The new firm, Maritime Equity Corp. – National Development Corp. (MEC-NDC), was recently registered with the Securities and Exchange Commission (SEC). It is a wholly-owned government corporation under the NDC.
The MEC-NDC will only entertain applications for ship acquisition that will ply 18 to 20 identified missionary routes. Missionary routes are shipping lanes connecting freight and human traffic with huge growth potential but are not serviced by existing private shipowners and operators.
Prospective operators of any of the identified missionary routes can apply with MEC-NDC, which will then coordinate with technical and finance experts of the Development Bank of the Philippines (DBP). The DBP will extend the loan to MEC-NDC for the acquisition.
"Initially, the DBP has set aside P2 billion for the program covering at least 18 ro/ro vessels," DBP senior vice president Mar Enecio said.
Enecio said government has already identified 18 to 20 missionary routes in Bicol, Palawan, Mindoro, the Visayas, and Mindanao.
Meanwhile, the lease purchase agreement requires applicants to make a deposit of roughly 10 percent of the value of the acquisition and subsequently pay a monthly "rent."
The total payment period will depend primarily on the cost of the ro/ro vessel and the estimated earnings from plying the route which could run from six months to 36 months.
In line with the vessel acquisition program, the DBP has also been coordinating with local government units (LGUs), the Philippine Ports Authority (PPA), the Cebu Port Authority (CPA), and the Maritime Industry Authority (Marina) in the identified missionary routes for talks or actual work on the development or upgrading of land-based facilities for ro/ro operations.
The entire ro/ro vessel acquisition program is part of the DBP’s Road Roll-On Roll-Off (ro/ro) Terminal System (RRTS), which is part of the Sustainable Logistics Development Program (SLDP) of the Arroyo administration.