Following announcement that it is looking at the possible acquisition of Hanjin Heavy Industries and Construction Philippines’ (HHIC-Philippines) assets, Manila-based terminal operator International Container Terminal Services, Inc. (ICTSI) now revealed plans to turn it into a multipurpose facility, but not shipbuilding.
HHIC-Philippines, the country’s biggest shipyard, declared bankruptcy on 8 January 2019. HHIC Phil owes $900 million to South Korean lenders and $400 million to five Philippine bank giants, including Rizal Commercial Banking Corp., Land Bank of the Philippines, Metropolitan Bank and Trust Corp., Bank of the Philippine Islands and Banco de Oro Universal Bank, making it the largest corporate bankruptcy in the Philippines’ history.
Shortly after, the Philippine Defense Secretary Delfin Lorenzana said the President of Philippines, Rodrigo Duterte, is open to a government takeover of the HHIC-Phil, driven mostly by concerns to save thousands of Filipino jobs.
Defense Secretary revealed Duterte’s position after two Chinese shipbuilders expressed their interest in buying the HHIC-Phil which raised concerns among Filipino officials that this would project China’s power deeper into the region.
Last week, ICTSI Global Corporate Head Christian R. Gonzalez told reporters said the company is not just looking at HHIC as a port
Still working, trying to put the team together because we are not just looking at that as a port. We are looking at that as a multipurpose facility — power, steel, ship repair, multipurpose, automotive, crane,
However, Mr. Gonzalez noted the port giant is not interested in the shipbuilding business.
Our intention is not shipbuilding at all. It’s to utilize the site for other critical type of support infrastructure like automotive terminal, steel, power.