State-run Philippine Ports Authority said it will spend P300 million to build a shipbuilding facility on a 10-hectare property to support the modernization of the domestic shipping industry.
PPA general manager Jay Daniel Santiago did not mention the location of the facility to avoid land price speculation.
“We finished our feasibility study and we are now trying to find what is the best vehicle to be able to implement that, either government-initiated or through PPP [public private partnership] or solicited proposals,” Santiago said.
“Hopefully by next year, we should be able to break ground [for] the shipbuilding facility,” he said.
Santiago said the initial investment for the 10-hectare facility was P300 million.
“We have identified the location but we cannot disclose it yet because we don’t want to encourage speculations of land [prices],” he said.
“The reason why we want to do this [is] in line with the modernization. We want to be able to deploy as many passenger vessels as possible. We are also retiring, decommissioning vessels that are unacceptable for safety of our passengers,’ Santiago said.
He said shipowners and operators were supporting the government’s proposal to build a shipbuilding facility because they would be the customers.
“In terms of cost efficiency, it will be cost-efficient for them if they start building locally and at the same time create technology transfers. He said shipbuilders would also be encouraged to strengthen the country’s shipbuilding industry.
The Maritime Industry Authority was considering more incentives for the shipbuilding and ship repair services to improve the overall investment climate in the maritime industry.
The local SBSR sector generated $1.6 billion in revenue in 2016. The sector continues to cater to the needs of other industries such as fishing and shipping with 1,179 ships constructed in 2018.
Marina also plans to establish a global maritime hub, initially targeted to be placed under the management of Philippine Economic Zone Authority.
The maritime hub aims to transform the country into a one-stop maritime destination in the Asian region.