The good thing about court decisions is the accompanying discussion on the history of a particular subject matter. We noted, for instance, the history of trademarks. This time around, and assuming anyone is interested, here’s the history of the Pandacan oil terminals. The Supreme Court recently affirmed Manila City Ordinance No. 8027, reclassifying the area from industrial to commercial, and directing affected businesses -- including the so-called “Pandacan Terminals” of the oil companies -- to cease from operating in that location. This is an illustration of how a zoning ordinance could adversely affect existing business infrastructure.

 

"Pandacan (one of the districts of the City of Manila) is situated along the banks of the Pasig river. At the turn of the twentieth century, Pandacan was unofficially designated as the industrial center of Manila. The area, then largely uninhabited, was ideal for various emerging industries as the nearby river facilitated the transportation of goods and products. In the 1920s, it was classified as an industrial zone. Among its early industrial settlers were the oil companies. Shell established its installation there on January 30, 1914.  Caltex (now Chevron) followed suit in 1917 when the company began marketing its products in the country. In 1922, it built a warehouse depot which was later converted into a key distribution terminal. The corporate presence in the Philippines of Esso (Petron’s predecessor) became more keenly felt when it won a concession to build and operate a refinery in Bataan in 1957. It then went on to operate a state-of-the-art lube oil blending plant in the Pandacan Terminals where it manufactures lubes and greases.   

On December 8, 1941, the Second World War reached the shores of the Philippine Islands.  Although Manila was declared an open city, the Americans had no interest in welcoming the Japanese. In fact, in their zealous attempt to fend off the Japanese Imperial Army, the United States Army took control of the Pandacan Terminals and hastily made plans to destroy the storage facilities to deprive the advancing Japanese Army of a valuable logistics weapon. The U.S. Army burned unused petroleum, causing a frightening conflagration. . . The fire consequently destroyed the Pandacan Terminals and rendered its network of depots and service stations inoperative.

After the war, the oil depots were reconstructed.  Pandacan changed as Manila rebuilt itself.  The three major oil companies resumed the operation of their depots.  But the district was no longer a sparsely populated industrial zone; it had evolved into a bustling, hodgepodge community. Today, Pandacan has become a densely populated area inhabited by about 84,000 people, majority of whom are urban poor who call it home.   Aside from numerous industrial installations, there are also small businesses, churches, restaurants, schools, daycare centers and residences situated there.  Malacañang Palace, the official residence of the President of the Philippines and the seat of governmental power, is just two kilometers away. There is a private school near the Petron depot. Along the walls of the Shell facility are shanties of informal settlers. More than 15,000 students are enrolled in elementary and high schools situated near these facilities.  A university with a student population of about 25,000 is located directly across the depot on the banks of the Pasig river.

The 36-hectare Pandacan Terminals house the oil companies’ distribution terminals and depot facilities.  The refineries of Chevron and Shell in Tabangao and Bauan, both in Batangas, respectively, are connected to the Pandacan Terminals through a 114-kilometer underground pipeline system.  Petron’s refinery in Limay, Bataan, on the other hand, also services the depot.  The terminals store fuel and other petroleum products and supply 95% of the fuel requirements of Metro Manila, 50% of Luzon’s consumption and 35% nationwide. Fuel can also be transported through barges along the Pasig river or tank trucks via the South Luzon Expressway." (Source: Social Justice Society vs. Atienza, G.R. No. 156052, 13 February 2008)