Phil-Indonesia bilateral pact needed

A BILATERAL agreement between the Philippine and Indonesian governments is deemed necessary for the long-stalled Davao-General Santos-Bitung (DGB) sea connectivity to push through.

According to Ronald Sison, team leader from Almec Corporation, a research firm commissioned by the Japan International Cooperation Agency (Jica) to conduct a study on the Asean-Roll On, Roll Off (Ro-Ro) Shipping network and Short Sea Shipping Project including the DGB sea route.

He stressed the bilateral agreement will address the bottleneck hindering the trade sea route’s implementation.

Sovereign and national laws were seen to be the reason behind the implementation delay.

“We see the need to talk some more, do it bilateral as soon as possible,” he said in Wednesday’s stakeholders meeting on the study at the Pinnacle Hotel and Suites in Davao City.

“One country cannot solve the problem alone. A government to government transaction is needed” he added.

The follow-up study, which started last May of this year, was geared to point out the current issues and concerns affecting the implementation of the DGB Ro-Ro route.

The Jica-Asean master plan and feasibility study on the establishment of Ro-Ro Shipping network and Short Sea Shipping was done last 2013.

Sison said the Philippines and Indonesia sea route is one of the test beds for the target of the Asean Economic Community to have seamless sea connectivity among member countries.

The DGB route was also among the three identified priority routes along with Dumai (Indonesia)–Malacca (Malaysia) and Belawan(Indonesia)-Penang(Malaysia)-Phuket (Thailand).

Mindanao Development Authority (Minda)-director for investment promotions and public affairs, Romeo Montenegro in a previous report said, the operation of the sea route was delayed due to regulatory issues in port policies and custom regulations in both countries such as in securing permits by the interested shipping lines to serve the route.

Janet Lopoz, Minda undersecretary, said that the route has to gain approval from Transport of Ministry of Indonesia for the route to be served.

Based on the survey results, DGB route was selected because its proximity, viability, long history of trading and economic opportunities and once established will be considered as strategic gateway and transshipment hub in Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-Eaga), Asean, China and Australia.

It will also expand trade, tourism, investments, employment, incomes, the survey bared.

Also the follow-up study revealed that some of the advantages of the DGB route were more cost-effective alternative for Mindanao-based businessmen who are currently using other routes, shorter transit time and faster trade, create bigger market for local products, boost local economy and generate jobs, among others.

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