SHIPPING CONTAINER HOMES AS AN ALTERNATIVE FOR TRADITIONAL HOMES ___________________________________________ A Research Proposal Presented to the Faculty of the Department

of Business Administration School of Business and Economics University of San Carlos Cebu City, Philippines ________________________________________________ In Partial Fulfillment of the Requirements for the course BA109N _______________________________________________ By Cabando, Maria Jarra Cortes, Marlou Paige M. Crodua, Frances Mae De Loyola, Gabriel Angelo Sembrano, Jennifer Chapter 1 INTRODUCTION Rationale of the Study Gothong Cargo Forwarder Corporation is one of the large cargo shipping lines in the Philippines and has been engaging in cargo shipping for the past years in cities like Cagayan de Oro, Cebu, Manila and Tacloban. Because of rapid growing shipping from different places, many shipping containers are needed and thus give a larger chance of having overly used or ` even unused containers. Containers are large boxes that are used to transport goods from one destination to another. Compared to conventional bulk, the use of containers has several advantages, namely less product packaging, less damaging and higher productivity. The dimensions of containers have been standardized. The term twenty-feet-equivalent-unit (TEU) is used to refer to one container with a length of twenty feet. Some of these containers are being disposed of to insure safety of the properties or goods being shipped, so they must regularly replace some of the damaged or aged containers. These containers may be of good use, other than being shipped around places and they can be sold when they are not usable for shipping thus, recreating value to the containers as an alternative for housing material, reducing thousands of shipping containers sitting in different ports in Cebu, giving alternative ways of disposing them and adding income to the shipping line companies . They can be used as an alternative for houses, or offices, and many others. The use of these containers is essential to the needs of people, those that aim to have a low-cost housing. Even for the other corporations, they can be of use as offices for their employees. One factor that may affect with using them as an alternative is the condition as to how well it can still provide shelter and comfort to users of these shipping containers.

Real-estate owners' feedback as to shipping containers as an alternative to a low-cost housing is important in order for Gothong Cargo Forwarder Corporation to assess on how they can reuse them. From that assessment, the corporation may then come to an agreement as to what they will do with these unused containers. Our research will help them decide and will give them an idea with what to do to those containers, and will give them a formidable income with just those unused containers.

THE PROBLEM Statement of the Problem There are a lot of shipping containers that are not used anymore. In order for corporations to profit on these properties rather than dumping them away without having them in good use, we will find ways for these containers to be able to, at least, generate even a small income. The following questions will be asked in order for us to obtain the necessary information, like: 1. How to create value out of these shipping containers? To use as an alternative material for housing. To have a low-cost housing. 2. Is it possible to use this as a housing material here in the Philippines? To know if it is viable to use this material in a tropical climate like here in the Philippines, specifically in Cebu. 3. How many Filipinos are willing to try on this kind of housing? To know if the Filipinos are willing to live in a Shipping Container homes. To introduce the advantages of this low-cost housing. Statement of Assumptions The following assumptions were made:

The selected sample is a representative of the population Majority of the respondents are interested in this low-cost housing Shipping containers, as a housing material, is readily available in the market Majority of the respondents expect that this project costs cheaper than the traditional lowcost houses. That this proposal will provide a sturdy shelter especially to the less fortunate That Gothong, our partner institution, expects to earn profit out of this proposal These containers are in many ways an ideal building material because they are strong, durable, stackable, movable, modular, plentiful and relatively cheap.

Significance of the Study Shipping containers are used to transport goods all over the world. It is built with strength suitable to withstand shipment, storage, and handling. Shipping containers range from large reusable steel boxes used for intermodal shipments to the ubiquitous corrugated boxes. Most of the worlds goods are transported by these huge boxes.

