Singaporeans to invest US$ 400-M US in Cebu shipbuilding industry

Cebu’s shipbuilding industry has attracted two Singaporean firms which are planning to invest about US$ 400 million or roughly P19 billion in the fast-growing industry, a Maritime Industry Authority (Marina) official said.

Marina Administrator Vicente Suazo said he will facilitate the meetings between the Singaporean investors and the National Maritime Leasing Corp. (NMLC) and the Philippine Import-Export Credit Agency (Philexim).

He said the NMLC, a subsidiary of the National Development Council, a Philexim can give sovereign guarantee to assure the Singaporean investors that their investments are safe in the Philippines.

”I will facilitate meetings for these sovereign guarantors and investors to fast-track the placing of investments for shipyard, shipbuilding and ship repair that will not only provide revenues for the government but create employment,” Suazo said.

Suazo declined to name the two Singaporean firms, but said one firm, will invest US$ 300 million and the other US$ 100 million.

He said he recently went to Singapore to conduct a campaign to attract foreign investments in the country’s shipping industry.

He said the campaign is in line with President Gloria Macapagal Arroyo’s directive, as provided under Executive Order 588, to invite foreign investments to modernize the industry, and eradicate second-hand and dilapidated vessels plying various routes in the country.

He said dilapidated vessels endanger the lives of the passengers.

The shipping and repair industries in Cebu are dominated by Keppel Cebu Shipyard and Engineering Works Inc., a Singaporean company; and Tsuneishi Heavy Industries, a Filipino-Japanese joint venture.

Keppel Cebu Shipyard and Engineering Works Inc. is into ship repair and shipbuilding. Last Sept. 29, 2006, it conducted keel laying for the building of two giant tug boats. (PNA)