Thursday, May 10, 2007 BIMP-Eaga revives Gensan-Bitung sea link By Bong Garcia
THE working group on sea linkages of the Brunei, Indonesia, Malaysia and the Philippines-East Asean Growth Area (BIMP-Eaga) recently agreed to revitalize the sea link connecting the tuna-belt region of Southern Mindanao and North Sulawesi in Indonesia.
The group sees the need for further expanding trading ties within Bimp-Eaga.
Mindanao Economic Development Council (Medco) chairman Virgilio Leyretana said the revival of the General Santos City-Bitung sea route was strongly endorsed in a recent meeting of the Eaga Transport, Infrastructure, Information and Communication Technology (TIICT) development cluster in Puerto Princesa City, Palawan, which is a major initiative to be implemented under the BIMP-Eaga Roadmap action plan.
Leyretana said the sea transport sector led by Indonesia is pushing parallel efforts to invite shipping lines to ply the Gensan-Bitung sea route following the recent encouraging developments in the BIMP-Eaga air transport.
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, according to Leyretana.
He said that an Indonesian-flagged vessel, m/v Rimba Tujuh, used to ply the route from March until April 2004.
However, he said 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," he said.
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.
He said 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," he added.
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, according to Leyretana.
He explained that canned tuna exports from Mindanao 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," he said.
He said the Philippines is also requesting Malaysia for the inclusion of the Bongao, Tawi-Tawi-Lahad Datu, Malaysia-Tarakan, Indonesia sea link in addition to Gensan-Bitung sea route.
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.
Leyretana said Eaga flagship projects aimed at improving sea connectivity in the sub-region include the establishment of Ro-Ro Passenger Ferry from Muara, Brunei to Menumbok, Sabah; Ro-Ro Passenger Ferry from Federal Territory of Labuan, Malaysia to Muara, Brunei; and Sea Linkages from Brooke's Point, Palawan to Kudat, Sabah.
He said that a Memorandum of Understanding (MOU) 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.
