PN’s first missile-capable warship arrives in Subic

The Philippine Navy greatly boosted its current fleet with the low-key arrival of its first missile capable frigate, to be named BRP Jose Rizal (FF150), in Subic, Zambales, on Saturday.

From a five-day maiden voyage in Ulsan, South Korea, the frigate was accorded the traditional passing honors with BRP Andres Bonifacio (PS17) and three multipurpose assault craft (MPACs).

The event was documented during a fly-by of two anti-submarine helicopters, the Agusta Westland (AW) 159, and AW109. Prior to this, a meeting procedure was held between the frigate and BRP Andres Bonifacio with AW109 in the vicinity of Sta. Cruz, Zambales, before it was finally escorted to its designated anchorage area.

While at anchor, the sailing crew will undergo two-week quarantine in adherence to strict health protocols to curb the spread of the coronavirus disease (COVID19). The Technical Inspection and Acceptance of the frigate will commence after the quarantine period.

Breakthrough in Navy’s transformation 

The arrival of the country’s first missile-capable frigate is a “testament” to the government’s resolve to modernize the military as well as a “breakthrough” in the Philippine Navy’s transformation journey, Malacañang said.

Presidential spokesman Harry Roque affirmed that the government remains committed in building a strong and credible maritime force to protect the country’s seas from threats.

The 2,600-ton ship, named after the country’s national hero Dr. Jose Rizal, is the latest addition in the Philippine Navy’s fleet that can fire guided missiles and torpedoes.

“We are pleased to announce the historic arrival to the Philippines of BRP Jose Rizal, our country’s first ever guided-missile frigate. The arrival of the country’s most advanced warship, delivered during this administration, is a testament to President Rodrigo Roa Duterte’s commitment to modernize our armed forces,” Roque said.

“This forms part of the national leadership’s initiative to enhance the country’s defense capabilities to secure our seas against current threats,” he added.

Roque said they consider the arival of the new ship “a breakthrough in the Philippine Navy’s transformation journey in our goal of building a strong and credible maritime force.”

BRP Jose Rizal 

The frigate will tentatively be commissioned into service on June 19, Rizal’s birthday. The 351 by 46-feet warship weighs 2,600 tons.

It is capable of “fighting the four dimensions of warfare” namely anti-air warfare (AAW), anti-surface warfare (ASUW), anti-submarine warfare (ASW), and electronic warfare (EW) operations, and is equipped with surface-to-air and surface-to-surface missiles, torpedoes, and launchers.

It will also be equipped with a Hanwha Systems’ Naval Shield combat management system (CMS), regarded as the “brain” of military warship, which integrates all shipboard sensors and weapons.

This means that the ships will be able to detect and track air, surface and sub-surface targets. The same type of CMS was used by the Korean, Malaysian and Indonesian navies.

The frigate is the lead ship of its class and was built together with its sister ship, BRP Antonio Luna (FF151), which is set to be delivered in September this year The two missile frigates are part of an ₱18-billion contract between the Philippines and South Korea through shipbuilder Hyundai Heavy Industries (HHI) in October 2016.

Each frigate costs ₱8 billion, with some ₱2 billion allotted for their systems and munition. (Martin Sadongdong and Genalyn Kabiling, Manila Bulletin)  

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RTC grants Hanjin petition for rehabilitation

The Olongapo City Regional Trial Court (RTC) Branch 72 on Monday (January 14) granted Hanjin Heavy Industries and Construction-Philippines’ petition for receivership and put the Korean shipbuilding firm under corporate rehabilitation.

On Jan. 8, Hanjin sought relief from the Philippine government, filing a petition with the Olongapo RTC to initiate voluntary rehabilitation under Republic Act 10142 or the “Act Providing for the Rehabilitation or Liquidation of Financially Distressed Enterprises and Individuals.”

Hanjin, the fifth largest shipbuilder in the world and biggest investor at the Subic Freeport with $2.3 billion, revealed recently it owes some $400 million in outstanding loans from Philippine banks on top of another $900 million in debt with lenders in South Korea.

Stefani Saño, a former member of the Subic Bay Metropolitan Authority (SBMA) board as well former senior deputy administrator for investment and business group of SBMA, was appointed by the court as the rehabilitation receiver.

The financial losses allegedly stemmed from a slump in the shipbuilding industry.

Pursuant to RA 10142, Olongapo RTC Branch 72 Presiding Judge Richard Paradeza declared Hanjin under rehabilitation and asked the company to publish the Jan. 14 commencement order in a newspaper of general circulation for two consecutive weeks.