However, these shipping containers create problems too. After they are used a few times, they become used shipping containers and nobody wants them. They do not grow benignly in fact, they are stacked, dozens of containers high, in port cities and areas around inland freight transit terminals. Besides being an aesthetic nightmare, these shipping containers pose a serious waste disposal problem. Rather than looking at this as a problem, we can choose to regard them as an abundance of potential building material. Not only does it provide low cost housing to people who are deprived of having their sturdy houses but it also help shipping companies earn something on its disposal. There are several benefits of reusing shipping containers as an alternative home. The biggest incentive and advantage for all those thinking about shipping container houses is that they are quite cheap. Getting a used shipping container and converting it into a home is far less expensive than getting a home in the cheapest place of the city. Basically, this is an advantage to the less privilege who cant afford to build strong and comfortable houses that have greater ability to withstand any adverse happenings caused by Mother Nature than the usual homes lived by the less privilege nowadays. Contractors, an organization or individual that contracts with another organization or individual (the owner) for the construction of a building, road or other facility, may also benefit from this study in a way that they will have more projects and generate more income since they will be very helpful and vital to accomplishing the proposed shipping container homes. Shipping lines, our partner institution is Gothong Cargo Forwarder, will also benefit from this research particularly to their disposal of the containers. They will be benefited in a way that instead of piling up worthless containers, they could sell it to any contractors as an alternative housing material in order to recreate value and generate income from unusable shipping containers.

Scope and Limitations of the Study This study is limited only to one entity which is the Gothong Cargo Forwarder, the partner institution. The respondents of this study are the Contractors and as well as the adult professionals (25-65 years old) of Cebu City. This study covers only from December 2012 to February 2013. We will get the information needed for this study by giving questionnaires to the respondents and evaluate their answers to come up some findings. The researchers of this study are only students which do have some limitations. They may lack necessary knowledge and skills to appropriately perform the study. Similarly, they have time and financial constraint but they will surely give their full effort to make this study a success. ORGANIZATION OF THE STUDY This business research contains three chapters which describe the substance of our study, excluding the Bibliography and Appendices. The first chapter of this business research provides the brief introduction and background of the contents of the research paper. It states the problem which may include the main problem of the study as well as its sub-problems. This chapter also includes the significance of the selected research topic, and the scope and limitations of the study. And lastly, lists some of the operational definitions of terms that will be used in the text.

The second chapter contains a review of literature related to the student researchers business research. It shows the theoretical framework, a summary of the review related literature and where the conceptual framework will be based upon. The third chapter shows the research is to be presented. It provides the research environment, respondents of the research, instruments used, procedures taken to conduct the research, and the gathering and treatment of data. The feedbacks obtained from the respondents will be use to analyze and address the problem and assess the viability of our study.
Definition of Terms 1. Shipping containers - are large boxes that are used to transport goods from one destination to another. 2. Viable - Capable of working successfully 3. Value creation - the performance of actions that increase the worth of goods, services or even a business. 4. low-cost housing affordable housing 5. tropical climate - it is a non-arid climate in which all twelve months have mean temperatures
above 18 C (64 F)

6. Gothong Southern - is in the business of logistics, shipping and ports,

providing solutions for efficient and timely movement of goods and information.

CHAPTER 2 Review of Related Literature For many thousands of years, mankind has shipped goods across the oceans, from one land to another. Think of the great seafaring peoples; the Phoenicians, Egyptians, Greeks, Romans, Portuguese, Spanish, British and many more. Sailing the world looking for new treasures, they brought home and traded food, jewels and materials that their countrymen had never seen. Before the container shipping industry emerged, boxes of various types and sizes had often been used in transporting cargo simply because they were the logical way to move things en masse from one location to another. Moreover, these boxes have evolved into containers ranging from large reusable steel boxes used for intermodal shipments to the ubiquitous corrugated boxes. These modern shipping containers have provided an economic way to ship 90% of the world trade goods across the globe and as a result has greatly benefited society in providing for a truly open market on which to buy and sell goods. Today, thousands of cargo carriers ply the world's seas and oceans each year; they handle the bulk of international trade. One of which is our partner institution, Gothong Southern Cargo Forwarder. The revolution of the shipping economy has also led to massive excesses of containers; these containers are intended to be used constantly, being loaded with new cargo for a new destination soon after having been emptied of previous cargo. In some cases, countries import more of these containers than it exports resulting to a hundreds of thousands of empty, unused containers that port operators are more than happy to sell for low prices. This provided a unique opportunity to convert these existing resources into low cost housing. Shipping container dwellings have been considered as early as the mid 1960s and developed as a result of an architectural interest in merging mobility and manufacturing into building construction. These containers are in many ways an ideal building material because they are strong, durable, stackable, movable, modular, plentiful and relatively

