RD Group to investing P250M on shipyard expansion

A homegrown ship builder is investing P250 million for a new facility in nearby Maasim town to take advantage of growing transportation demand in the region. Gensan Shipyard and Marine Works, Inc., a subsidiary of the RD Group of Companies, is building twin slipways with a combined capacity of 10,000 gross tons, which will become biggest in Mindanao.
The company has two existing floating dry docks with a combined lifting capacity of 4,000 tons, occupying an area of approximately 185,000 square meters.
"Vertical and horizontal" developments are at various stages of construction.
The new facility is expected to cater to the transportation and logistics needs of the Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA).
"The Philippines and most of the ASEAN (Association of Southeast Asian Nations) need ships and vessels to transport their products. By expanding our business reach within the region, Gensan Shipyard and all member-companies in the RD Group are paving the way for other investors, both local and foreign, to invest in the province of Sarangani and partner for economic development" said Rodrigo E. Rivera Sr., RD Group chairman and chief executive officer.
When completed and fully operational, the shipbuilding project will generate 700 jobs, he said, and this would contribute to the government’s bid to pump-prime the domestic economy amid the global economic downturn.
Mr. Rivera said the project is also aimed at supporting the Roll-on Roll-off (RoRo) sea transport program of the government. The project is also expected to contribute to the development of the Maasim-Kiamba-Maitum or Makima growth area within BIMP-EAGA.
Virgilio L. Leyretana, Sr., chairman of the Mindanao Economic Development Council, described the groundbreaking of the shipyard facility as a "milestone for Mindanao."
"We need more of these initiatives in our effort to enhance transportation of goods and commodities and push for the connectivity of our transport sector in Mindanao to the rest of BIMP-EAGA," Mr. Leyretana said.
As of the third quarter of 2008, Mindanao has attracted P10.583 billion in investments, double the level in 2007, data showed.
The new shipbuilding project will initially bring foreign exchange of $1.5 million, and this will go up by 20% annually, Gensan Shipyard said in a statement.