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.
