Philippines is Rising as Ship Repair hub in Asia-Pacific Region

Austal Ship Yard in Balamban Cebu, Philippines

Philippines as Ship Repair Hub

The Philippines is positioning to become the ship repair hub in the Asia-Pacific region for oceangoing merchant and fishing vessels taking advantage of its strategic location to the region's shipping routes, but would require foreign direct investments to pursue this development.

This was contained in a study on the ship building and ship repair industry of the Philippines conducted by the Japan International Cooperation Agency and the Nomura Research Institute as part of the ongoing formulation of industry roadmaps by the Department of Trade and Industry.

Based on the study, the Philippines have the right ingredients to become ship repair hub. Its strengths include an inland sea, bay and deep seashore, abundant of labor force  and legalized fiscal incentives.

The study has also identified FDIs from Japan and Korea as most promising because shipbuilders from these countries are finally looking outward for expansion opportunities.

The shipbuilding industries in China, Japan and Korea are also reaching their maturity levels thus the need to develop new hubs outside of these countries.

The study has urged that the Philippine Investment Promotions Plan and MARINA to sell the Philippine strengths provide possible locations with maritime data, and present opportunities to shipbuilders in China, Japan and Korea.

Based on its charter, MARINA has been tasked to adopt and implement a practicable and coordinated maritime development program, which shall include among others, the enhancement of domestic capability for shipbuilding and ship repair.

Conducting business matching between Philippine developers, shipbuilders and suppliers and shipbuilders was also urged for Japan, followed by Korea and China.

The domestic shipbuilding industry, however, faces some weaknesses including small and outdated local shipyards, little domestic demand and little support industries, the Nomura study said.

It is also facing global threats like the global shipbuilding recession and emerging maritime structure demands in other countries.

Based on the Nomura study, Chinese and Korean shipbuilders have increased completion of ships being built with China having the biggest share of 40 percent of total number of completed vessels while Korea is second with 34.6 percent share and Japan 18.1 percent. Together, these countries account for 99 percent of total global market.

The study further said that new orders for ships globally are in a downward trend after the shipbuilding bubble in 2007. The scenario points to global shipbuilding "recession" in the coming years.

To this date, there are 121 registered shipbuilding and repair facilities in the country. Of these facilities, 99 are classified as small, 14 are medium and 8 as small. The industry also employs 8,047 workers.

In the past, the output of shipbuilding industry was limited only to small ships, tankers, barges, fishing vessels but with the entry of new players like Tsuneishi Heavy Industries of Japan and Hanjin Shipyard of Korea, the Philippines is now ranked overall as the world's fourth largest player in shipbuilding.

As of the first half of 2012, the Philippines ranked world's fourth highest in terms of booked orders with China, Japan, Korea and Brazil in the top four.(BCM) (http://is.gd/ZjNW4f)

Manila Bulletin 

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Manila Govt will sanction Mindanao Provinces exercising Mining Autonomy

 

Open pit Mining in the Philippines. Photo: freethinkers.org

LGUs prohibiting open pit mining may face sanctions

The national government may initiate administrative cases against local executives who would insist on implementing ordinances prohibiting open pit mining in their respective areas, according to the Department of Justice (DOJ).

In a seven-page legal opinion signed by Secretary Leila de Lima last week, the DOJ supported the plan of the Department of the Interior and Local Government (DILG) to impose administrative sanctions on local government units (LGUs) that continue to prohibit open pit mining in violation of the Philippine Mining Act (PMA).

The DOJ said such ordinances and resolutions of LGUs have been declared void by the law, which means their implementation is tantamount to grave abuse of authority or grave misconduct.

"LGUs cannot arbitrarily hide under the cloak of 'local autonomy' or 'presumption of validity of ordinance' to circumvent the law or primordial compliance with the well-entrenched test of valid ordinance, long established by the Supreme Court in various cases," it said.

Aside from filing administrative cases, the DILG has also proposed the issuance of a memorandum circular directing a review of questionable ordinances and the signing of a memorandum of agreement with the Office of the Ombudsman to address abuses of local officials invoking local autonomy to implement such invalid ordinances.

"Browsing through the remedial acts and/or administrative sanctions proposed to be issued by DILG, this Office has no objection thereto, as we see no constitutional, statutory or legal infirmities in such proposals," the DOJ said.

"Moreover, this Office defers to you Office's competence and expertise not only because it has primary jurisdiction over the matter but also possesses familiarity with the policy repercussions of the issues as well as logical recognition of the lawful exercise of an authority conferred to DILG by law," it added.

The DOJ noted that under Administrative Order No. 267, the DILG has the "power of general supervision" over local governments to ensure that their officials perform their functions in accordance with the law.

Apart from administrative sanctions, the DOJ said the DILG may also file court petitions to seek the nullification of these ordinances.

"Clearly, matters involving question on the validity or constitutionality of a duly enacted ordinance may stand on its own and therefore remain valid until judicially declared as null and void. Thus, judicial declaration of nullity of ordinance is an available remedy," the DOJ said.

It issued the legal opinion upon the request of DILG Legal Service Director III Jesus Doque IV after receiving questions over the implementation of the ordinances, which contain provisions banning open pit mining, an activity allowed under the PMA.

Among the cases cited in the request was the ban imposed by the South Cotabato provincial government on open pit mining, preventing Sagittarius Mines Inc. from starting its $5.9-billion copper-gold project in Tampakan town. (http://is.gd/rGW5Za)

philSTAR 

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