Ro-Ro to go int'l this year with Indonesia route

MANILA, Philippines - The country will soon launch the first Asian route of roll-on roll-off (Ro-Ro) transport vessels this year with a trip from Davao-General Santos to Bitung, Indonesia.

Philippine Chamber of Commerce and Industry (PCCI) President Miguel Varela said on Friday that the Super Shuttle Ro-Ro will take its maiden voyage to the northern Indonesian city in Sulawesi through a partnership between the business community, the Association of Southeast Asian Nations (Asean) Business Advisory Council and the Department of Trade and Industry.

"The private sector has taken the lead in spearheading the implementation of the project through a bilateral arrangement between the business sector of the Philippines and Indonesia," Varela said in a meeting, adding that the project was forged in a memorandum signed in November last year.

Citing a study by REID Foundation, Varela added that the route should facilitate the "thriving trade" between Mindanao and North Sulawesi, whose exports to the Philippines amounted to $6.8 million in 2012.

Exchanged commodities including crude coconut oil, copra, desiccated coconut, crude palm oil, coconut charcoal and frozen fish also had the combined worth of $147.9 million last year alone.

While the maiden voyage's date is yet to be determined, PCCI expects that regular trips will reduce trade shipping costs by five to ten percent, as well as cutting the three-day transport time by half.

Trade and Industry Secretary Gregory Domingo assured that the project will have the government's full support, saying that Davao City has potential to become a transshipment hub in Asia.

"Definitely we want to pursue a more strategic economic relationship with Indonesia," Domingo said.

The initiative is a milestone in improving ASEAN connectivity and in expanding trade, tourism and investments in the BIMP-EAGA area," Varela said. The BIMP-EAGA refers to the East Asean Growth Area, a subregional cooperation initiative of the organization.