MANILA - Shipping company Negros Navigation Co. Inc. has taken the side of its competitor Aboitiz Transport System (ATS) in the issue of grounding the latter's vessels, saying the move would hurt industries and discourage foreign investments in the country.

"While Negros Navigation supports a complete investigation into the sinking of ATS' SuperFerry 9, we are concerned that the decision of the Maritime Industry Authority (Marina) will have unintended consequences on the country's travelers and on industries, such as the agriculture industry, which depend on shipping companies for the movement of their goods," Sulficio Tagud Jr., chairman and chief executive of Negros Navigation, said in a statement.

ATS was supposed to be sold to a joint venture between Negros Holdings Management Corp., which owns Negros Navigation, and Dutch company KGL Investment BV.

After several negotiations, however, the buyer decided to call off the deal, citing "current constraints in the debt markets."

Last week, Marina grounded the 10-vessel fleet of ATS after the 7,000-ton SuperFerry 9 capsized off Zamboanga peninsula, leaving 10 people dead.

ATS is the Philippines’ biggest passenger-ship operator, cornering 60% of the domestic market.

Mark Williams, director of KGL Investment, warned that the travel ban on the company's vessels could also drive away investors.

"We are concerned that the actions taken in completely grounding the ATS fleet will have a chilling effect on the willingness of foreign investors to continue to invest in the transportation sector in the Philippines," said Williams.

ATS has already appealed to Marina to exclude 4 of its vessels from suspension because it said these passed reinspection this year.

It said that the order to immediately suspend all of its ships was "a prejudgment against the respondents without a hearing, and before knowing the cause or causes of the incident."