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Locally constructed vessels expected to rise 20% this year

Locally constructed vessels expected to rise 20% this year
Roumina Pablo March 15, 2024

Locally-constructed vessels (LCVs) are expected to rise by 20% this year from 2022, according to the Shipyard Association of the Philippines (ShAP).

The last available data for LCVs from the Maritime Industry Authority (MARINA) is 2022.

Growth will come from higher order books of big shipyards and construction of small boats, ShAP president Meneleo Carlos III told the media in a chance interview.

Carlos noted the tourism department eyes more tourist arrivals this year, and this may entail the need for additional boats.

As of 2022, were 292 LCVs with a total gross tonnage of 828,823.16 in 2022.

LCVs for domestic use accounted for the bulk at 270 and the rest were for export. But in terms of tonnage, LCVs for export accounted for the bigger share with 817,802 GT and LCVs for domestic use, 11,021.16 GT.

The 22 LCVs for export in 2022 were all cargo vessels while LCVs for domestic use consisted of 121 fishing boats, 47 passenger ships, 43 cargo ships, six tug/dredger, one tanker, and 52 other types.

As of 2022, there were 130 valid licensed shipbuilding and ship repair entities, majority or 103 of which are categorized as Class C (capable of building and repairing ships with maximum length overall (LOA) of 80 meters); 20 were Class B (with a maximum LOA of 129 meters); and seven were Class A (with minimum LOA of 130 meters).

Carlos noted the Philippines has been a competitive player in the shipbuilding and ship repair industry, and has gained recognition as a reliable destination for ship repair and maintenance services.

Other prospects for growth include partnerships with foreign shipyards to learn their latest technologies.

Carlos said shipbuilders also plan to improve their capacity and capabilities by partnering with foreign designers and suppliers so that Philippine shipbuilders can participate in projects such as the modernization of the Armed Forces of the Philippines.

“Best (to) invest in our local capacity” since they will be the ones maintaining the ships anyway, he said.

In addition, shipbuilders want to modernize shipyard facilities, although Carlos noted challenges such as in funding; and collaboration with government agencies to gain new technologies.