Navigating the waves of reform for PH maritime sector

CEBU CITY — In an archipelagic nation where waterborne transit acts as the country’s economic lifeblood, lawmakers, maritime regulators, and domestic shipping leaders have convened in Cebu on July 31 for a crucial strategy meeting to address pressing industry bottlenecks, overhaul outdated policies, and chart a course toward a safer, more competitive domestic shipping sector.  

The high-level discussions brought together lawmakers from the House Committee on Transportation, senior officials from the Maritime Industry Authority (MARINA), and executive leadership from the Philippine Coastwise Shipping Association (PCSA)—the nation's largest maritime group representing over 50 companies and a fleet of more than 800 vessels, with honored guest, former president Gloria Macapagal-Aroyo, President Emeritus of the organization.

Opening the proceedings, Rep. Reynante Arrogancia, Vice-Chair of the House Committee on Transportation, praised the shipping sector for maintaining fixed shipping volumes, securing 8,000 jobs, and ensuring the continued vitality of the Strong Republic Nautical Highway.

"We do not view ourselves merely as regulators, but as partners in your growth," Arrogancia affirmed, emphasizing that the primary objective of legislative oversight is to streamline policies, address operational bottlenecks, and modernize the domestic fleet.

Echoing these collaborative sentiments, Adm. Loumer Bernabe, MARINA Deputy Administrator for Operations, commended the PCSA for pushing industry standards forward. Bernabe highlighted the need for rigorous maritime safety regulations and accountability, especially in the wake of recent maritime tragedies, noting that safety and economic viability must go hand-in-hand to safeguard national supply chains and food security.

Rep. Franz Pumaren, Chairman of the House Committee on Transportation, outlined an ambitious legislative agenda designed to modernize maritime governance and enhance safety across the archipelago. Key initiatives currently under committee review include:

Pilotage Reform (House Bill No. 5485): Known as the proposed Open Harbor Pilotage Services Act, this bill aims to curb monopolies, prevent conflicts of interest, and establish transparent rates by creating an independent Pilotage Board.  

National Transportation Safety Board (NTSB): Legislation to create an independent investigative body tasked with conducting impartial inquiries into major transport disasters.

Strengthening Maritime Safety: Amendments to the Domestic Shipping Development Act of 2004 to protect passengers, alongside legislative measures to bolster the Philippine Coast Guard (PCG).

Digital Transformation at MARINA: Upgrading agency capabilities for faster crew certification, digital investor registration, and streamlined compliance tracking.

"Safety and competitiveness are catalysts for each other. Reliable operators earn public confidence and attract long-term investment. Regulation must protect the public while encouraging responsible innovation,” said Pumaren.

 

    PCSA points out regulatory strain and red tape

Despite shared goals for modernization, PCSA President Lucio Lim Jr. presented a candid assessment of the operational crises burdening vessel operators on the ground revealing a critical personnel bottleneck within MARINA staffing shortages, noting the agency currently operates with only 1,200 total staff nationwide—including just 152 qualified inspectors and surveyors—causing severe delays in vessel inspections and documentation processing.

PCSA also criticized redundant Coast Guard clearances policy of physically checking every single vessel prior to departure. Calling the practice inefficient and prone to corruption, Lim advocated for adopting a "master’s code of departure clearance" for cargo vessels to save valuable operational time.

Misapplication of International Conventions, Lim urged regulators to re-evaluate the application of international maritime conventions (such as STCW, MLC, and ISPS) on domestic fleets, pointing out that applying international standards to domestic routes significantly inflates operational costs for local shipowners.

Scrapping the "Rural Terminal Fee".  While praising the efficiency of Roll-on/Roll-off (RoRo) ports for fast inter-island trade, Lim called for the complete abolition of the ₱550 rural terminal fee on freight trucks. Lim noted that terminal fees account for 15% to 25% of total freight costs on short-haul routes, placing Visayas and Mindanao at an economic disadvantage compared to regions served by toll-free national highways.

The meeting concluded with a commitment from congressional leaders to maintain open channels of communication through Technical Working Groups (TWGs) involving port authorities, harbor pilots, shipping operators, and maritime regulators.

By bridging operational realities with legislative policy, both government and private stakeholders aim to build a resilient, modern, and competitive Philippine maritime sector worthy of the commuting public and regional commerce. (Photos: MBCNewman)

PCSA meets with MARINA board in Cebu to address challenges in the shipping industry

CEBU CITY—The Philippine Coastwise Shipping Association, Inc (PCSA) held an extensive meeting with the MARINA board in Cebu on January 27 at Radisson Blu Hotel to discuss and address challenges in the shipping industry.