It also ordered the shipbuilding giant to serve a copy of the petition to its creditors – the Bureau of Internal Revenue, Securities and Exchange Commission, Bangko Sentral ng Pilipinas, Insurance Commission, Department of Labor and Employment (DOLE), Housing and Land Use Regulatory Board, Department of Trade and Industry and SBMA.

The court also tasked the company to serve a copy of the commencement order to its foreign creditors and ensure that they receive a copy within 15 days before the initial hearing set on Feb. 8.

In its order, the court said Hanjin’s creditors must file verified claims within five days before Feb. 8 or they will not be entitled to participate in the proceedings.

But the creditors may be entitled to receive distributions arising from the proceedings if recommended and approved by the rehabilitation receiver and the court itself.

The court also ordered creditors, government agencies and all interested parties to file and serve to Hanjin a verified comment/opposition to the petition, together with their supporting affidavits and documents within 15 days before the initial hearing on Feb. 8.

The court also prohibited the company’s supplier of goods and services from withholding their supplies and services in the ordinary course of business for as long as Hanjin makes payment from the issuance of the commencement order.

The court also authorized the company to pay for its administrative expenses as they become due.

It said contracts not confirmed in writing by Hanjin within 90 days following issuance of the commencement order will be considered terminated. (Bebot Sison Jr. with Sheila Crisostomo, Philippine Star)


https://www.philstar.com/headlines/2019/01/16/1885490/rtc-grants-hanjin-petition-rehabilitation#0ezcQ5IYvTgXVUm0.99

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SBMA ‘saddened’ by Hanjin debt problem

Subic Bay Metropolitan Authority (SBMA) Chairman Wilma T. Eisma said she was saddened to learn that Korean shipbuilder Hanjin Heavy Industries and Construction Philippines (HHIC-Phil) is facing serious financial trouble.

Hanjin, which is currently the biggest foreign investor in the Subic Bay Freeport Zone, filed on Tuesday a petition at the Regional Trial Court in Olongapo City to initiate voluntary rehabilitation under Republic Act 10142, otherwise known as “An Act Providing for the Rehabilitation or Liquidation of Financially Distressed Enterprises and Individuals”.

Hanjin officials, Eisma said, had revealed that the company owes some $400 million in outstanding loans from Philippine banks on top of another $900 million in debts with lenders in South Korea.

Eisma said she was informed that the company still has six pending multi-million new building projects at its Redondo Peninsula shipyard here, and that these may have to be cancelled if a rehabilitation plan does not materialize.

“The bottom line is that the company said it does not have enough cash to repay its loans, and that it cannot continue with its operations under these circumstances,” Eisma said.

“It’s really sad that Hanjin would be in dire financial straits after successfully building some of the world’s biggest ships here and putting the Philippines in the map as the world’s fifth largest shipbuilder,” she added.

HHIC-Phil, which has focused in building high-value vessels, was established in 2006 as a subsidiary of Hanjin Heavy Industries & Construction Co., Ltd., a multi-national company that provides shipbuilding, construction, and plant services in South Korea and internationally.

After frenzied construction of its 300-hectare shipyard began in May 2006, HHIC-Phil rolled out its first ship, the “Argolikos” in July 2008.

With some $2.3 billion in foreign direct investments here, the firm proceeded to manufacture some of the world’s biggest cargo and container ships, bulk carriers, liquefied petroleum gas carriers, very large crude oil carriers (VLCC) and very large ore carriers (VLOC).

According to company records, Hanjin has delivered since 2008 a total of 123 vessels to valued clients across the globe, thus cementing its foothold in the highly competitive shipbuilding market.

In the course of its operation, the Korean firm also became the biggest employer among all registered businesses in the Subic Bay Freeport Zone with some 30,000 employees at peak season, and was recognized by both the Philippine Exporter Foundation (Philexport) and the Department of Trade and Industry (DTI) as top export performer.

However, in the face of recent liquidity problem, Hanjin has laid off more than 7,000 workers last December, Eisma said. The firm is about to lay off another 3,000 early this year until just about 300 local workers and as few as seven Korean supervisors would remain in March to do facility maintenance, she added.

“The SBMA, of course, expressed its concern about the separation of shipyard workers, but we received assurances that those who were laid off were amply compensated. Still, we’re having this aspect checked out,” Eisma said.

She added that the SBMA is now working with Hanjin officials to find some way to keep the shipbuilder, which has helped build Subic’s huge reputation in the global maritime industry.

