01 September 2016

Subic operations not affected by Hanjin woes

The Subic Bay Metropolitan Authority (SBMA) yesterday said that shipbuilding operations of Hanjin Heavy Industries Subic Bay Shipyard is not affected by the filing for bankruptcy of a member of the Korean conglomerate, Hanjin Group.

Trade Secretary Ramon Lopez said that after checking with the accountant of Hanjin Heavy which is registered with the Board of Investments, “there is no relationship between the two companies”. Hanjin Shipping which filed for bankruptcy is a different entity, he added.

Hanjin's shipyard at the Redondo Peninsula in Subic Bay Freeport

Hanjin Heavy separated from the Hanjin Group in 2005 and currently has no business transaction including ship building orders with the Hanjin Group.

Roberto Garcia, SBMA chairman said the ship building in Subic is owned by Hanjin Heavy Industries and Construction Co. Ltd. which provides shipbuilding, construction, and plant services in South Korea.

“There is no impact on Subic,” said Garcia in a text message.

Hanjin is the biggest employer in Subic with 28,000 workers.

Current energy secretary and former Philippine Ports Authority general manager Alfonso Cusi said that the Subic shipyard is separate from the shipping line.

Cusi in a text message also said that the bankruptcy of Hanjin Shipping won’t have much effect on the Philippine-Korea cargo traffic. He said other shipping lines will easily take the vacuum.

The Subic shipyard is the fourth largest shipyard in the world. It is the largest shipyard in the Philippines. (Malaya Business Insight)