$3-B Cosco Philippine project delayed
China shipping giant Cosco Group remains keen on putting up a $3-billion regional cargo hub in the Philippines, but the project’s implementation may be delayed, said Francis Chua, presidential adviser on China trade and investments.
Chua, who is working directly with Cosco on the project, said in an interview that the company’s top brass had decided to let a Singapore-based subsidiary undertake the venture.
“This would mean the project would be delayed, but we are trying to get Beijing (the main company) to take a direct hand in the venture,” he said.
In previous interviews, Chua had said he was working to have this project -- a crucial investment for both Cosco and the Philippines -- started promptly.
“We don’t know why Cosco decided to assign the project to the Singapore unit,” Chua said. “Things would certainly be carried out much faster if Beijing was directly involved.”
Cosco had sent a team of experts to take a look at prospective sites for the shipping hub, including Sangley Point off Cavite and Subic Freeport, both former naval facilities.
Cosco was originally considering building a base at Sangley Point, outside Manila, through which it could collect shipments from various points within the region for more efficient onward hauling to the United States and other destinations across the Pacific.
While this was developing, President Gloria Macapagal-Arroyo issued an executive order mandating the development of Sangley Point, in Cavite City, into an international logistics hub.
However, Chua said the Cosco team had seen the advantages of locating in Subic as well and that it did not want to pass up on either site.
He said Cosco was prepared to foot the entire bill for site development, including the cost of land reclamation and port construction.
Cosco needs enough land area that could accommodate a pier and a container yard or about 50-100 hectares.
Founded in 1961 as a pioneering international shipping carrier in China, Cosco is a $17-billion corporation that provides services in freight forwarding, shipbuilding, ship repairing, terminal operation, trade, financing, real estate and information technology industry.
Cosco owns and operates a merchant fleet composed of 600 vessels with total carrying capacity of 35 million dead weight tons.
By Ronnel Domingo - Inquirer
Chua, who is working directly with Cosco on the project, said in an interview that the company’s top brass had decided to let a Singapore-based subsidiary undertake the venture.
“This would mean the project would be delayed, but we are trying to get Beijing (the main company) to take a direct hand in the venture,” he said.
In previous interviews, Chua had said he was working to have this project -- a crucial investment for both Cosco and the Philippines -- started promptly.
“We don’t know why Cosco decided to assign the project to the Singapore unit,” Chua said. “Things would certainly be carried out much faster if Beijing was directly involved.”
Cosco had sent a team of experts to take a look at prospective sites for the shipping hub, including Sangley Point off Cavite and Subic Freeport, both former naval facilities.
Cosco was originally considering building a base at Sangley Point, outside Manila, through which it could collect shipments from various points within the region for more efficient onward hauling to the United States and other destinations across the Pacific.
While this was developing, President Gloria Macapagal-Arroyo issued an executive order mandating the development of Sangley Point, in Cavite City, into an international logistics hub.
However, Chua said the Cosco team had seen the advantages of locating in Subic as well and that it did not want to pass up on either site.
He said Cosco was prepared to foot the entire bill for site development, including the cost of land reclamation and port construction.
Cosco needs enough land area that could accommodate a pier and a container yard or about 50-100 hectares.
Founded in 1961 as a pioneering international shipping carrier in China, Cosco is a $17-billion corporation that provides services in freight forwarding, shipbuilding, ship repairing, terminal operation, trade, financing, real estate and information technology industry.
Cosco owns and operates a merchant fleet composed of 600 vessels with total carrying capacity of 35 million dead weight tons.
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