Govt finds profit in idle ships

ABS-CBN News

Posted at Feb 15 2009 03:07 PM | Updated as of Feb 15 2009 11:07 PM

The government can earn as much as $9000 to $12,000 a day just from parked inactive ships, an official said.

Maritime Industry Authority (Marina) Administrator Elena Bautista said the two bays in Davao del Sur province are ideal parking sites for shipping vessels, which have stopped cruising in recent months due to the global financial crisis.

Bautista said several foreign shipping firms are now considering to lay up their ships at Philippine ports because of its wide bays, particularly the Pujada Bay and Malalag Bay in Davao.

These two bays, Bautista said, can accommodate as many as 100 ships at a time at a daily rate of $90 to $120 per vessel. The ships are usually laid up from three to six months until operations normalize, which means more revenue for government.

Bautista said a Greek shipping firm has already parked five vessels at Malalag Bay, while an Israeli company is planning to lay up ten of its ships at Pujada Bay. Other parking sites of foreign vessels include Subic Bay and Cebu, which are already full of ships.