Davao-Gen. San-Bitung Ro-Ro to boost PHL-Indonesia trade

The Davao-Gen. Santos-Bitung City roll-on, roll-off route is expected to further enhance trade between neighbors Philippines and Indonesia, the Mindanao Development Authority (MinDA) said Friday.

The route covers Brunei, Indonesia, Malaysia, the Philippines-East ASEAN Growth Area (BIMP-EAGA).

“Sea linkage within the EAGA sub-region is crucial in strengthening trade relations among its member countries, since it supports the achievement of the goals of the other EAGA pillars such agribusiness, tourism and socio-cultural and education,” said MinDA Secretary and Chairman Datu Abul Khayr Alonto said in a statement on Friday.

Alonto, who is also the Philippine signing minister for BIMP-EAGA, added that maritime transport is vital to the sub-region’s development, and the Philippines will continue to push for more sea routes to open within the area.

“We are calling on and encouraging key industry and business players and traders to participate in this initiative and to take advantage of the business opportunities and benefits that this new route will provide,” he added.

Private sector support is critical to the sustainability of the project, which will be the Philippine government’s maiden accomplishment in with its chairmanship of the Association of Southeast Asian Nations (ASEAN) this year.

Starting April 30, a Ro-Ro service will ply the Davao City-Gen. Santos, Bitung  route, envisioned a more cost- and time-efficient alternative to the usual Manila-Jakarta- Bitung route, which would take about three to five weeks of shipping time. Direct shipping via the new route will take only a day and a half of sailing.
 
Savings of up to $1,500 or P74,000 per TEU (twenty-foot equivalent unit) can be realized, given the route's $700 or P34,713 per TEU rate per 20 feet dry container, compared to the Davao-General Santos-to-Manila-to-Manado via Jakarta route which costs to $2,200 or P109,098 per TEU, according to MinDA.
 
Alonto said the route will provide businessmen greater access to international trade, and stimulate other areas of development such as joint tourism promotion, establishment of direct linkages and higher investment inflows.
 
Initially, the products that will be shipped to Indonesia from Mindanao are animal feeds, fertilizer, construction materials, ice cream products, poultry (halal), fresh fruits and synthetics. 
 
A list of import goods include matured coconut, copra, corn, feed ingredients, lumber, cement, high value crops, vegetables, meat, peanuts, aqua products, charcoal, soya, coffee beans and sugar. — Ted Cordero/VDS, GMA News