 (big, modern container ship)
Aboitiz SuperRORO 100 (big, modern container ship)
RoCon I (big, modern container ship, the biggest in the country)

VESSELS OFFERED FOR SALE BUT NOT SOLD THEN
Dona Virginia (cruiser liner)
Maynilad (big but slow RORO liner)
Zamboanga City (ROLO liner)
Our Lady of Naju (cruiser)
Masbate I (slow, small RORO)
Our Lady of Montserrat (cruiser)
SuperRORO 300 (former Our Lady of Hope, container ship)

With WG&A Jebsens managing the fleet, the merger upgraded the amenities, cleanliness and passenger service of the ferries. But initially all meals were for sale; vehement protests from patrons thereafter forced WG&A to backtrack. It was also claimed that safety standards improved as the whole fleet is now internationally-certificated. However this was not reflected in lower hull-loss rates. Ironically, it was the lesser Our Ladies (and not the SuperFerries) which proved to be unsinkable.

WG&A and CFC practiced branding. Branding is good in the sense that it promises consistent quality and service. On the other hand branding also utilizes ads and promotions. If that results in better market share then it should be good. Otherwise it only means higher level of costs. And higher costs are a threat to marginal routes and to less-efficient ships.

Initially, even with a fifth of their fleet sold (and with only one additional ship coming, the SF12 and while losing the SF7 to fire), WG&A was able to offer more frequencies because of the higher utilization of ships. But almost no new ports of call were added except for Bacolod. And probably the only significant new routes were the Manila-Cebu-Surigao-Davao (which passes through the eastern seaboard of Mindanao), Manila-Ormoc-Nasipit, Manila-Dumaguete-Cotabato and Manila-Cebu-Zamboanga-General Santos/Davao routes.

It was Cebu Ferries that added more new ports of call and routes (like Cebu to Dumaguit, Roxas City, Bacolod, Dumaguete, Larena, Jagna and Camiguin and Cagayan de Oro to Dumaguete) which in turn put a lot of pressure on the other Cebu shipping companies. CFC ships were faster than the competition and as former liners they simply outclassed the rest in terms of amenities and service.

Sulpicio Lines and Negros Navigation responded by adding ships. Sulpicio Lines basically kept to their old routes (except for the new Manila-Cebu-Davao-Dadiangas route) but Negros Navigation which previously concentrated only in Western Visayas has to venture in a lot of new routes and ports of call because their fleet more than doubled in a span of a few years. But then by sailing to Cebu, Nenaco also opened their former exclusive port of Bacolod to competition and they lost more than they gained.

This period right after the merger, the late 90s, was probably one of the best in Philippine passenger shipping. Competition was fierce, choices were many and there were a lot of newly-fielded ships. There were more shipping companies in the past but the ships of the 90s were far better than the ships of the earlier periods. In major ports there were nearly daily departures from all the liner companies combined.

But they say good times never really last. But I didn’t expect that the decline will be that soon, that fast, that continuous and what will be left is just the rump of the biggest-ever shipping company in the Philippines.

The first hint of trouble that I detected was when I noticed that WG&A was not properly assessing the threat, challenge and development of the intermodal system in Eastern Visayas which was then growing by leaps and bounds.

If Fidel V. Ramos had a deregulation program in shipping he also had a deregulation program in the bus and truck sectors. As deregulated area, bus companies can now ply Eastern Visayas routes with just a temporary operator’s permit. Soon a lot of buses were plying the Samar-Leyte-Biliran routes. Then the dominant short-distance RORO company in the Matnog-Allen route lost the case to protect their missionary status and new players entered that route ensuring that the ROROs needed will always be there. Long-distance trucking also developed with the loosening of the restrictions in the importation of surplus trucks. And with the advent of radial truck tires long-distance trucking became easy.

WG&A’s response was to withdraw from the Samar-Leyte routes except for the adjacent ports of Ormoc, Palompon and Isabel which actually comprises just one route. But soon under pressure from the buses these were lost too including the port of Masbate City which was also part of this route. Soon the islands of Masbate, Samar, Leyte and Biliran were lost to the intermodal trucks and buses.

