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    Hanjin Heavy’s shipyard hangs in the balance
     
    By Henry Empeño
    Correspondent

    SUBIC BAY FREEPORT—The shipyard venture in the Philippines of one of the world’s largest shipbuilders now hangs in the balance after another worker died in an accident over the weekend, the result of what authorities here said were “easily avoidable” safety lapses in the shipbuilding facility.

    During a sudden downpour at about 4:00 p.m. on Friday, several workers assigned to the form shop of Hanjin Heavy Industries & Construction Corp. Ltd.’s (Hanjin Heavy Construction) civil works department took shelter under a metal formwork at a dry-dock construction site inside the shipyard of sister unit Hanjin Heavy Industries Corp.-Philippines, or Hanjin Heavy-Philippines.

    The metal structure collapsed due to strong winds, according to a report by the Subic Bay Metropolitan Authority, or SBMA, over the weekend.

    Earthmovers and dump trucks appear like toys against the hilly Redondo Peninsula, illustrating the magnitude of development that Hanjin Heavy-Philippines undertakes for Phase 2 of its $1.6-billion shipyard in Subic. Construction activities grounded to a halt over the weekend as the Subic Bay Metropolitan Authority issued a cease-and-desist order to Construction Corp. Ltd., a sister company of Philippines, following another fatal accident in the shipyard. --Henry Empeño

     

    The incident—the latest in a string of fatal accidents at Hanjin Heavy Philippines’ shipyard since February last year—killed Mario Atrero, a 52-year-old worker from Candelaria, Zambales, who was employed by Hanjin Heavy Construction, the company doing construction work at the shipyard.

    Four others, all from the province of Zambales, were seriously injured. They were Joel Alido and Leody Abad of Palauig town, Darvin Silva of San Antonio and David Alcayaga of Castillejos.

    It was apparently one accident too many, however—even for the SBMA, which previously fended off criticisms against the projects here of South Korea’s Hanjin group, Subic’s single-biggest investor to date.

    Minutes after learning of the latest mishap from a Hanjin Heavy-Philippines official, SBMA Administrator Armand Arreza ordered the immediate suspension of construction activities at the shipyard.

    “The [safety] situation at the shipyard has become alarming,” Arreza said on Friday as news broke out about the latest casualty.

    A week earlier, two separate accidents had killed two other shipyard workers, prompting the SBMA to issue a notice of violation to Hanjin Heavy Philippines on Monday after investigations were completed.

    The fatal accidents, occurring within days of each other, Arreza noted, “tended to bunch up.”

    This somehow suggested that Hanjin Heavy-Philippines and/or its subcontractors have not responded appropriately to warnings and safety requirements issued by the SBMA. Neither, it appears, have the Koreans heeded the lessons from each mishap in the shipyard.

    According to a brief from the SBMA, Friday’s tragedy has raised the body count at Hanjin Heavy-Philippines’ shipyard to 12, or two fatalities less than the count made by Task Force Hanjin, a community organization that monitors the operations of Hanjin Heavy-Philippines.

    The authority’s list showed five fatalities under shipyard operations, and seven—including Atrero—under construction operations.

    Of the 12 cases, three deaths involved vehicular accidents, another three involved workers that fell off rooftops and two figured in an explosion that was traced to a leaking oxygen hose. But the leading cause of death, according to the brief, was the collapse of steel beams or metal structures that took four lives, including the incident on Friday.

    Worse, sources at the SBMA’s Occupational Health and Safety Division (OHSD) said, is that most of the accidents could have been easily avoided “if only shipyard managers imposed common-sense safety measures.”

    In the incident Friday, a barricade around the metal formwork—an easily recognizable symbol for a hazardous work area—could have discouraged workers from going near it.

    “There was no reason for [the workers] to be there,” said a member of the OHSD investigating team. “Had there been a barricade or even an ‘authorized personnel only’ sign in the area, the accident could not have happened.”

    These safety lapses, Arreza said, led the SBMA to get tough lately with Hanjin as well as its subcontractors who were found to have been remiss in implementing safety requirements at the shipyard.

    Last week the SBMA recommended the termination of contracts of three such subcontracting firms, Arreza said. The move is expected to be approved by the SBMA board this week.

    He identified the subcontractors as Trigon/Bodahh Inc., employer of a worker who fell off the roof of a building on March 11; Globe Distribution Services, which hired two workers that were later pinned to death by a metal beam that collapsed on March 10; and DMK/Philnorkor, whose worker fell from a moving truck in December last year.

    Similarly, Hanjin Heavy-Philippines and Hanjin Heavy Construction began to get a taste of the SBMA’s get-tough policy because of the nagging safety issue at its shipyard.

    In two cases of fatal mishaps last year, operations at the job sites were temporarily suspended for one day. This year the SBMA had already issued three separate notices of violation to Hanjin Heavy Construction, as well as two cease-and-desist orders (CDOs).

    Moreover, Arreza said two days before the latest accident that SBMA officials, along with Undersecretary Lourdes Melicor-Transmante of the Department of Labor and Employment (DOLE) and Dulce Estrella-Gust, executive director of the DOLE’s Occupational Safety and Health Center, have mapped out safety guidelines meant for Hanjin group’s implementation in Subic.

    Among the measures the Koreans must adhere to include the third-party quality audit of all shipyard equipment and safety performance, as well as the creation of an interagency occupational health and safety superbody at the shipyard and weekly submission of job-safety and occupational-health reports to the SBMA.

    With the guidelines, the SBMA also on Wednesday issued a notice for Hanjin Heavy Construction to complete all the occupational health and safety requirements within 30 days—or face the suspension of all operations, including both construction and shipbuilding activities.

    As it turned out, another death Friday would force the hand of SBMA to suspend construction work at the shipyard earlier than the deadline.

    While the target of SBMA’s latest CDO was HCCL, which undertakes facilities construction at the sprawling Hanjin Heavy-Philippines shipyard, the freeze order also affects Hanjin Heavy-Philippines the shipyard operator, which relies on its sister company—the construction unit—to complete Phase 2 of the shipyard venture by the second half of 2008.

    The expansion program entrusted to Hanjin Heavy Construction, according to company announcements earlier, is designed to increase Hanjin Heavy-Philippines’ shipbuilding capacity from the present 220,000 tons per year to 450,000 tons.

    It would also enable the firm to compete with rivals and compatriots Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Heavy Industries. The competition apparently spurred the furious pace of construction and shipbuilding at Subic and, on a positive note, enabled Hanjin Heavy-Philippines to complete its first shipbuilding project here at least six months ahead of schedule.

    Last month Hanjin Heavy-Philippines announced the successful sea trial of the first ship manufactured out of the Subic shipyard—the MV Argolikos, which is due for delivery to its Greek owner Dioryx Maritime Corp., next month.

    After Argolikos, at least 35 more vessels are scheduled to be built here by Hanjin Heavy-Philippines, including eight postpanamax vessels the company said would be among the biggest box ships ever to be built.

    However, the momentum for this billion-dollar project is now threatened by “safety lapses.”

    As in the past, officials of Hanjin Heavy-Philippines told the SBMA they would abide by all the requirements imposed by authorities.

    The SBMA said the lifting of the suspension, along with the accompanying losses to the company, would now depend on how fast Hanjin Heavy-Philippines could right its record of wrongs. This time the inaction of Hanjin Heavy-Philippines may prove fatal to its $1.6-billion investment in Subic, the same way the bell tolled for the 12 workers who perished at its shipyard here.

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