Vice Admiral Giovanni Bokordo said the
two companies are in the final stages of
negotiations with the philippine
government and several banks to take
over the operations of Hanjin. The companies reportedly intend to
invest about two billion dollars and
employ the shipyards over thirty
thousand skilled and experienced
filipino workforce. Australian Shipbuilder Austal LTD has
won a contract to deliver six offshore
patrol vessels for the philippines navy. While u.s private equity cerberus will
operate the other half of hanjin's
facility for ship repair.
"I have told the companies we're about to
complete due diligence and final
negotiations before the outbreak of the
coronavirus which could delay the
process," Bacordo said.
The philippine navy chief said it could
take more than a year before the
shipyard could become operational under
the new owners because the facilities
would be repurposed from producing huge
civilian super tankers to warships. There is a possibility the us navy will
move back its ship repair facility to
its old home in subic if the deal goes
through, he said adding that subic offers
an ideal strategic location with cheaper
and skilled labor.
He said both the american and australian
companies would like the philippine navy
to set up a naval base in Subic. "We will have about 100 hectares to
develop as a naval facility for ship
repair," he said.
The two companies Bacordo said are also
interested in two small islands in subic
that chinese companies had earlier
planned to lease and convert into
tourism areas. "We prefer close allies to take over Subic," Bokordo said explaining that the
navy opposed the chinese company's plan
because of its implications on national
security. A chinese company has also expressed
interest in taking over subic, fierce
lobbying by washington reportedly
blocked this.
Hanjin a unit of south korean giant
hanging heavy industries in construction
used to operate the shipyard in the
former u.s naval base in Subic Bay. But hanjin defaulted on 1.3 billion dollars
in loans last year. The bulk of the loan about 900 million
dollars is owed to south korean banks
and the rest to five local banks.
Even before the american and australian
companies expressed interest in hanjin's
shipyard u.s navy ships have been making
port calls in subic. Including massive
aircraft carriers and nuclear-powered
attack submarines. On average 80 to 100 u.s ships visit
subic every year. The return of ship repair facilities
will increase traffic at the former u.s
naval base.
Investors have expressed concern after
the philippines revoked the Visiting Forces Agreement (VFA) a key military
accord allowing u.s military presence in
the country for exercises and training. But philippine officials have assured
australian and american investors that
the commercial deal would not be
affected by the scrapping of the VFA. Subic Bay was one of the largest u.s
naval facilities in the world before it
was shut down in 1992, after the
philippine senate terminated the bases
agreement with washington. The philippines converted the facility
which was never home to the philippine
military into an economic zone.
