Van Sweet Home: Recycling Container Vans into Low-Cost Homes

“Necessity is the mother of invention.” This ancient quote from Plato, Greek philosopher rings true today as it aptly describes the transformation of Storage Providers Inc. (SPI) from a simple trucking services business called Sa Tao Trucking Corporation in 1988 to an innovative and specialized enterprise that it is today.

“It was really a blessing disguised as difficulties that started the business of Storage Providers Inc.,” says Socorro Y. Yap, owner and Vice President for Finance and better half of founder and President Ronald F. Yap of SPI.

“In 1994 when constraints in the business such as the increasingly heavy traffic in Metro Manila and government restrictions in trucking operations started severely affecting the business, Management was constrained to reflect on the enterprise’s survival and future direction, and decided to reinvent it.

“We needed to change and evolve the business; otherwise it would not have survived and gone on to do innovative and bigger projects.

“First, it endeavored to become a cargo container and depot and took the name of Human Dimensions Enterprises. This change in its nature of business paved the way to embark on other related ventures such as the fabrication and conversion of container vans into mobile offices and homes and the recycling to second hand containers into 10-footer vans for domestic shipping lines,” relates Ms. Yap.

Soon, they found out that fabrication and recycling activities were the shot in the arm the business badly needed. It became its “goose that laid the golden eggs” and that led to the expansion and diversification of its recycling and conversion activities, and paving the way to the establishment of SPI.

True enough, the change and the evolution that the business has undergone has produced dividends. From an asset size of P 27 million in 2004 when it embarked on recycling container vans as Storage Providers Inc., it has grown today to about P 50 million in asset size.

Using environment friendly materials, it recycled marine container vans into mobile homes and office units winning for it an accreditation from the Housing and Urban Development Coordinating Council (HUDCC) for innovative housing in 1996.

Today, SPI has proven itself as an innovative and creative recycler and converter of container vans and has undertaken projects for big businesses in the country. From a toilet and bathhouse to office buildings and residential houses, SPI has built them all from recycled container vans.

“Our products are better than your regular housing units constructed from concrete and lumber in several aspects.

First, it is typhoon and earthquake proof, says Ms. Yap.

“Their stable structure and steel material can withstand typhoons and earthquakes and not easily demolished by nature.

“They are also less costly to build, can be assembled in less time, and is permanent and comfortable as a shelter,” enumerates Ms. Yap.

“The completion of the house made from recycled container vans does not entail high development cost. The fittings for the house can easily be constructed and adjusted to the terrain of the land without need for the costly and time consuming land development cost normally entailed using traditional construction technology,” she explained

Homes built from container vans using the technology of SPI are less costly than similar modular homes and even those built using the traditional construction technology. Based on parallel studies done with other construction technology, it was found out that container vans are less costly to build into homes.

For example, a 30 m2 home would cost anywhere from P250, 000 to P 300,000 which is about P 8,000 to P 10,000 per m2 cost. This is at least 25 percent lower than those built using reinforced concrete and traditional construction technology.

“The container van is versatile. While being sturdy and low cost, a family can gradually upgrade their house using the existing structure as they generate more income for expansion, adds Ms. Yap.

SPI is a client of Small Business Corporation since 2005 when it availed of a P 2 million credit line for receivables financing. The line was used to finance a contract with SMART Communications to fabricate and convert 40 container vans into 60 units of SMART “Click” Internet Café’.

Over the years and many projects later, its dealings with SB Corp. has remained satisfactory and its credit line has increased to P 6 million. At present, SPI has financed from SB Corp. credit line a total of about P 23 million worth of projects.

As one of the major players in the container van recycling and fabrication business, SPI continues to deliver creative, dedicated and personalized service to its clientele. Aside from container van recycling and fabrication, its other products and services are: container lease and sale (of 20 foot or 40 foot container vans), and trucking and logistics which consist of general cargo handling, materials delivery handling, warehousing services and equipment rentals.

Already, SPI has provided its services to some of the country’s big companies and institutions such as the Armed Forces of the Philippines, Pagcor, Land transportation Office, EEI Corp., Stradcom Corp., PNOC, Leighton Corp., Jollibee, Rotary Club, Netopia, Smart Mobile, Sage Water Co., Universal Robina Corp., and the Tollways Management Office. It also did a project for the Republic of Palau.

The dream of its founder is to build a business that is sustainable with a market that will not run out. True enough that is what SPI’s housing and shelter development products and services are turning out to be. In addition, part of the SPI vision is to make warehousing an institutionalized service through the provision of mini-warehouses wherein clients can drive in, put in or withdraw their goods, and drive out again in a jiffy.

Apart from growing a profitable business, SPI owners are happy to say that their business has contributed in making the environment a better place to live in. Recycling container vans into homes has big environmental benefits.

“One is that with the SPI technology, less wood is needed to build homes, saving trees for the environment. Second is that the technology used by SPI in recycling worn out container vans does not entail melting and reprocessing of the steel which saves on energy costs, and does not involve emission of pollutants into the environment as steel mills are disposed to do, explains Ms. Yap.

Still SPI has remained relentless in its pursuit of advancement and has not let down its sights on its vision to someday become the leader in a sustainable and profitable business. It continues to grow and SB Corp continues to provide the financing needed to reach its vision.

Indeed with its persistent effort in improving its technology, and its open-minded adoption of best practices in the management of the enterprise, it would not be long before we see it become a big enterprise and a major player in the housing and storage market.