An initiative rebuffed

One proposal that deserves a serious look is about establishing an oil island at the North Harbor. This was proposed by San Miguel Corp. which recently bought the share of Metro Pacific Investments Corp. in Manila North Harbour Port Inc.

This initiative to move the controversial Pandacan oil depot was immediately met with rebuff by Edgar Chua of Pilipinas Shell. This was also immediately seconded by the new energy secretary Jose Rene Almendras, a former Ayala man.

Renewed proposal

This proposal, first broached almost a decade ago sans San Miguel, had been scuttled because of financing problems. The entry of one of the country’s biggest conglomerates however puts a fresh perspective – and hope – on the plan finally seeing fruition.

The original idea of an oil island was one of the considered components of the proposed master plan to rehabilitate and modernize the North Harbor years ago. At that time, the three oil companies in Pandacan were also being asked to move out because of urban congestion, safety and security concerns.

Through smart maneuvering however, the oil companies had been able to put on hold the implementation of a city ordinance passed in November of 2001 that was approved in line with the long-term plan of the Manila City government to come up with a comprehensive land use plan for the city.

The oil companies had initially requested for time in view of the magnitude of such undertaking and offered a temporary compromise by just scaling down operations. Unfortunately, to this date and much to the distress of the residents around the Pandacan depot, this ordinance has yet to be implemented.

Initial plan

Since San Miguel is majority owner of Petron Corp., moving its oil depot from Pandacan to the North Harbor made sense as San Miguel’s Ramon Ang, together with officials of Petron, recognized the need to plan for Petron’s eventual relocation from Pandacan. Of course, there is also the added opportunity of building in the area a grains terminal complex to service its food and beverage operations.

The proposed project became more attractive by the fact that Harbour Centre Port Terminals, Inc., owned by Reghis Romero III and majority stakeholder of MNHPI, had already expressed willingness to put up part of the money if the three oil companies agreed to transfer to the facility.

About 50 hectares of land would be reclaimed for the oil island, and would need about $200 million. If the three oil firms would agree to the plan, the huge cost of moving their depots would not be as burdensome as cost of construction and development is shared.

Irked by rebuff

Ramon Ang was reportedly irked when informed that Edgar Chua of Pilipinas Shell, a major fuel supplier of San Miguel, quashed the idea by curtly responding to media questions that they were not interested in moving out of Pandacan.

As if on cue, new energy secretary Almendras was quick to issue also a statement on the oil companies’ stay in Pandacan, and echoed the justifications voiced earlier by Shell’s Chua.

Old ways must give way

The new DOE secretary cited the often repeated reason of Shell and other oil companies that moving the depot will increase fuel prices because of additional transportation costs. With this, I guess he is referring to the operations of the Manila-Batangas pipelines that act as a channel to transport petroleum products from the Shell and Caltex facilities in Batangas to Pandacan.

But the pipelines as with the Pandacan oil products receiving, storage and dispensing facilities are investments that have earned for and even recovered many times over by their owners through the years. The oil depots have been there since 1914 while the pipeline was operational since 1967. Isn’t it about time that these oil companies make new investments on fuel logistics in line with the new realities within the areas of their operations?

If there is a host of issues that surround the Pandacan oil terminal’s continued stay in one of the most densely populated areas of Metro Manila, the existence of the underground pipelines shares similar problems. In fact, the pipelines issue had been in forefront of a recent oil leak noted in the basement of a Makati condominium building.

Looking at Pandacan options with open mind

From a win-win perspective, it makes sense to seriously consider the oil island proposal even at its draft stage, with or without a resolution to the various pending issues hounding the oil companies’ stay in Pandacan, and now, the operation of the oil pipelines from Batangas to Manila.

The Pandacan terminals will soon be celebrating its 100th year, clearly an old citizen in a world that has changed dramatically through the years. By freeing up the prime property on which it sits on, any income derived could be channeled to better projects that would rehabilitate the city.

The citizens of Pandacan deserve a fresh breath of air, in the same way that the construction of a new oil island at the North Harbor will give the oil companies a better image, one of concern for its old neighbors and for a better metropolis.

And it will also resolve so many pending issues that have been building up over the years. Isn’t it about time to find a suitable resolution to this problem? Other parties are trying to keep an open mind; shouldn’t that be the case with everyone else?

Treat for collegiate basketball fans

Students and collegiate basketball fans are invited to join the three ongoing surveys being conducted by the Philippine Collegiate Champions League (PCCL) thru the official website, www.collegiatechampionsleague.net.

Respondents are asked to name their choice of the top six teams in the ongoing UAAP and NCAA competitions in the correct ranking order. The top four teams of both leagues automatically earn seats in the Sweet 16 Finals of the 2010 PCCL Philippine Collegiate Championship games; while the 5th and 6th placers will pass thru the Zonal Qualifying games to advance to the Finals.

For Cebu fans and those keeping track of the CESAFI games, they are to name the top four teams of CESAFI, also in the correct order of ranking. The top two are seeded in the Finals with the 3rd & 4th placers will compete in the Zonal Qualifying games.

Surprise gifts will be awarded to those who are able to pick the most number of correct rankings at the end of the UAAP, NCAA and CESAFI competitions. Survey ends on Sept. 3, 2010.

Visit www.CollegiateChampionsLeague.net for more details about the 2010 Philippine Collegiate Championship games. 

Should you wish to share any insights, write me at Link Edge, 25th Floor, 139 Corporate Center, Valero Street, Salcedo Village, 1227 Makati City. Or e-mail me at [email protected]. For a compilation of previous articles, visit www.BizlinksPhilippines.net.