“This is a historic meeting with the MARINA Board, for the first time that the meeting is held in Cebu, attended by various government agencies and a private sector representative to discuss issues affecting the shipping industry, and the aftermath of the sinking and the suspension of the Alesson shipping company,” PCSA Chairman, Lucio Lim told media in a side interview during the event.

Lim bared that the main issue discussed include the licensing of crew, which has led to a severe shortage due to stringent requirements imposed 15 years ago. In a plenary session, some members of PCSA argue that experience should be valued over formal education for domestic shipping roles.

They also criticize the imposition of penalties and suspensions for accidents, noting that 90% of accidents are due to human error. The meeting aims to advocate for more lenient domestic regulations to alleviate the crew shortage and reduce the impact of penalties on ship owners, Lim said.

“PCSA wants to review several memorandum circulars that the MARINA Board has issued through the years that are related to fines, penalties, and crew licensing for the shipping industry in the Philippines.  MC-109 for instance was issued on July 13, 1995 that establishes a comprehensive schedule of administrative fines and penalties for violations related to vessel registration, licensing, documentation, and safety regulations.  There are more of these MCs that have been issued, revised and amended.  We want to go through them, review then line by line, if possible so we can prepare comments or propose changes to suit a win-win solution for the industry,” Lim told the media.

Department of Transportation (DoTr) Acting Secretary, Atty. Giovanni Lopez, in his keynote message emphasized the importance of maritime security and disaster response. He vowed to support the modernization of the Philippine Coast Guard's assets and personnel, saying, "The DOTr will support and provide the PCG with the resources and infrastructure, as well as policy measures needed to fulfill your mission.”

"We have faced both challenges and opportunities as individual regions, but the call and commitment for a collective Visayas-wide voice, action, and solidarity remain crucial. We should work as one,” Cebu governor Pamela Baricuatro said.   

Lim bared that the Philippine Coastwise Shipping Association, Inc. (PCSA) General Membership Meeting focused on strengthening domestic shipping through government and stakeholder collaboration.

“PCSA advocates for maritime industry governance reform, specifically splitting the Maritime Industry Authority (MARINA) into two entities for international and domestic shipping,” he added that the shortage of qualified crew members is a significant challenge in the shipping industry.”

Meanwhile, the Maritime Industry Authority (MARINA) is proposing stiffer penalties for shipping firms that violate safety and administrative regulations including fines ranging from P100 to P16,000, depending on the vessel's Gross Register Tonnage (GRT) for operating vessels without proper certificates or licenses; False statements or misrepresentations in applications can lead to P10,000 fines and vessels operating without valid insurance or passenger manifests face fines of P10,000 to P30,000.

Unauthorized route changes, port abandonment, or capacity increases can lead to fines of P200 to P2,000 per day and overcapacity and passenger ticket violations can result in fines of P10,000 to indefinite suspension.  Falsification or tampering of documents can lead to fines of up to P200,000; Operating without insurance can result in fines of up to P300,000 and MARINA can also suspend or cancel licenses for repeated offenses.

These issues on fines and penalties were extensively discussed at the plenary session during the meeting as well as in the consultative meeting with the MARINA Board, Lim said that most of these fines and penalties usually result in money losses for the shipping company.

Competency mapping

Lim further said that another crucial challenge of the shipping industry is the issue of competency mapping, a crucial process in the maritime industry, ensuring seafarers possess the required skills and knowledge to perform their duties safely and efficiently.

MARINA introduced competency assessment system (CAS) that integrates theoretical and practical testing to reflect real-world maritime operations, ensuring fair accurate and transparent evaluations.  However, PCSA argues that experience should be valued over formal education for domestic shipping roles.

“These issues of crew licensing, strict requirements over the past 15 years have led to a severe shortage of crew on domestic shipping.  The current licensing rules are seen as anti-poor, as they require college graduates to be seamen, despite STCW allowing for flexibility in rules,” Lim said.

Lim added that “experience” is emphasized as a crucial factor, with domestic shipping allowing individuals with elementary or high school education to become officers.  There is a need for corrections in the licensing rules to allow for more crew and address the shortage.

These complications arose from international conventions which affect domestic shipping regulations.  “The need for circular numbers to clarify and approve the new rules, the impact of these conventions on penalties and fines for violations is a key concern. There is difficulty in navigating the complexities of international and domestic shipping regulations,” Lim added.

PCSA hopes that the Marina Board will provide sufficient time to discuss and address the issues raised, for clearer and practical solutions to the licensing and accident management issues of the domestic shipping industry, Lim concluded. (Photos: MBCNewman)

 

 

 

 

 

 

Shipowners call for the restructuring MARINA

CEBU – The Philippine Coastwise Shipping Association, Inc. (PCSA) called for the restructuring of the Maritime Industry Authority (MARINA)  with the proposal to split MARINA into two separate agencies: one for international shipping and another for domestic operations.

