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Department of Transportation Maritime Industry Authority SITUATIONER REPORT ON DOMESTIC SHIPPING MODERNIZATION AND FILIPINO MARITIME PROFESSIONALS FELIPE A. JUDAN Undersecretary for Maritime Department of Transportation INTRODUCTION The


  1. Department of Transportation Maritime Industry Authority SITUATIONER REPORT ON DOMESTIC SHIPPING MODERNIZATION AND FILIPINO MARITIME PROFESSIONALS FELIPE A. JUDAN Undersecretary for Maritime Department of Transportation

  2. INTRODUCTION The Philippines is an archipelago composed of about 7,641 islands with a total land area of 298,170 square kilometers or 115,831 square miles. Its 36,289 kilometers or 22,549 miles of coastline makes it the country with the 5th longest coastline in the world. Together with the Philippines, Fiji, Indonesia, Papua New Guinea, Bahamas are sovereign states which obtained approval by the UNCLOS on December 10, 1982 and qualified as Archipelagic States. MARITIME PHILIPPINES

  3. PHILIPPINE DOMESTIC SHIPPING remains the major infrastructure by which the country’s 7,641 islands are strongly linked connects the country to international commerce and trade a vital component in attaining inclusive growth and socio-economic progress a total of 16,935 registered merchant vessels as of March 2018 MARITIME PHILIPPINES

  4. AGE & TYPE PROFILE OF PHILIPPINE DOMESTIC PASSENGER SHIP TYPE OF SHIP TOTAL % FAST AGE PROFILE RORO MBCA CRAFT 0 – 10 38 15 1,641 1,694 68.44% >10– 20 24 26 345 395 15.96% >20 – 30 66 14 74 154 6.22% >30 – 40 79 16 42 137 5.54% Above 40 69 3 23 95 3.84% TOTAL 276 73 2,125 2,475 100.0% MARITIME PHILIPPINES

  5. AGE & SIZE PROFILE OF RORO SHIPS IN THE PHILIPPINES MARITIME PHILIPPINES

  6. MARITIME INDUSTRY AUTHORITY Shipbuilding & Ship Repair MARI MA RINA Registered d 118 118 SHIP SHIPYARDS CLASS B CLASS C CLASS A 14 97 7 SHIPYARDS SHIPYARDS SHIPYARDS Capable to build and Capable to build and Capable to build repair ships with repair ships with and repair ships MAXIMUM length MAXIMUM length with length overall overall of 129.99 overall of 80 meters of at least 130 meters meters

  7. MARITIME INDUSTRY AUTHORITY Shipbuilding & Ship Repair MARI MA RINA Registered d 118 118 SHIP SHIPYARDS SHIPYARD PHYSICAL 75 8 PERSONNEL FACILITIES AFLOAT SHIP ------------------------------- ------------------------------------ SHIPBREAKING ----- MAINTAINING REPAIRERS/ FACILITIES EMPLOYING more than SERVICE (under MC 95) more than CONTRACTORS 167 50,000 (under MC 2007- shipyard plant 02) skilled workers facilities l 111 Slipways l 36 Launching Pads l 6 Graving Docks l 12 Floating Docks l 2 Ship Lift

  8. DOMESTIC SHIPPING MODERNIZATION Ø Phase-out of Wooden-hulled ships and motorbancas ( MC 2016-02 ) Ø Grant of pioneer status to shipping entities for the acquisition of brand new and IACS-classed ships ( MC 2015-04 ) Ø Age and size restriction on importation of ships ( MC 2017-04 ) Ø VAT exemption on vessel acquisition Ø Duty-free importation of brand new ships MARITIME PHILIPPINES

  9. DOMESTIC SHIPPING MODERNIZATION v Shorter travel time v Reduced costs v Increased movement / mobility v Growth in tourism v Increased movement of cargoes/products MARITIME PHILIPPINES

  10. CHALLENGES IN THE IMPLEMENTATION OF THE DOMESTIC SHIPPING MODERNIZATION: v Lack of financing program and incentives v Need for updated and responsive rules and regulations v Need for more port development v Capacity and capability of local shipyards MARITIME PHILIPPINES

  11. DOMESTIC SHIPPING MODERNIZATION WAY FORWARD…. Law that will provide Design Establishment incentives to Subsidy for Open Pilotage Upgrading or Standards for of a Maritime domestic local system in the RORO and expansion of Indusrtial construction domestic port and port shipping and other Park or local of ships shipping facilities passenger Shipping Hub shipbuilding ships entities MARITIME PHILIPPINES

  12. STANDARD SHIP DESIGN • setting of a practical level of standardization of design of ships STANDARD SHIP DESIGN • standard ships may lead to lower financing and insurance risks • standard ships will also provide efficient construction, operation and maintenance of vessel MARITIME PHILIPPINES

  13. MARITIME INDUSTRIAL PARK • Shipbuilding / repair yards • Ship lifts, cranes, other heavy lift equipment • Paint/shot blasting, plate & pipe shops, galvanizing shop, etc. • Maritime authority, class society, testing laboratory • Equipment and material suppliers, service companies • Maritime school, manpower agency A A tem emplate: e: Du Dubai Maritime e City • Hotels, residences, worker’s dormitory • Commercial center MARITIME PHILIPPINES

  14. DOMESTIC SHIPPING MODERNIZATION SAFE, EFFICIENT, UPDATED & STONG RESPONSIVE ADEQUATE, INSTITUTIONAL/ MARITIME ECONOMICAL SEA ORGANIZATIONAL LAWS, POLICIES TRANSPORT FRAMEWORK & PROGRAMS GOAL AVAILABLE DEVELOPMENT OF INCENTIVES & SUITABLE & FIANCING ADEQUATE PROGRAM INFRASTRUCTURE MARITIME PHILIPPINES

  15. Filipino Maritime Professionals (Seafarers)

  16. Based on the 2015 Baltic and International Maritime Council (BIMCO) Manpower Report, the Philippines is one of the major suppliers of seafarers for the world’s merchant fleet

  17. Maritime Human Resource Indicators 768,790 Active Seafarers as of December 2017 (MARINA) 464,394 Deployed Seafarers in 2017 Preliminary Data (POEA)

  18. Top 10 Employers of Filipino Seafarers Flag of Registry Number of Deployment Panama 73,008 Bahamas 58,327 Marshall Islands 41,722 Liberia 39,901 Malta 29,542 Singapore 25,746 Bermuda 17,590 Italy 14,604 Norway 13,571 Netherlands 12,760 Source: 2016 Data from POEA

  19. US$ 5.87B Total Remittances of the Seabased Sector in 2017

  20. PROGRAMS FOR EASE OF DOING BUSINESS FOR SEAFARERS AND STAKEHOLDERS

  21. WEB-BASED PROCESSING OF STCW CERTIFICATES

  22. MARINA APP

  23. SURVEILLANCE, ACCREDITATION, MONITORING (SAM) DATABASE

  24. Pursuant to Regulation I/10 of the STCW Convention, the European Commission has tasked EMSA to conduct an inspection of the system of maritime education, assessment and certification in the Philippines

  25. European Commission Timeline The Philippines, through MARINA, should submit reports on the following dates to comply with the findings of the EMSA inspection: APRIL 30, 2018 – Measures which have been put in place or intended to be put in place corresponding to the areas to be improved OCTOBER 31, 2018 – Evidence of implementation of such measures OCTOBER 31, 2019 – Evidence that the supporting Information Technology (IT) systems have been developed.

  26. Department of Transportation Maritime Industry Authority THANK YOU FELIPE A. JUDAN Undersecretary for Maritime Department of Transportation

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