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Old July 18th, 2007, 08:16 PM   #1
Alo
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Proposed Sangley Point International Airport-Seaport Development Project

COSCO to develop Sangley Point as int’l airport, seaport, logistics hub



By BERNIE CAHILES–MAGKILAT

Malacañang has issued Executive Order 629 allowing China Ocean Shipping Company (COSCO), the world’s second biggest shipping company in terms of carrying capacity, to convert Sangley Point in Cavite City into an international logistics hub with modern seaport and airport at a cost of billion to billion.


Trade and Industry Secretary Peter B. Favila announced the COSCO investment after President Gloria Arroyo signed the EO just recently and COSCO chief executive office Capt. Wei Jiafu is coming here next week.

Favila said the President has acquiesced to the request of Senator Ramon Revilla, during the latter’s birthday party celebration, for the administration not to forget Cavite in all the infrastructure projects that are being undertaken by the government.

It so happened also that COSCO already did its homework by going around the country to scout for possible location and has decided to take on Sangley Point, Favila said.

Revilla then sought for Arroyo’s issuance of an EO to allow the conversion of Sangley Point into a fully operational international logistics hub.

As a result, the President through EO 629 has created the executive committee for the development of Sangley Point.

The president also directed the Philippine Reclamation Authority (PRA) to develop the Sangley Point into an international logistic hubs with container port and airport complex and an economic processing zone with cyberparks through a private sector joint venture under a build-operate-transfer scheme. An inter-agency technical committee was also created to assist the PRA.

COSCO will reclaim 4,000 hectares around Sangley Point because the COSCO project is not supposed to displace the Philippine Navy, which is headquartered in Sangley Point.

"The Chinese wants to do it yesterday," Favila said.

"Senator Revilla has to work with his constituents in Cavite to realize this project," Favila said. A smooth sailing project implementation is expected because Bacoor, where some of the land reclamation would be undertaken, is now under Mayor Edwin Revilla, the brother of Senator Revilla.

Based on the EO, provision of an international container port complex that would include an airport and seaport in Sangley Point is necessary to maximize the use of the R-I Expressway Extension now undergoing construction.

The viability of the project would be enhanced by undertaking reclamation work in the portions of Bacoor and Canaco Bays as this would provide a significant expansion district to the limited land area of Cavite City.

Sangley Point, is a former U.S, Naval Base Port located on the northernmost tip of Cavite City Peninsula is presently being used by the Philippine Navy for ship repair and dry docking purposes. It juts 6 kilometers into the sea.

This facility has the following comparative advantages and potentials for growth: A bay location that provides potential for sea transport, existing air and port facilities which could be upgraded and improved, it has a military airport which has a concrete runway of 229 x 22 meters, and road links, which provide access to Manila and CALABARZON growth corridors.

Aside from Sangley Point terminal, no other terminal in Cavite was developed particularly for the purpose of commercial ferry services.

The commercial ferry services from Cavite City to Roxas Boulevard in Manila and from Cavite City to Corregidor Island which had been using Sangley Point terminal since 1967 had been stopped in September 2001 for security reasons.

Exactly a month ago, COSCO officials led by Capt. Wei had a meeting with the President for its project in the country.

At that time, COSCO was just awaiting for the President’s instruction where to pour its investments in the country.

In a speech before the local business community led by Malacanang Special envoy on trade and investments to China Francis Chua, the COSCO president stressed that the economic growth in Southeast Asia today has also brought about transportation bottlenecks in the region.

"I believe we need to find an area where the transshipment would be reasonable, convenient and efficient. We are now in the process of re-identifying this area," Wei said.

"We want to look into the terminal, logistics, shipbuilding and repair and maintenance facilities," Wei told reporters.

Wei further urged the Philippines to stay competitive with other countries, which are also offering the same transshipment hub concept.

"We are hopeful, in line with the National Economic and Development Authority’s vision of developing the domestic logistics system, that the Philippines will become another logistics center in Asia," Wei added.

With a fleet of 770 ships and a combined tonnage of more than 47 million deadweight tons, Wei said that COSCO is now in the best position to make investments in the region. Its vessels call on 1,300 ports in 160 countries.

Among countries in the region, Wei cited the rapid growth of trade between the Philippines and China from only $ 5.2billion in 2002 to $ 10 billion in 2004. Last year, two-way trade reached $ 23.41 billion making the Philippines China’s fourth largest trading partner in Southeast Asia.

