Herma Group plans to build more ships ahead of Asean integration

MANILA, Philippines - Shipbuilder Herma Group of Companies is planning to build more ships as it sees big opportunity in cargo shipping once the Association of Southeast Asian Nations (ASEAN) economic integration is in place starting next year.

Herma Group  president and CEO Herminio Esguerra said during the launch of its  new  ship  M/Tkr Matapat, the Group wants to take advantage of opportunities offered by the ASEAN integration.

 “The ASEAN integration is the next big challenge for all Filipinos.The Herma Group looks forward to taking advantage of the opportunities that lie ahead,” he said.

Herma Group launched and turned over its 16th vessel – M/Tkr Matapat – from Herma Shipyard Inc. to Herma Shipping and Transport Corp. Herma Shipyard builds international standard tankers while Herma Shipping and Transport provides marine services in the Philippines.

Matapat, the latest addition to the Herma fleet, will cater to the growing requirements of the country for petroleum products.

Herma Group vice chairman Peter Favila told reporters the Group is looking at opportunities available for the Group with the creation of the ASEAN Economic Community (AEC).  “We are looking at market outside of the country especially with the onset of  the ASEAN economic integration,” he said.

By 2015, the ASEAN Economic Community sets in motion the creation of a single market and production base for the 10-nation bloc  with free movement of goods, service, investment, skilled labor and freer flow of capital. ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

 “Within ASEAN, when we start opening borders, if you have your own vessel, we can service needs of other countries,” Favila said.

Favila also said the Group is also looking at building ships  for the government as part of a strategy to diversify from barges and oil tankers.

 “We have capabilities to build such…Maybe we can build new ones using Filipino engineers,” he said.