The Maritime Industry Authority (Marina) aims to make the Philippines a global maritime hub by implementing a five-pronged action plan under one of several priority programs outlined in its 10-year Maritime Industry Development Plan (MIDP).
Developing the country as a global maritime hub is one of the eight priority programs of the draft MIDP, Marina’s decade-long roadmap that aims to accelerate the achievement of a nationally integrated and globally competitive Philippine maritime industry.
Last December 11, the maritime authority held an external stakeholders’ validation workshop on the eight priority programs of the draft MIDP, and three days later, on December 14, the draft was approved by the Marina Board. The roadmap is up for the approval of the President and the National Economic and Development Authority this year.
The draft MIDP notes that the Philippines is strategically situated along the international sea lanes of commercial ships catering to world trade.
“Complemented by the country’s potentials on maritime manpower, maritime services and shipbuilding/ship repair, such comparative advantage can be galvanized to transform the Philippines into a global maritime hub,” the draft plan points out.
The draft MIDP’s plan includes five interlinked development projects that are critical components to realizing the maritime sector’s goal to make the Philippines a prominent maritime hub. To achieve this, the roadmap will set out to attract commercial ships to call on Philippine ports and avail of logistics, supplies, services and needed maintenance/repairs, and to eventually make the country a transshipment hub, or a central point for the accumulation and distribution of cargoes for worldwide trade.
Intertwined development programs
These five interlinked development projects seek to promote the Philippine ship registry, develop the Philippines as a transhipment and bunkering hub in the Southeast Asian region, upgrade and expand local shipyards, establish an eco-industrial maritime park, and establish a maritime training and research center (MTRC).
Of the five projects, two have national coverage, while the other three involve localized locations to be eventually identified under each project.
To boost the Philippine registry, the project intends to strengthen regional and international cooperation (e.g. Association of Southeast Asian Nations, bilateral agreements) to support the competitive position of Philippine-flag vessels; strengthen shipping services for Philippine export and import trade transportation; develop and promote ship financing schemes, and incentives for ship owning and shipping industry; review and improve bareboat chartering program and ship mortgage law; strengthen ship management, ship brokerage, ship chandling and ship insurance services; and strengthen the maritime administration by ratifying and implementing international maritime instruments as well as restructuring Marina.
Promoting the Philippine registry is targeted to increase the number of Philippine-registered ocean-going ships, raise taxes and revenues for the government, and increase employment opportunities for Filipino seafarers.
And to make the country a transhipment and bunkering hub, the draft MIDP lists these initiatives: do a feasibility study and detailed engineering design on bunkering terminal development; establish a bunkering terminal/station; upgrade existing major ports to international ports/terminals; develop maritime-related businesses and services; and market bunkering facility to domestic and international markets.
For this second project, the target outcome is higher foreign ship calls and increased productivity of related maritime industries (e.g., ports, ship agency/husbandry, cargo handling, ancillary industries, etc.).
To strengthen the ship building and ship repair (SBSR) services in the Philippines, the third plan is to develop and promote incentives, joint ventures, and investments; design and produce modern, safe and environmentally friendly Philippine ships to achieve global competitiveness; and fully implement laws/policies on vessel retirement and progressive restriction of vessel importation, and existing program on the Philippine Navy modernization to create greater opportunities for SBSR projects. Also part of the plan is to develop and upgrade shipyard manpower, and market shipyard facilities in international markets.
Upgrading of shipyards is seen to hike the number of local shipyards capable of building/repairing ships of 2,000 gross tonnage (GT) and above, raise investments for shipyard expansion and modernization, and increase productivity of shipyards.
The fourth project calls for creating an eco-industrial maritime park, which will be marketed to locators such as shipyards, ancillary industries, and technical/legal/logistics services, both in domestic and global markets.
The last one will see a maritime training and research center being established under an institutional arrangement with business locators for the center’s operation and maintenance; and for marketing the center to national and international markets.
Establishing an eco-industrial park should increase the country’s investments, while the MTRC should improve the number of competent and qualified maritime manpower complying with international best standards.
Moreover, all projects are seen to increase employment opportunities and enhance the maritime sector’s contribution to the country’s gross domestic product.
Partners and costs
For this program, Marina will be the lead agency, in partnership with the Department of Foreign Affairs, Office of the President, Department of Trade and Industry, Senate, Department of Transportation, Philippine Ports Authority, Philippine Coast Guard, Cebu Port Authority, Department of Budget and Management, Subic Bay Metropolitan Authority, Department of Finance, Land Bank of the Philippines, Board of Investments, Lower House, Department of Energy, Society of Naval Architects and Marine Engineers, Shipyard Association of the Philippines, Department of Science and Technology, Commission on Higher Education, Department of Environment and Natural Resources, environmental organizations, maritime universities, Japan International Cooperation Agency, local government units, and private stakeholders.
An estimated P45.727 billion will be needed to implement the program in a span of 10 years. Of the total, developing the country as a transhipment and bunkering hub has the highest cost, with P30 billion; followed by establishing an eco-industrial maritime park with P10 billion; upgrading and expanding local shipyards with P1 billion; establishing an MTRC with P400 million; and promoting the Philippine flag registry with P150 million. Overall program support is included in the cost, with a budget of P20 million, and contingencies for P4.157 billion.
MIDP 2019-2028 is the first comprehensive effort to understand and address the Philippine maritime sector’s core problem and its underlying causes, with the view to planning and implementing programs that more responsively meet the demands of the maritime industry, successfully addressing key challenges, and seizing opportunities in both domestic and global arenas.
Under Presidential Decree No. 474 (Maritime Industry Decree of 1974), Marina should create master plans for the industry. The last 10-year roadmap created by Marina was in the 1980s.
The seven other flagship programs of the MIDP are upgrading domestic shipping in support of the nautical highway development; developing shipping services for maritime tourism; developing a coastal and inland waterways transport system; strengthening safety standards of Philippine-registered fishing vessels; enhancing maritime safety in the Philippines; modernizing maritime security in the Philippines; and establishing a maritime innovation and knowledge center. – Roumina Pablo
