EFREN JUAN B BORCI JRDirector II, Planning and Policy ServicesMaritime Industry Authority

17 September 2015Philippine Institute of Developmental Studies

NEDA sa Makati Building, Makati City

PHILIPPINE MARITIME INDUSTRY:

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

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 10635

• 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.

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

Others 118

Dredger 28

Special Purpose Ship 16

Miscellaneous Ship 78

TOTAL 10,694

Passenger

61.30%

Cargo 28.53%

Tanker 2.33%

Tugboat 5.29%

Pleasure/Yacht 0.31%

Others 1.10%

Dredger 0.26%

Special Purpose Ship

0.15%

Miscellaneous Ship

0.73%

MAJORITY OF OUR DOMESTIC VESSELSARE PASSENGER AND CARGO SHIPS.

DOMESTIC SHIPPING

PROFILE OF DOMESTIC SHIPPING OPERATORS as of Dec 2014

Majority of our domestic

shipping operators or 74.38%

are single proprietors

Shipping Operators Number Percentage

Single Proprietor 1,762 74.38%

Corporation/Partnership 509 25.03%

Cooperative 14 0.59%

Total 2,369 100%

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.

OVERSEAS SHIPPING

REALITY ON THE GROUNDTop Ten Registries 1/

Country Percentage (by DWT)

1. Panama 21.39

2. Liberia 12.38

3. Marshall Islands 8.01

4. Hong Kong 7.61

5. Singapore 5.35

6. Greece 4.73

7. Malta 4.65

8. Bahamas 4.50

9. China 3.79

10. Cyprus 2.15

The Philippines ranked 29th 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

OVERSEAS SHIPPING

The Philippines is ranked

29th 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 3,172,545

66 overseas shipping

companies were accredited

by MARINA as of CY 2012

pursuant to MC No. 181: (1

ship owner, 65 bareboat

charterers)

PH-REGISTERED OVERSEAS FLEET, 2014

TYPE OF SERVICE NO. OF

SHIPS

GRT NRT DWT AVE. AGE

General Cargo 27 308,992 151,397 451,758.3 10

Bulk Carrier 61 2,066,099 1,252,541 3,753,092.6 7

Tanker 12 153,400 75,558 249,683.00 6

Roll-On Roll-Off 1 6,788 2,858 8,000 23

Livestock Carrier 8 39,634 15,342 31,277 18

Car/Vehicle Carrier 1 45,796 13,739 15,181 19

Dry Cargo 1 4,028 2,491 6,503 31

Container Carrier 2 69,932 38,516 89,367 5

Multi-Purpose Dry Cargo 3 18,063 8,945 23,737.63 19

TOTAL 116 2,712,732 1,559,710 4,624,413.53 Ave Age:9

OVERSEAS SHIPPING

SHIPBUILDING / SHIPREPAIR

NUMBER OF MARINA-LICENSED SBSR ENTITIES

AS OF CY 2013

Large - 7

Medium - 12

Small99

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;

12 other yards for medium-sized

ship and 99 yards to service

smaller ships.

Employs a total of 45,000

employees.

Source: MARINA

Type of Ship 2009 GRT 2010 GRT 2011 GRT 2012 GRT

Tanker 2 2,608.00 2 820 3 1314 3 1930

Passenger 1 116.00 5 850 3 693.58 3 1,686.14

Barge 5 3,631.00 5 4,000 5 2728 11 16,699

Motor Boat 2 45.84 - 6 81.51

Fishing Vessel 9 338.40 131 4,200 43 1,500.00 12 1,375

Pleasure Yacht 1 18.76 11 195 6 54.22

Tugboat 3 164.00 14 1,370 12 795.03 12 1,260.75

LCT - 5 3,538 8 5,000.00 11 7,698.98

Rig Pontoon (for export) 2 8,700 1 5,000 1 2,500

Cargo Vessel 6 3,176.56 2 1,772.00 1 1239.38

Total 29 180 89 53

NUMBER OF LOCALLY CONSTRUCTED SHIPS CY 2009 - 2012

SHIPBUILDING / SHIPREPAIR

Source: MARINA

Republic of the Philippines

Department of Transportation and CommunicationsMARITIME INDUSTRY AUTHORITY

THE SEVEN (7) LARGE SHIPYARDS BY

GEOGRAPHICAL DISTRIBUTION

Keppel Subic Shipyard

CAWAG, SUBIC

Herma Shipyard & Eng’g, Inc.

MARIVELES, BATAAN

Hanjin Shipyard

CABANGAN, ZAMBALES

Subic Drydock Corp

SUBIC, ZAMBALES

Keppel Marine Phil., Inc.

BATANGAS CITY

F.F. Cruz & Co., Inc.

ILOILO

Tsuneishi Heavy Industries

BALAMBAN, CEBU

SHIPBUILDING / SHIPREPAIR

PICMAW

CAGAYAN DE ORO

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

MARITIME MANPOWER DEVELOPMENT

Source: POEA &

BIMCO/ISF

78%

22%

PH Labor Forceas of December 2014

Land Based Seabased

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 %.

DEPLOYMENT OF FILIPINO SEAFARERS 2000-2014

MARITIME MANPOWER DEVELOPMENT

Source: DOLE/POEA

Number of Filipino seafarers over the years has consistently increased

except for a very slight downturn in 2012.

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

293,218

352,524

347,150

369,104

365,924 367,166

401,826

0

100,000

200,000

300,000

400,000

500,000

2000 2005 2010 2011 2012 2013 2014

REMITTANCE OF FILIPINO SEAFARERS in US $ Billion, 2012-2014

Source: BSP

MARITIME MANPOWER DEVELOPMENT

4,835,342

5,215,378

5,575,722

4,400,000

4,600,000

4,800,000

5,000,000

5,200,000

5,400,000

5,600,000

5,800,000

2012 2013 2014

Filipino seafarers continue to remit billions in hard currency. As at end of

December 2014, Filipino seafarers remitted a total amount of US$ 5.575

billion.

The Philippines relies heavily in dollars for debt payments and

importation of products for domestic consumption

NUMBER OF MARITIME SCHOOLS

MARITIME MANPOWER DEVELOPMENT

Region No. of

Schools

Courses Offered

BSMT BSMarEng

Ilocos 9 9 6

Cagayan Valley 2 2 2

Central Luzon 9 8 5

NCR 14 13 11

Southern Tagalog 9 8 6

Bicol 6 2 1

Western Visayas 15 7 7

Central Visayas 11 8 8

Eastern Visayas 2 10 9

Zamboanga 4 1 1

Northern Mindanao 5 5 2

Davao 4 4 3

SOCSARGEN 2 2 2

CARAGA 3 3 2

TOTAL 96 73 65

NUMBER OF MARITIME TRAINING CENTERS as of Dec 2014

Source: MARINA

MARITIME MANPOWER DEVELOPMENT

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

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 10635.

In 2014, MARINA issued:

MARITIME MANPOWER DEVELOPMENT

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

REGULATORY ISSUES

Overseas Shipping Sectora. 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 Sectora. 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

REGULATORY ISSUES

Maritime Manpower Sectora. 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

REGULATORY ISSUES

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

WAY FORWARD

Maraming Salamat Po!