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
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