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 $412 million in loans to Philippines banks and whether ICTSI would bring consortium partners. Hanjin’s assets in the Philippines are estimated to be worth $1.6 billion.
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.