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In the latest installment in the on-again/off-again relationship between the PI and the U.S., it seems that the U.S. Navy could see more of Subic Bay as a result of a commercial deal for a U.S./Australian consortium to take over the bankrupt South Korean-run Hanjin shipyard (HHIC Phil) in Olongapo.
For those following along at home, HHIC Phil was built in 2004 and was considered by the company to be the fourth largest shipyard in the world.
Vice Admiral Giovanni Bacordo said the two companies are in the final stages of negotiations with the Philippine government and several banks to take over the operations of Hanjin. The companies reportedly intend to invest about $2 billion and employ the shipyard’s over 30,000 skilled and experienced Filipino workforce.
Australian shipbuilder Austal Ltd has won a contract to deliver six offshore patrol vessels for the Philippines Navy while US private equity Cerberus will operate the other half of Hanjin’s facility for ship repair.
“I was told the companies were about to complete due diligence and final negotiations before the outbreak of the coronavirus, which could delay the process,” Bacordo said.