President Ferdinand Marcos Jr.’s Vision for the Philippines’ Shipbuilding Industry
President Ferdinand Marcos Jr. expressed optimism about the Philippines’ potential to reclaim its position in the global shipbuilding industry. He highlighted the significant investments from Cerberus Global Investment LLC and HD Hyundai Heavy Industries as key drivers for this resurgence.
In his address during the announcement of the partnership between Cerberus and HD Hyundai in Subic, President Marcos emphasized that these investments would not only create thousands of job opportunities but also facilitate the transfer of crucial skills, ultimately enhancing the Philippines’ standing in the global market.
President Marcos stated, “We welcome Hyundai’s investment, which will not only pave the way for the growth of our offshore wind industry but also revive maritime manufacturing in Subic, thereby restoring the glory days of shipbuilding to our shores.”
Expanding Opportunities and Diversifying Investments
The President also expressed enthusiasm for Cerberus’ plans, particularly its interest in microelectronics, semiconductors, and critical metals. Since acquiring the Aguila Subic shipyard in April 2022, Cerberus has been actively revitalizing the shipyard. Their efforts have attracted other tenants, including Sancom, a leading subsea cable company, and V2X, a global logistics corporation. Additionally, Cerberus has collaborated with the Philippine Navy to establish a world-class operating base, further contributing to the development of multiple sectors.
President Marcos commended Cerberus for its track record and anticipated that the firm’s involvement would significantly drive growth and development across various industries.
Empowering the Filipino Workforce and Fostering Collaboration
President Marcos encouraged HD Hyundai to collaborate with the Commission on Higher Education and the Technical Education and Skills Development Authority to identify projects for the development of the local workforce. He emphasized that beyond bringing their technical expertise, HD Hyundai should also embrace the dedication, compassion, and strong work ethic that define the Filipino workforce.
Recognizing HD Hyundai’s stature as one of the world’s leading ship producers, President Marcos expressed eagerness to usher in a new era of shipbuilding in the country through this partnership.
In 2022, President Marcos noted that the Philippines ranked as the seventh-largest shipbuilder globally, contributing nearly 400,000 gross tons of newly built sea and ocean-going vessels. With the support of Cerberus and HD Hyundai, he envisioned a fresh start and a robust foundation for the Philippines to emerge as one of the largest and most influential shipbuilders worldwide.
President Marcos highlighted the Philippines’ position as the primary source of competent and skilled seafarers globally and emphasized the need for the country to transition to producing ships manned by Filipinos.
Notably, HD Hyundai, known for delivering the Philippine Navy’s first guided missile frigate in 2020, secured a P30 billion ($537 million) contract to construct six patrol vessels. On the other hand, Cerberus, a prominent global alternative investment firm, acquired the Subic shipyard in 2022 and has invested $40 million to restore its operational capabilities.
Investing in Talent and Workforce Development
President Marcos also encouraged HD Hyundai to collaborate with the Commission on Higher Education and the Technical Skills Development Authority to identify projects that will nurture the country’s talented workforce. He emphasized that the Filipino workers’ dedication, compassion, and strong work ethic will be invaluable assets to HD Hyundai’s operations.
“They will not only bring their skills to your company but the brand of dedication, compassion, and hard work that has become the trademark of the Filipino worker,” the President said, expressing his confidence in the capabilities of the local talent pool.
As one of the world’s largest ship producers, HD Hyundai’s partnership with the Philippines is expected to usher in a new era of shipbuilding for the country. In 2022, the Philippines ranked as the seventh-largest shipbuilder, contributing almost 400,000 gross tons of newly built sea and ocean-going vessels.
Realizing the Vision of Global Leadership
President Marcos emphasized that with the initiatives of Cerberus and HD Hyundai, the Philippines will have a fresh start and a strong foundation to realize its vision of becoming one of the largest and most influential shipbuilders in the world.
“With this initiative of Cerberus and HD Hyundai, we will have a fresh start and a strong foundation in realizing our vision to be amongst the largest and most consequential shipbuilders in the world,” the President said.
The President noted that the Philippines has already established its position as the largest source of competent and able seafarers globally, and the next logical step is to ensure that the ships operated by Filipinos can also be made by Filipinos.
Leveraging Existing Strengths and Partnerships
The President’s optimism is further supported by existing partnerships and contracts. HD Hyundai, which in 2020 delivered the Philippine Navy’s first guided missile frigate, has won a ₱30 billion (approximately $537 million) contract to build six patrol vessels for the country.
On the other hand, Cerberus, a global alternative investment firm, acquired the Subic shipyard in 2022 and has invested $40 million to make the shipyard operational again. This strategic move by Cerberus aligns with the government’s efforts to revitalize the shipbuilding industry and position the Philippines as a global player.
President Marcos’ speech highlighted the government’s commitment to fostering an enabling environment for these strategic partnerships to thrive. By leveraging the country’s existing strengths, such as its skilled workforce and established position in the global maritime industry, the Philippines aims to regain its prominence in the shipbuilding sector.
Navigating Regulatory Challenges and Embracing Innovation
Beyond the investment announcements, the President’s speech touched on the need to address regulatory challenges and embrace innovative solutions to drive the industry’s growth. He recognized that the path to restoring the Philippines’ shipbuilding prowess would require a comprehensive approach, including streamlining bureaucratic processes, updating industry-specific regulations, and fostering an environment conducive to technological advancements.
The President’s emphasis on innovation and adaptation suggests a broader vision for the Philippines’ maritime industry. By harnessing the expertise and resources of global players like Cerberus and HD Hyundai, the government aims to not only revive the shipbuilding industry but also position the country as a hub for cutting-edge maritime technologies, renewable energy solutions, and sustainable logistics.
This multifaceted approach, combining strategic partnerships, workforce development, and regulatory reforms, underscores the government’s determination to transform the Philippines into a leading maritime powerhouse, capable of competing on the global stage and delivering high-quality, cost-effective solutions to international clients.
Source: The Manila Times