12 June 2009

Maritime regulator to get JICA help in setting up RP shipbreaking industry:

The Maritime Industry Authority (Marina) announced that it is seeking the assistance of the Japan International Cooperation Agency (JICA) in setting up the country’s shipbreaking industry.

Marina added that JICA has already presented its proposal on how the Philippines should design its shipbreaking industry and that it is confident that the country can set up the appropriate facilities in five years' time or in 2013.

It also stated that JICA is looking for an area in Mindanao as an initial shipbreaking site.

“JICA has already presented to Marina its proposed model for the shipbreaking and recycling industry and we see it as an appropriate model for the Philippines,” the agency further stated.

The Japanese Shipowners Association (JSA) earlier advised Philippine maritime authorities to look into the possibility of setting up its own shipbreaking industry as part of its efforts to combat the global financial crisis.

The JSA added that the ship dismantling is a vital industry nowadays as Japan and other large merchant navy operators is thinking of having their 5 to 10% of their existing fleets scrapped as a cost-cutting measure during the hard economic times.

The association added that shipbreaking industry is an “economic life saver” due to its ability to hire large number of persons needed for the job.

It also stated that a shipbreaking industry is not only useful during times of financial crisis but on good economic times as well as major merchant navies are continuously acquiring new ships to boost the efficiency and productiveness of their fleets.

There are around 5,000 Japanese merchant fleets of all categories from ordinary bulkers, chemical and ore carriers to the largest super tankers in the planet.

Bangladesh and India rank first and second, respectively, in the global shipbreaking industry.

Source: 12 June 2009