Marina to empower local shipyards
The Maritime Industry Authority (Marina) vowed to empower local shipyards to enhance the domestic shipping industry and increase its contribution to the economy.
Engr. Ramon Hernandez, director of the Marina Shipyard Regulations Service, bared the 10-year shipyard program to the members of the Shipyard Association of the Philippines (ShAP) at the recent 2nd National Shipyard Convention in Cebu.
Hernandez said the country’s shipbuilding and ship repair (SBSR) industry has two markets: export and local.
“In 2016, Philippines became the fifth largest shipbuilding nation in terms of new building completion volume. SBSR revenue was about $1.5 billion, mainly from export-oriented Tsuneishi, Austal & Hanjin shipyards,” he said.
The locally constructed ships for export totalled to 38 ships with about 1.9 million gross tonnage (GT) in 2016, higher than the 36 ships built in 2015 with total gross tonnage of 2,165,791.00.
Out of the 38 ships in 2016, 33 were cargo ships while five were tankers.
In terms of world order book share, China ranked first with 32.2 percent; followed by South Korea with 30.2 percent; Japan was third with 28.8 percent; European Union, was placed at fourth with 3 percent and Philippines, ranked fifth with 2.9 percent.
There were 2,389 ships with 39,083.04 total GT constructed in 2015 for domestic operation, higher than the 2,148 ships with 27,009.49 total GT that were built in 2016. Out of the 2,148 ships in 2016, 902 were passenger ships; 163 cargo ships; 15 tankers; 13 tugboats and dredger; 1,010 fishing vessels and 45 miscellaneous ships.
Hernandez sees the potential of growing the manufacturing industry in the country by focusing on ship/ boat building to increase the contribution of SBSR industry to the Philippine gross domestic product (GDP).
This will become a reality if government and stakeholders would help address major challenges such as proliferation of second hand ships, more imported ships, not globally competitive shipbuilding nation, low level of productivity or production and repair of ships, scarcity of specialized skilled shipyard workers such as fitter, welder, among others; inadequate or poor facilities to build and repair ships, and high cost of building ships.
Hernandez expressed his appreciation to (ShAP) for its support to the Marina’s shipbuilding, ship repair and ship breaking industry initiatives under the 10-year Maritime Industry Development Program (MIDP).
“From 18 shipyard members in 2016, now the ShAP has 97 bonafide members out of the 118 total number of shipyards in the country. In a span of three years, the association has come a long way in assisting shipyard owners achieve not only their business objectives, but also in striving to provide a conducive investment climate for all,” Hernandez said.
Marina assured its full commitment to efficiently regulate the shipbuilding and ship repair sector relative to the production and the construction of quality ships, especially now that the regulations required the members to be ISO-certified, and guaranteed to be supportive of the ship retirement and replacement program of the Marina’s Domestic Shipping Service (DSS).
ShAP Chairman Meneleo Carlos 3rd said they presented their priority agenda and concerns on shipbuilding, ship repair and ship breaking industry to cope with the new memorandum circular of the Marina regarding the registration and licensing of the shipyards, including the afloat ship repairs.
“The 10-year maritime industry development program is a great horizon. It allows us to forecast the implementing changes. The Marina has been an immense help and guidance to us in terms of bringing our concerns together and making them present to the government. It’s time for us to offer back to them,” Carlos said.
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