Cosco loses interest in setting up shop in RP, says Favila

The Chinese investors who proposed to invest $5 billion in the country seems to have lost interest in setting up shop in the Philippines.

In an interview, Trade Secretary Peter B. Favila said he has not spoken with potential investor China Ocean Shipping Co. (Cosco) in months.

When asked if this is enough indication that Cosco has lost interest in investing in the country, Favila said “Let me put it this way, all businessmen who would like to invest here talk to me constantly.”

Last month, it was reported that the cancellation of the controversial broadband deal between the government and Chinese firm ZTE Corp. has delayed the investment of the shipping firm.

Ambassador Francis Chua, special envoy on China trade and investments, said the project, which was expected to make the country a maritime power in the region, has been delayed.

Chua said he is not certain if the ZTE deal is the only reason for the holdup. The Cosco investment was first made public in May

Initially, Cosco wanted to construct a modern port at the Navy headquarters in Cavite. Its 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.

He added that Cosco’s facility is expected to generate about 100,000 jobs, particularly for the country’s seafarers.

Founded in 1961 as the pioneer international shipping carrier in China, Cosco has grown into a $17-billion global company. It owns and operates 600 various types of ships operating in 1,300 ports in more than 160 countries and regions worldwide.

It is one of the largest shipping enterprises of the globe with China Ocean Shipping (Group) Co. 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.