Roro demand boosts Philippines shipyards

The Philippine government initiative in 2004 to link the islands of the country through a system of roro shipping, known as the Strong Republic Nautical Highway System, has given local shipbuilders a boost.

The Strong Republic Nautical Highway System has three routes that connect several islands, from Manila all the way to Zamboanga City on the island of Mindanao in the southern Philippines. In her speech before the Philippine congress last year, President Gloria Macapagal Arroyo said the system was in line with her goal to “link the entire country through a network of transport infrastructure.”

She has encouraged shipping companies and local governments to invest in RoRo facilities, and in 2004 she announced a $535 million financing program undertaken by the Development Bank of the Philippines. The administration has been trying to improve the roads on these routes and upgrade ports and several shipping companies have agreed to serve the routes.

Foreign shipbuilders have pledged to invest millions of dollars in the RoRo system. Three Japanese shipbuilders, according to the Philippine Maritime Authority, have signaled their intention to invest in shipbuilding and ship repair in the central Philippines. Executives from these companies, which the authority did not name, are scheduled to visit the country next month.

In 1994, the Japanese shipbuilder, Tsuneishi Heavy Industries, joined with a local shipping giant, Aboitiz, to construct a $60 million shipyard that would partly serve the RoRo sector. The German shipbuilding group, Thyssen Krupp Marine System, will present its own investment proposal to set up a shipyard to the Philippine government this year, according to news reports.