$ 1-B JBIC loan for shipping sought (Japan)
The government is actively pursuing the $ 1-billion loan from the Japan Bank for International Cooperation (JBIC) to speed up the modernization of the domestic shipping industry.
Trade and Industry Secretary Peter B. Favila said the project would be implemented by the National Maritime Equity Corp. (NMEC), a subsidiary of the state-owned investment-arm National Development Co.
Favila said he had already asked NMEC president Agustin Bengzon to iron out the kinks with JBIC.
Under the plan, NMEC would be leasing out the acquired double-hull vessels to the private sector under various payment schemes. It would be in cooperation with the local government units and the private sector.
Favila also said the Development Bank of the Philippines could also be tapped for the modernization of the country’s domestic maritime industry.
All these efforts to modernize the industry is in support of the government’s thrust to lower the cost of doing business in the country, one of which is by reducing transport cost.
A study by the Japan International Cooperation Agency (JICA) revealed that local shipping operators prefer to purchase imported second-hand vessels since prices of locally-built ships are much expensive.
"Despite the relatively low labor cost, the price of locally built vessels is more expensive than that of second-hand imported vessels," JICA said in its study.
The study added that several large shipyards in the country have already exported vessels, mostly handy bulk carriers with a capacity of 20,000 to 30,000 gross tons.
Government figures reveal that while the shipbuilding industry delivered 354 vessels in 2003, the total carrying capacity of these ships were only 9,826 gross tons.
The agency said there should be a shift in the strategies of the shipbuilders, since JICA’s estimates indicate that between now and 2015, local shipyards would find it difficult to build small vessels with a capacity of 500 gross tons or less owing to a high demand for larger carriers.
"The domestic shipbuilding industry has an opportunity to construct larger vessels particularly when a demand-supply gap occurs between the domestic ship owners and the second-hand markets on the condition of competition with foreign shipyards," the study said.
JICA also said that there is also bright prospects for the country’s ship repair sector but only if the government can help develop the shipping support industries which will provide spare parts supply instead of merely importing these from other countries.
Trade and Industry Secretary Peter B. Favila said the project would be implemented by the National Maritime Equity Corp. (NMEC), a subsidiary of the state-owned investment-arm National Development Co.
Favila said he had already asked NMEC president Agustin Bengzon to iron out the kinks with JBIC.
Under the plan, NMEC would be leasing out the acquired double-hull vessels to the private sector under various payment schemes. It would be in cooperation with the local government units and the private sector.
Favila also said the Development Bank of the Philippines could also be tapped for the modernization of the country’s domestic maritime industry.
All these efforts to modernize the industry is in support of the government’s thrust to lower the cost of doing business in the country, one of which is by reducing transport cost.
A study by the Japan International Cooperation Agency (JICA) revealed that local shipping operators prefer to purchase imported second-hand vessels since prices of locally-built ships are much expensive.
"Despite the relatively low labor cost, the price of locally built vessels is more expensive than that of second-hand imported vessels," JICA said in its study.
The study added that several large shipyards in the country have already exported vessels, mostly handy bulk carriers with a capacity of 20,000 to 30,000 gross tons.
Government figures reveal that while the shipbuilding industry delivered 354 vessels in 2003, the total carrying capacity of these ships were only 9,826 gross tons.
The agency said there should be a shift in the strategies of the shipbuilders, since JICA’s estimates indicate that between now and 2015, local shipyards would find it difficult to build small vessels with a capacity of 500 gross tons or less owing to a high demand for larger carriers.
"The domestic shipbuilding industry has an opportunity to construct larger vessels particularly when a demand-supply gap occurs between the domestic ship owners and the second-hand markets on the condition of competition with foreign shipyards," the study said.
JICA also said that there is also bright prospects for the country’s ship repair sector but only if the government can help develop the shipping support industries which will provide spare parts supply instead of merely importing these from other countries.
