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    Subic to construct shipyard facility
    By VG Cabuag
    Reporter

    AN agency in charge of developing a former United States naval base is planning to build its own shipyard, which will be leased to companies that do not have enough funds to acquire modern equipment.

    Although part of the government’s program to boost the country’s shipping industry, the Subic Bay Metropolitan Authority (SBMA) has yet to announce how much it intends to allot for the proposed facilities since the plan is in its initial stages.

    Maritime Industry Authority (Marina) administrator Vicente T. Suazo Jr. told reporters last week that the proposed program, which will be implemented together by both SBMA and Marina, intends to serve the needs of small and medium shipbuilders.

    According to Suazo, the program, once in place, will be able to assist these companies since they will no longer need to spend millions of pesos in upgrading and/or acquiring equipment.

    The SBMA “will put up dockyards and shipbuilding equipment” that can be rented out, Suazo said. In turn, Marina, which regulates the Philippines’ shipping industry, will issue “licenses to new facilities and help market it to the whole maritime industry.”

    “SBMA is still discussing about the rates. Of course, they cannot come up with something that’s so enormous or else no one will go to them. It must be a come on,” Suazo said.
    Besides being capable to providing enough tracts of land to be used as shipbuilding facilities, SBMA can also allow companies to get tax exemptions and other holidays.

    Of the current 51 local shipbuilding companies, most are currently not in operation. Meanwhile, those which continue to build vessels either get orders from abroad or are relegated to being repair facilities of old ships.

    Ever since the Domestic Shipping Development Act has been passed into law in 2004, Marina has increased efforts to jumpstart the maritime industry by urging operators to source their vessel requirements locally.

    However, the agency has made very little headway in this regard since most shipyards have very little capabilities to build ships.

    Last March, state-owned Maritime Leasing Corp., an agency subsumed under the Department of Trade and Industry, told local shipyards that it could assist them in sourcing out cheaper steel by helping to buy them in bulk.

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