PHILIPPINE MARITIME INDUSTRY:

Transcription

1 PHILIPPINE MARITIME INDUSTRY: EFREN JUAN B BORCI JR Director II, Planning and Policy Services Maritime Industry Authority 17 September 2015 Philippine Institute of Developmental Studies NEDA sa Makati Building, Makati City

2 PRESENTATION OUTLINE 1. Overview of the Philippine Maritime Industry a. Overseas Shipping Industry b. Domestic Shipping Industry c. Maritime Manpower Industry d. Ship Building and Ship Repair Industry 2. Regulatory Issues Affecting the Four Sectors of the Maritime Industry 3. Way Forward

3 ABOUT THE MARINA Created on 01 June 1974 pursuant to PD No. 474, otherwise known as the Maritime Industry Decree of 1974, to integrate the development, promotion and regulation of the maritime industry in the country. Mandates: PD 474, EO 1011, EO 125/125-A, RA 9295, RA Envisions to become a premiere maritime administration in Southeast Asia propelling the Philippine maritime industry to global competitiveness by 2016 On a mission to effectively administer an integrated and sustainable maritime industry.

4 DOMESTIC SHIPPING DOMESTIC MERCHANT FLEET PROFILE FOR CY 2014 TYPE OF SERVICE NUMBER Passenger 6,555 Cargo 3,051 Tanker 249 Tugboat 566 Pleasure/Yacht 33 Pleasure/Yacht 0.31% Tanker 2.33% Cargo 28.53% Tugboat 5.29% Special Purpose Dredger Ship 0.26% 0.15% Others 1.10% Miscellaneous Ship 0.73% Others 118 Dredger 28 Passenger 61.30% Special Purpose Ship 16 Miscellaneous Ship 78 TOTAL 10,694 MAJORITY OF OUR DOMESTIC VESSELS ARE PASSENGER AND CARGO SHIPS.

5 DOMESTIC SHIPPING PROFILE OF DOMESTIC SHIPPING OPERATORS as of Dec 2014 Shipping Operators Number Percentage Single Proprietor 1, % Corporation/Partnership % Cooperative % Total 2, % Majority of our domestic shipping operators or 74.38% are single proprietors

6 DOMESTIC SHIPPING ESTABLISHMENT OF ROAD ROLL-ON / ROLL-OFF SYSTEM Three (3) nautical highways such as Western Nautical Highway, Central Nautical Highway and Eastern Nautical Highway were established. According to ADB study, RORO shipping service has a great impact in the Philippine business and economy; to wit: 1. Goods are shipped more efficiently; 2. Transportation costs have been reduced; 3. New inter-island and regional links are created; and 4. Regional markets have been expanded.

7 OVERSEAS SHIPPING REALITY ON THE GROUND Top Ten Registries 1/ Country Percentage (by DWT) 1. Panama Liberia Marshall Islands Hong Kong Singapore Greece Malta Bahamas China Cyprus 2.15 The Philippines ranked 29 th among the registries with 0.44% of total DWT of the world fleet Common characteristics of the top ten are: use of incentives, no national requirement on crew, designation of recognized organizations for issuance of statutory certificates, some do not require nationality share in ownership, on line processing By contrast, the Philippine registry requires: 60%-40% foreign equity participation; 100% Filipino crew and physical presence of applicants

8 OVERSEAS SHIPPING The Philippines is ranked 29 th among the registries with 0.44% of total DWT of the world fleet 116 vessels were registered in CY 2014 with a total gross tonnage of 3,172, overseas shipping companies were accredited by MARINA as of CY 2012 pursuant to MC No. 181: (1 ship owner, 65 bareboat charterers)

9 OVERSEAS SHIPPING PH-REGISTERED OVERSEAS FLEET, 2014 TYPE OF SERVICE NO. OF SHIPS GRT NRT DWT AVE. AGE General Cargo , , , Bulk Carrier 61 2,066,099 1,252,541 3,753, Tanker ,400 75, , Roll-On Roll-Off 1 6,788 2,858 8, Livestock Carrier 8 39,634 15,342 31, Car/Vehicle Carrier 1 45,796 13,739 15, Dry Cargo 1 4,028 2,491 6, Container Carrier 2 69,932 38,516 89,367 5 Multi-Purpose Dry Cargo 3 18,063 8,945 23, TOTAL 116 2,712,732 1,559,710 4,624, Ave Age:9

10 SHIPBUILDING / SHIPREPAIR NUMBER OF MARINA-LICENSED SBSR ENTITIES AS OF CY 2013 Issued SBSR License to 113 shipyards Seven (7) categorized as Class A which are equipped with facilities for the construction and/or repair of big ships, with 20,000 DWT capacity per area and paid up capital of Php 50million; Large - 7 Medium other yards for medium-sized ship and 99 yards to service smaller ships. Employs a total of 45,000 employees. Small 99 Source: MARINA

11 SHIPBUILDING / SHIPREPAIR NUMBER OF LOCALLY CONSTRUCTED SHIPS CY Type of Ship 2009 GRT 2010 GRT 2011 GRT 2012 GRT Tanker 2 2, Passenger , Barge 5 3, , ,699 Motor Boat Fishing Vessel , , ,375 Pleasure Yacht Tugboat , , LCT - 5 3, , , Rig Pontoon (for export) 2 8, , ,500 Cargo Vessel 6 3, , Source: MARINA Total

