Feature 2 | SOUTH ASIA
• High cost for imported materials used in shipbuilding
• Non-implementing of existing laws and regulations
• Substandard in terms of environmental and HSE measures
• High bureaucracy levels. Te truth is there is a great deal of work
needed to bring all the yards operating in the Philippines up to standard and the first step in building that industry is for government to acknowledge the problems running through the industry and to put measures in place to arrest its slide.
Some of the Philippines’ shipbuilding facilities Hanjin Heavy Industries Corporation Philippines (HHIC Phil) was established in Subic Bay in February 2006. In the same month, the first shipbuilding contract was signed for four container ships. The company’s yard has two of the
largest drydocks in the world. The larger dock was constructed to build supertankers and large bulk carriers but no such vessel has been constructed there and a first order for a VLCC has been cancelled. Te shipyard says 45 vessels are on order for delivery within three years, nine deliveries per year on average compared to 20 in 2014. Numbers of employees vary. A
Philippine government website says HHIC-Phil employed 17,673 staff in September 2013. Figures from the yard itself vary from 20,000 to 24,000 employees. In assessing the yard’s current status it should not be forgotten that the company closed its Korean yard and has pulled out of a major investment project in a Mindanao shipyard due to a bribery scandal. Expansion plans for a third dry dock
have been put on hold. The company had issues with the Subic workforce in the past, and there have been 30 deaths reported since 2006. Further problems with environmentalists have been reported with the risk that HHIC could withdraw from the Philippines remains relatively high. Keppel Subic Shipyard (KSS) (formerly
Subic Shipyard and Engineering, Inc.) Serves ocean going vessels of up to 340,000dwt. It
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Annual Capacity
Types of Vessels & Tonnage
Hanjin Shipyard 18 Vessels
Bulk Carrier 205K DWT
Container 12,800 TEU Tanker 320KDWT
Location
Project Cost Employment
Subic Batangas 5,801
Keppel Shipyard 8 Vessels
Rig Pontoon/Tug Boats
Tsuneishi Shipyard 16 Vessels
Bulk Car-
rier of up to 180K DWT(Cape Size), Car Carrier
Cebu
US$ 1.77 Billion US$ 33.33 Million US$ 267 Million 25,000
13,000
Philippine shipyards are now building more ships of bigger tonnage capacities like bulk carriers, containers and tankers. Source OECD.
provides repair, conversion and building services, tank cleaning, internal tank coating as well as voyage repairs for internal tanks using ultra high pressure. Te graving dock has a capacity of 350m
to 550m in two sections. KSS’s extended drydock is equipped with an intermediate gate that facilitates the effective turnaround of projects. KSS is one of the biggest yards in the
Philippines with a drydock capacity of up to 350,000dwt. A 1,500t gantry crane, the largest in the Philippines, is used to move prefabricated modules for installation on vessels. Te production workforce, including the
managers have been trained in Singapore and Japan. The management provide training to the workforce to continually improve their skills and knowledge. Te Subic yard president stated that the
supply chain is its greatest obstacle in the Philippines. Goods take too long to arrive at the yard, handling costs are very high and, import procedure is complicated. Another significant problem is that many skilled workers are leaving for better paid jobs overseas. In an effort to keep its skilled labour
KSS has established a career programme with rotations to their overseas yards. In general it can be said that with their diverse product range (that is adjusted to market developments ahead of time), their quality management systems, international reputation and competitive price structure the company is well positioned to continue its successful operation in the Philippines. Herma Shipyard, Inc. (HSI) is a Filipino- owned shipyard with a 170,000m2
facility
in Mariveles (Bataan). Herma builds for the fleet of its company owners only. It is evident that business is slow as the current tanker project has taken three years to complete. No other vessels were under construction in June 2014. Te facilities consist of the following: - Graving Dock (Width: 27m, Length: 159.05m, Depth: 12.2m.
- PB 2 (Length: 142m. Depth: 7m) - PB 3 (Length: 149m. Depth: 7.8m) - Slipway (Length: 120m. Width: 20m)
Tsuneishi Heavy Industries (Cebu), Inc
(THICI) builds merchant ships of up to 180,000dwt. THICI’s main facilities are located in a 1.47 million m2
land area
consisting of two slipways, a building dock, a warehouse, an assembly factory, and various workshops and a training centre. Te company says it launches a new vessel every two months. Tis shows a slowdown from the previously stated maximum capacity of 16 vessels per year. It was reported that the company
works with approximately 770 of their own employees and up to 10,000 more sub-contracted workers depending on demand. This, unverified, information would explain the managerial difficulties for ship repair projects. The general downturn in ship deliveries and the fact that Tsuneishi must fill several Chinese yards gives further concerns about the status of the yard. In Japan orders fell 50% in 2014. A good overall point is that Tsuneishi also builds vessels for their own fleet and can sustain a longer draught in completed orders.
Source: Tomas Wissmann The Naval Architect January 2015
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