THE lack of concrete policies is to blame for the stunted growth of the local shipping industry.
“Government really has no policy framework to develop the domestic shipping industry,” said Philippine Ro-Ro Operator Association (PROA) chair and National Coalition of Shipping Associations (NCSA) member Col. Leonardo Odoño.
There should be ample incentives such as tax breaks and discounts and financing programs that would bolster refleeting and modernization, added the former president of the Philippine Interisland Shipping Association. It is worthwhile noting that the private sector has long held this view.
For now, tax breaks and holidays apply only to local operators with pioneering status under the Board of Investments.
Republic Act 9295 or the Domestic Shipping Development Act of 2005 also gives incentives to operators who import vessels as long as their vessels fall under the required age limit — 15 years for passenger ships; and 10 for tankers.
The Development Bank of the Philippines offers loans under its P60-billion Sustainable Logistics Development Program but the stiff requirements make them unattractive to operators.
