By IRMA ISIP

Beijing-based China Ocean Shipping (Group) Co. (COSCO) is looking for a local partner as it shifts strategy in setting up a $5 billion logistics and shipping hub it announced it will build over a year ago.

Francis Chua, special envoy for trade and investments, said COSCO is looking for partners to set up the industrial estate, maritime school and logistics hub it plans to set up either in Sangley, Cavite or in Subic.

A source said COSCO's shift in strategy was meant to lessen political risks associated with foreign projects similar to the harassment experienced by Korean shipbuilding giant Hanjin Heavy Industries Corp.

A local partner, aside from acting as shield, can be useful in making projects more acceptable to host communities.

The company feels that having Filipino partners, more familiar with doing business here, can help facilitate investment in case the project is challenged or questioned.

This way, COSCO could make an early start on the project.

"Rather than invest directly, COSCO is getting local partners for the different components. They are looking for those have the capability and the money to invest. A lot of parties are willing to co-venture with COSCO," Chua said.

Chua said investments from China might take time to come in especially in the wake of China 's own problems, the recent of which is the earthquake, which killed thousands of people.

But he said despite the delay, COSCO remains committed to pursue its project.

Chua earlier said another option was to break up the project into two components in two separate locations, Sangley at the most for ship repair and maritime and Subic as the logistics center.

Sangley Point, like Subic, has a deep harbor but it would require some reclamation to accommodate the land requirement.

COSCO officials led by its president and chief executive officer Captain Wei Jiafu made the investment commitment last June to President Arroyo. That mission was followed by another site inspection visit later in the year but it is yet to make a final choice.

Executive Order 629 calling for the conversion of Sangley Point into an economic zone and commercial port and airport was purportedly issued to accommodate the project.

As the second largest shipping company, COSCO has 770 vessels with a combined tonnage of 47 million dead-weight tons. The company is engaged in global logistics, shipbuilding, ship repair, terminal operation, freight forwarding, trade, financing, real estate and information technology.

In the country, COSCO operates through an appointed agent, COSCO

Philippines Shipping Inc. (CPSI), formed by a joint venture between COSCO Freight Agency Investment Ltd. under COSCO (Hong Kong) Group Ltd. and Bantayog Ocean Shipping, Inc.

CPSI act as port and freight agent of owners, operators and or chatterers of vessels calling on Philippine Ports.

CPSI also represents various ship owners around the world for its tramp business. At present, CPSI has a total workforce of 35 shipping specialists.