Eastern Visayas was a signal victory for the intermodal system which was based on long-distance truck/bus plus the short-distance RORO ship. Wins by the challengers tend to have a multiplier effect. They become stronger, bolder and more confident. If the ship can be beaten in one area then nobody can pooh-pooh anymore that they will not be beaten in the next area of confrontation. And the next challenge probably happened before the WG&A has fully internalized their loss and it happened when they were in relative disarray.

A related development at this time was that WG&A’s new routes failed to stick and only the Bacolod route was able to survive. The new CFC routes also failed to pan out and were being abandoned one by one. One contributory factor for CFC’s retreat is fuel cost. The amenities and service of their ships might have been higher as those were former liners but as former liners it is also the reason why their engines are bigger and consume more fuel. Soon WG&A/CFC were selling ships. This was the second set of disposals and it happened at about the turn of the millennium. Also disposed in this period were at least six catamarans including vessels that came from mergers in the High Speed Craft (HSC) sector (the mergers with the Sea Angels of Negros Navigation and Waterjet).

At the same proximate time, it was already the strategy of WG&A to sell old and inefficient cargo ships and just let the ROROs liners carry the container vans. They then went for bigger ROROs later with twin cargo decks, the reason for the purchases of the SuperFerry 15, SuperFerry 16, SuperFerry 17 and SuperFerry 18.

The next challenge did not come from the intermodal. Rather it was the withdrawal of the Gothong family from the merger except for one scion. Soon the Gothong family re-entered the shipping business and re-established Carlos A. Gothong Lines Inc. (but they were not particular successful). Not long after this development the Chiongbian family (of William Lines) also withdrew from the merged company. But they did not re-enter the shipping business. Let it be noted, because it is important, that all the merged shipping companies independently retained their cargo forwarding businesess. For the Chiongbian family it was the Fast Cargo Transport Corp.(FCTC) and Gothong Cargo Forwarding Corp.(GCFC) for the Gothong family.

One can speculate that the sale of 10 vessels in 2000-02 (including those withdrawn from routes and old container ships) might somehow be connected to these withdrawals. When the company also took out a big loan in this period ($18.6 million) it might also have a relation to this state of affairs. Before the end of 2002, Aboitiz had already bought out its former partners. But it will still be later that the company will be renamed Aboitiz Transport System (ATS).

The next challenge came from the intermodal again. In 2003, the Western Nautical Highway opened and buses, trucks and jeeps were able to roll down to Panay island via Mindoro and Batangas. Soon the shipping routes and shipping companies serving Panay were under great pressure. Again, WG&A chose to withdraw (from Dumaguit and Roxas) and just tried to hold on to Iloilo port.

The opening of the Western Nautical Highway and the consequent withdrawal from routes, the withdrawal of the Chiongbian family and the need for new ROROs provoked a massacre of ships in this period as about 15 ships were disposed in the years 2003-06, both from WG&A and CFC, both ROPAX and container ships. It must also be noted that six catamarans were also sold in this period. WG&A was lucky that at this time world metal prices were peaking. If it hastened the disposal of ships I can say it is probable. Let me state that in the late 1990’s when all three families were still in WG&A, the company did not sell to the breakers, in general. In the first half of the first decade of the new millennium WG&A sold heavily to the breakers especially when world metal prices were peaking.

Attracted by the doubling of world metal price in 2007, WG&A then sold their prized ferries Superferry 15, SuperFerry 16, SuperFerry 17 and SuperFerry 18 to foreign liner companies.In the process they earned a windfall. But this is not without cost as they suddenly lacked the ships needed to carry the container vans. As a stopgap measure WG&A chartered 3 container ships, the “Myriad”, “Markella” and “Eponyma”. They then also converted SuperFerry 2, SuperFerry 9 and SuperFerry 12 into twin-cargo-deck ROPAX ships. Later the subsidiary cargo company 2GO was formed and the chartered ships were returned one by one.

