introduction - oecd reyes philippines...sea linkages, transportation, and shipping services 1 the...

Sea Linkages, Transportation, and Shipping

Services 1

THE PHILIPPINE

SHIPBUILDING INDUSTRY

By: Engr. Daniel A. Reyes

27 November 2013

Paris, France

Introduction

• Archipelagic country of 7,100 islands

• Coastline length of 36,289 million kms

• Sea areas of 2.2 square kilometes

By its geographical configuration, the Philippines is best for shipbuilding.

PH Geographical Configuration


Services 2

GOVERNMENT POLICIES AND INCENTIVES

FOR THE SBSR SECTOR

1. PD 666 issued on 05 March 1975 - declared shipyards as non-

public utilities wherein 100% foreign equity is allowed.

2. PD 1221 issued on 17 October 1977 - Required all Philippine-

Registered oceangoing ships to undergo drydocking/

repairs in licensed MARINA registered shipyard.

3. E.O. No. 226 and implementation of the Investments Priorities

Plan (IPP) - Exemption from payment of duties and taxes

from importation of ship’s spare parts.

4. Republic Act No. 9295 issued on May 2004 - Exemption from

payment of 12 % Value Added Tax and allows shipyard

entities to fully owned by foreign investors.

EMERGING SHIPBUILDING NATION

The arrivals of foreign shipbuilders in the country have

propelled the growth of exports of Philippine-made ships.

Philippine shipyards are now building more ships of bigger

tonnage capacities like bulk carriers, containers and tankers.

Hanjin

Shipyard

Keppel

Shipyard

Tsuneishi

Shipyard

Annual

Capacity

18 Vessels 8 Vessels 16 Vessels

Types of

Vessels &

Tonnage

Bulk Carrier

205K DWT

Container 12,800

TEU

Tanker 320KDWT

Rig

Pontoon/Tug

Boats

Bulk Carrier of

up to 180K

DWT(Cape Size),

Car Carrier

Location Subic Batangas Cebu

Project Cost US$ 1.77 Billion US$ 33.33

Million

US$ 267 Million

Employment 25,000 5,801 13,000


Services 3

Industry Performance

Order Book by Top 10 Country(ex-China, Japan and Korea)

Brazil

Philippines

Taiwan

Vietnam

0

2,000

4,000

6,000

8,000

2006 2007 2008 2009 2010 2011 2012H1

Yearend

Th. G

T Brazil

Philippines

Taiwan

Vietnam

Germany

India

Romania

Order Book by Country, ex-China, Japan and Korea Brazil ranks 4th, Philippines 5th, Taiwan 6th and Vietnam 7th.

Source: IHS Fairplay

NUMBER OF MARINA-LICENSED SBSR ENTITIES

AS OF CY 2013

Total: 107 SBSR


Services 4

KEPPEL SUBIC

SHIPYARD

Cawag, Subic

SUBIC DRYDOCK

CORPORATION

SBMA

KEPPEL MARINE PHIL.

INC.

Batangas City

F.F. CRUZ & CO., INC.

Iloilo

TSUNEISHI HEAVY

INDUSTRIES

Balamban. Cebu

The 7 Large Shipyards by Geographical Distribution

HERMA SHIPYARD &

ENG’G., INC.

Mariveles, Bataan

HANJIN HEAVY

INDUSTRIES

SUBIC, ZAMBALES

CAPABILITY TO COMPETE GLOBALLY

Philippine

Advantage

100% foreign ownership of companies Available areas suitable as shipbuilding bases

Coverage

Design, construction, overhaul, repair and alteration of watercrafts

Manufacturing outfittings for ships and vessels Engineering and fabrication services Conversion services for both foreign and Philippine clients

Shipbuilding

Giants in the PH


Services 5

HANJIN PHILS.

“World’s best shipbuilder” since 1992

Established in 2006 with US$1.8 B investments

Has delivered more than 51 ships to clients around the world

Considering to build another shipyard in Misamis Oriental, Mindanao

Source: www.hhic-phil.com

Redondo Peninsula, Subic Bay

HANJIN PHILS.

