Mindanao seeks direct shipping link with East Asian neighbors

Mindanao’s export industry can be revved up and grow more rapidly if the Philippine government opens direct access of foreign vessels to its ports to cut the cost of shipping goods bound for abroad but have to be coursed through Cebu or Manila.

Despite peace and order problems in some of its provinces, Mindanao contributed close to $2 billion in Philippine export sales in the year 2000, mainly from tuna and processed food. Nationwide, total exports that year were valued at $34 billion.

The proposal forms part of a three-point export development agenda submitted recently to the Export Development Council (EDC) by the region’s business leaders for inclusion in the rolling, three-year national export plan.

EDC is the national policymaking, chief planning body and implementor of the country’s export offensive. It is made up of government and private sector representatives.

To further open up direct trade between Mindanao and neighboring economies, particularly members of the East Asia Growth Area (EAGA) and China, the Mindanao businessmen led by EDC member Domingo Teng likewise asked for a more aggressive promotion of existing special economic zones in Davao, Zamboanga and Cagayan de Oro plus the opening up of General Santos City as a free port.

The third part of the three-point Mindanao export development agenda is for the National Government to work with participating members of the BIMP-EAGA for the harmonization of customs, immigration, quarantine and security rules in participating nations.

The Mindanao export leaders argued that EDC must lobby for some ports in Mindanao to be used for the direct shipment of its exports and imports. This will drastically cut the shipping cost of Mindanao goods and boost private sector initiatives in the Brunei-Indonesia-Malaysia-Philippines growth quadrangle to increase the volume of trade between them.

They identified the ports of Makar in General Santos and Sasa in Davao as the best prepared to be converted into ports of entry and exit for imports and exports.

Aggressive promotion for locators from other parts of the country and abroad to the special economic zones in the region should be backed with government fund to be able to take off. Most favored investors are those who will put up food processing plants that will take advantage of the abundant supply of food crops as raw materials that can be produced in the area year-round.

The need for a common customs, immigration, quarantine and security rule between the BIMP growth quadrangle will obviously speed up the flow of goods and services between the participating parts of the four East Asian countries.

It will be more difficult to set the rules in place but the Philippine government should take the first decisive step to attain it, the Mindanao business leaders suggest. – Philexport News and Features