By GENIVI FACTAO

Hanjin Heavy Industries Construction Co., is dropping its $2 billion shipyard project in Misamis Oriental, deterred by the hostile reception of the local government and politicians.

It also did not help that the global crisis is spawning a lot of cancelled orders for new ships.

Hanjin is walking away from the project which could have employed 40,000 welders and other workers in what could have been a bigger shipyard than the one in Subic.

Hanjin started dismantling welding facilities last month. The withdrawal is ongoing because as the company said, it failed to secure permits and clearances from the local government.

Being pulled out are machineries and equipment on the site, covering 442 hectares at the Phividec Industrial Estate located in the towns of Villanueva and Tagoloan.

Losers are the people of Northern Mindanao, Enrico Autor, collector TMO- -Balingoan Port Management Office –Cagayan de Oro, claimed "it’s a great loss, because of the problems with politicians, the residents lost opportunity to get jobs. There could be importations by Hanjin that will bring in additional income and revenues for the government, but it’s all gone."

Hanjin was able to secure from Northern Mindanao Regional Office of the Environmental Management Bureau (EMB) permit to put up fences and the Environmental Compliance Certificate (ECC) for its eight-hectare training center in Tagoloan.

"Other permits were not approved by the mayor, " a source said.

The Philippine Veterans Industrial Development Corp., (Phividec) paid farmers to vacate the land and more than 200 families were relocated to give way to the shipyard.

Hanjin conducted the training of welders early this year. It has shipped P24 million worth of welding equipments directly from South Korea to the gymnasium of Villanueva, Misamis Oriental for the training.

Yun So Kim, Hanjin administrative manager, earlier said the first phase of the development will enable the production of 80,000 tons a year of outfittings and pipes, among other items.

Hanjin had made clearing operations in the site.

Hanjin’s other project, to build an international airport remains. The plan is to transfer the airport to a flat terrain.

The P5 billion Laguindingan Airport project in Misamis Oriental involves the construction of runway, new passenger terminal building, air traffic control tower/operation building, cargo terminal building, CFR (CAT-1) building, maintenance building, power house building, administration building, cold water receiving station, fuel farm, and waste water treatment plant.

The airport complex, located about 30 km. northwest of Cagayan de Oro City through the Cagayan de Oro-Iligan City Road, will serve as the main access point for trade and industry between northern Mindanao and the rest of the country.

The project management had expropriated 98 percent of the lots from private individuals affected by the airport’s right-of-way. The airport facility covers about 400 hectares. Approximately 300 hectares have been acquired or donated, including the 94 hectares donated by Ayala Land Corp.