LGU, business groups back call for more Ro-Ro ports

MANILA, Philippines - In support of Albay Governor Joey Sarte Salceda’s request, in a letter to President Aquino, for “immediate implementation” of the French Government-assisted modular steel roll-on roll-off (roro) ports project in the Bicol Region, the country’s premier business associations Employees Confederation of the Philippines (ECOP) and the Philippine Chamber of Commerce and Industry (PCCI), and Capiz Governor and Western Visayas Regional Development Council (RDC 6) Chairman Victor Tanco, likewise expressed their strong backing for the modular steel roro ports project.

Echoing Salceda’s assessment that the Bicol Region requires as many as 15 roro ports to effectively interconnect it with the country’s islands, ECOP Chairman Miguel Varela and PCCI Chairman Edgardo Lacson mentioned in a joint resolution that the modular steel roro ports would immediately spur inter-island and intra-regional trade. “We talk of globalization and the need to compete but our infrastructure restricts our over 21,000 members and their businesses from accessing major hubs in the country and foreign markets,” said Varela.

Lacson pointed out the massive impact roro ports have on the operations of local businesses. “Companies like Nestle have reduced their distribution centers from 36 to two, creating massive savings without compromising the price or availability of goods. San Miguel Corp. has reduced their transportation cost by 57 percent. Simply by allowing vehicles to roll on and roll off have spared inventory and warehousing costs. This illustrates why businesses have clamored for more roro ports for two decades, to cut transport and distance costs.”

Tanco espoused a similar view. “The government must provide the necessary gateways for local economies in the islands to thrive. Modular steel roro ports would serve as points to connect and transport goods, services, and people between markets on other islands, effectively and quickly expanding the reach and potential of local businesses.”

He said the problem is that there aren’t enough roro ports. “There is a latent strength of demand is easily brought about by huge influx of remittances of our overseas Filipino workers (OFWs), amounting to $18.8 billion. That’s the consumption variable,” he said. “But the lack of roro ports actually hampers businesses from supplying this demand, contributing to spiraling poverty and hopelessness.” 

Regarding the DOTC report that the country needs only four roro ports, he replied, “it’s mind-boggling to say that the country needs only four, as alleged by a memo to the President,” stressing that roro ports would bring about the development of business. “Governments do not make money, but Government Owned and Controlled Corp. (GOCCs) do, and their decision to limit the implementation of ports to areas already with business activity is not only wrong, but a grave abuse of discretion and self-empowerment. They say there are no roro ports because there is no business activity. I say, build it and they will come: 90 percent of the countryside lacks business because there are no seaport investments.”

“It takes time,” he added. “That’s why the funding is matched. Long term loans at concessional rates are matched to long-gestating projects. These will lessen the financial burden during start-up, and give the project time to sustain itself.”