The solution was arrived at after the workshop took into consideration the factors that affect the high logistics cost of corn such as the distance of farm to buying stations, processing plants and ports, low production volume to merit bulk handling option, multiple handling from farm gate to trader, high wastage in grains and high transport rate.
The provision of a bulk handling facility in Mindanao came as an agreement among corn crop producers and end users, expecting that the facility could contribute to much lower logistics cost.
The proposal was tackled in a study conducted by members of the transport and logistics committee of the multi-sector workshop composed of Ramon Atayde of Asian Terminals, Inc. (ATI), Col. Edgardo Abesamis of the International Container Terminal Services, Inc. (ICTSI), and Col. Leonardo Odoño of the Philippine Interisland Shipping Association (PISA). The workshop was in response to President Arroyo’s directive to make local products more globally competitive.
With the facility in place, assemblers cost of sacks will be eliminated due to the conversion to bulk handling service, while trucking rates will be lower because labor costs in hauling of sacks, loading and unloading will be reduced.
Port handling services where operators will use a combined system of warehouse, conveyors, in-loading and out-loading system and the use of weighing scales will lessen the grains handling, increase port efficiency and reduce port charges, the study showed.
Meanwhile, the study also highlighted the need to improve port operations to maximize the vessels. Operators in the Cagayan de Oro and General Santos ports will have to provide a conveyor system to efficiently handle bulk cargo, which shall also be required in the Batangas or North Harbor terminals.
In order to be viable and sustainable, the bulk handling facility should meet a number of requirements in production, marketing and transport, the study pointed out.
PISA president Doris Magsaysay-Ho convened the multi-sector corn productivity workshop to address the problem of competitiveness of Philippine products. It highlights the commitment of the shipping industry to help reduce transport costs for the benefit of the consumers. The project is being coordinated with the Office of Million Jobs headed by Presidential Adviser for Job Creation Luis Lorenzo Jr.