Hanjin. Keppel. Tsuneishi. These shipbuilding giants have anchored their way from the Philippines to churning a billion of projects.

Host to the World's 4th Largest Shipyard

The Philippines’ archipelagic nature has paved the way for the vast expanse of shipyards. Presently, the 919-kilometer Strong Republic Nautical Highway accelerated the development of the country’s southern islands by opening an alternative and low-cost trade, travel and tourism routes. These islands have been interconnected by land and seas routes using roll on-roll off (Ro-Ro) passenger and cargo vessels, ferryboats and fastcrafts and other modes of land transportation.

With foreign investors’ access to 100% ownership of companies on shipbuilding/repair, there has been an influx of shipbuilders in the country.

Hanjin Heavy Industries has loaded its US$1.68 billion into the shipyard they are constructing on 349 hectares in the Subic Bay Freeport Zone (fully operational by 2011). In fact, the initial phase of its Subic shipyard operations has already produced the first ever Philippine made cargo vessel, the 41,000 ton M/V Argolikos, which was inaugurated last July 4, 2008 with no less than President Arroyo in attendance. Recently, they are setting up Misamis Oriental shipyard, which Hanjin claims to be the world’s fourth largest shipyard facility, is expected to employ up to 40,000 people over the next three years. They come from a wide cross-section of professionals including engineers, welders, fabricators and administrative personnel.

The Shipbuilding and Ship Repair (SBSR) sector in the Philippines is comprised of all enterprises engaged in the design, construction, overhaul, repair and alteration of watercrafts. The sector plays a vital role in the socio-economic development of the country. It is estimated that about 95% of the total volume of cargoes and services to and from the major commercial and trading centers nationwide are transported by sea. Sea trading means ships, from tugboats to ultra large vessels, old and new, repaired and built to pr ecise specifications and within strict schedules.

The SBSR sector is envisioned to provide employment opportunities to qualified Filipinos and to respond to the growing demands for the construction of new vessels in order to meet the ship/vessel requirements of the domestic trade.

What’s more inviting is to cruise the sea of opportunities that the Philippines has to offer:

• SRNH (Strong Republic Nautical Highway) requirements for RoRo ships needed to be further deployed. (30+RoRo ships)
• Mandatory vessel retirement program under R.A. No. 9295, involving: (1) retirement of old, unclassed ships; (2) replacement of retired ships; (3) classing of old ships.
• Implementation of double hull requirement for domestic tankers & phasing out of single hull domestic tankers.
• Shipyards in neighboring countries fully booked for new building orders until 2010.
• Technology level and facilities are being developed and modernized
• Basic requirements for shipbuilding (i.e., steel plates, equipment & parts from ancillary industries) are available locally.
• Shipbuilding & ship repair cost, efficiency, quality & experience is competitive compared with neighboring countries.
• Ship financing funds for new buildings is attractive & adequate
• Readily available cheap and easily trainable manpower for shipbuilding, ship repair and shipbreaking.
• Strategic location of the country for drydocking and repairs of oceangoing ships, including fishing vessels.
• Tax exemptions and income tax holidays for the sector under R.A. No. 9295 and 2008 IPP
• Mandated policy for the progressive restriction of vessel importations.