As Mindanao agricultural exports and domestic out-shipments continue to rise despite the weakened global economy, the region’s private sector is calling for the development of a logistics corridor which would integrate key production areas and link the ports of Cagayan de Oro and Davao City.
This subject was the focus of the two-day Mindanao Logistics Conference held last week by the Mindanao Federation of Shippers’ Association (MINFESA) at the Phividec industrial complex in Misamis Oriental.
The event was held in cooperation with the Northern Mindanao Shipper’s Association, Inc., Philexport, the Department of Trade and Industry, the Mindanao Economic Development Council, the Philippine Chamber of Commerce and Industry, and supported by USAID’s Growth with Equity in Mindanao (GEM) Program, which is implemented under the oversight of MEDCo.
“The last five years have seen a surge in investments in key infrastructure projects, such as the Mindanao Container Terminal [in Phividec], and the Davao international airport … Yet we still have to see a master plan connecting key ports and highways,” said MINFESA president Vic Lagdamen.
“That why stakeholders are here today, to jump-start the idea of a main logistics corridor—the North-South Mindanao link,” he added.
“This would take advantage of the north’s proximity to the rest of the Philippines,” said Tony Pandes, area manager of 2GO/Aboitiz Transport System, Inc. He pointed out that by utilizing the Cagayan port, transit time to Visayas and Luzon could be reduced by a day.
Davao offers direct international links by both sea and air, and is thus a key gateway for exports.
Shipping company executives, port managers, trucking representatives, agriculture producers, line agency officials and cargo handling operators provided overviews of their industries, while identifying logistical problems that must be addressed by both the private and public sectors.
The conference inputs, as well as the results of previous consultations were presented at the end of the meeting to the national government, through the Mindanao Economic Development Council.
Central planning is needed, conference planners said, to integrate and enhance the different components of Mindanao-wide logistics.
This includes improving Mindanao’s road network, raising the competitiveness of port facilities and cargo handling equipment; creating uniform industry standards for port personnel, port service providers and truck drivers—and ensuring that these standards are met; ensuring passenger and cargo safety among shippers, and facilitating investments in cold chain and consolidation systems.
Logistical challenges faced by growers range from the poor condition of barangay roads to substandard handling and packing technologies, to inadequate port facilities, and the lack of a centralized cold chain facility.
A well-integrated logistics system would create job opportunities and boost Mindanao’s economy, but it would only be as good as its weakest link, several conference delegates pointed out. Hence, there is a need for centralized oversight.
In an integrated logistical system, “lack of professionalism and poor performance will be known in the trade very quickly, and will lead to the … elimination of the link that provides poor service,” said Edgardo Abesamis of International Container Services, Inc.
The proposed integration of Mindanao’s roads and ports is of particular importance to producers of higher-value agricultural commodities such as fresh and chilled fruit for export, frozen aquaculture products, and semi-temperate vegetables, all of which are shipped as containerized cargo. [GEM]
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