Cebu strengthens maritime sector in blue economy growth

CEBU's shipping, shipbuilding and maritime transport sectors are critical to the Philippines' blue economy, driving regional trade and economic growth.

Experts at a symposium hosted by the Philippine APEC Study Center Network (PASCN) of the Philippine Institute for Development Studies (PIDS) and the University of San Carlos (USC) emphasized the province's strategic role in sustaining ocean-based industries.

Dr. Julius Relampagos, chairman of USC's Department of Economics, highlighted Cebu's position as a shipping hub, accounting for over 80 percent of the country's inter-island shipping capacity and significantly contributing to trade and logistics.

Cebu also leads the nation's shipbuilding sector, housing 22 of the Philippines' 124 shipyards, supporting vessel construction, repair and marine manufacturing. These industries collectively contribute 8-10 percent of the country's GDP.

Port expansion and shipbuilding investments have fueled Cebu's economic growth, with the construction sector growing by 12.7 percent in 2023.

Demand for vessels, marine propulsion systems, and port infrastructure has driven industrial activity, enhancing connectivity and trade efficiency within the Visayas and beyond.

Maritime transport remains a backbone of Cebu's economy, linking the island to major domestic and international markets. Efficient shipping operations support trade, fisheries, and coastal tourism, which accounted for 17.4 percent of all air tourist arrivals in 2023. Marine cables connecting Cebu to nearby islands also facilitate energy sharing and support the shift to renewable ocean energy.

Relampagos stressed that while Cebu's maritime industries drive economic expansion, sustainability must be prioritized. Managing carbon emissions, marine pollution, and resource depletion is essential to maintaining long-term growth. He noted that balancing industrial progress with environmental stewardship is key to securing the sector's future.

"The concept of a blue economy presupposes that sustainability principles are incorporated in all ocean-based economic activities," Relampagos explained.

The Asean Blue Economy Framework offers a roadmap for sustainable maritime development. By aligning with its principles, Cebu can reinforce its position as a leading maritime hub, ensuring long-term resilience and inclusive growth in shipping, shipbuilding and maritime transport.

"The Asean defines the blue economy as a new engine for future growth, covering both upstream and downstream sectors," he stated.