RoRo ship owners project positive growth next year

With the government’s Strong Republic Nautical Highway program, most of the country’s domestic shipowners have begun to acquire “roll-on, roll-off” vessels and many players have followed this trend leading towards a rapid growth of this sector in the entire domestic shipping industry these days.

Recently, the Philippine Roro Shipping Association, Incorporated (PRSAI) held its 2nd general membership meeting and roundtable forum at the Casino Español with DOTC Secretary Leandro Mendoza.

The event has been participated by the association’s different member companies’ owners and representatives from across Luzon, Visayas and Mindanao wherein several issues and concern about the Ro-Ro sector has been discussed and debated.

In an exclusive interview with PRSAI’s incumbent president Christopher S. Pastrana he told The Freeman their association’s inherent goal of stimulating economic activity in the countryside through providing direct routes in those areas.

“We will try to implement a modernization program to service the countryside and stimulate the economy in those areas but endeavors such as this requires partnership with the government and private sector so with strongly patronizing GMA’s legacy program called the ‘Strong Republic Nautical Highway,’ which aims to connect more island of the country we are optimistic to create a strong impact on those areas,” Pastrana said.

Pastrana discussed that as of the moment, infrastructure to support the ships for easy access going towards destinations which has remained idle throughout these times is still being built.

He said that, PSAI and its members are asking for the rationalization of the ship financing functions of government funding institutions with Marina’s development goals as ships according to industry standards should only have 20 years average age.

“We ask the government to provide us with measures on how to address the modernization program without going to a 2-step loan process,” explained Pastrana as NMLEC, shipping companies’ lending institution has already been sold by NDC to DBP that made it more complicated to borrow financial funding according to some players.

Pastrana added that, “we also seek for them to try on working out a means to amend the provisions of the RA 9295 IRR on deregulating routes that will extend to developmental routes as well not only limited to missionary routes since this way it can cut route competition.”

However, despite these inherent issues, Pastrana reported that based on the performance of their members and the strengthening of the government’s Roro program, there has been a significant growth of the Roro industry sector this year from the time the program was developed by President Arroyo. 

“Next year and the years to come, we will definitely have continues growth as the growth potential of this sector is still high as indicated by the opportunities that are presented to us.”

However, Pastrana pointed out that the growth will only be further materialized if the required facilities and infrastructure supports like ports in certain countryside areas are completed.

“Without the required vessel support and the assistance of the local government and private sectors in our needs, growth in the sector cannot be achieved.”

The Philippine RoRo Shipping Association Inc. is currently composed of 30 Roro shipping companies nationwide across Luzon, Visayas and Mindanao and it has been incorporated just last 2006.