Philippine Navy readies for stake in Hanjin shipyard
MANILA, Philippines — The Philippine Navy appears to be taking a step closer to the acquisition of space in Hanjin shipyard in Subic Bay.
Outgoing Navy chief Vice Admiral Robert Empedrad announced in his retirement speech on Monday that the “possible acquisition” of the strategically-located shipyard may happen next month.
“The biggest news is the possible acquisition next month of a 100-hectare modern strategic naval base from Hanjin facilities in Subic,” he said.
The bankrupt shipyard is waiting for its so-called white knight. The investor set to take over has not been announced.
The Philippine Navy first showed interest to take a portion of the debt-laden Philippine subsidiary of Hanjin Heavy Industries and Construction in January last year after two unidentified Chinese companies were reported to have expressed interest to rescue the cash-strapped facility.
The shipyard is located in Subic Bay, a former US military base until it closed in 1992. It is 260 kilometers away from the Chinese-occupied Scarborough Shoal in the West Philippine Sea (South China Sea).
Article continues after this advertisementSecurity officials earlier raised security concerns on the potential Chinese investment because of its proximity to the West Philippine Sea.
Article continues after this advertisementNewly-installed flag officer in command of the Philippine Navy Rear Admiral Giovanni Carlo Bacordo said Hanjin features a deep-sea harbor that suits the Navy’s needs.
“That area is blessed with a deep-sea harbor. Right now, none of our strategic vessels can be accommodated in the Navy facilities. Hanjin at the minimum has a depth of about 10 meters, which can accommodate our strategic vessels,” he told reporters Monday after the change of command ceremony.
The area is also protected by the mountains and by Grande Island so it has a protected harbor, he added.
Grande Island, which sits in the entrance of Subic Bay, was also one of the areas that Chinese investors showed interest in last year, but the Navy also raised its security apprehensions.
Another advantage of Hanjin, according to Barcordo, was it happened to be “remnants of old ship repair facilities after the US in terms of technology, capability they have it.”
It is also close to the Naval Education and Training Command, the Philippine Merchant Marine Academy and the Maritime Academy of Asia and the Pacific, he said.
Bacordo said they have coordinated with government agencies to include the Navy in the ongoing negotiations.
“We have expressed our intention with the government that is the core requirement of the Navy,” he said.
“We are asking the government agencies involved to include the Navy as part of the equation. That means, whoever buys out the Hanjin property to put a certain area for the Philippine Navy,” he added.
