Monday, May 14, 2007 BIMP-Eaga execs push revival of GenSan-Bitung sea route
OFFICIALS in the sub-regional economic cooperation involving four East Asean countries have agreed to revitalize the sea route linking this tuna-rich city and North Sulawesi, Indonesia.
The move of officials in the Brunei Darussalam, Indonesia, Malaysia, Philippines-East Asean Growth Area (BIMP-Eaga), decided in a recent meeting in Palawan, aims to increase trade exchanges not only in the sub-region but also with Japan, China and the United States.
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In a statement, Virgilio Leyretana, chairman of the Mindanao Economic Development Council (Medco), said revival of the GenSan-Bitung sea route was strongly endorsed during the meeting of the Eaga Transport, Infrastructure, ICT Development Cluster, 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.
"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," Leyretana said.
M/V Rimba Tujuh, an Indonesian-flagged vessel used to ply the route from March until April 2004. Its operation was not sustained due to the inability of the prevailing load factor then to meet the minimum requirement of the vessel, which is owned by Indonesian firm PT Humpuss Intermoda Transportasi.
The Bitung-Gensan sea route was established following the signing in 2001 of a Memorandum of Agreement (MOA) between the General Santos City Chamber Commerce and Industry and the North Sulawesi Chamber of Commerce and Industry.
The Bitung-Gensan route takes under 36 hours to travel.
Leyretana said reviving the route would open 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, the Medco report said.
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 Hong Kong before sailing south passing Singapore en route to Europe.
"This is a prime example of consolidating BIMP-Eaga products for cheaper cost," the statement said.
In addition to Gensan-Bitung sea route, the Philippines is also requesting Malaysia for the inclusion of the Bongao -- Lahad Data-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.
The sea working group also agreed in the meeting to activate the Shipping Association (SA) and use it as a forum for the shipping operators to support the sea linkages initiatives as well as accelerate the development of infrastructure such as the New Container Handling facilities at Kariangau Port in Balikpapan, New Wharf and Extension Wharf at Jayapura Port, Indonesia, and Sepanggar Container Terminal Port, Sabah, Malaysia.
Eaga flagship projects aimed at improving sea connectivity in the subregion include the establishment of Ro-Ro Passenger Ferry from Muara, Brunei Darussalam to Menumbok, Sabah; Ro-Ro Passenger Ferry from Federal Territory of Labuan, Malaysia to Muara, Brunei Darussalam; and Sea Linkages from Brooke's Point, Palawan to Kudat, Sabah.
A Memorandum of Understanding on Establishing an Efficient and Integrated Sea Linkages is also being finalized for signing during the 2nd BIMP-Eaga Transport Ministers meeting this year to be hosted by the Philippines, the Medco report said. (BSS)
