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Wednesday, March 10, 2004
GenSan traders welcome new Eaga route
THE business community here is looking at expanding trading ties within and beyond the Brunei Darussalam-Indonesia-Malaysia-Philippines East Asean Growth Area (Bimp-Eaga) with the establishment of a new regular sea-route between this city and Bitung in Indonesia's North Sulawesi province.
Domingo Teng, past president of the General Santos City Chamber of Commerce and Industry, pointed out the regular sea-route offered opportunities for increased cross-border trade as well as trade with Japan, China and the United States mainland.
"The Bitung-GenSan sea-route is a tremendous boost for Southern and Central Mindanao's export winners; it opens up wider the markets in Northern Sulawesi and nearby areas for our processed products which are in demand there," Teng said.
"With this new regular sea-route, we would like to explore other markets for our producers in Mindanao," Teng added.
Department of Trade and Industry (DTI) data showed that exports to Brunei, Indonesia and Malaysia from Southern Mindanao reached 44 million dollars or about P2.5 billion in 2003.
Data from DTI also showed that yearly exports to the same countries from Northern and Western Mindanao reached a total of US$55.6 million.
Northern Mindanao exports were mostly made up of canned pineapple products while Western Mindanao shipped marine and agricultural products.
Teng added that Bimp-Eaga is also expected to gain from the Bitung-Gensan sea-route because the "new regular sea-route offers an alternative route from the production areas of North Sulawesi and Mindanao to the markets in Japan, China and the US mainland."
Philippine and Indonesian officials formally launched here last week the first regular sea-route between Mindanao and North Sulawesi province with the arrival of the Indonesian-owned M/V Rimba Tujuh at this city's Makar Wharf on the vessel's maiden voyage from the Bitung seaport.
With a carrying capacity of up to 200 TEUs, the twin-decker and semi-container type M/V Rimba Tujuh will regularly ply the Bitung-Gensan-Bitung searoute every ten days, offering additional opportunities for cross-border trade between the two focus areas of the Bimp-Eaga.
Operated by PT Humpuss Intermoda Transportasi of Indonesia, MV Rimba Tujuh also acts as a feeder line for main line operators such as APL and PM&O serving exporters and importers from the Philippines and Indonesia for cargo destined beyond the two countries' borders.
The newly-opened 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.
Exports of canned tuna from the two Bimp-Eaga focus areas are seen to utilize the new route, reducing freight cost and sailing time by avoiding the established circuitous route of going down to Surabaya or Jakarta to Singapore then to Kaohsiung in China, then to the US west coast.
Presidential Assistant for Mindanao and Philippine Bimp-Eaga Senior Official Jesus Dureza described the new regular sea-route as a "watershed moment."
"We are positive that this new sealink will serve not only to intensify cross-border trading activities but also lead to even bigger achievements for the private sector, and consequently growth for the Bimp-Eaga focus areas," Dureza added.
The revitalization of Bimp-Eaga is among the major development strategies being vigorously pursued by the Arroyo administration for Mindanao.
In a statement, Trade and Industry Secretary Cesar Purisima underscored the need "to be aggressive in pushing the Bimp-Eaga agenda (for it) to work."
"By opening borders and increasing available infrastructure, we are opening more opportunities for trade and investments," Purisima said.
Purisima said his visits to Davao and Jakarta in Indonesia showed a need for more government intervention to push the Bimp-Eaga agenda. Medco
(March 10, 2004 issue)
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