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Basilan ship tragedy calls for maritime industry reform

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‘Lack of competition’ delivery of services amid suspension of shipping company

QUEZON CITY – As both Houses of Congress conducted inquiries on the sinking of MV Trisha Kerstin 3 in Basilan, 1Tahanan Party-list Representative Nathan Oducado urged fellow lawmakers to support measures to improve the state of the maritime industry and regulation therein.

“While it is clear that Aleson Shipping is at fault, this is a wake-up call as to the state of the country’s maritime transportation and the maritime industry as a whole,” said Cong. Oducado. “Because of the lack of competition in shipping and transportation, suspensions however warranted hinder the flow of goods and transportation between and among islands in the Philippines.”

Following the sinking of one of its Ro-Ro passenger vessels off Basilan in January 2026, the Department of Transportation (DOTr) suspended the operations of Aleson Shipping Lines while safety audits and inspections are carried out by the Maritime Industry Authority (MARINA) and Philippine Coast Guard (PCG).

“Other shipping companies have been permitted to operate on the routes where Aleson used to maintain sea transport services, but there is a clear lack of other operators who have the capital and capability to service many of the areas where Aleson is active,” Oducado continued.

Based in Zamboanga City, Aleson Shipping operates ferry and cargo connections to and from: the cities of Isabela and Lamitan in Basilan; the islands of Jolo and Siasi in Sulu; Bongao, Tawi-Tawi; and Dapitan City, Zamboanga del Norte. Aleson also operates in Visayas, particularly in Dumaguete City to Siquijor.

“We need to develop our maritime industry, modernize our fleet, and empower companies to invest in ferry and cargo operations, so that domestic trade and transportation will not be held hostage by the suspension of one company,” Cong. Oducado stressed.

Last July, Oducado filed HB 2598, or the Shipbuilding and Ship Repair Development Bill, would create new mandates for the Department of Trade and Industry, Department of Science and Technology, Department of Labor and Employment, and the Technical Education and Skills Development Authority to support research and development, as well as provide institutional support, to the SBSR industry.

“Competition breeds innovation and motivates companies to deliver the best services for the lowest cost to commuters and shippers,” said Oducado. “The lack of competition breeds complacency and negligence from companies who operate alone in their areas and routes, and from regulators in charge of supposedly holding them to account.”

Meanwhile, HB 2597 or the Shipyard Industry Fiscal Incentives Bill would amend the country’s fiscal policy, incentivizing companies to invest in the SBSR industry, including exemptions from Value-Added Tax (VAT) and from taxes and duties on Imported Capital Equipment and Materials.

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