Aside from the logistics and shipping business, COSCO is also engaged in financing, real estate, information technology and soon in the mining business.

The COSCO group owns almost 1,000 companies all over the world employing a total of 80,000 people.
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Old July 18th, 2007, 08:22 PM   #2
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Here a few numbers...A BIG THING!!!

Cosco ups Sangley investment

By Max V. de Leon
Reporter

THE China Ocean Shipping Group Company (Cosco) has increased its committed investments for the company’s proposed logistics hub in Sangley Point, Cavite, to $4 billion to $5 billion from the original $3 billion.

Trade Secretary Peter Favila said Cosco’s management made the decision after the government officially made available to the company a big part of the naval station through the issuance of Executive Order 629 late last month.

EO 629 directs the Philippine Reclamation Authority to convert Sangley Point into an international logistics hub with modern seaport and airport through an enabling reclamation component.

Favila said the president and CEO of Cosco, Wei Jia Fu, will be coming back to Manila soon to finalize plans for the project.

“The Cosco CEO said he is willing to pump in $4 billion to $5 billion to convert Sangley Point to a modern port facility,” Favila told reporters Wednesday.

With the issuance of the EO, Favila said the national government has done its part to make the project happen and it is now up to the local government of Cavite to do its share.

At this time, Favila said it will still take some convincing for the province of Cavite to help Cosco speed up the process.

Favila said he was assured by Cosco officials that the part of the Sangley Point that is being used by the Philippines Navy will not be affected by the Cosco operations.

Earlier, Cosco announced it will pour in $3 billion to convert Sangley Point to its Southeast Asian logistics hub.

The Cosco CEO and his team personally informed President Arroyo of their plan when they visited the country in June.

Favila said he told Cosco officials then to look for a place where they can set up operations and he was informed that the Chinese have already chosen Sangley Point.

Before the Cosco officials came over, Favila said the company had quietly searched for prospective sites and found Sangley Point the most suitable, especially with its deep waters near the shore.
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Old July 19th, 2007, 04:21 AM   #3
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that is good news.....really...it seems the philippines is busy these with lots of economic activities these days....galing talaga ni GMA small but terrible....kahit dami galit sa kanya...way to go man....
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Old July 19th, 2007, 04:42 AM   #4
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..

Business
Cosco plan to invest in RP will dislocate Navy

By Ma. Elisa P. Osorio
Thursday, July 19, 2007

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.
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Old July 19th, 2007, 05:16 AM   #5
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this is good news. although it will require another massive redevelopment of the vicinity and roads leading to this new ecozone. and expect a new branch of south rail extending from fort boni to cavite city. the sm mall of asia ferry would also be fully utilised with this development.

and in addition, the chinese like Sangley Point because it was named after them by the Spanish for this is where they used to dock their junks and do trade with hispanic philippines.
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Old July 19th, 2007, 06:28 AM   #6
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I've noticed that we have too many international airports already.

Within reach from NAIA are Subic, Clark, and the one proposed in Sangley. Here in the Visayas, there's Mactan and another one proposed in Bohol. The new airports in Iloilo and Bacolod would soon be international airports.

Wouldn't it be better if the investor would invest in building a terminal in Clark instead? Or perhaps invest it on more highways, roads, railroads, more power plants for stable electric supply, and more dams and reservoir for stable water supply, etc.?



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Old July 19th, 2007, 06:37 AM   #7
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Is there a possibility that Ternate will also build a port and will be managed by the Indonesians. The first inhabitants of the said towns were from the original and much bigger Ternate in Indonesia.
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Old July 19th, 2007, 06:42 AM   #8
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@lochinvar

indonesians?

@arnold carl

i dont agree with that, these are the new times..many more airports and logistics hubs to rise, all over the country. watch out!

they are also building roads and all the things you mentioned.

and yes, just wait a few more months, they will build a huge terminal at DMIA, as soon as the feasibility study is done, the chinese consortium will publish its study, soon after, they will start to build.

its a fantastic news! this are FIVE BILLION US-DOLLAR...man, how cool is that????

DMIA in the north, then subic and now sangley point. thats what it needs to move the philippines forward.
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Old July 19th, 2007, 07:29 AM   #9
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^ NAIA will soon be torn down to give way for decongestion and more real estate developments in the metro as fort boni and villamor expand. as i see it, future travels to manila will be served by 3 major airports. (as is the case for NYC at present.) Clark-DMIA [NY's JFK], Subic Bay IA [NY's Newark Intl] and Sangley [NY's La Guardia].

