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Philippine shipyards built 517 ships for domestic use and export in 2025, up 2.2% from the 506 ships in 2024
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Of the total, 512 were locally constructed vessels for domestic use, up 5.8% year-on-year, while vessels for export went down 77.3% to just five vessels
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There were 134 registered and licensed shipyards operating nationwide in 2025, up 2.3% from 131 in 2024
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In terms of workforce, the shipbuilding and ship repair sector employs a total of 11,449 personnel in 2025, 5% higher year-on-year
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Approximately 95% of the shipyards are primarily engaged in ship repair and maintenance services
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Domestic shipbuilding continues to be undertaken mainly by Class B and C shipyards while only a relatively small number of Class A large, internationally-affiliated shipyards are engaged in constructing ocean-going vessels for foreign flags, highlighting the opportunity to further expand higher value ship building activities
Philippine shipyards built 517 ships for domestic use and export in 2025, up 2.2% from the 506 ships in 2024, according to the Maritime Industry Authority (MARINA).
Of the total, 512 locally constructed vessels (LCVs) were for domestic use, 5.8% higher than the 484 ships in 2024, according to Alfio Galano, Shipyards Regulation Service shipping operations specialist II, MARINA, at a technical forum in the recent 11th Philmarine Conference.
For 2025, passenger ships dominated with 179 ships, outpacing fishing vessels with just 168 ships. It also included 32 cargo ships, seven barges, five tankers, four tugs/dredgers, and 117 other types of vessels.
On the export side, only five LCVs were built in 2025, which included three cargo ships and two bulk carriers. It was down 77.3% from 22 LCVs for export in 2024.
READ: PH shipyards build 4% more vessels in 2024
In terms of tonnage, LCVs for domestic use had a total of 35,576.45 gross tonnage (GT) in 2025, down from 48,221 GT in 2024; and vessels for export, 198,866.82 GT, down from 1.7 million GT in 2024.
There were 134 registered and licensed shipyards operating nationwide in 2025, up 2.3% from 131 in 2024.
This consists of eight Class A shipyards, which are capable of constructing and repairing large vessels at least 130 meters in length; 26 Class B shipyards that can handle up to 129 meters; and 100 Class C shipyards that can handle up to 80 meters.
Complementing these are 146 boat builders (same as in 2024), 113 afloat ship repairers (down from 120), and nine ship breakers (down from 11).
Shipyard rehabilitation
In terms of infrastructure, Galano said the majority or 70% of Philippine shipyards continue to utilize slipways for repair and drydocking operations, particularly among Class C facilities.
Facility assessment, however, indicates that nearly 66% shipyard facilities require rehabilitation.
“Aging equipment and limited capital investment can constrain productivity and adoption of advanced technologies,” Galano noted.
In terms of workforce, the shipbuilding and ship repair (SBSR) sector employs a total of 11,449 personnel, 5% higher than the 10,899 in 2024.
Based on the 2025 Organisation for Economic Co-operation and Development (OECD) peer review of the Philippine shipbuilding industry, the domestic SBSR sector remains predominantly repair oriented.
Approximately 95% of the shipyards are primarily engaged in ship repair and maintenance services, “reflecting the strong demand for vessel maintenance in support of domestic shipping and fisheries,” Galano noted.
Domestic shipbuilding continues to be undertaken mainly by Class B and C shipyards while only a relatively small number of Class A large, internationally affiliated shipyards are engaged in constructing ocean-going vessels for foreign flags.
“This highlights the opportunity to further expand higher value ship building activities in the Philippines,” Galano said.
READ: PH 2026 investment priority plan covers logistics, shipbuilding
He added that despite its strengths and long-standing presence in the global shipbuilding scene, the SBSR industry continues to face several structural challenges.
Galano said one of the primary concerns is infrastructure limitations, as many shipyards still use aging facilities and equipment, making modernization necessary to improve efficiency and competitiveness.
Another challenge is heavy reliance on imported materials, machinery and components. He said strengthening local suppliers can reduce costs and improve supply chain resilience.
Investment in research, innovation, and digitalization also remain limited, slowing productivity and technological advancement.
READ: PEZA courts global shipbuilders with incentives
As global standards shift toward greener shipping, Galano said Philippine shipyards must adapt to cleaner and more sustainable technologies. Workers also need continuous upscaling to keep pace with automation and modern shipbuilding technologies.
Moreover, there is a need to streamline regulatory and administrative processes to create a more efficient and investment friendly business environment.
Looking ahead, Galano said the 2025 OECD peer review outlines a clear roadmap for strengthening the Philippine SBSR industry.
These include continued modernization in shipyard infrastructure to improve productivity and meet international standards, as well as development of stronger local supply chains to reduce reliance on imported materials and improve industry resilience.
Greater investment in research, innovation, automation, and digitalization will also enable local shipyards to compete more effectively in a rapidly evolving global market.
Galano said the OECD report also emphasizes the need to accelerate sustainability, and decarbonization efforts promote greener and more energy-efficient ship building. Equally important is workforce upscale to equip workers with advanced technical and digital skills
Lastly, regulatory reforms should continue to simplify administrative processes and provide greater certainty for investors, while strong public private partnerships can foster collaboration among government agencies, educational institutions, industry stakeholders and private investors.
“By pursuing these strategic priorities, the Philippines can transform its SBSR sector into a more innovative, competitive, sustainable and globally recognized maritime industry,” Galano said.
Relatedly, MARINA’s Maritime Industry Development Plan 2028 supports the modernization and growth of the Philippine SBSR industry and applies a clear development direction that moves the industry from its current limitations towards long-term growth and sustainability.
MARINA is also pushing for the enactment into law of the SBSR Development Act, which aims to employ a whole-of-government approach to create a policy environment conducive for the overall development of the industry.— Roumina Pablo
