The Philippines’ Maritime Industry Authority (Marina) recorded revenues of P901.121 million in 2017, 21% lower than the P1.14 billion generated in 2016 but 3% higher than the P872.098 million target for the period.
Tonnage fees collected last year reached P67.885 million, 11.5% up from the P60.882 million recorded in 2016, and beating the P60 million target by 13%, the maritime authority said in its 2017 accomplishment report.
In terms of operations, ships registered in 2017 reached 11,207, or a 255% increase from the target 3,158 ship registration issuances for the year but 24% lower than the 14,757 ship registrations recorded in 2016.
Marina attributed the beating of the ship registry target last year to its continued undertaking of mobile registration and licensing to achieve zero percent illegal/colorum operation of motor bancas and fishing boats that are 35 gross tonnage (GT) and below, and to issuing the necessary documents to crews manning these vessels.
Issued certificates, permits and licenses last year rose 32% to 78,571, up from the 59,351 recorded in 2016. The 2017 record is also 18% higher than the target of 66,505.
Marina audited 769 ships/companies in 2017, falling 6% short of the 821 target although 3% higher than the 743 audits conducted the preceding year.
The maritime authority last year issued Marina Circular (MC) No. 2017-04, which prohibits the importation of passenger ships more than 20 years old and/or less than 500 GT.
Marina said MC 2017-04 serves as one of the policies pushing for newer, bigger, and more advanced passenger ships to ensure the continued viability of domestic shipping operations through more cost-efficient operations. The policy also aims to encourage the development of a viable local shipbuilding and ship repair industry.
Marina last year also conducted a preliminary study on the impact of vessel retirement/replacement on roll-on/roll-off (Ro-Ro) vessels nationwide and on the Ro-Ro Terminal System (RRTS) routes.
According to the study, the move will affect a total of 200 vessels from 35 years to 45 years of age and require P71.5 billion for the replacement/retirement program.
To address the need to increase incentives for the ship modernization program, Marina last year issued Marina Advisory (MA) No. 2017-17 providing guidelines on the issuance of Marina endorsement for the exemption from payment of value-added tax for the sale, importation, or lease of passenger or cargo vessels, including their engine, equipment, and spare parts, for domestic or international transport operations. Marina noted that since 2014, ship owners have not availed of the VAT exemption for the importation or acquisition of new ships under Republic Act No. 9295, or the Domestic Shipping Act of 2004.
Marina said that since issuing MA 2017-17, it has released six endorsements to the Department of Finance, of which one was for a passenger ship, three were for tankers and two for cargo ships.
For industry development, Marina conducted domestic shipping situationer and roadmapping workshops on the 10-Year Maritime Industry Development Program to identify various challenges in particular sectors, as well as present the recommended strategies and programs to overcome such challenges and achieve the identified objectives of the domestic shipping sector.
The maritime authority also coordinated with the Department of Tourism “to better understand and appreciate the necessary Marina support for the development of the cruise tourism industry in the Philippines, in line with the Philippine Cruise Tourism Strategic Plan.”
A draft Marina policy on the acquisition and operation of cruise ships, both Philippine and foreign registered, has also been completed.
In 2017, Marina also reconstituted the Shipbuilding and Ship Repair-Technical Working Committee to review recommendations and draft policies submitted by its attached technical working groups and will be issuing the final recommendations and draft policies.
Marina said it is “optimistic that the gains of the maritime industry over the past several decades shall be sustained and the difficult challenges ahead surmounted, particularly the country’s effort to address safety of navigation in the domestic waters, to promote investment opportunities in domestic shipping, and to meet the international standards of maritime education, training and certification of Filipino seafarers.” – Roumina Pablo