And I dont think we have too many airports already. For an archipelago of 7,107 islands we're the ones who need them the most. and we should be having lots of them. And notice how public infrastructure and roads are also improved when airports get built.
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Old July 19th, 2007, 10:23 AM   #10
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hmmm... so it seems that if this pushes through I don't there is a need for NAIA3 anymore.... except of course NAIA remains as the main terminal while Clark and Sangley are secondary international airports to NAIA...

yeah I agree that we don't have enough international airports with the number of islands that we have.... having more of international airports will help us open up more routes in and out of the country rather than relying on Manila, Cebu and Davao international airports...
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Old July 19th, 2007, 08:34 PM   #11
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The first details of the projects...

Sangley port project OKd
By Elaine Ruzul S. Ramos

Malacañang has issued an executive order converting Cavite City’s Sangley Point, home of the Philippine Navy, into a fully operational commercial port.

Trade and Industry Secretary Peter Favila told reporters yesterday the directive would facilitate the proposed multi-billion dollar investment in the country of China Ocean Shipping Co., the world’s second-largest shipping company.

Executive Order 629, signed by President Gloria Macapagal Arroyo on June 21, 2007, ordered the Philippine Reclamation Authority to convert Sangley Point in Cavite City into an international logistics hub with modern seaport and airport through an enabling reclamation component.

Favila said President Arroyo issued the directive following the request of Senator Ramon Revilla Jr. for a speedier development of infrastructure in his home province.

President Arroyo directed the Philippine Reclamation Authority to develop the Sangley Point into an international logistics hub with container port and airport complex and an economic processing zone with cyber or technoparks through a private sector joint venture, or build-operate-transfer scheme.

She created an executive committee to oversee the planning and implementation of the project, composed of the PRA, representative of the Office of the Mayor of Cavite City and various government agencies.

Favila said the chief executive of Cosco had committed to invest between $4 billion and $5 billion to develop Sangley Point into a commercial port.

Captain Wei Jiafu, chief executive and executive president of the Cosco Group, came to the Philippines a month ago to seek audience with Malacañang for the company’s plans to put up an integrated logistics hub in the country.

Favila said the company, after doing a study on its own, had finally chosen Sangley Point as the location for its proposed hub.

“To convert Sangley Point into a fully commercial port, they have to do some reclamation. Cosco will co-exist with the Navy,” said Favila.

He said the company had yet to disclose details but Cosco officials were flying in next week to firm up investment plans in the country.

“The Chinese want to do it yesterday,” Favila said when asked when Cosco plans to begin with the development of the port.

The Cosco Group owns and operates a fleet of 770 vessels with a combined tonnage of more than 47 million deadweight tons. It is involved in global logistics, shipbuilding, ship repair, terminal operations, trade, financing, real estate and information technology.

The President as early as 2002 had approved the creation of an inter-agency committee for the preparation of a pre-feasibility study on the economic viability, environmental impact, and social and political acceptability of the Sangley Point Development Project in Cavite.

The development involves the reclamation of some 4,000 hectares around Sangley Point for mixed-use development. It features a modern naval and air base, regional hub seaport capable of servicing giant super panamax container ships, an international airport, housing and livelihood facilities, commercial and industrial areas, schools, hospitals and other institutional facilities, parks, playgrounds and other amenities and roads and rail system.
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Old July 20th, 2007, 08:35 AM   #12
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Nabasa ko itong article nung isang araw.. wow! this will bring more investment sa Cavite and possibly Batangas area.. ayus yan!
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Old July 20th, 2007, 08:53 AM   #13
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Originally Posted by manileño View Post
^ NAIA will soon be torn down to give way for decongestion and more real estate developments in the metro as fort boni and villamor expand. as i see it, future travels to manila will be served by 3 major airports. (as is the case for NYC at present.) Clark-DMIA [NY's JFK], Subic Bay IA [NY's Newark Intl] and Sangley [NY's La Guardia].

