PPA eyes P300-M shipyard in Luzon

The Philippine Ports Authority (PPA) is looking to develop the country’s first government-initiated shipyard project—a move that could jumpstart a new industry and support the administration’s drive to phase out old and unsafe sea vessels.

Jay Santiago, PPA general manager, said on Friday the state-controlled corporation has completed a feasibility study and identified a 10-hectare site in Luzon.

Santiago said the initial investment would amount to P300 million and the facility could be in operation by 2020.

“The reason we want to do this is in line with the modernization thrust of the Department of Transportation,” Santiago told reporters on the sidelines of the Maritime Safety Summit 2019.

He said the PPA has yet to decide on the final mode of implementation. It could be government-funded or via a Public-Private Partnership (PPP) scheme, he said.

“What we want is a shipbuilding facility that will come up with a one design, one vessel product,” Santiago said.

He added that he preferred the construction of fast craft vessels that could carry 70-100 passengers serving shorter routes, such as 1-2 hour crossings.

Transportation Secretary Arthur Tugade said on Friday the plan for a government-initiated shipyard was broached as early as eight months ago.

A string of deadly maritime incidents this month underscored the need for faster reforms in maritime safety and the phasing out of wooden-hulled vessels, he said.

The DOTr also wanted more PPA ports equipped with safer Roll-on/Roll-off capabilities. This is an ongoing project of the PPA, Santiago said.

Last Aug. 3 saw the deaths of 31 people after three motorized bancas sank in the Iloilo-Guimaras Strait.

An April 26, 2016 circular from the Maritime Industry Authority outlined the guidelines for the phase out of wooden-hulled ships carrying passengers.

The goal was to adopt modern designs and “technologically improve alternative hull materials” that were safe and environment-friendly. Some exceptions covered river crossings, select tourism sites and areas where there were no alternative steel-hulled ships or vessels.