BusinessMirror September 05, 2020

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Saturday, September 5, 2020 Vol. 15 No. 331

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Surviving the storm Pandemic delays plans to revive sprawling former HHIC shipyard facility in Subic

JANUARY 2020 file photo of the Hanjin shipyard in Subic reveals two vessels that are being built at Drydock 6. HENRY EMPEÑO

T

By Rene Acosta

HE Philippine Navy’s effort to acquire and occupy a portion of the facility of Korean shipbuilder Hanjin Heavy Industries and Construction (HHIC) in Subic Bay has been derailed by Covid-19, which means it may still take some more time before the project would be launched.

The Navy is eyeing to occupy 100 hectares, or a third of the whole area of the bankrupt shipyard facility, which it intends to transform into a harbor for its big warships and other upcoming brand-new floating assets. It is also planned to host its Philippine Fleet, which is currently based in Sangley Point, Cavite, its Naval Sea Systems Command, the Naval Installation Command and the Amphibious Assault Battalion.

Ball in DOF’s court

HOWEVER, Navy Flag Officer in

Command Vice Admiral Giovanni Carlo Bacordo said the implementation of the project hinges on the selection and awarding of the whole facility to a winning bidder, which has been affected by the pandemic. “The first step before the Philippine Navy moves in is for the winning proponent to take over the Hanjin shipyard,” he said. “Because of this Covid-19 pandemic, there is no declared winning proponent yet. I believe that the ball is in the court of the DOF [Depart-

ment of Finance] and the local banks involved with HHIC,” he added. Earlier, the Navy chief said they have set their sights on the area located in the Northern Yard of the facility, or near its fifth dry dock, one of the areas where ships are constructed, repaired and maintained by HHIC. The cash-strapped HHIC has declared bankruptcy more than a year ago and tabled it for takeover by interested firms due to its outstanding loan obligations of $400 million from various local banks and anoth-

er $900 million from South Korean banks and other lenders. Several firms from a number of countries have expressed interest in taking over the facility, but no one had put forward any serious offer until Chinese companies came in, raising concerns from security officials due to the strategic location of the shipyard. Before it was taken over by Hanjin, the facility used to be the home base of the United States Navy’s 7th Fleet and the biggest Continued on A2

Group travel companies are still a thing. How? By Fran Golden

A

Bloomberg News

The pandemic had scuttled other, farther-flung plans by the retired Oregon couple, so they decided to get in the car and drive to Montana for a “safari” on the Yellowstone River—complete with such “glamping” accouterments as a real bed in a private tent, bathrooms with hot showers, and gourmet meals from a top local chef. On their trip, in August, they were rewarded with views of grizzlies, black and gray wolves, and

ravens feasting on a bison carcass. Plus, there was a rafting excursion on the river—which they shared with nine strangers and a handful of guides. These are tough times for group tour operators who cater to a US audience. American travelers are weary of close contact with others, and the world is weary of them. Some operators have shut down operations, at least into the fall. Those still seeking business

PESO EXCHANGE RATES n US 48.5320

BLOOMBERG

FTER several trips with boutique tour company Mango Africa Safaris, including a custom tour to Madagascar last year, Irene Bowers and David Register were intrigued by an e-mail newsletter inviting them on a group travel experience closer to home.

have experienced year-on-year losses from 40 percent to 90 percent, according to a survey of 590 multiday and day-tour operators by WeTravel.com. Companies are making up the difference through domestic trips, especially to US national parks. For Mango co-owner Teresa Sullivan, that very strategy has shaved the year’s losses, from 90 percent to 78 percent. Dire as that may sound, it’s a wonder that group travel hasn’t fully come to a halt in the current climate, given that groups and travel have been largely canceled by the pandemic. Conversely, this type of business could have a leg up on the rest of the travel and cruise sector because of the extreme precautions that group settings require and the category’s emphasis on outdoor adventuring. Bowers and Register and all their travel companions, for instance, were required to have Covid-19 tests prior to taking the Continued on A2

n JAPAN 0.4573 n UK 64.4651 n HK 6.2623 n CHINA 7.0881 n SINGAPORE 35.5572 n AUSTRALIA 35.2876 n EU 57.5201 n SAUDI ARABIA 12.9408

Source: BSP (September 4, 2020)


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