And I dont think we have too many airports already. For an archipelago of 7,107 islands we're the ones who need them the most. and we should be having lots of them. And notice how public infrastructure and roads are also improved when airports get built.
Not a bad idea if they move NAIA to sangley and still develop DMIA. DMIA is really far from the capital region but it will help decongest air traffic in Manila area. With Sangley Point, there are alot of area for expansion. I just hope they carefully plan these so that in the future there would be more space for expansion without compromising safety and such when they reclaim the land.
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Old July 20th, 2007, 08:55 AM   #14
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im excited about this project too.
IMO this will also develop the whole coastal line along Manila Bay, and the northern Cavite towns of Bacoor, Imus, Kawit, Cavite City will be linked to Metro Manila. The metropolis is sure to expand south as a result of this.
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Old July 21st, 2007, 05:44 AM   #15
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i can see a possible scenario:

Sangley Point - domestic airport of Manila

DMIA - international airport with tourist-frequented domestic routes of Manila

the two airports will be link be a high speed railway and Sangley Point will be connected to Manila via the Manila-Cavite Coastal Expressway.
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Old July 21st, 2007, 06:55 AM   #16
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Sangley Point Airport

@midwestguy1 / anonymous_filipino


dont you think the project is more about shipping and so on? of course there will be an airport component to this project, but dont you think it will be more focused on cargo and logisticsrelated need of COSCO?? coz i think DMIA will really be the main gateway for the phils.

and @ manileno

tearing down naia? i dont think so! since prez arroyo is serious about that project (opening of NAIA T3 or else...) and the builder Takenaka already declared they will take care of it, so they can open it at the end of this year. i really think NAIA T3 will be operational and will go into full business in summer 08.

and then they will start to develop DMIA. if you look at all the airport projects in the country, i dont see any crowded airport anymore in the phils.


Opening of Terminal 3 at Naia and building a new huge international Terminal at DMIA , and several other airports in the country, will really make NAIA....ahmmm.. ...a quiet place...or rather anything elst but crowded.

Last edited by Alo; July 21st, 2007 at 07:00 AM.
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Old July 21st, 2007, 10:24 AM   #17
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eh di dapat cargo airport lang gawin... kasi sabi sa article na international airport eh..
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Old July 21st, 2007, 10:57 AM   #18
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Originally Posted by Alo View Post
@midwestguy1 / anonymous_filipino


dont you think the project is more about shipping and so on? of course there will be an airport component to this project, but dont you think it will be more focused on cargo and logisticsrelated need of COSCO?? coz i think DMIA will really be the main gateway for the phils.

and @ manileno

tearing down naia? i dont think so! since prez arroyo is serious about that project (opening of NAIA T3 or else...) and the builder Takenaka already declared they will take care of it, so they can open it at the end of this year. i really think NAIA T3 will be operational and will go into full business in summer 08.

and then they will start to develop DMIA. if you look at all the airport projects in the country, i dont see any crowded airport anymore in the phils.


Opening of Terminal 3 at Naia and building a new huge international Terminal at DMIA , and several other airports in the country, will really make NAIA....ahmmm.. ...a quiet place...or rather anything elst but crowded.
You know what? It's not really clear if they really mean an actual "airport complex" or air cargo complex. Ofcourse they do have alot of publicity on this and that projects but who knows which ones of these would actually materialize? The idea of transfering NAIA to sangley point isn't so bad don't you think? coupled with DMIA development would still be a favorable project that needs pursued.

DMIA as a hub or a modern international airport comparable to the neighboring asian countries IMO would still be far flung as it seems like that they are more focus on LCC type of airport at this point. Once the government is able to open the new NAIA T3 by the year end hopefully, it will help ease out all the inconviniences in T1 for atleast up to 20 maybe 30 years. ( yeah right LOL, maybe if the Philippine population explotion started to slow down)
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Old July 21st, 2007, 11:19 AM   #19
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i beg to differ... right now PAL is going to purchase a $ 50M, 30 hectare land inside the DMIA to be use for their maintenance and catering services. their primary reason, according to their president Mr. Jose Bautista, is they are going make DMIA as their new hub in line of DMIA becoming the future international gateway of Manila. Cebu Pacific also plans to follow suit.
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Old July 21st, 2007, 11:32 AM   #20
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^ yeah, thats their vision for the future...what? might take 20 years or so? and if they want to turn DMIA as their hub they should build their own terminal buildings as well and not rely on the government to provide it for them.

Knowing PAL themselves, they do have lots of publicities but not every single one of them actually happen, just wait and see. They are just now recovering from a near bankruptcy not too long ago so, just play it by ears...
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