Marcos tasks MARINA to standardize maritime practices

President Ferdinand ''Bongbong'' Marcos Jr. has ordered the Maritime Industry Authority (MARINA) to standardize its maritime practices and align them to global standards.

Marcos made the directive during his meeting with MARINA chief Sonia Malaluan about the proposed Maritime Industry Development Plan 2028 (MIDP 2028). 

As Malaluan sought the President's approval on this plan, the latter noticed that many of the rules and operations in the maritime industry are obsolete due to a lack of a unified system governing the industry. 

“These are all promotion, modernization but let us standardize first our systems and at the same time we undertake this like promotion of highly skilled Filipino maritime workforce. 'Yung ship building and ship repair, we haven’t done much to promote that,'' Marcos said in a press release.

''The rest are for further development. So let’s standardize our practices so that we will be the same with our international counterparts. We have to fix our house first. Because we have to compete and in order to do that we should have an even playing field and then we should gain an advantage,” he added. 

The Presidential Communications Office said the MIDP 2028 aims to build a strong and reliable Philippine Merchant Fleet which will address the sea requirements of the country in support of the national development agenda.

Among its core programs are the modernization and expansion of the Philippine domestic shipping, promotion and expansion of the Philippine overseas shipping, modernization of the Philippine shipbuilding and ship repair industry, and promotion of highly skilled Filipino and competitive maritime workforce.

Meanwhile, Marcos also pointed out the high cost of shipping in the country compared to other countries. He said it is usually cheaper to ship cargos to the Philippines from abroad like Hong Kong than it is locally like from Manila to General Santos City.

According to MARINA, among the reasons why domestic shipping is expensive are the vessel size, the imposition of excise tax on fuel, and vessel quality.

The agency said vessels with international routes are huge, noting that they enjoy economies of scale that reduces travel cost and fares.

When it comes to excise tax, MARINA said that any ship traveling internationally is not subjected to excise tax on fuel. In the Philippines, domestic shipping carries the burden of additional tax on fuel.

On the other hand, MARINA said the Philippines also have old fleets, making them inefficient. The agency added that there is also lack of interest from investors to put money in the local shipping industry. —Anna Felicia Bajo/ VAL, GMA Integrated News