President Ferdinand 鈥淏ongbong鈥� Marcos Jr. has directed the Maritime Industry Authority (Marina) to update what he described as 鈥渙bsolete鈥� rules governing the country鈥檚 maritime industry to make it at par with global standards.
The President said Marina should set up standard government policies on the operations and practices, including reviving shipbuilding activities and upgrading education and training for Filipino seafarers.
鈥淭hese [plans] are all promotion, modernization but let us standardize first our systems and at the same time we undertake this like promotion of highly-skilled Filipino maritime workforce,鈥� Marcos told Marina officials at a briefing in Malaca帽ang on Wednesday.
搁贰础顿:听Bongbong Marcos orders Marina to standardize maritime system 鈥� Palace
The President gave the directive in reaction to the proposed Maritime Industry Development Plan 2028 (MIDP 2028) that was presented by Marina administrator Sonia Malaluan.
In a separate statement, Marcos said the government was finalizing the MIDP 2028 to 鈥渕ake sure it prioritizes the well-being of Filipino seafarers.鈥�
鈥淯pon its immediate completion, we will guarantee effective project implementation and the international recognition for our seafarers鈥� qualifications,鈥� he said.
Threat of EU ban
In his second State of the Nation Address delivered last year, Marcos vowed to provide foreign merchant marine vessels with a steady supply of 鈥渃ompetent鈥� Filipino seafarers.
In 2022, the deployment of Filipino seafarers faced a potential ban from working on European vessels, after a 2020 European Maritime Safety Agency (EMSA) audit found the Philippines still noncompliant with the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (ISTCW).
The ISTCW sets the 鈥渕inimum standards relating to training, certification and watchkeeping for seafarers which countries are obliged to meet or exceed.鈥�
At the Palace briefing on the MIDP 2028, the President said the first step in implementing reforms in the maritime industry is to standardize operations in accordance with international standards.
搁贰础顿:听Marcos vows efficient maritime industry dev鈥檛 plan implementation
Among the core programs of MIDP 2028 are the 鈥渕odernization and expansion of the Philippine domestic shipping,鈥� 鈥減romotion and expansion of the Philippine overseas shipping, modernization of the Philippine shipbuilding and ship repair industry鈥� and 鈥減romotion of highly-skilled Filipino and competitive maritime workforce.鈥�
The President conceded that the government had not done enough to promote the country鈥檚 capabilities for shipbuilding and repair.
鈥淪o let鈥檚 standardize our practices so that we will be the same with our international counterparts. We have to fix our house first,鈥� he said. 鈥淏ecause we have to compete and in order to do that, we should have an even playing field and then we should gain an advantage.鈥�
Local trips costlier
Marcos also noted with concern the 鈥渉igh鈥� cost of shipping in the country compared to other countries.
Citing an example, he said is usually cheaper to ship cargo to the Philippines from abroad 鈥� such as Hong Kong 鈥� than to transport goods locally, like from Manila to General Santos City.
In response, Marina officials said domestic shipping is relatively more expensive since international shipping companies usually have an advantage in terms of vessel size and quality. The latter have larger ships and have the economies of scale to reduce travel costs and fares.
Ships plying international routes are also not subjected to excise tax on fuel, while domestic shipping in the Philippines bears the burden of additional fuel tax, the officials said.
Since fleets plying domestic routes are relatively older, they also tend to be less efficient.
Investors have shown little interest in putting money in the local shipping industry, Marina officials also told the President.
According to the Marina, the government needs to change the current maritime policy allowing 20-year old passenger ships to operate and 25-year old vessels to haul freight.
鈥淟et鈥檚 standardize and also prioritize in terms of the immediacy of some of these,鈥� the President said.