In a General Membership Meeting (GMM), October 10 at Radisson Blu, the PCSA urged Marina to revise its competency standards by giving more weight to hands-on experience rather than purely academic qualifications. Under current rules, a four-year maritime degree is required, which the group says excludes many capable captains and officers.

PCSA chairman Lucio Lim said that Senator Panfilo Lacson supported the proposal that would follow successful models in countries like Japan and Australia, where domestic shipping is governed independently of international maritime regulations. The GMM also focused on the challenges facing the country’s coastwise shipping sector, including regulatory burdens, crew shortages, and safety concerns,

The event also reaffirmed the strong partnership between the Philippine Coast Guard (PCG) and PCSA in ensuring safe, secure, and environmentally responsible maritime operations. Both parties pledged to continue working closely on policy initiatives and sector-specific concerns.

                   Key developments in the Philippine Maritime Industry 

The PCSA continues to advocate for reforms that support the sustainable growth of the domestic shipping industry and promote better working conditions for Filipino seafarers. However, the Philippine Maritime Industry is currently undergoing significant developments and faces a mix of opportunities and challenges.

The Philippines is the world's leading supplier of seafarers, with estimates suggesting one in every four to five seafarers globally is Filipino. The industry’s focus on the seafarers, recognizing their crucial role, there's an emphasis on skills enhancement and adapting to new technologies in the digital age.

The Maritime Industry Development Plan (MIDP) 2028 is the overarching blueprint for the sector's transformation, focusing more on modernization efforts, expanding shipping capacity to meet growing demand for both cargo and passenger transport and developing shipbuilding and repair industries.

 Aiming to reduce reliance on foreign shipbuilders by upgrading local facilities and encouraging public-private partnerships. The Philippines, particularly through shipyards like Tsuneishi Cebu and Austal Philippines, remains a significant player in the global shipbuilding and repair market, holding a substantial share of the Rest of the World (RoW) order book.

Enhancing maritime transport safety and security by implementing stricter regulations to align with international standards and promoting a highly skilled maritime workforce through investing in training programs to ensure Filipino seafarers remain globally competitive and can operate modern vessels, which includes leadership development programs.

The Maritime Industry Authority (MARINA) is currently pursuing the digitalization of its services nationwide, aiming for ISO 9001:2015 certification, and aligning with the International Maritime Organization's (IMO) greenhouse gas (GHG) emissions strategy for environmental sustainability, integrating green practices and aiming for a more sustainable maritime industry.

Digital transformation and innovation—to establish a Sustainable Maritime Innovation Center that would focus on digitalization and research within the sector and government and industry collaboration.  There is increasing collaboration between government agencies like MARINA and the Philippine Coast Guard (PCG) to enhance safety and efficiency.

MARINA is also strengthening ties with international partners like Maersk to advance sustainable practices and the energy transition.  Continued efforts are being made to modernize ports and acquire new vessels for infrastructure development.

On technological advancements, the industry is embracing automation and advanced technologies to improve operational efficiency, safety, and environmental sustainability. This includes the development of local systems like the Automatic Identification System (AIS) for real-time ship tracking and tools for port capacity analysis and energy consumption monitoring.

 

                              Current challenges of the maritime industry

The Philippine maritime industry faces several challenges, one of which is the inefficiencies in Domestic Shipping: Issues like high shipping costs, low service quality, and safety concerns persist in the domestic sector. The market remains concentrated with a few dominant players.

Competition from other Maritime Nations. Other countries are heavily investing in their maritime sectors, increasing competition for the Philippines.  Geopolitical tensions like the disputes in the South China Sea pose risks to shipping routes and the safety of vessels.

Underdeveloped logistics infrastructure and network can lead to delays; Tropical weather such as the rainy season can cause disruptions to shipping schedules.  Waiting time for deployment of Filipino seafarers sometimes face challenges and financial strain while waiting for onboard deployment.

Training Quality Concerns: The European Maritime Safety Agency (EMSA) has raised concerns about the quality of maritime training institutions, potentially creating barriers for Filipino seafarers' employment.  Aging Seafarer population remains a challenge due to the gradual gradual increase in the average age of Filipino seafarers.

Maritime governance capacity gaps: Issues include limited maritime domain awareness, budget constraints for acquiring necessary equipment, and fragmented policy implementation.

PCSA said that the Philippine Maritime Industry is in a dynamic phase, characterized by modernization efforts and a focus on its crucial role in both domestic and international shipping. While challenges remain, the country's strengths, particularly its human capital and strategic location, present significant opportunities for growth and development.