Moving Pandacan depot not that easy

The way Mayor Lito Atienza says it, parang madaling gawin. But of course we all know that bravado about moving the Pandacan oil depots in six months is pure press release. It is simply physically not possible. Selecting a new site, getting the new community’s approval and getting the engineering studies completed and the tanks constructed will all require many years to conclude, not months. It also has financial implications, but we can set that aside for the moment.

I remember that when I was with Petron in the 80s, the topic of moving the depots out of Pandacan was discussed. We even went as far as exploring the option of using the old Filoil refinery in Rosario, Cavite as the alternative site. I think we actually started using Rosario for deliveries to some areas.

We weren’t nuts about Pandacan because our refinery is in Bataan and we had to go up the Pasig River using barges and that’s difficult to do during high tide and during the rainy season. The debris at the bottom of the Pasig River and the bridges that span it make navigation hazardous. Caltex and Shell had the pipeline from Batangas. But in the end, moving out was simply too difficult to implement.

The root of the problem is the failure of local governments to implement proper zoning. When the oil companies established the depots in Pandacan, it was zoned for the purpose. But local officials allowed squatters and other residents to put up houses in what should be a no man’s land around the depots. Now we have to allocate resources better used elsewhere to relocate the depots.

Tony Mackay, who used to head our refinery after a stint in Shell, wrote me an e-mail last week that captured the dilemma of the oil companies. "It will always be a fire hazard wherever you relocate the depots – be it in Batangas or Bataan or anywhere else. Employees, workers, lorry drivers or whoever is involved in the operation of an oil facility will gravitate towards the depot. In time, the areas around the depots will be heavily populated. What do we do then? Relocate the depots again?"

It might be more cost effective if government relocated the residents around the depots. If they are worried about the danger posed by the depot to Malacañang, it might also be cheaper to build a new seat of government, a new Malacañang in Fort Bonifacio and just keep the old one as some kind of a museum.

In any case, Malacañang should be moved because following the logic being used to get the oil depot out of Pandacan, the Palace has become hazardous to the residents of San Miguel district. Those coups and rallies have disrupted ordinary lives in that area.

I think the biggest problem is finding a new location that will accept the depots. Like a garbage dump, no one wants an oil depot in his community. Shell tried to move the LPG portion of the Pandacan depot to Biñan in Laguna some years ago. No matter that the multinational played it by the book and spent real money in incorporating world-class safety facilities, they were driven out by the residents. I heard they are now planning to convert the land into a memorial park. The bomb-proof office building is said to be ideal for a crematorium.

If they are forced to close down the depots without alternative facilities in place, all of Metro Manila and a large part of Luzon will suffer serious supply disruption. If the oil companies are forced to effectively move the function of the Pandacan depots to their refineries in Batangas and Bataan, all of us will face the greater hazard posed by all those tankers rushing from these provinces to the city. And there will be a significant cost penalty to all of us who buy these products.

Of course the Pandacan depots are dangerous. But they have become more dangerous only because of past (and present) government inability to enforce zoning laws. If our officials think they are passing the cost of relocation and the headache of finding a new site to the oil companies, they are mistaken. In the end, we will all bear the cost and the responsibility.

Given the circumstances, I think the Pandacan oil depots should be relocated. But spare us the for-press-release-only deadline of six months. Public officials should not cause citizens undue worry or make them think something extremely difficult can be done overnight.

Still rich

Over lunch early last week, I listened as some people who are supposed to know what’s going on in local business talked about how this mover and that shaker are all having serious problems. After a few minutes of hearing many significant names in Philippine business mentioned, I asked the only question that had to be asked: Who’s still rich?

Without hesitation, three names were mentioned in quick succession: John Gokongwei, Henry Sy and the Ayalas. No, Lucio Tan’s not in the list not because he is now poor, but because PAL and PNB are causing him endless migraines, and have made him less rich.

Notice how the "still rich" are all involved in retail and real estate. What differentiates them from the others who also ventured in these fields and failed is that this group of "still rich" never bit more than they could chew.

Smart txt

I got this Smart txt message from reader Nitz Arce.

WHATS WRONG W/ US? cant help but 2nd d motion. here’ a joke i want 2share:WHN SUMTHNG GOES WRNG JAPS SAY KAMIKAZE. PINOYS SAY KAYOKASI.

Golf talk

Dr. Ernie Espiritu sent in this one.

"Say Ralph, you want to hit the golf course this afternoon?"

"Sorry, I can’t."

"Why not?"

"The doctor told me I can’t play."

"Oh, he’s been out with you too?"

(Boo Chanco’s e-mail address is [email protected])