Cosco plan to invest in RP will dislocate Navy

The Philippine Navy is considering relocating its headquarters in Sangley Point as Chinese shipping giant China Ocean Shipping Co. (Cosco) firms up its plan to invest up to $5 billion to convert the naval base into a modern seaport.

“We are conducting a study wherein we are considering relocating our Sangley naval station to Zambales,” Navy spokesman Commodore Giovanni Bacordo told The Star in a telephone interview.

According to Bacordo, they are looking at moving to the San Miguel Naval Station in Zambales should Sangley Point in Cavite be reclaimed. However, he conceded that the Zambales base needs a lot of developing.

Bacordo refused to say how much is needed to refurbish the Zambales naval station.

Bacordo said the study to relocate the 140-hectare naval station in Sangley Point is being conducted by the Navy’s plans and programs committee.

The study started June 21, the same time President Arroyo signed Executive Order (EO) 629 that orders the conversion of Sangley.

Under EO 629, the Philippine Reclamation Authority was ordered by the Palace to convert Sangley Point into an international logistics hub with modern seaport and airport thru an enabling reclamation component.

It will likewise be an economic processing zone with cyber or technoparks through a private sector joint venture or a build-operate-transfer scheme.

Bacordo said the signed EO is not clear as to which part of Sangley will be converted into a seaport and an airport. “There are a lot of gray areas in the EO.”

In a separate interview, Trade Secretary Peter B. Favila said Cosco has already committed to infuse $4 billion to $5 billion for the conversion of Sangley Point.

 The Chinese liked Sangley Point. They considered other locations but they chose to develop Sangley into a fully operational commercial port,” Favila said at the sidelines of yesterday’s National Competitiveness Council conference at the Renaissance Hotel in Makati.

Favila announced that Wei Jia Fu, Cosco president and chief executive officer, will visit the country to finalize the deal.

The secretary said they are hopeful the multi-billion investment will come in before the end of the year but said Cosco may encounter problems with the local government units.

“We in the national government have done our part already. It is up to them to issue the necessary permits and licenses,” Favila said.

In a previous interview, Francis Chua, special Philippine envoy on China trade and investments, said Cosco’s initial plans include the development of a 250-hectare land in Sangley Point where they would put up a “marine school to train maritime sailors. There will be a repairing ships and building ships.”

“They will be using the Philippines as a hub for shipment to Europe and America, so all cargo from Asia will come to the Philippines, using the Philippines as a staging point to go to US, North America, Europe and vice versa,” Chua said.