a Developing Economy Topic Private Sector Wish List
PIEMO Industries, Inc.
Mindanao Shipping Conference 2014 (SEC CN201131144 ) The Shipping Port and the Economy The size of the economy is as big as the size of the port. The port has an important role in the creation of the wealth, its distribution and consumption** ** Japan Embassy Consul MCT Groundbreaking Ceremony Major Growth Drivers of N. Mindanao
1. Base Port of Cagayan de Oro Macabalan, Cagayan de Oro City 2. Mindanao Container Port (MCT) PHIVIDEC Industrial Estate Economic Zone Tagoloan, Misamis Oriental
The Continued Pursuit of Growth 1. The expanding economy of Northern Mindanao has placed pressure on the cargo-handling capacity of the base port of CDO. The location of the base port in populated areas has also contributed to concerns on access.
Wish List No. 1 Improvement of access to the base port of CDO via road widening and construction of access road Improvement of transportation equipment turn around / provision of adequate waiting facilities.
The Continued Pursuit of Growth 2. Mindanao Container Terminal (MCT) has contributed to the decongestion of the base port of CDO. Free movement of cargo from Central Mindanao is, however, limited by the narrow and unsafe Carmen Hill portion of Sayre Highway.
Wish List No. 2 Completion of the Carmen Hill by- pass road from Ala-e to the Mindanao Container Port for the safe transport and access of cargoes from/to central Mindanao.
The Continued Pursuit of Growth 3. The strategic location and efficient operation of MCT Port has attracted big volume of cargoes in a short period of time. There is need to sustain the cost advantages offered by MCT Port and attract more shipments in order for the region to reap maximum economic benefits.
Wish List No. 3 Eliminate additional handling cost and implement total cargo inspection within the port area. The Continued Pursuit of Growth 4. MCT Port has achieved its purpose as a logistics center. In 2013 the facility handled 224,539 TEUs almost at capacity or 83% of its annual 270,000- TEU capacity.
Wish List No. 4 Expansion of the MCT Port Hedge against congestion Accommodate bigger and more cost- effective vessels The Continued Pursuit of Growth 5. There are many overstaying and abandoned cargoes in the container yard which have led to congestion, lost cargo revenues, and opportunity losses from unused containers.
Wish List No. 5 Implement policy to dispose abandoned cargoes within a reasonable period of time through auction. This will benefit government through added revenue, decongestion of the container yard, and better utilization of stranded containers. The Continued Pursuit of Growth 6. MCT Port, with the huge volume of cargo it handles, has spurred economic growth and is now a key player in the development of the region.
Wish List No. 6 Declaration of MCT as principal port of entry as opposed to its current classification as a sub-port The Continued Pursuit of Growth 7. The shipping industry supports government efforts to improve import regulations via the load port survey (LPS) scheme which will include containerized cargoes within this year.
Wish List No. 7
The LPS is an important initiative to accurately determine cargo value and for proper collection of duties and taxes. To support commerce, the cost of the LPS should be borne by government as previously promulgated under the 1987 to 2001 pre-shipment inspection scheme. The Continued Pursuit of Growth 8. The trade facilitation initiative of designating important and priority cargoes is very commendable and supports the business of the manufacturing industry, the driver of inclusive growth.
Wish List No. 8 Cargoes from accredited & established industries designated as priority clearance cargoes under the Super Green Lane (SGL) program should not be subjected to further inspection unless warranted.
The Continued Pursuit of Growth 9. The liberalization of trade has promoted free movement of goods. ASEAN Economic Community (AEC) integration will further promote greater movement of goods among countries. The industry supports government through the regulation of importer accreditation.
Wish List No. 9 Rationalization of documents submission for accreditation. Considering BIR and BOC are both under the Department of Finance, data sharing between the two agencies should be facilitated so that importers are freed from the burden of complying with similar requirements for data submission.
The Continued Pursuit of Growth 10. Northern Mindanao has yet to maximize its potentials in producing products requiring conveyance by air. Laguindingan Airport is now being improved for its safety features and for it to cater to evening flights. There is the need to also expand its cargo capacity.
Wish List No. 10 Immediate expansion of Laguindingans Airports Cargo Terminal and allied facilities.
The Continued Pursuit of Growth 11. The handicap of domestic shipping is best described by comments often heard "It is cheaper to ship to Hongkong from Mindanao than from Mindanao to Luzon
Wish List No. 11
Easing or lifting of the cabotage by allowing local shipping access of non domestic flagged vessels.
Conclusion
The high incidence of shipping accidents should lead to greater efforts that raise awareness on the need to make maritime safety the countrys No. 1 Priority. One such effort should distinguish between the different degrees of seriousness in maritime disasters. Thank You