New Davao-Sulawesi cargo service seen spurring trade
TIN news: Businesses said the Davao-General Santos-Bitung (Indonesia) roll-on roll-off (RoRo) cargo service launched yesterday will serve as a major economic boost to Mindanao and promised to expand trade with Indonesia to ensure the sustainability of the cargo service.
Dr. Maria Lourdes G. Monteverde, one of the proponents of the ferry and former president of the Davao City Chamber of Commerce and Industry, Inc., said potential users have been lined up for the cargo service, mainly suppliers of raw materials like flour, corn and coconut.
“They have done their validation, even before we started, as they were really looking for this route. Some have started doing chartered vessel shipping… They’re just waiting for this to really take off,” Ms. Monteverde said at the launch ceremony attended by President Rodrigo R. Duterte and Indonesian President Joko Widodo.
Ms. Monteverde acknowledged that setting up the RoRo service, originally referred to as the Mindanao-Sulawesi link and had been on the drawing board for more than six years, “was not easy” as it entails a lot of capital and attention to operational details.
But its viability at this point, she added, is already strong given the growing economies of the areas served.
Mindanao Business Council Chairperson Vicente T. Lao, in an interview, said the new cargo service will strengthen trade between the two countries, particularly within the focus areas of the Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA), as well as beyond given that Bitung has ample links to Jakarta.
“Before, cargo used to be going through Manila. Now we will be able to go through this route to Indonesia, we can send a lot things from Davao because the traditional trading partner of Bitung is also Jakarta,” Mr. Lao said.
MORE TRADE
Domingo O. Ang, Davao Region chairman of the Philippine Exporters Confederation, Inc., said it is important to develop more trading activities with Indonesia and this new route would help propel that.
“I believe this is a very good route for the prosperity of Mindanao. This is the time,” Mr. Ang said.
Pilmico Feeds Vice-President and Chief Operating Officer Tristan R. Aboitiz said the group is looking at establishing a foothold in Indonesia and the RoRo service will make this easier.
“This is something we want to support,” he said.
The country’s two Presidents, at the launch, pointed out that the transport service is part of efforts to make economic development inclusive within the ASEAN region.
“President Duterte and I sincerely believe that people in the outer regions are just as smart, strong and resourceful as the rich people in the capital cities. They only need one thing and one thing only. And that is to be given a chance,” Mr. Widodo said in his speech.
Mr. Duterte, for his part, said, “This route shall be the first of many routes to be formed for the international RoRo network envisioned by our ASEAN leaders to provide more accessibility and opportunities for our countries.”
Among the immediate benefits of the cargo service is cheaper and faster shipping of goods between the Philippines and Indonesia, with cargo transport cost seen to go down by 68%.
The RoRo vessel, M/V Super Shuttle RORO 12, is owned by Asian Marine Transport Corp.
