Chelsea supports new rules on passenger ship imports

Chelsea Logistics Holdings Corp. (CLC) has expressed its support to the Maritime Industry Authority’s (MARINA) new rules on importation of passenger ships.

Circular 2017-04, issued in July, provides guidelines on the importation of passenger ships in order to ensure the continued viability of domestic shipping operations and to encourage the development of a viable shipbuilding and ship repair industry to support the expansion and modernization of the Philippine domestic merchant marine fleet.

CLC chairman Dennis Uy said the plans and programs of CLC are aligned with the objective of the circular to modernize the domestic shipping industry.

According to the circular, passenger ships to be imported should not be more than 20 years old and no less than 500 GT upon the filing of the application.

Ships of less than 500 gross tonnage may be imported pending issuance of another policy by the MARINA specifically for fastcraft.

CLC has embarked on a major re-fleeting since 2016.

From the proceeds of its initial public offering, CLC earmarked P1.78 billion for fleet expansion, P245 million for purchase and upgrade of ports, port facilities, containers, machineries and equipment; P3.2 billion for acquisition of shipping and logistics firms, and P278 million for general corporate purposes.

“By modernizing and expanding our operations, we can provide better shipping and logistics solutions as well as make our country more competitive in capturing the increasing trade opportunities in Southeast Asia,” Uy said.

The Udenna Group, Uy’s holding company and parent firm of CLC, made its foray into shipping in 2006 to support the operations of Phoenix Petroleum Philippines. It has since grown the business into the country’s biggest logistics group with the largest tanker fleet in terms of capacity.