Thursday, March 08, 2007 Oro dads warn of losses in wake of port limits By Danilo V. Adorador III
CAGAYAN de Oro City is running the risk of losing billions in potential investments if the plan to limit the port's development moves forward, port and local officials warned.
Two councilors, Ian Mark Nacaya and Simeon Licayan, registered their opposition Wednesday to the plan -- a measure that comprised Malacañang's initiatives to create "Super Regions" in Mindanao.
Backed by the Davao-based Mindanao Economic Development Council (Medco), the Super Region Strategy calls for the prioritized developments of major transport hubs in Mindanao, including the Laguindingan International Airport and the Mindanao Container Port inside the Phividec industrial zone.
So as not to compete with Phividec Port, however, the strategy also calls for a limited "interventions" on the current Cagayan de Oro Port Development Project, and reducing the expansion works to "rehabilitation."
Councilors Nacaya and Licayan, heads of the public utility and transportation committees, warned that the move could be detrimental to the city's economy and will only create rather than solve problems.
While enhancing the Phividec port, Licayan said, limiting or halting Cagayan de Oro port's development works will exacerbate the harbor's current woes -- brought about by increasing port calls and growing cargo traffic.
"Cagayan de Oro Port is already on its first stage of congestion -- at 72 percent berth occupancy rate, which is way above the 65 percent threshold of the international standards," said Isidro Butaslac, assistant port manager.
Expansion and construction of new berthing spaces can be curtailed under Medco's plan, said Butaslac, adding other developments such as the working yard expansion and improvement of storage facilities can also be affected.
Noel Tan, an official of Oroport handling its cargo-handling services, pointed out that the port's existing 180 meter berthing space has only increased by 200 meters since 1986 -- accommodating only six vessels at a time.
Tan said the port currently has difficulty in accommodating bigger vessels, in addition to the increasing calls year.
But the biggest loss with an underdeveloped Cagayan de Oro Port would come from the huge shipping companies already located within the periphery of the port, said Efren B. Bollozos, Philippine Ports Authority (PPA) general manager in Cagayan de Oro.
Sluggish port activity means slower economic activity, and this would discourage shipping companies who are already eyeing to invest around the port area, Bollozos said.
Nacaya, for his part, said that if the bulk of the ports shipping businesses relocate to the Phividec port, the accompanying additional transport cost and other productivity losses would be passed on to the public.
Nacaya and Licayan said they will elevate the issue to the City Council to build consensus against the plans.