12 SHIPBUILDING / SHIPREPAIR THE SEVEN (7) LARGE SHIPYARDS BY GEOGRAPHICAL DISTRIBUTION Keppel Subic Shipyard CAWAG, SUBIC Subic Drydock Corp SUBIC, ZAMBALES Herma Shipyard & Eng g, Inc. MARIVELES, BATAAN Hanjin Shipyard CABANGAN, ZAMBALES Keppel Marine Phil., Inc. BATANGAS CITY F.F. Cruz & Co., Inc. ILOILO Tsuneishi Heavy Industries BALAMBAN, CEBU PICMAW CAGAYAN DE ORO Republic of the Philippines Department of Transportation and Communications MARITIME INDUSTRY AUTHORITY

13 MARITIME MANPOWER DEVELOPMENT PH CONTRIBUTION TO GLOBAL SEAFARING INDUSTRY 90% of the volume of trade is carried at sea There are more or less 1.5 million seafarers presently working at sea Around 25% of all seafarers on-board ocean going ships are Filipinos PH Labor Force as of December 2014 Land Based Seabased 22% 78% As of December 2014, a total of 1,832,668 were employed overseas. This figure represents 1,430,842 land based workers and 401,826 for sea based workers. In summary, land based employment accounts to 78% of overseas employment while that of sea based is 22 %. Source: POEA & BIMCO/ISF

14 MARITIME MANPOWER DEVELOPMENT DEPLOYMENT OF FILIPINO SEAFARERS , , , , , , , , , , , , Source: DOLE/POEA Number of Filipino seafarers over the years has consistently increased except for a very slight downturn in Preferred due to their ability to speak the English language; to work in a multi-cultural environment; to demonstrate love of work Partners for national economic development agenda

15 MARITIME MANPOWER DEVELOPMENT REMITTANCE OF FILIPINO SEAFARERS in US $ Billion, ,800,000 5,575,722 5,600,000 5,400,000 5,200,000 5,215,378 5,000,000 4,800,000 4,835,342 4,600,000 4,400, Filipino seafarers continue to remit billions in hard currency. As at end of December 2014, Filipino seafarers remitted a total amount of US$ billion. The Philippines relies heavily in dollars for debt payments and importation of products for domestic consumption Source: BSP

16 MARITIME MANPOWER DEVELOPMENT NUMBER OF MARITIME SCHOOLS Region No. of Courses Offered Schools BSMT BSMarEng Ilocos Cagayan Valley Central Luzon NCR Southern Tagalog Bicol Western Visayas Central Visayas Eastern Visayas Zamboanga Northern Mindanao Davao SOCSARGEN CARAGA TOTAL

17 MARITIME MANPOWER DEVELOPMENT NUMBER OF MARITIME TRAINING CENTERS as of Dec 2014 Region No. of TCenters Region No. of TCenters Region I 2 Region IX 1 Region III 2 Region X 3 Region IV 5 Region XI 6 Region V 2 Region XII 1 Region VI 8 Region XIII 1 Region VII 10 NCR 68 Region VIII 1 Total 110 Source: MARINA

18 MARITIME MANPOWER DEVELOPMENT In 2014, MARINA issued: 176,339 Seafarer s Identification and Record Book* 8,566 Domestic Certificate of Competency (QDC) 778,302 Certificate of Proficiency (COP) for ratings in line with the new function under RA

19 REGULATORY ISSUES Domestic Shipping Sector a. Conduct comprehensive review/assessment of RA 9295 b. Harmonize/align MARINA/BOI/DBP requirements c. Review/amend PD 760 d. Gradual Phase Out of Wooden Hulled Ships; e. Government Subsidy for the New Ship Construction by way of Legislation Maritime Safety Sub-Sector a. Establish the Single Classification Society and the Philippine Government (PG) Classification Society b. Pursue Audit of Performance of Recognized Classification Societies c. Strengthen safety and service standards for shipping operations

20 REGULATORY ISSUES Overseas Shipping Sector a. Expedite preparation of a draft legislation on a permanent Philippine Overseas Shipping Act b. Enable Philippine shipping to advance into the ship management level and ultimately as shipowning country Shipbuilding and Ship Repair Sector a. Conduct a comprehensive review/assessment of RA 9295/EO 226 incentives b. Foster the progressive advancement of locally-built ships or new shipbuilding/ ship construction for domestic trade c. Upgrade shipyard manpower skills and technical competence through certification system

21 REGULATORY ISSUES Maritime Manpower Sector a. Comply/implement international obligations relating to the human element of shipping under various conventions, protocols and codes (e.g., IMO, ILO) b. Shipboard Training for Graduates of Recognized Maritime Programs

22 WAY FORWARD The establishment of a strong regulatory management system entails: Comprehensive Policy Implementation and Monitoring Plan Continuous Assessment of Policy Formulation and Implementation (including consideration of political feasibility, social accessibility, administrative feasibility and technical feasibility of every proposed rule/regulation) Conduct of regular inter-agency and multi-sectoral dialogues

23 Maraming Salamat Po!