QUAY WALL : 4 Km

Dry Dock No.5 (370m x 100m x 12.5m)

Dry Dock No.6 (550m x 135m x 13.5m)

Shipyard Area 330 Hectares

SHIPYARD FACILITIES

• 4 ultra-large cranes

• 2 drydocks

• Automated assembly lines


Services 6

Source: www.hhic-phil.com

• MV Argolikos, US$60 M - First Philippine-made container ship

• Weighs 41,000 tons; 258.9 meters in length, a width of 32 meters, height of 19

meters and actual speed of 24.6 knots

HANJIN PHILS.

In the PH since 1994

Subsidiary of Tsuneishi Corp.

(Japan) and Aboitiz & Co.

Builds merchant ships using

technologies and standards

used by Tsuneishi Japan

Delivers 20 ships a year

Will delivered its 213th vessel

on December 10, 2013

Employees working for

Tsuneishi: 13,000 (600 are

organic, the rest are

subcontractors)

TSUNEISHI

Source: www.thici.com

Balamban, Cebu

Area: 147 hectares

http://www.thici.com/


Services 7

TSUNEISHI

Built the Tenshu Maru in 2010, the first and the biggest cargo vessel built in the PH

• 291.90 meters long, 45 meters wide, 24.50 depth

• 92,900 gross tonnage, 9 cargo holds w/ a helipad

Source: www.thici.com

In the PH since 1981 for repair of vessels

Started building ships for international clients in 1993

Subsidiary of Keppel Singapore

Uses same technologies and standards as those of Keppel Singapore

KEPPEL PHILS.

Keppel Batangas

Keppel Subic



Services 8

Keppel Batangas Shipyard is located in the Keppel Philippines Marine-Special Economic Zone in Bauan, Batangas.

KEPPEL (BATANGAS)

Graving Dock, 200 m Handymax

50,000 DWT capacity

8 Dry Berths

20,000 DWT capacity

Floating Dock, 100 m

6,000 DWT

Ship Lift System

2,040 ton lifting capacity

KEPPEL (BATANGAS )

Holds a track record of building more than 90 new ships ranging from tankers,

barges, tug boats and landing crafts to asphalt carriers

Ship Lift System Graving Dock Ship Lift


Services 9

In the PH since 1972 for repair of small types of vessels

Started building ships for foreign customers in 2010

COLORADO SHIPYARD CORPORATION

Presently building a 76 Meter 1300 DWT combination passenger/cargo vessel off for

Tahiti. Design was done in France, and CSC is proving additional engineering to

support the project.

The vessel can carry about 100 passengers and 62 TEU containers above deck and in

the cargo holds including reefer containers.



Services 10

Colorado also builds pleasure yachts/boats made of fiber glass or

aluminum

Source: Colorado


Started operations in 2000 for repair of vessels in its shipyard in Mariveles

Bataan and started to build new ships in 2007

Facilities: 1 Graving Dock can accommodate vessels up to 150 m or 10,000

Dwt and 60.96 m Floating Dock .

HERMA SHIPYARD INC.

Source: Herma Shipyard


http://www.coloradoshipyard.com/images/gallery/al-1-big.jpg

http://www.coloradoshipyard.com/images/gallery/al-2-big.jpg

http://www.coloradoshipyard.com/images/gallery/fi-1-big.jpg

http://www.coloradoshipyard.com/images/gallery/fi-2-big.jpg




http://www.google.com.ph/imgres?imgurl=http://static.panoramio.com/photos/original/2059922.jpg&imgrefurl=http://www.panoramio.com/photo/2059922&usg=__gZb6lmlE3OYFMvnSHgASQn41F6I=&h=480&w=640&sz=95&hl=tl&start=4&zoom=1&tbnid=Nt5KaIQpUlaryM:&tbnh=103&tbnw=137&ei=wPL6TerzII6mvQPK2YGKAw&prev=/search%3Fq%3Dherma%2Bshipyard%2Bphilippines%26um%3D1%26hl%3Dtl%26sa%3DN%26rlz%3D1T4ADBF_enPH262PH262%26biw%3D1020%26bih%3D513%26tbm%3Disch&um=1&itbs=1