“I really hope that Hanin’s creditors would agree to some rehabilitation plan, or that the company would find some financial partner to continue with its shipbuilding operations in Subic,” Eisma also said. (HEE/MPD-SBMA)

PHOTO: 

Hanjin shipyard at the Subic Bay Freeport Zone

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Subic Korean community reaches out with cultural show

The Korean community in this free port sought to foster closer relations with other residents in the Subic Bay area with a two-day cultural festival that stressed common musical and artistic traditions.

The event, dubbed as the Philippine-Korean Cultural Festival 2018 was held November 9 and 10 at the Harbor Point Ayala Mall here and showcased a bazaar, live performances, fashion show, cultural dances, and dancing and singing contests.

Easily the top crowd-drawer during the event was artist JinHo Bae, a South Korean pop singer who rose to fame after appearing on Philippine television on the show Mapuan Idol in 2014.

JinHo, who speaks Pilipino fluently, sang equally popular songs to the audience on the first night of the festival.

Other noted performances in the festival were from the Method Philharmonic Orchestra led by Youngchae Son, concert master Moon Sookyung, renowned singers Kim Eu Gene, Jung Jiyoung, Kim Sooah, Je Yeokyeong, and musical director Chun Gyoungho.

The Busan orchestra also played alongside the Gordon Heights High School rondalla ensemble from Olongapo city in an entertaining musical fusion.

Student-members from the local group played Filipino folk songs such as Leron Leron Sinta, Tinikling and Dandansoy, while cultural dancers performed folk dances.

Meanwhile, beautiful and colorful attires or Hanbok from South Korea by Korean fashion designer Yong Ae Kim highlighted the much-anticipated fashion show during the festival. Here, Korean models wowed the crowd with elaborate dresses designed for children to adults, and accessorized with colorful parasols.

The festival was also attended by some community leaders from Olongapo City, who hailed the event as a testament to the close ties between the Philippines and South Korea.

According to the Subic Bay Metropolitan Authority (SBMA), South Koreans make up one of the biggest foreign groups in the Subic Bay Freeport today, as the South Korean ship builder Hanjin remains the biggest investor and employer in Subic as well. (JRR/MPD-SBMA)

PHOTOS:
[1-4] Korean artists perform, in some instances with a rondalla ensemble from Olongapo City, during the Philippine-Korean Cultural Festival 2018 on November 9 and 10 at the Subic Bay Freeport’s Harbor Point Mall. (MPD-SBMA)

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Port efficiency to attract more shipping lines, users to Subic

International Container Terminal Services, Inc. (ICTSI) continues to make a strong case for the Subic Bay Freeport as a key international trading gateway of the Philippines after achieving productivity levels at par with that of the Manila International Container Terminal (MICT).

Two Panamax quay cranes at the New Container Terminal (NCT) 1 recently handled close to 400 twenty foot equivalent units (TEU) with each crane averaging 40 and 33 moves per hour, respectively. The productivity levels were achieved during the inaugural call of Evergreen Marine Corp.’s 1,440-TEU boxship Cape Fulmar.

Cape Fulmar berthed at the New Container Terminal 1 in Subic Bay Freeport Zone

The call signaled the start of Evergreen’s South Korea-Taiwan-Philippines (KTP) service, a new route to facilitate improving regional trade between the three economies. The service plies the ports of Incheon and Kwang Yang, South Korea; Kaohsiung, Taiwan; and Batangas, Manila and Subic Bay, Philippines. Aside from Cape Fulmar, 1,440-TEU boxship Cape Faro is also chartered to the weekly service.

“It was a great effort and a big win for ICTSI’s Subic operations. This goes to show that Subic is at par with the productivity levels in MICT. We are continuously working on improving our services to attract more shipping lines, and for northern and central Luzon businesses to use the container terminals in Subic,” says Roberto Locsin, Subic Bay International Terminal Corp. (SBITC) President.

He adds: “As a national port operator, ICTSI ensures that each Philippine marine terminal under its helm remains competitive. Subic, in particular, was developed not only for the industrial locators of the Freeport but for the local markets in Luzon north of Metro Manila.”

MICT, ICTSI’s flagship terminal, primarily serves the Metro Manila market and its adjacent markets, where most of the economic activities of the country happen being the country’s capital. “Metro Manila as a market will continue to grow,” says Locsin.

“But, as the northern and central Luzon countryside develops driven by industrial centers like Subic, Clark, Bataan and Tarlac also continuing to grow, the Subic Bay Freeport is that gateway ready to link its products to global markets. We have the equipment and facilities. We carry ICTSI’s brand of service and efficiency,” he adds. (Manila Bulletin)

http://business.mb.com.ph/2017/05/08/port-efficiency-to-attract-more-shipping-lines-users-to-subic/

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