Tuesday, May 08, 2007 Eaga body to re-open GSC-Bitung sea link
GENERAL SANTOS CITY -- Seeing the need for further expanding trading ties within BIMP-Eaga, the sub-region's working group on sea linkages agreed recently to revitalize the sea link connecting the tuna-belt region of Southern Mindanao and North Sulawesi, Indonesia.
Revival of the Gensan-Bitung sea route was strongly endorsed in a recent meeting of the Eaga Transport, Infrastructure, ICT (Information and Communication Technology) Development Cluster in Puerto Princesa City, Palawan, a major initiative to be implemented under the BIMP-Eaga Roadmap action plan.
Following the recent encouraging developments in the BIMP-Eaga air transport, the sea transport sector led by Indonesia is pushing parallel efforts to invite shipping lines to ply the Gensan-Bitung sea route.
It was pointed out in the meeting that the regular sea route between General Santos City and Bitung has offered opportunities for increased cross-border trade as well as trade not only within Eaga but also with Japan, China and the United States mainland.
M/v Rimba Tujuh, an Indonesian-flagged vessel used to ply the route from March until April 2004. The operation was not sustained due to the inability of the prevailing load factor then to meet the minimum requirement of the vessel.
"Revitalizing the Bitung-GenSan sea route would greatly boost up cross-border trading between Mindanao and North Sulawesi. By opening our borders in the sub-region, we are not only linking two areas here but offering trade and investment opportunities," Undersecretary Virgilio Leyretana, chair of the Mindanao Economic Development Council (Medco).
He said that the route opens up a wider market for Southern and Central Mindanao's export winners in North Sulawesi and nearby areas for Philippine processed products which are in demand there.
The route can cut cost and sailing time for East Indonesian exports to East Asia and the US west coast by as much as fifty percent. The same token applies to Mindanao exports to Europe.
Exports of canned tuna from North Sulawesi are seen to utilize the new route, reducing freight cost and sailing time by avoiding the established circuitous route of going down either to Surabaya or Jakarta to Singapore then finally to the US west coast.
Mindanao canned tuna exports to Europe could then use the direct route of going south to Bitung in North Sulawesi to either Surabaya or Jakarta to Singapore then finally to Europe, instead of taking the longer route of going north first to Kaohsiung in Taiwan or HongKong before sailing south passing Singapore en route to Europe.
This is a prime example of consolidating BIMP-Eaga products for cheaper cost.
In addition to Gensan-Bitung sea route, the Philippines is also requesting Malaysia for the inclusion of the Bongao – Lahad Datu -- Tarakan sea link. A request has been made for the Asian Development Bank and the German Technical Cooperation Agency to assist in determining the viability of these routes.
