Hanjin Heavy Industries and Construction Philippines Expands Global Port Potential

Hanjin Heavy Industries and Construction Philippines is expanding its global port potential. The company has been involved in various port development projects, including the Subic Bay Freeport in the Philippines.

The Subic Bay Freeport is a major economic zone in the Philippines, with a total land area of 1,238 hectares. This freeport is a key component of the country's economic growth strategy.

Hanjin Heavy Industries and Construction Philippines has also been involved in the development of the Kuantan Port in Malaysia. The Kuantan Port is a major shipping hub in the region, with a total annual cargo handling capacity of 1.8 million twenty-foot equivalent units (TEUs).

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Labor Issues have plagued Hanjin Heavy Industries and Construction Philippines, with a steady stream of accidental workplace deaths and alleged labor violations. Five workers were killed in accidents that may have resulted from unsafe working conditions during a two-month span in 2008.

Investigations by the Subic Bay Metropolitan Authority and Philippine Congress found violations of safety and labor laws, prompting legislators to require Hanjin to build a medical center and comply with industrial safety laws within six months.

Workers have continued to express complaints of abuse by management, with one incident caught on camera and distributed to the Filipino news station ABS-CBN. Many workers have also begun to organize to attain union recognition.

According to organizers, 60 employees have been terminated for union-related activity, and over 30 have been killed in workplace accidents since the shipyard opened in 2006. Filipino church groups like the Caritas Filipinas Foundation have rallied in support of the workers.

Despite these issues, safety standards at the shipyard have improved since 2011, especially after ship owners introduced their own health and safety teams to augment the shipyard efforts.

The bankruptcy of Hanjin Heavy Industries and Construction Philippines (HHIC Phil) was a significant event that had far-reaching consequences. On January 8, 2019, the company filed for corporate restructuring due to default on a $412 million loan to five Philippine banks.

HHIC Phil's bankruptcy was the largest in Philippine history, surpassing the $386 million default by Lehman Brothers in the Philippines in 2008. This was a major blow to the country's economy.

The company's high debts and inability to service them led to its downfall. With 20 vessels in different stages of construction at the time, HHIC Phil struggled to meet its loan obligations.

The five banks involved, Rizal Commercial Banking Corporation, Land Bank, Metrobank, Bank of the Philippine Islands, and Banco de Oro, were left to deal with the aftermath. They were working to take over the company's shipyard as of January 2019.

Two Chinese firms had expressed interest in purchasing the shipyard, but a debt swap deal was agreed upon between HHIC Phil and the Philippine government. This deal likely had a significant impact on the company's finances.

Austal, an Australian shipbuilder, and Cerberus Capital Management, a US-based private equity firm, considered launching a joint bid to take over the Subic shipyard. However, Austal later dropped its bid.

Cerberus eventually took over the shipyard and renamed it the Agila Subic Multi-Use Facilities.

The 300-hectare Hanjin shipyard in the Philippines may be taken over by several shipping companies that would transform it into a major global port.

Trade Secretary Ramon Lopez mentioned that the shipyard could be a sprawling multipurpose mixed-use port facility jointly operated by several players.

It's targeted to be implemented this year, according to Lopez, who declined to name the companies but hinted that they include foreign players.

An American and a Japanese company are reportedly in negotiations with creditors to take over the shipyard, although no official announcement has been made yet.

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The 300-hectare Hanjin shipyard in the Philippines has the potential to be transformed into a major global port. This is according to Trade Secretary Ramon Lopez, who mentioned it in a recent interview.

Several shipping companies are interested in taking over the shipyard, which would be jointly operated by multiple players. Lopez declined to name the companies, but hinted that they include foreign players.

Creditors are in negotiations with an American and a Japanese company, according to another source. This is part of the proposals received by Hanjin creditors for the development of the shipyard.

The shipyard is targeted to be transformed into a multipurpose mixed-use port facility this year, as per Lopez's statement. Officially, Hanjin has fully shut down just this month, ending its remaining maintenance operations.

The Cape Subic Facility Contract Worth $110m is a notable example of business opportunities in the shipping industry. Hanjin Heavy Industries & Construction has won a contract worth around $110m to build two bulkers.

These 180,000 dwt ships are due for delivery in the final quarter of 2015. They will be built at Hanjin's Philippine yard at Subic Bay.

The Subic facility has taken a raft of orders this year, predominantly containerships. Slots for 2015 are fast running out.

Hanjin's Subic Shipyard is expected to accomplish over 180% of its annual order aim, a remarkable feat that showcases its exceptional performance.

The yard has inked 37 orders this year, a mix of larger bulkers and mid- to large-sized containerships.

This achievement ensures that the Subic yard will be busy for at least the next three years.

The possibility of winning $2.2bn contracts by the end of this year is a significant opportunity for the yard to further boost its order book.

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Hanjin Heavy Industries and Construction Philippines, a subsidiary of the South Korean conglomerate Hanjin Group, has a long history in the country. The company was established in 1986.

As of 2016, Hanjin Heavy Industries and Construction Philippines employed over 2,000 workers. The company's workforce was comprised mostly of Filipinos.

Hanjin Heavy Industries and Construction Philippines was involved in several major construction projects in the Philippines, including the Subic Bay Freeport Zone and the Manila Bay Reclamation Project. These projects showcased the company's expertise in large-scale construction.

The company's operations in the Philippines were affected by the financial difficulties faced by its parent company, Hanjin Group.

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