Image by Tim Alberts from Pixabay

The Philippine Ports Authority (PPA) hopes to break ground next year on a P300-million shipbuilding facility covering around 10 hectares.

The feasibility study has been completed and a location identified, PPA general manager Atty. Jay Daniel Santiago said in a media briefing at the Maritime Safety Summit on August 30, 2019. He did not disclose details to avoid land speculation.

The facility will produce vessels for local use and is in line with the modernization thrust of the Department of Transportation and the government. The transportation department and the Maritime Industry Authority (MARINA) are pushing to modernize the country’s domestic fleet through the retirement of old vessels and acquisition of new ships instead of second-hand vessels.

Santiago said the shipbuilding facility will start with the production of roll-on/roll-off (RoRo) vessels and fastcraft.

PPA is also looking at inviting hull-making and electrical experts, among others, from Navotas or Cebu.

There are a number of local shipbuilding companies already producing ships for domestic use. From 2007 to 2017, local shipyards constructed 320 vessels (cargo, passenger, tanker, and tugs) for domestic use, according to data from MARINA. More vessels were, however, constructed for export, totaling 1,064 during the same period.

Asked why PPA, instead of MARINA, is initiating the project, Santiago said MARINA’s charter does not include infrastructure capability to establish and construct facilities, which PPA has.

He added the shipbuilding facility will also have port and back-up area components, which PPA can provide.

PPA is looking at enrolling the facility under the Philippine Economic Zone Authority or Board of Investments to qualify for fiscal incentives.

You May Also Like

PPA to wrap up talks on GenSan port unsolicited proposal by Oct

The Philippine Ports Authority (PPA) is processing the unsolicited proposal of Davao-based private port operator Kudos Trucking Corporation to rehabilitate and develop General Santos…

BOC reports 12% rise in Sept collection

The Bureau of Customs (BOC) posted revenues of P58.902 billion in September 2019, an increase of 12.4% from the P52.420 billion earned in the…

BOC shelves pre-shipment inspection for container cargo

Customs Commissioner Alberto Lina is not keen on implementing a pre-shipment inspection (PSI) on containerized cargoes despite the practice already being conducted for bulk and break…

SoKor commits $172M loan for planned Cebu box terminal

The Philippines and South Korea have signed a US$172.64-million loan agreement for the construction of a new international container port in Cebu that will…