Shipbuilding industry seen to boost Phl export growth

CEBU, Philippines - Aside from the Business Process Outsourcing (BPO) and the recovering electronics sector, the shipbuilding industry is likewise seen to further boost the export industry in the Philippines.

Department of Trade and Industry (DTI) secretary Gregory Domingo underpinned the promising ship building industry in the Philippines, as one of the export boosters that would bring in more revenue for the country.

Domingo, who recently visited Cebu, said that the government through DTI is strengthening its efforts in looking for additional revenue streams in exports other than BPO, which can bring economic growth faster, and that could be shipbuilding.

“We are now the fourth largest in the world after China, Korea and Japan,” said Domingo adding that Tsuneishi Heavy Industries (Cebu) Inc., located at Balamban in Cebu and Hanjin, are two of the major shipbuilders in the country.

The trade chief added that there are also more companies that are keen on putting up major shipbuilding facilities in the Philippines.

He further pinned hopes on the performance of shipbuilding and nine other export winners for the attainment of doubling exports to US$120 billion by 2016.

Other export winners chosen for their track record and their capacity for higher growth include the BPO and tourism in the services sector, electronics, agribusiness, minerals, motor vehicle parts, garments and wearables, furniture and home furnishings.

Domingo vowed that the government through DTI will continue to provide strong support to big success sectors, including the BPOs and the electronics industry, as well as the further development of the Small and Medium Enterprises (SMEs). 

The government aims to promote investments in the shipbuilding industry by focusing on the identified markets such as Korea and Japan. It expects investments in the industry to grow to P93 billion by 2014.

Meanwhile, in Cebu the Tsuneishi Heavy Industries (Cebu) Inc., THICI located at the West Cebu Industrial Park in the town of Balamban announced a fully-booked of orders until October of 2014.

Since its establishment in 1994, THICI, a joint venture between Japanese-owned Tsuneishi Holdings, and Aboitiz & Co., Inc., built a total of 133 vessels.

In 2008, Tsuneishi reported US$886.813 million worth of exports in 2008. It delivered its 97th vessel in July 2008—the 58,000-deadweight tonnage Medi Segesta to Orient Line Co. Ltd. The P12-billion project was registered with the Board of Investments.

It is a joint venture between Japanese-owned Tsuneishi Holdings which holds 80-percent stake in the company, while Cebu-based Aboitiz & Co. Inc. owns the remaining 20 percent.

Tsuneishi is the single largest employer in western Cebu. It maintain 6,065 contractual workers (most of whom are welders), and 400 regular employees. (FREEMAN)