Hitachi strengthens PH presence, sees role in planned Manila subway
TOKYO — Hitachi Ltd., world’s leading social innovation company, yesterday said it has started discussions with the Philippines for the planned Mega Manila Subway as it eyes opportunities in other areas including power to bring its social innovation business thrust to mega cities in newly industrialized economies like the Philippines.
Hitachi Chairman & CEO Hiroaki Nakanishi revealed at a press conference for the Hitachi Social Innovation Forum 2015 here that there has been discussions on the planned Metro Manila subway.
With its expertise in the railway business, Nakanishi cited the company’s advantages to participate in a railway project.
“We’ve already started discussions making feasibility studies. In the case of the railway system, Hitachi has a clear advantage on all facilities not just in terms of locomotive vendor, but locomotive signal, electric supply and train management,” he said.
There were no details yet as to the extent of their planned participation in this ambitious subway project, but Nakanishi said next step would be the formulation of a feasibility study for the project.
In reviving its interest in the country, Nakanishi cited the rapid growth of the Philippine economy and the leadership of the current administration.
“The current momentum of the Philippine economy is very strong so we changed our view of Philippines almost five years ago,” he said citing new opportunities to make “more clear partnerships.”
He recalled that during his earlier trips to the country, the Philippines was just a simple manufacturing site but which has been transformed into a bustling economy with rapid industrialization.
He also cited of the flexibility of the domestic industries and the booming construction sector.
Other than the transportation sector, Nakanishi cited other areas of interest particularly the power grid in the country.
“I am very much interested in the future grid of the Philippines because of the specific structure of the country as it is composed of so many islands and this need some kind of infrastructure . . . this is one area we are vey much interested in,” he added.
For its other businesses, Nakanishi said that it has just started its white goods business like the refrigerators and air conditioners or the lifestyle business with the aim of strengthening its presence in this segment. These products are imported from its manufacturing sites in other ASEAN countries.
On Tuesday, the Philippines and Japanese governments have advanced their cooperation efforts to improve transport infrastructure in Metro Manila through a roadmap aimed to establish a modern and efficient transportation network taking off from the NEDA Boardapproved Roadmap for Transport Infrastructure Development for Metropolitan Manila and its Surrounding Areas.
The Cooperation
Roadmap for Quality Infrastructure Development in the Transport Sector in Metropolitan Manila Area is intended to steer the development programs and projects, as well as harmonize efforts on transport projects in Metro Manila. It is also meant to guide the development of policies, design, and prioritization of transport-related projects in the short-, medium-, and long-term.
As part of the Joint Declaration for Strengthened Strategic Partnership signed by President Benigno S. Aquino III and Japan Prime Minister Shinzo Abe during President Aquino’s state visit to Japan in June 2015, a “Cooperation Roadmap” called for the convening of a Ministerial-Level Committee, which held its first meeting today, to review the progress of projects assisted by Japan.
The meeting, co-chaired by Economic Planning Secretary Arsenio M. Balisacan and Japanese Ambassador to the Philippines Kazuhide Ishikawa, specifically involved discussions on studies being undertaken by Japan International Cooperation Agency for the possible implementation of the Mega Manila Subway and New Manila International Airport projects.
Also tackled were the Metro Manila Priority Bridges Seismic Improvement Project, the Exchange of Notes and Loan Agreement for which were signed on 25 August 2015, and the North-South Commuter Railway Project (MalolosTutuban), the Exchange of Notes and Loan Agreement signing for which are expected to be signed in the near future.
In an earlier interview, Atsushi Konno, Hitachi’s General Manager for Corporate Communications Group, said Hitachi is keen on participating in the Philippines railways with special interest on the planned monorail project of the Bases Conversion Development Authority (BCDA) that will connect the neighboring business districts in the metropolis.
Konno said they have a good advantage in the planned monorail because Hitachi has a good track record in the railway business.
"We are keen in the Philippines. We are looking at railways because that is one of our core businesses and the Philippine government has some railway projects," said Konno. Konno cited opportunities in the existing railways and the new ones. The Philippines has identified railway projects in the country for implementation under the Public-Private Partnership (PPP) scheme.
According to Konno, Hitachi's thrust is to do more business outside of Japan because the local economy is not doing very well.
So far, Hitachi's business is 50 percent Japan and 50 percent overseas. He expects, the share of Asian business to grow more as the company puts more focus especially in the southeast Asia region.
He cited that countries in the region are improving existing infrastructure and building new ones.
"We can contribute to their growth and they have young population," he said.
Hitachi has been doing business in the Philippines since the 1930s when it first deliver a 60HP hydro turbine to a power station in Davao. In 1960, the Japanese firm started to bring its other business units into the Philippine market.
At present, Hitachi has 11 companies or business units and affiliates in the Philippines employing a total 2,733. Its biggest ASEAN operation is in Thailand with 35 companies and 12,900 employees followed by Indonesia with 20 companies and 4,980 employes, Malaysia with 35 companies and 4,182 employes, Singapore with 29 companies and 3,563 employees, Vietnam with 9 companies and 1,541 workers and Myanmar with a lone company with 80 employes.