Major shipping park eyed in North Cebu

CEBU, Philippines — The Philippine Coastwise Shipping Association (PCSA) is exploring the establishment of a maritime industrial park in Northern Cebu to help address the shortage of shipyards and ship repair facilities in the country, particularly in Cebu.

The proposal was discussed during the PCSA's General Assembly, held on October 23, 2026, under the theme “One Nation, One Network: Lower Logistical Costs, Lower Inflation.”

PCSA President Paul Rodriguez said during an open forum that the group was in talks with Cebu Governor Pamela Baricuatro regarding the proposed development.

PCSA Chairman Lucio Lim Jr. said the country had not seen enough new shipyards established in recent years despite the growing number of vessels requiring regular maintenance and inspection.

“There is a severe lack of shipyard, ship repair facilities now, not only in Cebu, all over the country for that matter,” Lim told reporters.

He said the shortage was particularly concerning in Cebu because of its central role in the country's shipping industry.

Lim explained that passenger and cargo vessels are required to undergo dry-docking every two years for mandatory inspections of their underwater structures, propulsion systems, and propellers.

However, he said the development of new shipyards had not kept pace with the number of vessels operating in the country.

Over the past decade, only a few new shipyards had been established in Cebu, Lim said, describing the limited number of facilities as a problem for the shipping industry.

The proposed maritime industrial park is being considered as a way to make it easier for investors to establish shipyards by addressing regulatory and land-conversion concerns.

Lim said some property owners seeking to develop industrial facilities had encountered difficulties securing the necessary government approvals to convert agricultural land for industrial use.

He cited the experience of an investor in Tabogon whose mayor had expressed willingness to support a proposed investment, including the land-use planning and conversion process.

However, Lim said the process dragged on for three years, with the matter eventually reaching government offices in Manila.

He attributed part of the delay to restrictions on land conversion, saying the implementation of a blanket suspension had affected projects even in areas where agricultural activity was limited.

The proposed maritime industrial park could help address such obstacles by designating an area for maritime-related industries and streamlining the approval process.

During the discussion, Lim said the group was working on the proposal with the provincial government, although he did not provide a timeline for its implementation.

He also pointed to the need for suitable sites that investors could lease or acquire for shipyard operations, saying access to available industrial land was becoming a concern.

Lim also mentioned the effects of Typhoon Tino, saying storm surges caused vessels to collide with piers as water levels rose.

The PCSA's proposal for a maritime industrial park comes as the association pushes for broader measures to reduce logistics costs, including better transport connectivity and the removal of roll-on/roll-off terminal fees.

PCSA EYES EXPRESSWAYS, LOWER RORO FEES

The maritime industry is also urging Malacañang to study the construction of strategic expressways across the Visayas and Mindanao to improve connectivity, reduce logistics costs, and ease inflationary pressures.

Lim Jr. raised the initiative, saying it could become a lasting legacy of President Ferdinand Marcos Jr.’s administration.

"PCSA respectfully submits that one of the most enduring legacies could be the initiation of a comprehensive feasibility study for an enhanced and efficient national logistical network of expressways that will speed-up connectivity between Luzon, Visayas and Mindanao," said Lim in his speech.

Lim said the concentration of manufacturing hubs in Metro Manila and CALABARZON contributed to higher transportation costs and longer delivery times for goods shipped to the Visayas and Mindanao.

Among the proposed corridors are a 230-kilometer expressway connecting Bogo City to Santander in Cebu, a 214-kilometer route from Caticlan in Aklan to Iloilo City, and a 391-kilometer corridor linking Surigao City to Davao City.

Lim said a comprehensive feasibility study should be undertaken, with funding potentially sourced through public-private partnerships or long-term congressional appropriations.

The PCSA also proposed treating roll-on/roll-off (RoRo) vessels as bridges and their ports as extensions of the national highway network. It called for the removal of RoRo terminal fees to reduce the cost of transporting goods.

Lim said these charges accounted for about 5% to 10% of the total freight cost for a 10-wheeler truck and could reach 15% on some short-haul routes. The additional expenses are eventually passed on to consumers through higher commodity prices.

Lim said the proposed changes would position RoRo facilities as public connectivity infrastructure rather than revenue-generating terminals, supporting the PCSA’s call for a “One Nation, One Network” transport system to improve the movement of goods and strengthen economic opportunities across the country. (CEBU NEWS)