ICTSI in talks to buy over bankrupt Hanjin shipyard in the Philippines

Port operator International Container Terminal Services Inc (ICTSI) is in talks with creditor banks to buy the facilities of bankrupt Hanjin Heavy Industries and Construction – Philippines in Subic Bay.

“We’re still making presentations to the banks, the banks own it now…We’re developing a masterplan for Hanjin,” ICTSI Chairman and President Enrique K. Razon, Jr. told reporters after its annual general meeting on Thursday.

If ICTSI goes ahead with purchasing the 300 hectare site it would not keep it as shipyard rather look to develop it into several multipurpose facilities including ports, power and steel.

“Definitely, we don’t want anything to do with shipbuilding,” Razon said.

However, in terms of developing it as a port landside infrastructure is an issue. “It’s a very large facility, so it will be several. The problem is the road is not really good. It’s okay for shipbuilding because they’re only there. But for other things, the road is the problem.”

Discussions with relating to the acquisition cover some $412m in loans to Philippines banks and whether ICTSI would bring consortium partners. Hanjin’s assets in the Philippines are estimated to be worth $1.6bn.

Read more: Hanjin Heavy’s Philippine yard files for rehabilitation

No formal offer has been made by the listed-terminal operator yet. Should ICTSI go ahead with its plans it would significantly reduce shipbuilding capacity, a sector mired in overcapacity globally.

Posted 12 April 2019

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Marcus Hand

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Editor, Seatrade Maritime News Marcus Hand is the editor of Seatrade Maritime News and a dedicated maritime journalist with nearly two decades of experience covering the shipping industry in Asia. In addition to running Seatrade's maritime and offshore news website based from Singapore he is the Asia Editor of Seatrade Maritime Review. Marcus is also an experienced industry commentator and has chaired many conferences and round tables. Prior to joining Seatrade at the beginning of 2010 Marcus worked for shipping industry journal Lloyd's List for a decade and previous to that the Singapore Business Times covering shipping and aviation.

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