Wednesday, June 20, 2007 Chinese shipping firm to set up facility in RP
SHIPPING giant China Ocean Shipping (Group) Company (Cosco) announced Monday that would pour in at least US$3 billion into a shipping complex development project in Sangley Point, Cavite which they hope to build as their main hub in the Southeast Asian region.
Francis Chua, special Philippine envoy on China trade and investments, said Wei Jia Fu, Cosco president and chief executive officer (CEO), revealed their plans during a courtesy call on President Gloria Macapagal-Arroyo in Malacañang.
Wei, who just arrived from the US last Sunday, also thanked Arroyo for inviting them visit the Philippines to assess and look at possible investment possibilities in the country. Arroyo made the invitation during her visit to China early this month.
Aside from Wei, present in the meeting were Cosco general managers Shi Zemin and Yuan Xiayu, Cosco Container Lines managing director Sun Jia Kang, Cosco Corporation Singapore Ltd president Ji Hai Sheng, Trade Secretary Peter Favila, Transportation and Communications Secretary Leandro Mendoza, National Economic and Development Authority (Neda) Secretary General Romulo Neri and Chua.
Chua said Cosco is already conducting a feasibility study in Sangley Pont, which is part of the first phase of the project. Sangley Point at present is being developed as an international transshipment point through the creation of a special economic zone.
He said they are hoping to sign formal contract when Arroyo visits China again in August.
He said 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 US$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.
With Cosco's investment, they would be the second foreign firm to establish a shipping complex in the Philippines after Hanjin Corporation of Korea, infused US$1 billion into a shipyard project at the Subic Bay Freeport in Zambales early this year.
By 2016, Hanjin's Subic Bay facility will be able to manufacture the world's largest gas tanker and generate 40,000 direct and indirect employment. (JMR/Sunnex)
