THE Philippine Shipping Coastwise Association (PCSA) has urged the Cebu Province to explore the establishment of another shipyard economic zone in Cebu and develop a north-south accessway linking major ports, saying the projects could attract investments and reduce logistics costs.
Cesar Acosta Licudine, officer-in-charge administrator of the PCSA, made the recommendations during Cebu Economic Forum 4.0 on Tuesday, Sept. 8, 2026, where he cited the province’s role as the country’s major domestic shipping hub.
Licudine said the Philippines had more than 20,000 active ships in 2025, based on Maritime Industry Authority data, but only about 130 shipyards nationwide, many of which need rehabilitation and cater mainly to small vessels.
About 90 percent of shipbuilding is carried out overseas, particularly in other Asian countries, resulting in potential revenues being captured by competing economies, he said.
“On this note, and since Cebu is the major hub of domestic shipping, we recommend exploring the establishment of a shipyard economic zone in Cebu,” Licudine said.
The proposed zone could accommodate shipbuilding, dry docking, shipbreaking, repairs and other maritime-related services, he said.
Such a development could have a significant impact on Cebu’s economy by attracting investments, creating skilled jobs and supporting the expansion of the domestic shipping industry.
Improving connectivity
The PCSA also recommended developing a north-to-south accessway across Cebu, with efficient connections to major ports.
The project would improve the movement of people and goods while reducing logistics costs and strengthening Cebu’s links with other provinces and international markets, Licudine said.
He said improved maritime and land infrastructure could also help ease inflationary pressures by lowering transportation costs, reducing delays and losses, and improving supply-chain efficiency.
“Better ships, better ports, and better roads mean lower logistics costs,” Licudine said.
The PCSA said strengthening Cebu’s maritime infrastructure and land connectivity would help position the province as a major maritime logistics and investment hub.
In June this year, President Ferdinand R. Marcos, Jr. expanded the West Cebu Industrial Park-Special Economic Zone in Balamban, Cebu by more than 64 hectares, adding land to one of the country’s major manufacturing and shipbuilding hubs.
Under Proclamation No. 1288 signed June 3, Marcos designated two parcels totaling 647,229 square meters in Barangay Buanoy for inclusion in the Cebu Special Economic Zone.
The expansion was approved upon the recommendation of the Philippine Economic Zone Authority and will be governed by the Special Economic Zone Act of 1995.
The 540-hectare West Cebu Industrial Park is a joint venture between the Aboitiz Group and Japan-based Tsuneishi Holdings. It hosts global companies and employs more than 14,000 skilled workers, according to Aboitiz Economic Estates.
The ecozone offers registered firms fiscal and nonfiscal incentives, including income tax holidays, preferential corporate tax rates and tax- and duty-free importation of qualified capital equipment and raw materials. / KOC