MARINA wants P1 billion loan

Updated March 20, 2009 12:00 AM

CEBU, Philippines - The Maritime Industry Authority through its administrator Ma. Elena Bautista plans to ask President Gloria Arroyo for a P1 billion loan to further improve the local drydocking industry in Cebu, following the decision of Keppel Philippines Marine Inc. to shift from ship repair to shipbuilding.

Bautista, in a meeting with Cebu’s shipyards operators at Club Ultima yesterday, said that the local drydocking industry cannot expand and cannot be at par with bigtime ship repair operators due to lack of funding.

The loan can be made payable at a minimum interest.

“We cannot expand our business because we have no financial capacity to finance. We are not given any subsidy or any financial assistance from the government,” said Eriberto Chua, owner of Colorado Shipyard.

There are seven companies offering drydocking services here in Cebu.

Meanwhile, Keppel president Ko-Lin Toh appealed to the worker’s union not to pursue with its plan to hold a strike as this would surely disrupt their operations.

Toh said the decision to shift from ship repair to shipbuilding is a purely business decision and many of its workers whose skills are not compatible with the ship building operations will be terminated.

Keppel’s workers union, the Nagkahiusang Mamumuo sa Baradero (Keppel Shipyard)-National Federation of Labor, has accused the management of using the global economic crisis as an excuse to bust the union.

“No, that is not true. It’s a business decision. We have no plans of busting the union,” Toh said.

Union president Roger Igot said 70 percent of the 279 rank-and-file union members are now on the verge of losing their jobs.

Keppel has around 400 employees, including those in supervisory and managerial positions.— Mitchelle L. Palaubsanon/BRP(THE FREEMAN)