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Thursday, June 10, 2004
RP, Indonesia extend special port rates pact for 2 years
By Bong S. Sarmiento
IN A bid to further enhance trade exchanges between the Philippines and Indonesia, officials of the two countries have signed an agreement extending for two more years an arrangement giving incentives to accredited vessels plying the BIMP-EAGA routes.
Alfonso Cusi, Philippine Ports Authority general manager, stressed the extension of the arrangement was "a concrete response to the emerging needs of the sub-regional cooperation's carrier and shipping industry."
Under the Arrangement on the Common Tariff for Vessels Operating under the Brunei Darussalam-Indonesia-Malaysia-Philippines-East Asia Growth Area (BIMP-EAGA) signed between Indonesia's Directorate General of Sea Communications and the Philippine Ports Authority (PPA), accredited vessels will be entitled to special port charges of US$0.40 per Gross Registered Tonnage (GRT) for port dues and US$0.020 per GRT per day or fraction thereof for dockage fees.
The special port charges under the arrangement are significantly lower than the standard port dues of US$0.81/GRT and dockage fees of US$0.039/GRT charged against vessels engaged in foreign trade.
The special port charges will apply until January 15, 2006 to accredited Indonesian and Philippine flag vessels operating under the BIMP-EAGA program whose last and next port of calls are in the BIMP-EAGA ports identified in the arrangement.
Cusi noted various shipping companies of the BIMP-EAGA member-countries have been "clamoring for the implementation of lower vessel charges as an incentive to vessels operating under the BIMP-EAGA program."
According to the Mindanao Economic Development Council, industry experts have cited the extension of the tariff arrangements between Indonesia and the Philippines as a means of further boosting trade between the two countries because of the positive impact of the reduced transportation costs.
Jesus Dureza, presidential assistant for Mindanao and a senior official to the BIMP-EAGA, welcomed the extension of the bilateral arrangement, saying it was an
"articulation of the Arroyo government's commitment to Mindanao's development."
Citing data processed by the MEDCo secretariat, Dureza said the total volume of cargo passing through Mindanao's seaports increased by 4.68 percent to 5,720,926 MT during the 1st quarter of 2004 from 5,486,372 MT posted during the same period in 2003.
Total cargo volume from foreign vessels, including those plying the BIMP-EAGA routes rose to 1,519,619 MT during the 1st quarter of 2004 from the 1,451,199 MT registered during the same period in 2003.
MEDCo data also showed the total number of vessels coming in and out of Mindanao ports also increased by 1.78% to 20,233 during the 1st quarter of 2004 from the 19,879 shipcalls made during the 1st quarter of 2003.
Created in 1994, BIMP-EAGA aims to spur and sustain growth and development in the focus areas of the sub-region by facilitating the movement and transport of goods, services and peoples and strengthening the local economies.
Since BIMP-EAGA's inception, several new sea and air links have been established in the focus areas, further encouraging cross-border trade.
The newest regular searoute between Bitung in Indonesia and General Santos City in South-central Mindanao was established in March this year.
(June 10, 2004 issue)
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