Ship Yards

Korean Hanjin Heavy Industries and Construction Corporation, the second largest shipyard in the Philippines, built the world’s fourth largest shipyard in Subic Bay on the island of Luzon.  Hanjin expanded its operations in the Philippines to overcome the lack of space of its South Korean facilities and took advantage of the lower labor costs in the country.

To provide laborers for the growing shipbuilding industry, the Maritime Industry Authority has trained workers from local shipyards.  An estimated 8,000 ships will be built and delivered by 2011, translating into more jobs for the country’s people. The booming business will enhance trade and promote a better investment climate in the country as well as generate an increase in foreign exchange earnings and savings.

The country’s shipyards were downgraded to ship repair the last 30 years, but presently, the Philippine Marina aims to develop the country’s shipyards to be at par with the rest of the world, building passenger and cargo vessels. The government urges local shipbuilders to come up with a vessel design suitable for Philippine inter-island traffic rather than focusing on maintenance and repair. Philippine shipyards are capable of building passenger and cargo vessels. The shipping industry is projected to grow and become one of the primary industries that will provide employment and revenues.

Ship Repair
The Philippines has world-class shipyards that repair and build ship for major shipping companies like large ocean-going vessels of foreign registry plying the East Asia sea ways.  Ship owners are always looking for the best deals in the general repair market.  The basic cost of labor and steel remains the most important factor in repair operations.

Local Ship Builders
Most local shipbuilders in the Philippines are limited to building barges, fishing boats, and other less-sophisticated vessels for domestic use.  You will probably notice old ships, many of World War II vintage that have long been the main mode of cargo in the major islands in Luzon, Visayas, and Mindanao.  The Maritime Industry Authority has asked local ship builders to focus more on designing single-class cargo passenger ships best suited for the country’s waters. The government plans to sell prototypes of these ships at competitive prices with secondhand ships coming from China.

On record, there are 44 shipbuilders in Luzon and 15 in Cebu, 19 in Cotabato, four in Batangas, five in Zamboanga, eight in Iloilo, two in Davao, and one each in Cagayan de Oro and Legaspi.

International Ship Builders
Foreign and local investors in the shipping sector have helped the Philippine government generate more employment opportunities.  Te Hanjin Heavy Industries Corp. in Subic Bay is expected to attract investment (and consequently more jobs) into the country.  At present, Hanjin is in production of container ships ordered by Greece.  The Philippines is into its new role as the center of shipbuilding activities in Asia and the Pacific because of its capacity to undertake large scale shipbuilding training for qualified local workers.  The country is also home to the international ship builders Tsuneishi Corp., whose dockyards strongly underscore Filipino shipbuilding capability.