Home » 3PL/4PL » Keppel: Subic business buoyant

KEPPEL Philippines Marine Inc. (KPMI) sees more activity at its Subic shipyard following government moves to position the freeport as a shipbuilding, ship repair and logistics hub.

Officials of Subic Shipyard and Engineering (SSE), an associate company of KPMI, has laid out plans for a shipyard in Cabangaan Point, Cawag which has a 350,000 dwt capacity graving dock and three quays for berthing and afloat repair.

Keppel sees encouraging prospects for the yard and has braced itself for busy years ahead.

KPMI said Hanjin Heavy Industries, the Korean shipbuilding giant which recently located in Subic, complements its ship repair and conversion projects. Hanjin, it said, caters to large vessel clients while Keppel has its own niche. “Hopefully, they will give to us their ship repair needs,” KPMI said.

The company sees as a good business opportunity the 2008 deadline to convert local single-hull vessels to double-hull vessels but stressed that the Maritime Industry Authority should be strict in implementing the requirement.

SSE’s Subic shipyard is expanding its offshore rig fabrication that marked its debut last year. SSE has clinched two contracts for the construction of mid pontoon sections of semi-submersible oil rigs for GlobalSante Fe and Maersk Contractors which generated P83 million in sales. The two vessels were scheduled for delivery this year.

The shipyard will also be involved in life extension and or conversion of floating storage and offloading (FSO) projects and repair of vessels up to 350,000 dwt.

SSE has already secured contracts beyond the first quarter of 2007 for the drydocking and repair of bulk carriers, container vessels and a car and truck carrier. It has also been working closely with clients in the offshore market to secure more construction projects of semi-submersible rigs in the coming years.

SSE repaired 38 vessels in 2006, all foreign-flagged, down from 50 ships in 2005. Still, 2006 revenues grew due to higher value repair projects.

SSE generated P1.093 billion sales last year, up 10% from P998 million in the previous year.

Ship repair activities generated P999 million while offshore fabrication projects contributed P83 million.

The Subic shipyard has added a covered block assembly facility with mobile sheds, a complete panel line shop, new lifting equipment and barracks in light of its entry into the growing offshore industry.

The ISO-certified yard will also continue to seek out high value opportunities in ship repair and conversion.

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