http://www.google.com.ph/imgres?imgurl=http://ph.jobstreet.com/logos/agenalogos/herma2.jpg&imgrefurl=http://www.jobstreet.com.ph/jobs/2011/5/default/80/2690913.htm%3Ffr%3DR&usg=__8xX1DRkMqUxXo7w0zcc-C69WniI=&h=77&w=500&sz=16&hl=tl&start=5&zoom=1&tbnid=wTxSGbI1_2PfcM:&tbnh=20&tbnw=130&ei=wPL6TerzII6mvQPK2YGKAw&prev=/search%3Fq%3Dherma%2Bshipyard%2Bphilippines%26um%3D1%26hl%3Dtl%26sa%3DN%26rlz%3D1T4ADBF_enPH262PH262%26biw%3D1020%26bih%3D513%26tbm%3Disch&um=1&itbs=1

http://www.google.com.ph/imgres?imgurl=http://media2.ph.88db.com/DB88UploadFiles/2007/09/10/897AFDC4-498A-4FB7-9F12-336030D00ACC.jpg&imgrefurl=http://ph.88db.com/Business-Services/Courier-Logistics-and-Trucking/ad-130205/&usg=__svLsg7W3WqhGsE115m5V3zL_5Lg=&h=158&w=200&sz=28&hl=tl&start=12&zoom=1&tbnid=I5dK8G1UKJMtoM:&tbnh=82&tbnw=104&ei=wPL6TerzII6mvQPK2YGKAw&prev=/search%3Fq%3Dherma%2Bshipyard%2Bphilippines%26um%3D1%26hl%3Dtl%26sa%3DN%26rlz%3D1T4ADBF_enPH262PH262%26biw%3D1020%26bih%3D513%26tbm%3Disch&um=1&itbs=1

http://www.google.com.ph/imgres?imgurl=http://media2.ph.88db.com/DB88UploadFiles/2007/09/10/9C80D4BE-B9EE-4523-A3D5-1BA33834D772.jpg&imgrefurl=http://ph.88db.com/Building-Construction/Heavy-Equipment-and-Machines/ad-130210/en/&usg=__j9_ShXEr41WN66zIKbFZWu1bMH0=&h=158&w=200&sz=31&hl=tl&start=32&zoom=1&tbnid=dVJrv33B6piItM:&tbnh=105&tbnw=153&ei=wPL6TerzII6mvQPK2YGKAw&prev=/search%3Fq%3Dherma%2Bshipyard%2Bphilippines%26um%3D1%26hl%3Dtl%26sa%3DN%26rlz%3D1T4ADBF_enPH262PH262%26biw%3D1020%26bih%3D513%26tbm%3Disch&um=1&itbs=1&iact=rc&dur=125&page=3&ndsp=16&ved=1t:429,r:2,s:32&tx=82&ty=62


Services 11

The launching of M/T Matikas and M/T Masinop

• Built in Herma shipyard with Filipino skills and talent

• Built to international design and construction standards

HERMA SHIPYARD INC.

Location: General Santos City, Sarangani Province

Facilities: 2 Floating Docks with Lifting capacity of 2,500 & 1,500 tons

Twin Slipways with lifting capacity of 5,000 tons each

GENSAN SHIPYARD AND MACHINE WORKS, INC.

http://www.google.com.ph/imgres?imgurl=http://www.gensankarate.net/gsmwif.JPG&imgrefurl=http://www.gensankarate.net/apps/blog/entries/show/145902-gensan-shipyard-and-machine-works-inc-the-biggest-shipyard-in-mindanao&usg=__ayiKPy22OJu1UFzJ-oOKKoZbbuk=&h=600&w=800&sz=104&hl=tl&start=1&zoom=1&tbnid=He6b8aFnGuc8nM:&tbnh=107&tbnw=143&ei=Rv_6TaX0CIeIvgOcyt2DAw&prev=/search%3Fq%3Dgensan%2Bshipyard%2Band%2Bmachine%2Bworks%2Binc%26um%3D1%26hl%3Dtl%26sa%3DN%26rlz%3D1T4ADBF_enPH262PH262%26biw%3D1020%26bih%3D513%26tbm%3Disch&um=1&itbs=1


Services 12

Started in 2002 for repair and building of fishing vessels

Will start building and repairing bigger ships in December 2011

GENSAN SHIPYARD AND MACHINE WORKS, INC.

