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  • SLI takeover still an option–Palace
     
    By VG Cabuag
    Reporter

    AFTER earlier denying any intention to take over beleaguered Sulpicio Lines Inc. (SLI), Malacañang said on Wednesday a government takeover remains an option that would depend largely on the findings of the Board of Marine Inquiry (BMI) on the MV Princess of the Stars disaster and the practicality of state-led shipping during typhoon season.

    This developed even as a group of domestic shipping operators warned of disruption of cargo and passenger movement if the interim Philippine Coast Guard (PCG) rule of “no sailing when Storm Signal Number 1 is raised” is not rescinded or amended, and worse, if it becomes permanent.

    The Philippine Interisland Shipping Association (Pisa) said it wants to strike a win-win solution with Coast Guard since the interim rule has serious implications on the viability of the business of its members.

    Executive Secretary Eduardo Ermita, in his weekly news briefing, reported the new stance of President Arroyo of not outrightly rejecting a takeover, and that Palace officials have already informed Congress leaders about such a possibility since it would require legislation.

    The shipping group said the workshop on Tuesday among representatives of the Pisa, Coast Guard, Philippine Ports Authority and Maritime Industry Authority on the sailing ban was but a knee-jerk reaction to the sinking of MV Princess of the Stars.

    Pisa declined, however, to give a copy of its proposed guidelines in times of a storm before presenting it to the Marina at its special board meeting on Friday. 

    According to Pisa estimates, if the PCG ruling is maintained, a vessel’s sailing time will be “significantly reduced by at least 60 days a year,” given that there are about 16 to 20 typhoons that hit the country every year, and each storm remains for about three to five days.

    The interim rule had already taken effect on Friday, after the agency was criticized for allowing Sulpicio’s MV Princess of the Stars to set sail after Signal Number 1 had been hoisted.

    The CG said that allowing the ship to sail did not violate any existing rule since the ship weighs about 23,824 gross tons and is capable of sailing under those circumstances, as stated in the rules at that time.

    The ship, according to initial investigation of the BMI, collided head-on with the eye of the storm Frank. SLI has sued the weather office for its “wrong forecast” and alleged failure to notify them on time of the change in the path of the storm.

    Meanwhile, asked what conditions would warrant a government takeover of SLI, Ermita said he believed it would not only depend on the BMI findings but also on “what measures have the company undertaken, considering that it has already previous incidents of major sea disasters and therefore, by now, they are expected to have  taken certain specific measures to  prevent this from happening.”

    He added that another “very important aspect considered by the government on a takeover” is the fact that many other typhoons are forecast to hit the country for the rest of the year.

    “We are just being very practical. That was what the President pointed out during the discussions. We have to be very careful. It’s very easy to say takeover, and then later on, there may be a typhoon and some ships sink. . . . We have to be very careful about this,” added Ermita.

    “We are not saying that no measures will be taken against SLI. Let us wait for the investigation of BMI. We would like to know what is the culpability of SLI, [and] of government agencies supervising maritime affairs like the PCG and Marina. So let’s see if they have any culpability.”

    Ermita also said the government is quietly looking into reports that ship captain Florencio Marimon is still alive and is allegedly under the care of SLI executives.

    “Definitely, you can be sure that information as to the fate of the captain is being verified. We don’t have to announce to the whole world. You can be very sure of that.” (With M. Gonzalez)

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