The Department of Transportation (DOTr), through the Maritime Industry Authority (MARINA), is preparing to pilot-test electric and hybrid ferries in the Philippines, with the Iloilo-Bacolod route being considered for fully electric vessels and the Batangas-Calapan route for hybrid ships.
Transportation Secretary Giovanni Lopez said the government is studying how the technology can be adapted to local routes and how it could benefit passengers, vessel operators, and the environment.
“What we want to determine here is how we can utilize this technology in the Philippines and how it can benefit passengers, ship owners, and even our environment and health,” Lopez said.
He added that electric and hybrid ferries could reduce fuel consumption, carbon emissions, and vessel operating costs, with potential benefits for commuters.
MARINA is pursuing the pilot project following an earlier study by the International Maritime Organization (IMO) and the World Bank on improving the safety and energy efficiency of domestic passenger ferries.
Engr. Ramon Hernandez, director II of MARINA’s Overseas Shipping Service, said fully electric vessels are being considered for shorter routes, while hybrid technology may be more suitable for medium-distance trips.
Hybrid ferries use two power sources: a conventional diesel engine and an electric motor powered by rechargeable batteries.
“These e-ferries will solve some of the issues and concerns natin regarding first, environment. It will reduce the emission of carbon dioxide from ships,” Hernandez said.
He also added that shifting to electric propulsion could help address high fuel costs and lower energy expenses, potentially easing pressure on passenger fares.
MARINA recorded around 69 million passenger trips through Philippine maritime transport in 2025. Of the roughly 4,000 domestic passenger ships, about 300 inter-island ferries account for approximately 86 percent of carbon dioxide emissions from domestic ferries, according to the agency.
A World Bank study examining the economics of electric ferry operations in the Philippines found that an electric vessel could cost around $10 million more than a conventional ferry but could still generate returns of more than 8%.
The study also estimated that a conventional ferry could spend between $25 million and $50 million on fuel over a 15-year operating period, depending on oil prices.
World Bank Senior Port and Maritime Transport Specialist Ninan Biju Oommen said the institution is willing to work with developing countries on projects that support sustainable development and reduce greenhouse gas emissions.
The bank also examined whether the higher upfront cost of electric ferries would translate into higher fares for passengers.
“If you extend the life cycle time for a 15-year operating cycle, you don’t need to increase the fares. The model has ensured that you can recover the cost without increasing the fares,” Oommen said.
Routes carrying at least 500,000 passengers annually were identified as particularly suitable for electric ferry operations.