In 2017, the former Hanjin Shipyard in Subic Bay, Philippines, faced a potential takeover by two giant Chinese firms. This situation arose after Hanjin declared bankruptcy, leaving a significant debt of $412 million. The shipyard’s strategic location near Metro Manila and the West Philippine Sea made it a valuable asset for any nation, particularly for its potential use in espionage.
The Duterte administration, recognizing the national security implications, discreetly maneuvered to prevent the Chinese firms from acquiring the shipyard. Former defense chief Delfin Lorenzana revealed that then-president Rodrigo Duterte played a crucial role in this effort. The administration sought the help of the US embassy to find a suitable buyer.
After almost five years of negotiations, Cerberus Capital Management, a US-based company co-founded by Stephen Feinberg, took over the facility. Cerberus is not a shipbuilding company but a fund manager, and it now leases the property to other firms, including Hyundai Heavy Industries (HHI), which is involved in shipbuilding and repairs.
The former Hanjin Subic Shipyard is now known as the Agila Subic Multi-use Facilities. The northern portion of the property, facing the sea, is utilized as a dock for Philippine Navy ships. This move prevented China from gaining control of a strategic asset and demonstrated that the Duterte administration was not pro-China, as some critics had claimed.
The successful prevention of the Chinese firms’ takeover of the Subic shipyard highlights the importance of strategic maneuvering and international cooperation in safeguarding national security interests.
