FBMA Aboitiz shipyard builds cheaper ships than Tenix austra

[korakot ng korakot]

FBMA Aboitiz shipyard builds cheaper ships than Tenix australia

February 20, 2003
sunStar News
By Elias L. Espinoza

The leaders of this government must be shortsighted that it just ignored the capability of FBMA Babcock Marine in Balamban, Cebu to build ships for the Philippine Navy and the Coast Guard.

The shipbuilding capabilities of FBMA Babcock Marine in Balamban that provided employment and enormous income in this western seaboard town of Cebu are already internationally acclaimed.

It is simply mystifying that while the British government had their training ships built in Balamban at FBMA Babcock Marine, our own government prefers a shipbuilder in Australia to build the training vessels for the Armed Forces at a higher price.

The composition of FBMA Babcock Marine ownership may not be fully Filipino but I am sure that the hands that worked on all the vessels that were built in Balamban are all Filipinos. This administration should have taken pride of this fact.

This is the irony of our brand of leadership or politics. While the leaders of this government imposed upon us patriotism, it failed to lead the role that is worthy of the people’s emulation.

The government’s decision to have its vessels for the AFP built in Australia even at a higher cost only gives to suspicion that it is not about the capability of the shipbuilder but so much on under the table transaction. You know, the higher the price the bigger is the commission.

The shipbuilding capabilities of FBMA Babcock Marine, I suppose, is not the issue. Neither it is the price or the cost of building a vessel for the AFP since they can offer a lesser price. It is something that they can’t come to terms with.

I don’t suppose that the top brash of the AFP were only after the mark on the vessel that it is made in Australia. It’s too simple to be believed. Don’t blame our leaders for the slump in our economy.

February 18, 2003
3 British ships almost done
By Linette C. Ramos

THREE 27-meter aircrew training vessels, which some 80 Cebuanos helped build, will sail to the United Kingdom next month for the British Ministry of Defense to use in their military exercises.

One of the vessels was tested off the waters of Balamban yesterday, as workers of FBMA Babcock Marine Inc. worked on the finishing touches of the two other vessels at the shipyard in Barangay Arpili, Balamban, Cebu.

FBMA entered into a contract with Smit International to build three of the six vessels the British Ministry of Defense will operate, FBMA project manager Peter Stillwell said.

Smit is a British company providing vessels and other training equipment and manpower to the British defense ministry.

While FBMA has been building the training vessels for Great Britain’s armed forces in the past months, it has also tried to enter into a contract with the Philippine Coast Guard and the Philippine Navy.

Ironically, though, the Philippine Government prefers to have the Armed Forces of the Philippines’ training vessels built in Australia, often at a higher cost, Stillwell said.

“It’s a strange thing. We have been working hard to promote to them vessels made by Filipinos that is of world-class standard but we couldn’t get them to have us build theirs,” he told Sun.Star shortly after the sail test yesterday.

Carpets on the cabins, floor tiles, upholstery on the furniture and a visible “Made in the Philippines” print on each vessel are among the last touches FBMA will work on before it is shipped on March 10.

Aside from Great Britain’s armed forces, FBMA also manufactures shipping and passenger vessels for South Korea, Hong Kong and Macau and Supercat Ferries in Cebu and Mt. Samat Shipping in Bataan.

Balamban Mayor Alex Binghay said the shipbuilding industry in the town is a source of revenue for the municipality and provides jobs to thousands of locals there.

He lamented, though, that there is still a seeming lack of support from the government, which does not patronize the vessels Filipinos make.

“The industry really helps the people economically and is good for the community here. Our President should look into the transparency of the armed forces and see why it does not buy vessels here,” Binghay said.

Stillwell and Binghay gave Sun.Star a tour of the facilities and equipment of Smit Yare, one of the three vessels named after rivers in the UK.

The two other vessels, weighing 55 tons each and running 22 knots, are Smit Towy and Smit Spey, which will be launched tonight.

The vessels are equipped with a rigid inflatable boat (RIB) that can be launched from the rear portion of the vessel and is used to recover life rafts during military exercises.

It also has a towing device that can retrieve the RIB and recover torpedoes during marine activities of the defense ministry.

Two major engines run the propellers of the vessel while another small engine runs the small water jet. It is also equipped with the latest radio, radar and communication equipment and engine control panels.

Each vessel has four comfort rooms, four shower rooms, four furnished cabins, a kitchen, pantry, laundry room, locker room and a sitting room.

Since it operated in 1997, FBMA has built 10 vessels and refurbished 22 others.

The first vessel it built was a 45-meter passenger ship that could run 52 knots and was the fastest running vessel in the world in 1997. It now plies the Hong Kong-Macau route.

Before the Smit series, FBMA built a 52-meter vessel that now operates in Korea. It is only vessel in Asia that meets international standards.

(February 18, 2003 issue)

