DOTr eyes incentives for ship owners to invest in new fleet

DOTr eyes incentives for ship owners to invest in new fleet
Panay News - June 3, 2024 https://www.panaynews.net/dotr-eyes-incentives-for-ship-owners-to-invest...

THE Department of Transportation (DOTr) said it is eyeing incentives for ship owners who would invest in newer vessels and fleets to upgrade the existing passenger and cargo vessels operating in the Philippines.

The DOTr is looking to “review the incentives that we give to ship owners who will invest in new ships,” Transportation Secretary Jaime Bautista told reporters on the sidelines of the 50th anniversary celebration of the Maritime Industry Authority (MARINA) on Saturday, June 1.

“It’s really our wish to have younger vessels because younger vessels would mean more efficient operations, meaning it will be cheaper in terms of cost and that will also redound to the benefit of the consumers and the riding public,” Bautista said.

“We are encouraging ship owners to invest kaya it’s also important for government to review the incentives for ship owners because they would be investing money,” he said.

The push for fresh incentives, however, needs legislation so the DOTr will have to work with Congress, Bautista said.

MARINA is also “studying how we can include in our policy the requirement of climate change reduction,” said Sonia Malaluan, MARINA administrator.

So far the agency continues to allow “more than 20 years of age of passenger vessels that is 10,000 GT” while the 20-year ceiling for shorter routes was maintained “so that we will be improving our maritime transport for domestic carrier,” she said.

There is a challenge to lower the ceiling for larger sea vessels “because very few are available in domestic shipping that offers that big [capacity]” for long-haul trips, she said.

In January, President Ferdinand Marcos Jr. ordered MARINA to “modernize and standardize” its systems to keep up with international standards.

Marcos Jr. was supposed to deliver the keynote address during MARINA’s 50th anniversary celebration, but canceled his attendance hours before the program due to “something urgent,” according to information from Malacañang.

Meantime, Bautista acknowledged MARINA’s “resilience and adaptability” in his speech during the agency’s anniversary.

“MARINA has led the industry towards a more sustainable, innovative future… We must continue to address the evolving needs of the maritime industry,” he said.

“Let us ensure that our maritime industry remains competitive and sustainable in the coming decades.” (ABS-CBN News)