Hanjin will be back by September in Misamis

The US$2-billion shipyard project of Hanjin Heavy Industries and Construction, Ltd. (HHIC) may not be lost after all, but it's going to take some time to bring it back and iron out all kinks which resulted in the temporary suspension of work.

This much can be surmised after the Korean conglomerate renewed its Memorandum of Understanding with the Phividec Industrial Authority which expired last May 10, 2008 for another four months.

Ninfa A. Albania, Phividec Vice Chair and Administrator, confirmed this to Gold Star Daily yesterday morning in Manila following the formal signing of the management contract with International Container Terminal Services Inc. (ICTSI) which shall henceforth manage the Mindanao Container Terminal (MCT) at Tagoloan, Misamis Oriental.

This was also confirmed by the Cagayan de Oro Chamber of Commerce and Industry Foundation, Inc. (Oro Chamber) through its president Rodolfo L. Meñes.

"Yes, from all indications Hanjin signed a Memorandum of Understanding targeting September to resolve kinks according to Phividec," Meñes said.

Some of the identified kinks that Hanjin specifically mentioned in its letter informing the government of the temporary cessation of work were negative publicity for its Subic and in Mindanao projects; local disturbances in the operation of the project; and pending right-of-way clearance and unfavorable actions regarding the same.

"The Hanjin fiasco if perceived by all, especially politicians and the media, as a wake up call to work together to keep this $2-Billion and 40,000 workers in Northern Mindanao should result in focusing on essential collaborative efforts to expedite the project through a multi-sectoral task force in working out Hanjin's energy requirements," Meñes said.

HHIC shipyard project site managing director Myong Goo Kwon informed PIA of the indefinite work suspension April 25, 2008 and banning all department heads, supervisors and rank and file workers from the project site effective May 28, 2008 except for a skeleton force. Kwon's letter to Albania mentioned "numerous atrocities" committed against Hanjin which led to its work suspension.

Albania said the "local disturbances" mentioned in Kwon's letter referred to difficulties in relocating residents of affected areas in the shipyard, work stoppage orders from LGU heads and other permits.

"We are exerting all our efforts to address these matters…but they will be back when these disturbances are addressed," she said during a May 5 press conference hosted by PIA-10. (with a report from Lizanilla J. Amarga)

PGMA witnesses signing of accord on $2-billion shipbuilding project

The Misamis Oriental Shipbuilding Complex is the second shipyard to be built by Hanjin in the Philippines. The Korean firm's first shipyard in the country is at Subic Bay in Zambales.

PGMA witnesses signing of accord on $2-billion shipbuilding project

Cagayan De Oro City, Misamis Oriental -- President Gloria Macapagal-Arroyo witnessed the signing of a Memorandum of Understanding (MOU) between Korean firm Hanjin Heavy Industries and Construction Co., Ltd. (HHICC) and Phividec Industrial Authority (PIA) on the construction of a US$2-billion shipbuilding complex here.

Signing for HHICC was the company's president Park Kyu Woon while Administrator Nimfa de Ocampo signed for PIA. Phividec is the acronym of Philippine Veterans Investment Development Corporation.

The President lauded the "billion-peso plus" investment, saying it would provide jobs and livelihood to some 40,000 Filipinos, especially those living near the shipbuilding facility.

She also said that the new investment clearly reflects the favorable outlook of the country in the international community.

"Foreign investment (in the country) has grown five-fold from 2003 to 2006 alone. It has continued to rise at double-digit rate in 2007," the President said.

"This surge of investments has been anchored by billion-dollar plus investments by several major international companies, not only Hanjin but also Texas Instruments in Clark, Marubeni and AES in the power sector and Mittal Global's upcoming integrated steel mill in Iligan City, among others," she added.

"The world is taking notice of the new Philippines that we are working hard to create. That is why Hanjin is bringing US$2-billion to Misamis Oriental," the President said.

Under the MOU, HHICC will establish a shipbuilding complex inside the 3,000-hectare Phividec Industrial Estate in Misamis Oriental (PIE-MO).

The Misamis Oriental Shipbuilding Complex is the second shipyard to be built by Hanjin in the Philippines. The Korean firm's first shipyard in the country is at Subic Bay in Zambales.

To be constructed in Park V of PIE-MO, the complex covers an area of approximately 440 hectares.

Phividec is a government-owned and controlled corporation established under Presidential Decree 538 as amended by PD 1491. PIA was established to develop and professionally administer the 3,000-hectare Phividec Industrial Estate (PIE-MO) located in the municipalities of Tagoloan and Villanueva in Misamis Oriental. (PIA)