The Trade Department plans to include the production of roll-on/roll-off or RoRo vessels among the industries that will receive government support under the 2017-2019 Investment Priorities Plan.
Trade Secretary Adrian Cristobal Jr. said the Board of the Investments was studying RoRo shipbuilding as a priority industry under the new IPP.
“If we have the right elements to be competitive in RoRo similar to Cars [Comprehensive Automotive Resurgence Strategy], RoRo production will not only serve the Asean market but even the Asian market. It’ll also solve a societal problem we have in logistics and transport,” he said.
The Trade Department received new applications for RoRo manufacturing from RoRo makers in Japan.
Under the current IPP, the department gives incentives to new vessel makers. Prior to that, even second-hand vessels also benefited from previous IPPs.
“What we’re looking at here is not just new players but even existing players. We want to develop shipbuilding operations also for the domestic market and for small vessels,” said Cristobal.
He said giving incentives to new vessels would help the country upgrade local logistics and transportation services and ensure the safety of the riding public.
Recent market feedback showed a strong demand for RoRo vehicles and services.
The government is still assessing how big the local demand is. It also looks at the demand in Malaysia, which is considered a potential export market.
BOI receives recommendations from government agencies and the private sector on how to improve the new IPP and the list of economic activities that are eligible for fiscal incentives.
IPP serves as the country’s blueprint for investment promotions and a platform to attract strategic investments with impact on countryside development and employment generation.
BOI hopes to conclude public consultations on the 2017-2019 IPP by June 2016.