PH Navy prepares to take part of Subic shipyard

Hanjin Shipyard at Subic Bay will have the help it needs.

The Philippine Navy following the direct orders from President Rodrigo Roa Duterte is preparing to take over part of the Hanjin Shipyard to extend as a lifeline to ensure it is kept out of Chinese hands.

Philippine Navy spokesman Captain Jonathan Zata confirmed that studies are being conducted. As an initial step, the navy has stationed a ship at the Hanjin yard early this month, as quoted by Nikkei Asian Review.

Hanjin's world class shipyard in Subic Bay (photo credit to owner)

The world class shipyard is situated at the entrance to the highly sensitive South China Sea on the archipelago's main island of Luzon, Philippine Navy chief Robert Empedrad is planning to visit Subic Bay later this month for a site inspection, Zata said.

The PN is planning to use the space for ship docking and repairs, and will allow commercial shipbuilding operations to continue amid ongoing efforts to find a buyer.

The 300 hectare shipyard collapsed in January after Hanjin Heavy Industries and Construction's Philippine subsidiary defaulted on $1.3 billion in loans.

"The government is very serious about the navy having a presence there to the point that there's now a concept which we are preparing to execute," Zata said, adding that the plan has been coordinated with Hanjin and its creditors. 

Bids from two Chinese companied triggered the Philippine Navy’s move to take a direct stake in the former U.S. naval base.

The Philippine Department of Trade and Industry (DTI) has received several expressions of interest from state-backed Chinese investors, and has also expressed concerns about a possible Chinese bid for the port.

"The issue of national security and sovereignty takes precedence over anything else," a senior trade official said in April.

A possible US bid along with Japan and Australia has been floated regarding the shipyard’s take over, but this has not been confirmed yet.

Prior to it default Hanjin shipyard delivered 123 vessels through 2018, making the Philippines one of the world's largest shipbuilding nations, employing over 30,000 workers during its full operations.

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Report from  Nikkie Asian Review