DBP allots P1.5-B loan for transport, port operations

The Development Bank of the Philippines (DBP) has approved some P1.525 billion in development loans for transportation and port operations.

This would cover an eight-vessel acquisition program by six maritime companies designed to transport from north to south.

Aboitiz Transport Inc., the operators of the WG&A transport system, has made a P1-billion loan for the acquisition of two long-haul vessels. The vessels are expected to ply the Luzon to Mindanao sea lanes.

Trans-Asia Maritime will likewise acquire two vessels for a combined loan cost of P85 million. The vessels will be fielded for the Cagayan to Cebu trade route.

Three other maritime players made a combined loan cost of P145 million for the acquisition of four vessels.

Montenegro Shipping will add two more vessels in the Batangas to Calapan, Mindoro route. The Philippine Nippon Kyoei Corp. will field one vessel in the Lucena to Marinduque route while Daima Shipping Corp. will add another vessel in the Ozamis-Mukas lane.

Soon to be released are loan applications worth P275 million for vessel acquisition or port development.

The loans are part of the Road Ro/Ro (roll-on/roll-off) Terminal System, which in turn is part of DBP’s larger development lending program. The two-year old Sustainable Logistics Development Program (SLDP) is an investment financial facility for transport and related infrastructure and support services.

DBP officials said that the SLDP was designed to support the government’s Strong Republic Nautical Highway (SRNH) program. The interconnection is expected to stimulate economic activities in the hope of lowering transport costs and travel time.

Among the eligible programs for lending are grains processing centers, bulk trucking, grains terminals, bulk carriers, and other post harvest facilities, Ro/Ro terminal facilities and vessels, and processing and marketing centers, aggregating centers, reefer vans/transport equipment, and other cold storage facilities.