cheap. Architects as well as laypeople have used them to build many types of buildings such as homes, offices, apartments, schools, dormitories, artists' studios and emergency shelters. They are also used to provide temporary secure spaces on construction sites and other venues on an "as is" basis instead of building shelters. There are two standard sizes for shipping containers, the 20 feet (6.09 m) and 40 feet (12.19 m) length containers. There are also less common variations in length that are still available in the market which include, but are not limited to, 10 (3.05 m), 30 (9.14 m), and 45 feet (13.72 m) in length. Shipping containers come in many different heights. Today the most common height is 8.5 ft (2.59 m). Shipping containers contain corrugated sides and top in order to provide extra strength, however this decreases the internal dimensions from the external dimensions which were described previously. The corrugations are typically one inch in width, in which case would deduct two inches (50 mm) from the width giving an internal width of 7 ft 10 inches (2.38 m) (Container, 2009). The shipping container doors are typically two inches thick (50 mm). Therefore the exterior length is deducted by three inches (75 mm) to give the interior length of the container. For example if a 40 foot container was used the interior length would be 39 ft 9 inches (Container, 2009). With renewable resources and energy efficiency at the forefront of the worlds thoughts, containers fit the need for efficient construction materials. They are reusable, recyclable, and reduce the need for other construction materials. Also, construction projects with containers typically use no groundwork excavation processes, are quick to set up and complete, and generate less waste than traditional construction projects. They are also very durable due to the fact their existence was born out of a need for strong, long lasting shipping materials.

Theoretical Background Overpopulation, migration and mobility characterize life and living today. Natural catastrophes frequently leave thousands of people homeless; indeed the very idea of home is less constant and more fluid today than it was just a generation ago, and personal space is now a luxury, making us reflect on how much space we really need. Container homes are a fast, green, economical and surprisingly flexible alternative to traditional houses as they provide modern dwellings for any household size from individual to family and community housing. With the green premise growing in popularity across the globe, more and more people are turning to cargo container structures for green alternatives. There are countless numbers of empty, unused shipping containers around the world just sitting on shipping docks taking up space. The reason for this is that its too expensive for a country to ship empty containers back to their origin. In most cases, its just cheaper to buy new containers from Asia. The result is an extremely high surplus of empty shipping containers that are just waiting to become a home, office, apartment, school, dormitory, studio, emergency shelter, and everything else. However, it is important to note that shipping containers, as a livable space, is not a perfect material, particularly with its responsiveness to the hot-humid climate of the Philippines. Still, it is possible that the advantages of utilizing this unit outweigh any disadvantages. There are copious benefits to the so-called shipping container architecture model. A few of these ADVANTAGES include: Strength and durability Shipping containers are in many ways an ideal building material. They are designed to carry heavy loads and to be stacked in high columns. They are also designed to resist

harsh environments - such as on ocean-going vessels or sprayed with road salt while transported on roads. Due to their high strength, containers are useful for secure storage. Modular All shipping containers are made to standard measurements and as such they provide modular elements that can be combined into larger structures. This simplifies design, planning and transport. As they are already designed to interlock for ease of mobility during transportation, structural construction is completed by simply emplacing them. Due to the containers' modular design additional construction is as easy as stacking more containers. They can be stacked up to 12 high when empty. Transport Pre-fabricated modules can also be easily transported by ship, truck or rail, because they already conform to standard shipping sizes. Availability Used shipping containers are available across the globe.
The abundance and relative cheapness of these containers during the last decade comes from the deficit in manufactured goods coming from North America. These manufactured goods come to North America, from Asia and Europe, in containers that often have to be shipped back empty at a considerable expense. Therefore, new applications are sought for the used containers that have reached their final destination. There are already built shipping container houses here in the Philippines, this proposal have actually been starting a long time ago but people, especially Filipinos, seem to not know this, or they are aware that shipping containers can be used as an alternative home but refuse to make use of it.

CitihubMandaluyong

Mactan, Cebu

Lapu-Lapu, Cebu

Conceptual Framework The conceptual framework demonstrates how the shipping containers may create value instead of disposing it. The researchers will establish the viability of making this as an alternative housing material. Questionnaires will be given and circulated to sample opinions and perceptions of contractors and 400 professionals within the age range 25-65 years on the introduction of shipping container homes into the Cebu market as a way of providing housing in Cebu City. From the results of the questionnaire, they will evaluate the viability of this project and determine if the response is a positive or negative.Fig. 1.1 - Research Conceptual FrameworkFEASIBILITY

