PPA to build P300-M shipbuilding facility

The Philippine Ports Authority (PPA) is building a shipbuilding facility to modernize the country’s maritime sector.

This is the “first shipbuilding facility that will be initiated under the Duterte administration,” PPA General Manager Jay Santiago said.

“We have already completed our feasibility study. In fact, we have already identified the location. But we cannot disclose the location now because we don’t want to encourage speculations sa land holdings,” Santiago said during a press conference on the sidelines of the Maritime Safety Summit in Manila on Friday.

The facility encompasses 10 hectares, with the cost of initial investment placed at P300 million.

“‘Di kasama ang equipment and manpower … So we’re looking at an initial investment of P300 million,” Santiago said.

The facility is by design an assembly line for various shipbuilders.

“We want all of them to come together, to come up with a vessel ... An assembly line that everybody will participate in, and there will be no competition among manufacturers,” Santiago noted.

“We expect those who will come in will be bringing in their equipment because they know how to jump start the manufacturing process,” he added.

The PPA is looking at the “best vehicle to implement” the construction, either government-initiated, private public , or solicited proposals.

“Hopefully by next year we should be able to break ground sa facility natin,” Santiago said.

Once the facility is in place, the government wants to initially produce leisure vessels, roll on-roll off (RoRo), or fast craft vehicles.

"This is in line with the modernization thrust of the government. We want to deploy as many passenger vessels as possible. Also, we are retiring or decommissioning vessels that are unacceptable for the safety of our passengers,” Santiago noted.

“There is a massive support from shipping operators, ship owners because they will be the customers of this shipbuilding facility,” he said.

It is cost-efficient for ship owners and operators if their fleet is built locally. “Initially we are looking at inviting manufacturers involved in shipbuilding either in Navotas or in Cebu,” Santiago said.

The PPA is planning to enroll the shipbuilding enterprise under the Board of Investments or the Philippines Economic Zone Authority to qualify for fiscal incentives. —VDS, GMA News