DAILY SHIPPING NEWSLETTER 2003 –

 64 meter fast ferry order from FBMA Babcock

MarineRederij Doeksen has announced at the IMTA-Interferry conference in Rotterdam that it has selected FBMA Babcock Marine from an international group of specialist shipbuilders for the construction of a 64metre vehicle and passenger catamaran. Rederij Doeksen is a leading Dutch ferry operator, having been in business since 1923, and currently operating five ferries, including Ro-Ro vessels and high speed craft.The new 64metre vessel will have a service speed of 15 knots and operate on the Harlingen to Vlieland route across the Waddenzee in The Netherlands. The catamaran will be the largest vessel so far constructed t the FBMA Babcock Marine shipyard in Cebu, Philippines, with delivery in November 2004.The catamaran will have a steel hull and aluminium superstructure and incorporate a drive-through vehicle deck with bow and stern access for roll-on roll-off vehicular handling and rapid turnaround in port.Spacious passenger accommodation on three decks include over 900 internal seats, with overall capacity of up to 1300 passengers, and incorporates a feature passenger VIP lounge, tourist class saloons with a mixture of aircraft style seating and table and chair arrangements, separate bar area available for renting out to groups, and a large open sun deck. A large servery will provide passengers with a range of refreshment choices on the crossing, and there is also a separate play area for children.The vehicle deck will accommodate up to 58 cars along with motorbikes and cycles, or a mix of cars, baggage carts and trucks of up to 12.0 tonne axle load down the central vehicle lane. Stern and bow doors will allow rapid drive through loading/unloading capability with the hydraulically operated bowvisor hinging down below the horizontal to facilitate landing on an adjustable shore bridge. A sloping bonnet over the vehicle deck with hinged opening covers will ensure that trucks can be loaded or unloaded at all potential angles of the shore bridge resulting from tidal or vessel draft and trim variations.Two bow thrusters are fitted to ensure high manoeuvrability whilst berthing and the four propellers are specially designed for operation in shallow and highly silted conditions. The forward half of the vessel and transom will be strengthened to enable safe navigation in potential ice conditions in the Waddenzee, with capability of up to 300mm nominal ice thickness, and up to 400mm of snow cover.Paul Melles, managing director of Rederij Doeksen said "We had the vessel designed to our requirements by Sea Transport Solutions of Queensland, Australia, and which then allowed us the flexibility to select the best builder. After visiting a number of yards and viewing their work we are very pleased to place this order with FBMA Babcock Marine. The yard has exhibited an excellent quality of workmanship and, coupled with a competitive price, we expect to gain a first class vessel to add to our fleet."John Warbey, managing director of FBM Babcock Marine, said "This contract is another important milestone in the development of the FBMA Babcock Marine shipyard in Cebu, Philippines. Coming so soon after the order for a 47metre Ro-Pax and the completion of three 27 metre aluminium patrol craft for the UK, it demonstrates the excellent capability of the yard."

[Anonymous]

For the Coast Guard ships the Australians offered a grant and low-interest financing.  One of the problems we would have to face if we build the ships in Cebu for the AFP is that we would have to finance the ships ourselves.  Would FBMA build the ships on a build-now-pay-later plan?

[Manolet/Manokski]

What  Elias L. Espinoza  forgot (?) to mention is that Australia provided the financing on very good terms.  Would be nice to know if they could match that.

[korakot]

even if the interest rate is higher in a filipino bank, this can be made up by the wages provided to filipino shipyard workers, the parts or materials in the ship bought from filipino suppliers and the knowledge gained.
since NEDA approved this SAR contract, i wonder if the PCG or DOTC tried asking the Development bank of the philippines(DBP) if they can offer good interest rates specially since, we know the DBP is now in the business of offering loans to ship owners such as WG@A
lastly, the shipbuilding act of 2004 removed taxes on ship parts that filipino shipbuilders need to import.
you know guys, it does not hurt to dig deeper and find out if DBP could offer loans to the PCG since these PCG SAR contracts went thru NEDA anyway.
FBMA representative, mr .Stillwell , himself also said that the FBMA ships are cheaper than Tenix

[horge]

There is a huge difference between a manufacturing subcontract, and the main, management contract to provide a vessel. When a boat is built with steel, engines and sensory equipment from all over the world, a main contractor in Plymouth or Bristol really can simply choose the cheapest shipyard anywhere that can throw it all together... and in recent weeks, Philippine shipyards have won (and delivered on) such considertions.

Was FBMA Babcock the main contractor on its recent delivery? Aboitiz Tsuneishi on theirs? Or, weren't these manufacturing SUBcontracts bidded out by a foreign main contractor? Tenix, IIRC, designed and built the PCG SAR boats almost keel up, and secured financing for the project.


Local shipyads can build well, and I believe have been able to for decades, but reliable manufacturing capability does not translate automatically into design capability, and most important of all: capability in transnational project management and transnational financing.

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Analogy:
Any decent carpenter can build a house. Any draftsman can prepare plans,
and many individuals can design. But the task of
efficient project management, of addressing regulatory restrictions, of securing
a smooth and trouble free development and delivery of the contract,
(including financing), obtaining special permits and clearances, obtaining
restricted material from both locl and foreign sources, or even the overall task
of WINNING a contract to provide the foregoing.

That takes more than an ability to build or even design.
Those capable carpenters, draftsmen and designers ultimately have work because someone higher up has all the management ability, business and financial connections to provide them with work.

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Local shipyards all have some project management skill, but need to develop further towards managing contracts for sizable warships, especially with the restricted, sensitive equipments, appurtenances and furnishings particular to a modern warship that most on this forum agree are necessary.

The Tenix contract was useful for local shipyards to study. They can thence build up their own management strengths and ultimately develop feasible proposals for the PCG and PN.

Keppel, Tsuneishi - Aboitiz and FBMA Babcock ---by their very names-- are prime examples of the unavoidability of major foreign involvement and control in any local ensavour to provide the PN nd PCG with contract boats. NONE of them at the time could have secured the kind of dependable financing that Tenix obtained... but with each successful delivery (and with the foreign partnership as reassurance), foreign creditors will be more and more inclined to extend support to any proposals that local shipyard may offer the PN and PCG.




.

[Wushu*]

What  Elias L. Espinoza  forgot (?) to mention is that Australia provided the financing on very good terms.  Would be nice to know if they could match that.

Yup. That's why it's easier to buy. Kasi may aid package involved. I think kung locally natin gagawin yung ship, mahihirapan tayo maghanap ng financing. Tama ba?