The Philippines can adopt three strategies to increase shipbuilding and ship repair bookings, according to Vicky Viray-Mendoza, a US-based World Bank executive.
These strategies are increasing port capacity to build, service or repair very large carriers (VLCs) or ultra large carriers (ULCs) which Philippine operators already have the capability to repair; building containerships and roll on-roll vessels not commonly built in Indonesia or Vietnam; and building less than post-Panamax vessels, the last two measures to avoid competition.
Speaking at a recent Philippine maritime stakeholders’ meeting, Mendoza said government should also support development of port infrastructure; push longer financing terms and lower interest loans; implement corporate tax exemptions; lower licensing and rental fees; and set no limits on foreign investment.
“The Philippines has macroeconomic and maritime advantages for shipbuilding that include better investment climate, logistics performance, maritime training and seafaring,” Mendoza said.
“The low labor cost, highly skilled, highly trained workforce that build competitive and high quality ships is also a plus factor for the Philippines.”
The Philippines is currently the world’s fourth largest shipbuilding nation next to China, South Korea and Japan.
The country’s top five shipyard operators are Hanjin Heavy Industries (South Korea); Tsuneishi Heavy Industries (Japan); Keppel Philippines Marine (Singapore); Subic Shipyard & Engineering/Keppel (Singapore); and Subic Drydock Corp (US).
