Mayor, councilman killed in Ilocos Norte

Chinese shipping giant China Ocean Shipping Companies Group (COSCO) is keen on building a shipping hub in either Subic or Batangas, a move that will help make the Philippines a maritime power in the region.

In an interview, Federation of Filipino-Chinese Chamber of Commerce and Industry honorary president Francis Chua said COSCO is “very serious” in investing in the country.

Chua refused to give details on the planned investment saying only that he has already informed President Arroyo of the group’s interest. “They will be coming here in June to visit the sites,” Chua said.

COSCO is one of the world’s shipping companies with China Ocean Shipping (Group) Company as its core, operating three main units: China Ocean Shipping Agency, the biggest shipping agency in China; China Marine Bundier Supply Co; and China Road Transportation Co, the biggest trucking company in China. The COSCO Group has over 300 subsidiaries.

The government has been trying to develop the maritime industry. In fact, Trade and Industry (DTI) Secretary Peter B. Favila said the government will enter into an agreement with the Japanese government for a $1 billion loan package.

Favila said they are talking to international funder Japan Bank for International Cooperation (JBIC) for the modernization of the shipping industry. “We are trying to negotiate a $1 billion loan,” Favila said.

In a separate interview, a JBIC representative said the loan is still under negotiations and they are not sure when the money will be released. When asked if there is a chance the talks will be completed within the first half of the year, the representative said it is “unlikely.”

For his part, National Economic Development Authority (NEDA) Director General Romulo L. Neri said they are asking for the $1 billion additional funding from Japan in order to make the Philippines a maritime power in the region.

Earlier, the Development Bank of the Philippines (DBP) has obtained a P16 billion loan from JBIC for the local maritime industry.

While waiting for the JBIC funding, Neri said they will try to borrow money from the DBP first. Once they exhausted all the funds from the state-run bank, Neri said they might do a bond offering.

“We will try first the DBP and then we will find out how much money is needed,” Neri said.

“The first tranche will come from DBP …   then we could float another bond from NDC to finance if there is greater demand then the final tranche, the big one will come from JBIC,” he said.

Neri stressed the importance of developing the maritime industry, as there is already a P6 billion pending worth of leasing just waiting for the market to open. “In other words there is a big market for it,” he said

“The Philippines should be a maritime power,” he said. “I think this will be our next boom area,” he added.