Philippine Shipbuilding

The Philippines overtook European countries and became the world’s fourth largest shipbuilding nation in 2010, following South Korea, China and Japan, in terms of newbuilding completion volume. This was attributable to the expanded construction volume of the local Philippine shipyards. The major shipyards in the Philippines are Japan’s Tsuneishi Heavy industries (Cebu) Inc. (THICI) in Balamban, Cebu operated by Tsuneishi Holding Corp. and South Korea’s Hanjin Heavy Industries and Construction (HHIC Philippines established by HHIC at Subic Bay.

The Philippines has been of good standing in the aspect of shipbuilding investments. We gained the rank as one of the world's biggest  shipbuilding nations made by giant names of shipbuilding companies in the world.  This condition can turn to be an advantage for the national government as well as to pertain to our naval ship development and  needs f or acquisitions in the navy.   The situation as an advantage that will save more for the country as thee companies can answer the call to respond to our naval shipbuilding capabilities. It is not impossible and as is it not difficult to turn these yards into a naval making companies for an orthodox statement.

In the five years since 2005, the emerging shipbuilding nations, like India, Vietnam, Philippines and Brazil, acquired a dominant position posing as potential threat as well as opportunity for the existing shipbuilding nations. Philippine shipyards are building more ships of larger tonnage capacities like bulk carriers, container ships and big passenger ferries. The construction at the Subic Bay Freeport of a $68 million Turkish-owned commercial ship by Hanjin Heavy Industries Corporation, a South Korean shipbuilding giant, shows that the Philippines can really build world-class ocean-going vessels.

The Philippines manifested a unique presence in the market as a production base of shipyards from developed countries. According to IHS Fairplay statistics (formerly Lloyd’s Register), 19 newbuildings of 710,000 gross registered tons (GRT) were completed in the Philippines from January to June 2010 alone. As for the major shipbuilding countries in Europe, Germany completed 490,000 GRT, while Italy and Romania completed 470,000 GRT and 320,000 GRT respectively. Newbuilding completions in Taiwan, Vietnam and Turkey also shrank, driving the Philippines to surpass these countries. South Korea, Japan and China will remain the three shipbuilding giants in the industry.

The shipbuilding industry refers to the sector involved in the construction, launching, and outfitting of watercrafts, while the ship repair industry deals with the overhaul, improvement, alteration, and reconditioning of water vessels. The Philippines now ranks No. 4 among the largest shipbuilding nations in the world. South Korea, China and Japan, are first, second and third largest shipbuilding nations worldwide. The arrival of foreign shipbuilders in the Philippines propelled the export growth of Philippine-made ships in the international market.

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