EXPORT PERFORMANCE

0

200

400

600

800

1000

1200

2007 2008 2009 2010 2011 2012

3482

420 404

659

1,076

PHILIPPINE EXPORTS OF SHIPS (US$ Million)

Source: NSO

http://www.google.com.ph/imgres?imgurl=http://www.gensankarate.net/gsmwih.JPG&imgrefurl=http://www.gensankarate.net/apps/blog/entries/show/145902-gensan-shipyard-and-machine-works-inc-the-biggest-shipyard-in-mindanao&usg=__gnNL2pd1HVxvfCFIBPhdB8-YBZQ=&h=600&w=800&sz=119&hl=tl&start=2&zoom=1&tbnid=9q9YQqy61GbXMM:&tbnh=107&tbnw=143&ei=mP_6TdzHA5DovQPb3L2mAw&prev=/search%3Fq%3Dgensan%2Bshipyard%2Band%2Bmachine%2Bworks%2Binc%26um%3D1%26hl%3Dtl%26sa%3DN%26rlz%3D1T4ADBF_enPH262PH262%26biw%3D1020%26bih%3D513%26tbm%3Disch&um=1&itbs=1

http://gensanshipyard.rdgroup.com.ph/cgi-bin/products/details.asp?product_id=210




Services 13

MANPOWER PROFILE FOR SHIPBUILDING

Category

2012

%

Skills Set

Salary

Range

(P/mo)

Managerial Personnel

2,702

6

25,000 - 45,000

Administrative Personnel

4,954

11

10,000 –

15,000

Technical Personnel

5,855

13

Naval Architects & Engineers (electrical,

mechanical, marine; with knowledge in

computer-aided designs), Electricians

25,000 –

35,000

Skilled Workers/

Semi-Skilled Workers

31,527

70

Welders, Crane Operators, Steel Cutters,

Outfitters, Painters, etc.

15,000 –

25,000

Total

45,038

100

The salary scale of workers in Philippine shipyards is about 50% lower than those working in Korea and Singapore

according to Hanjin and Keppel. Sources of data: MARINA and BOI; Jobstreet salary range report

Management

Administrative

PULL FACTORS

Qualified and Competent Manpower

• Key to the success of the shipbuilding industry in the international

market

Favorable Sites for Shipyards

• Ships are protected against rough seas and strong winds

• Adequate space and water depth for anchorage in the immediate

vicinity of the yard

• Sea channels favorable for sea trials

• Non close proximity to a community


Services 14

Favorable sea channels for sea trials

PULL FACTOR: Suitable Sites

• Calm waters/moderate winds

• Remote area

• Deep sea

• Adequate water space

Source: Hanjin Subic

Source: Tsuneishi Cebu

Source: Keppel Subic

PULL FACTOR : Available Areas

Where to Set Up

• New site for shipbuilding facility Port Irene, Cagayan Valley

• The 54,000-hectare business hub of Cagayan Economic Zone Authority (CEZA) in Port Irene being primed to be the country’s next world-class shipyard

• Existing shipyards strategically located in the country whose owners are determined to enter into shipbuilding arrangements with foreign investors


Services 15

Available Areas Suitable to Host Shipyards in the

Philippines

Promotion of MARITIME INDUSTRIAL PARK (MIP) as a One-Stop-Shop

Location: PHIVIDEC INDUSTRIAL ESTATE

TO CAGAYAN DE ORO CITY


Services 16

MARITIME INDUSTRIAL PARK (MIP)

Covers an area of 100 hectares

and houses maritime-related

infrastructure such as ship-

building and shiprepair, oil

depot/ tank farm, spare parts

depot and other maritime

related facilities

Thank You!

Maritime Industry Authority (MARINA) Trida Building, 984 Taft Avenue corner T. M. Kalaw St.

Ermita, Manila

Philippines

Website: www.marina.gov.ph

http://www.marina.gov.ph/

introduction - oecd reyes philippines...sea linkages, transportation, and shipping services 1 the...

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