At about the same time, in 2007, a very ominous development took place. Aboitiz partnered with MCC Transport of Singapore, the Asia subsidiary of the A.P. Moller – Maersk Group, the biggest container shipping company in the world and formed the MCC Transport Philippines (MCCTP). Since it met nationality rules, it was able to ply local routes and the ships invested by Maersk were given special permits by MARINA.

If the chartered ships of ATS and the ships of 2GO were a step up over local competition, the ships that came from MCC Transport were still another further step ahead in terms of size, speed and efficiency. MCCTP acted as feeder to MCC Transport which now dominates the Asia container routes. Together with the coming of more regional container ships (after APL) with direct foreign routes (like MELL, PIL, RCL and others), this completely undermined one important bread and butter of local container shipping which is the transshipment of foreign container vans. ATS and subsidiary 2GO cargo operations might have been affected by this but as a group Aboitiz is safe because they are also on the side of the winners through MCCTP.

After the sales of the four of the biggest and most modern SuperFerry ships in 2007, the fleet of ATS/CFC no longer grew. New ships have come like SuperFerry 20, SuperFerry 21, Cebu Ferry 1, Cebu Ferry 2 and Cebu Ferry 3. But ships have also been sold, lost or laid-up like SuperFerry 9, Our Lady of Medjugorje, Our Lady of Good Voyage, Our Lady of the Rule, Our Lady of Mount Carmel and SuperFerry 19.

With only six ships sailing, ATS ports of call were already down to half compared to its peak and in half of these ports the frequencies were down to once a week. CFC ports of call were also down to half and its fleet is less than a third of what it had before. CFC changed its website and no longer claimed it was the biggest Visayan shipping company (which is just a reflection of the truth). The Sulpicio Lines fleet was already bigger than the combined ATS and CFC fleets. If cargo ships are counted, Sulpicio’s fleet was almost double the combined ATS, CFC and 2GO fleets.

In 2008, KGLI-NM, the holding company owning Negros Navigation made an offer for Aboitiz Transport System. When the bank financing the take-over bid asked for more collateral the bid collapsed. This take-over bid was news for a long time because of the significance and it dragged. It was here that ATS propagated the canard that shipping is losing to the budget airlines and it obscured the fact that cargo is the lifeblood of shipping. Ironically it is this same year that regional container ships in Philippine ports multiplied. And not once did I notice Aboitiz discussing its shares in MCC Transport Philippines. But at least the Aboitiz group was frank enough to admit that the business of power generation attracts them more and that they are already heavily investing in it and if ATS is sold it will be one of their primary investment areas.

In 2010, with the assistance of the ASEAN-China Fund, Negros Navigation Company was finally able to secure the deal to buy Aboitiz Transport System and its subsidiaries especially Cebu Ferries Corporation, SuperCat and 2GO, the forwarding company. At its end as an Aboitiz company, ATS, CFC and 2GO had only 9 ROPAX ships and 2 cargo ships sailing which is not any bigger in gross tons than the company it merged in WG&A even if the SuperCats are counted. So in effect that means the bigger William Lines and Gothong sank without any replacement.

Aboitiz always says around that it has already gotten out of shipping and the maritime industry. But they completely obscure the fact that they are still in MCC Transport Philippines (MCCTP) and they completely own now the former Aboitiz Jebsens (renamed back when the Gothong and Chiongbian families withdrew from WG&A). The former Abojeb is in crewing and manning and that is one of the five recognized sectors of the Philippine maritime industry as defined by the government. MCCTP is already in expansion after Aboitiz sold Aboitiz Transport System. [Recently, Aboitiz clarified that some of their family members are engaged in MCCTP.]

Now, Negros Navigation Company owns Aboitiz Transport System and NENACO even retained the name and the brands. It will be a matter of time before it will be evident how big a bag they are holding.

The “great” merger of 1996 started out with a bang, lofty words and promises. It exited with just a whimper. But along the way it sank two great liner companies (William Lines and Gothong) and took down with it the liner industry.