Helping modernize passenger ferries

President Bongbong Marcos has committed to address this lopsided situation in favor of foreign shipbuilders as he vowed to transform the country into an important maritime hub

As a former seafarer for 20 years and 30 years in the manning business, I founded the Integrated Seafarers of the Philippines, which seeks to help overseas seafarers achieve financial freedom when they retire from seafaring. This could only be realized, however, if there were many jobs and business opportunities available here at home.

It dawned on me that these opportunities would come naturally if only the country would become a strong maritime nation, if our vision to have ships built, owned, operated and manned by Filipinos that connect islands and people, create wealth, and generate jobs for economic progress and national security would become a reality.

I am confident this partnership between Marina and PACIWFI will lead to greater heights for ferry operators.

Thus, it became my passion to contribute, in my humble capacity, in realizing that vision for the country. It inspired me to take a small step. I acquired Metro Ferry Inc. in Cebu in 2018, but that was when I experienced the challenges that many ferry operators face.

Having encountered these challenges myself — the high cost of maintenance due to a vessel’s old age, lack of modern equipment, inability of some ships to cope with new safety regulations, and the need to continuously upgrade crew competence — I saw the need for fellow ferry operators to join hands to address these concerns.

Hence, the Philippine Association of Coastal and Inland Water Ferry Inc. (PACIWFI) was born. Fortunately, the Maritime Industry Authority (Marina) has recognized PACIWFI as its private sector partner in implementing one of its priorities in the 10-Year Maritime Development Industry Plan, the Development of Coastal and Inland Waterways Transport System.

This priority program is mandated by Presidential Decree 474, the law that created Marina, which says the agency shall “modernize and expand” the nation’s merchant fleet, and rationalize its operations to promote domestic production, trade, price stabilization and employment generation.

So, I am confident this partnership between Marina and PACIWFI will lead to greater heights for ferry operators. But in conjunction with Marina’s efforts, yours truly took the initiative of setting up a shipyard. As a ferry operator myself, I realized the advantages of having a shipyard for drydocking needs and for continuously building a modern fleet. These advantages can be enjoyed, too, by fellow operators, through PACIWFI.

Our shipyard development in Albuera, Leyte is now in full swing and we expect it to be operational next year. Named IMP Shipyard and Port Services Inc., it has a concretized launch way (airbags technology) and can accommodate 10 ships below 80 meters LOA (length overall), both for ship repair or new building.

With Marina’s order to phase out wooden boats, ferry operators need to replace their fleet with alternative hull materials like steel, aluminum and fiber reinforced polymer. Unfortunately, many operators have difficulty purchasing new ships through bank financing, and more so through cash procurement.

To address this problem, IMP Shipyard will build ships below 50 meters LOA, which will be financed by private investors. The new vessel will be offered to interested ferry operators through bareboat charter or rent-to-own scheme so that they can continue their ferry operation without the need of big capital.

To reduce the cost of building new ferries, PACIWFI will also lobby for tax incentives for shipbuilders and for the creation of a duty-free importation hub, similar to those under PEZA, so that imported raw materials and equipment will be coursed through this duty-free hub.

Foreign shipbuilders have long enjoyed generous incentives for years, while local shipbuilders do not. As a consequence, the local SBSR was left behind.

Our new Chief Executive, President Bongbong Marcos, has committed to address this lopsided situation in favor of foreign shipbuilders as he vowed to transform the country into an important maritime hub.

(Let us not forget, too, the needs of operators of fishing vessels. Practical solutions will be offered to them in our next issue to help address maritime safety issues and food security)