A study by Japan International Cooperation Agency (JICA) and Nomura Research Institute (NRI) has revealed that the Philippines has the potential to become a shipbuilding and repair center for oceangoing merchant and fishing vessels in the Asia-Pacific region, with bays and deep seashores, abundant labour and fiscal incentives.
The country hosts some of the world's leading shipbuilders, including: Japan's Tsuneishi, which has its second-largest facility in Cebu, South Korea's Hanjin in Subic, and Singapore's Keppel in Batangas. These companies build ships such as bulk carriers, container ships and passenger ferries.
JICA's study, entitled "Accelerating FDIs in the Philippines Shipbuilding Industry," is part of the industry road map of the Department of Trade and Industry. It suggests that Philippine Investment Promotions Plan and Maritime Industry Authority (Marina) should sell the Philippines' strengths, provide locations with maritime data, and present opportunities to shipbuilders in China, Japan, and Korea. Business matching is urged between Filipino developers, shipbuilders, and suppliers and those of the three Asian nations.
As of first half of 2012, the Philippines was ranked as the world's fourth-largest shipbuilder in terms of booked orders, following China, Japan, and Korea. Shipbuilding is included in the 2012 Philippine Investment Priorities Plan, benefiting the food manufacturing, tourism, transportation, oil and steel industries.
The Board of Investments approved incentives to the PHP259 million (USD6.34 million) Filipino-owned ship repair facility Nautilus Shipyard Repair, which is under construction at the Navotas Fish Port Complex. Set to commence operations in June, 2013, the facility will have a capacity of 96 vessels as well as a minimum berthing capacity of 7,500 tonnes.
Today, The Philippines features 121 shipbuilding and repair facilities nationwide. In the past, industry output was limited to small ships, tankers, barges, and fishing vessels. With the entry of big shipbuilders into the region however, ships with large tonnage capacities are also being built.
Marina data shows that the shipbuilding industry employs about 39,000 workers, including over 50,000 engineers and architects.
