Philippines looks to cut shipyard red tape as USA steps up involvement
The shipyard at Subic Bay was acquired by the US’ Cerberus capital management in 2022 for USD 300 million (Source: Cerberus)
The Philippines is pairing regulatory reform with new infrastructure investment as it seeks to expand its shipbuilding and shiprepair sector, with fresh US support for the shipyard at the former US naval base in Subic Bay coming as Manila moves to reduce administrative barriers for shipyards.
The US Trade and Development Agency (USTDA) has agreed to fund a feasibility study for the expansion of Subic Drydock Corporation’s repair facilities. The study, to be carried out by California-based DM Consulting, will examine extending the yard’s approach pier by 169 metres, allowing the facility to accommodate larger vessels and undertake repair projects currently restricted by berth and draft limitations.
USTDA said the project would support the development of “secure, robust, and resilient supply chains” and help position Subic Bay as a regional hub for shiprepair and maintenance. Subic Drydock owner Terry Watkins said the extension would strengthen the yard’s ability to serve selected US and Philippine maritime customers while enhancing the region’s repair capacity.
The investment comes as the Maritime Industry Authority (MARINA) and the Anti-Red Tape Authority (ARTA) prepare reforms aimed at making Philippine shipyards more competitive. Proposed measures include a “submit once” policy, parallel processing of applications, a unified tracking system, a ship repair one-stop shop and greater integration between government digital platforms.
MARINA is also migrating its MARINA-BEST platform to cloud infrastructure and aims to have dedicated shipbuilding and shiprepair digital modules fully operational by the end of 2026.
The reform programme follows signs of renewed activity at Subic, where HD Hyundai Heavy Industries Philippines launched the 115,000-dwt Orion Jade in July, marking the return of large-scale commercial shipbuilding to the former Hanjin yard. Industry observers are likely to view the regulatory changes and US-backed infrastructure development as complementary efforts to attract further maritime investment into the Philippines.
