Standardize maritime industry system, Marina told

Citing what he described as “obsolete” rules in the maritime industry, President Marcos has instructed the Maritime Industry Authority (Marina) to standardize existing systems to make them at par with global standards as the government is completing an updated development plan for the sector.

At a meeting in Malacañang last Wednesday, Marina administrator Sonia Malaluan sought Marcos’ approval of the updated Maritime Industry Development Plan (MIDP) 2028, which seeks to establish a strong and reliable Philippine merchant fleet and address industry requirements.

The programs under the plan include the modernization and expansion of the country’s domestic shipping, promotion and expansion of the Philippine overseas shipping, modernization of the Philippine shipbuilding and ship repair industry, and promotion of highly skilled Filipino and competitive maritime workforce.

According to a statement by the Presidential Communications Office (PCO), Marcos observed that many of the rules and operations in the maritime industry are “obsolete” because of the lack of a unified system governing the industry.

It is imperative to first provide a standardized system in line with international systems before the proposed programs could be implemented, the PCO quoted the President as saying.

“These are all promotion, modernization but let us standardize first our systems and at the same time we undertake this, like promotion of (a) highly skilled Filipino maritime workforce. The ship building and ship repair, we haven’t done much to promote that,” Marcos was quoted by the PCO as saying.

Marcos also mentioned the high shipping cost in the Philippines compared to other countries, as it is usually cheaper to ship cargos between Manila and Hong Kong than between the capital and General Santos City.

Marina attributed the relatively costlier domestic shipping to the vessel size and the imposition of excise tax on fuel and vessel quality. Ships with international routes are huge and therefore enjoy economies of scale that cut travel cost and fares, Marina pointed out.

It said any vessel that travels internationally is not subject to excise tax on fuel. In the Philippines, domestic shipping carries the burden of additional fuel tax.