ASEAN / BIMP-EAGA RORO Trade CONNECTIVITY Project

ASEAN RORO Connectivity Project (Deployment and Operation of Purely Cargo Vessel for the Davao-Gensan-Bitung/Indonesia Route in Support of the ASEAN’S BIMP-EAGA Trade Connectivity Program and Master Plan on ASEAN Connectivity (MPAC).

This project was announced by President Duterte in his speech during the ASEAN Summit in Vientiane, Laos held last year. This was an offshoot of the detailed project presentation made by the PCCI Transport Committee and AMTC to Pres Duterte on 22 Sep 2016 in Davao City. This was followed by conferences and workshops jointly conducted by PCCI / MinDA / DTI / DOTr in Davao and Gensan, and participated in by Davao and Gensan Chambers of Commerce and Industry, PPA Davao, PPA Gensan, PhilExport Davao and PhilExport Gensan, private exporters, AMTC as the vessel provider and operator, and by the Office of Consul General of Indonesia as well.

Davao-Bitung

To ensure the success of this project, an Inter-Agency Task Force headed by DOTr was created, with the DTI, DFA and PPA as lead agencies. The launching date was set on 30 April 2017, during which a Maiden Voyage Ceremonial Send-Off Ceremony will be led by H.E. Indonesian President Widodo and H.E. Philippine President Duterte. Likewise, a counterpart Indonesian Task Force has been mobilized by the Indonesian government. Both our Philippine Trade and Investment Center (PTIC) and the Philippine Embassy based in Jakarta are heavily involved in this project, as well as the Office of the Philippine Consul General in Manado/Bitung, Indonesia.

The opening of the route is a more economical and more time-efficient alternative to the usual Manila to Jakarta to Bitung route, which would take about three to five weeks of shipping time. In contrast, direct shipping through the Davao-GenSan-Bitung route will take only one day and a half of sailing (excluding port stay).

A savings up to $1,500 (P74,000) per TEU is estimated in using this route given its $700 (P34,713) per TEU rate per 20 feet dry container as compared to using the Davao-General Santos to Manila to Manado via Jakarta route which amounts to $2,200 (P109,098) per TEU.

davao-gensan-bitung

Company members of the Davao City Chamber of Commerce and Industry, Inc. (DCCCII) and the General Santos City Chamber of Commerce and Industry, Inc. (GSCCCII) have signified their readiness to support this route, as it makes their products more price competitive in Indonesia due to the huge shipping cost savings, plus much faster shipping time. Chamber members that are currently importing raw materials and packaging products from Indonesia via the Jakarta to Manila shipping route can likewise explore if they can save by using this Bitung Indonesia to GenSan to Davao route in their raw material importations.

AMTC shall initially deploy a RoRo vessel with a capacity of 100 TEUs, and will have a weekly voyage frequency Davao to General Santos to Bitung and vice versa. AMTC shall charge ocean freight of $700.00 / TEU one way, port to port. This includes BL Fee. Terminal handling Charges (Arrastre) are for the account of the Shipper.

The DTI and MINDA, in coordination with the Indonesian Inter-Agency Task Force, have organized a Trade Expo in Davao City in March 2017 wherein they have invited potential Indonesian exporters and importers to participate, for a B2B matching with members of the Philippine Chamber of Commerce and Industries, Inc. (PCCI). The Big Business players like Nestle, San Miguel Purefoods, URC, P&G, UNILEVER, PEPSI, RFM/SWIFT, ASIA BREWERY, INC., COCA COLA, etc. are also being urged to take advantage of this new export market route, as well as potential new and cheaper sources of their imported inputs and raw materials for their factories.