If the outcome yields to a positive feedback, then we can create value from a worthless container instead of disposing it and also it is viable to use shipping container as an alternative housing material here in Cebu. However, if the outcome is negative, the researchers may offer new arrangements with the contractors and adult professionals in order to consider this study and let them see the benefits of recycling containers as homes which also help the environment. CHAPTER 3 RESEARCH METHODOLOGY The study is aimed to identify various ways to recreate value using shipping containers that are meant to be disposed. It is a qualitative study and the purpose is to assess the viability and feasibility of these containers to be used as shelters to supplant the low-cost traditional houses. Basically, these containers are built with great durability that could withstand natural disasters, thus, can be use for emergency shelter. Another way, these containers can be insulated and reconstructed aesthetically to be a preferable place of living. Research Environment This study was conducted at various barangays located in Central Cebu: Capitol, Labangon, Cebu Port and Pasil. These barangays are inhabited by people of various ages (25 65), income sizes and profession. We are targeting respondents who are most likely would want to live in these container houses and those whose income is suitable for these houses. The respondents are given questionnaires for them to answer that eventually would suffice of what is needed to know. In addition to the respondents, we are also relying on the expertise of some contractors for the cost, built and structure of these container houses. In addition to the barangays I have mentioned above, the study is also conducted in a construction company, Orceo Architects. Orceo Architect has its main office in Cebu City, located at Rm 204, Mingson Bldg., Zamora St. 6000. Consist of 19 staff, including support staff, each has its own designation, as architect and contractors. Below are the maps of each of the barangays: Figure 3.1 -CAPITOL-

Figure 3.2 -LABANGONFigure 3.3 -CEBU PORTFigure 3.4 -PASIL-

Research Respondents The research sampling method that will be used in this study is random sampling, specifically the Slovins Formula which is used to calculate the sample size (n) given the population size (N)and a margin of error (e). It is computed as n = N / (1+Ne2), to obtain a more scientific result that could be used to represent the entirety of the population and the Expert sampling which is a

non-probability sampling and is use when the research requires assessment or opinions of people with a relatively high level of skill or knowledge. In this research, we have two kinds of respondents who will be the Domestic individuals and the Contractors. We aim to target the population of Cebu City for Domestic individuals aging 25-65 years old and the Professional Contractors. As regards to Domestic Individuals, out of 798,634, 46.6% are individuals aging 25-65 years old, thus, our population size is an estimate of 380,000 persons in Cebu City. And using Slovins formula, 400 individuals will be the target sources. These respondents are chosen for the research for they will be also benefitting from the project. As regards to Professional Contractors, the researchers only needed 10 Civil Engineers from all over Cebu City. A sampling method that will be applicable for this survey will be the Expert sampling. These respondents are chosen for the reason that they will be the one making the proposal possible. The randomly sampled respondents will be asked by the researcher for consent and approval to answer the questionnaire until the desired number of respondents, which is 400 persons, is reached. And opinions from expert will be very useful with regards to building infrastructures using shipping containers at the lowest cost and as to alternative ways of recreating value to shipping containers. Research Instruments In order to gather necessary data for this study, the researchers conducted a survey through the means of a survey questionnaire. The researchers constructed two types of questionnaires. Structured questionnaire contained a set of relevant questions with choices of answers that the respondents would choose from. Unstructured questionnaire are a set of relevant open-ended questionnaires. The structured questionnaires will be given to the adult professionals (25-65 years old) while the unstructured questionnaires will be given to the contractors. Through this survey, the researchers were able to gather answers and opinions from the respondents of the study. This instrument was prepared to get necessary information such as, the respondents preferences on shipping containers as a material for their homes, their corresponding budget for this low-cost housing, and their opinions about building container houses here in Cebu. The researchers utilized online sources and existing thesis to study the topic on hand for the preparation of the survey questionnaire. Research Procedure The researchers will pre-test the structured questionnaires by giving these to ten (10) selected respondents who possess the same characteristics as those domestic individuals who would be chosen for the actual study. The pre-test allowed the researchers to detect problems relating to ambiguous and unanswerable questions. This will help increase the reliability and validity of questions when analyzed and revised. But as to the unstructured questionnaires, pre-testing will not be applicable for an expert opinion will be needed in this type of survey.

After the necessary revisions, final structured questionnaires will be given to Four hundred (400) Domestic respondents in Cebu City, the target sample size that represented the entirety of the Cebu Citys population, and final unstructured questionnaires, as well, to ten (10) Professional Contractors. And after they filled up the questionnaires, such will then be collected. Secondary information will also be gathered and analyzed. The researchers used websites, books, and other secondary sources for the information needed in the study.