Owners look to low-cost Philippines

RISING labour costs in established Asian repair centres such as Japan, South Korea, Taiwan, Singapore and Hong Kong, are prompting an increasing number of owners and managers to look at low-cost Philippines.

Manuel Sandoval, president of the Philippine Shipbuilding and Repairers Association (Philsar) said the involvement of Singapore's Keppel Group in the Philippines' three big repair yards had given a big boost to the industry.

'Keppel's entry has been a very positive development because the company has a worldwide marketing capability,' he said, adding that 'we are now competitive in the region'.

The Philippines has 83 registered shipyards, most of them small, of which 64 are also engaged in repair work. Of them, 12 primarily do repair work while another 88 companies which do afloat repairs.

Keppel has a substantial stake in, and manages, the Subic Bay Shipyard Corp, which has a 30,000 deadweight tonnes graving dock, three repair berths and repair shops for hull and machinery works.

The company also manages the 20,000 dwt capacity Cebu Shipyard and Engineering Works, which is located in Lapu-Lapu City in central Cebu province.

Keppel is also the majority shareholder in Kepphil Shipyard, which can repair 20,000 dwt vessels, and has three floating docks and a shiplift.