Home » Maritime » P259M PH shipyard gets incentives

The Philippine Board of Investments (BOI) recently approved the grant of fiscal incentives to a Filipino-owned shipyard that will start commercial operations in June 2013.

In exchange for investments of P259 million, Nautilus Shipyard and Repair, Inc. will enjoy income-tax holidays and duty-free importation of capital equipment.

The Navotas-based yard, with a berthing capacity of 7,500 deadweight tons, will be able to repair annually up to 96 vessels, each 45-feet wide and with a capacity of 600 tons.

Nautilus Shipyard is a member of the Metro Manila Shipyard Association, Inc (MMSAI) whose other members include Elfa Shipyard Corp., Frabelle Shipyard Corp., Pier 44 Shipyard and Development Corp., R&LT Shipyard and Realty Development Corp., P. Roque Shipyard, RBL Shipyard Corp., Jocfer Marine Corp., Western Shipyard Services, Inc., Asian Slipway Corp., and Josefa Slipways, Inc. Most of these yards maintain facilities in the Navotas area.

While shipbuilding is part of the Philippines’ 2012 Investment Priorities Plan, local yard operators, including MMSAI, claim the sector needs more government attention.

Local operators complain of lack of access to funds, and of state programs with a bias toward foreign shipyards.

The Maritime Industry Authority (Marina), the agency tasked to license and monitor

shipyards, contends there are ready programs expected to benefit local yard operators, including implementation of the Mandatory Vessel Retirement Program under Republic Act 9295, which will retire old and unclassed ships; and adoption of the double-hull requirement on domestic tankers.

Marina said it is also offering incentives such as exemption from import duties and taxes and contractor’s percentage tax as well as support, financing, equities/loans and guarantees to shipyard operators.

Image courtesy of njaj / FreeDigitalPhotos.net

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