Shipyard ecozone in Cebu pushed to keep maritime billions onshore
Cebu, Philippines—The Philippine Coastwise Shipping Association has proposed the development of a dedicated shipyard economic zone in Cebu to tap into the billions of pesos in maritime business currently being conducted overseas. Cesar Acosta Licudine, the officer-in-charge administrator of the association, emphasized Cebu’s strategic position as the country’s primary domestic shipping hub, making it an ideal location for an integrated maritime industrial zone encompassing shipbuilding, dry-docking, repairs, shipbreaking, and related services.
Capacity Issues in the Philippines’ Shipbuilding Industry
The proposal comes at a time when the Philippines’ domestic shipping industry is facing a fundamental capacity challenge. Despite having more than 20,000 active ships, the country only has around 130 shipyards, as per 2025 data from the Maritime Industry Authority. Many of these facilities are in need of rehabilitation, with a significant portion capable of handling only smaller vessels. This imbalance has led to approximately 90 percent of shipbuilding for Philippine operators being outsourced overseas, predominantly to other Asian markets.
Potential Impact on Cebu’s Economy
Licudine highlighted that establishing a shipyard economic zone in Cebu could have a substantial economic impact on the region. He argued that such a zone could attract investments, generate skilled job opportunities, and provide robust domestic support for the country’s burgeoning shipping industry. During the Cebu Economic Forum hosted by the Cebu Provincial Government, Licudine, along with other participants, discussed potential sites for the zone in northern and southern Cebu, including areas on the eastern side of the province. Major business groups have also shown interest in exploring this prospect.
Conclusion
The proposal aims to transform Cebu from a mere consumer and operating hub for maritime services into a production and maintenance center. Such a shift could not only bolster the local shipping industry but also have cascading effects on other sectors. By developing local capacity for vessel construction and repair, the Philippines can reduce its reliance on foreign shipyards, thereby retaining more maritime spending within the domestic economy. Licudine also emphasized the importance of enhancing connectivity between Cebu’s major ports and industrial/commercial centers to streamline logistics and reduce costs, ultimately benefiting consumers by keeping prices in check.
In conclusion, the establishment of a competitive maritime cluster in Cebu could leverage the province’s existing strengths in shipping, manufacturing, engineering, and education. However, the key challenge lies in translating the proposal into viable projects with the necessary infrastructure, financing, and regulatory framework to attract long-term private investment. If successful, Cebu stands to capture a larger share of the maritime value chain, strengthening its position in the global maritime industry.
