Taiwanese firms looking for sources of gravel & sand

A number of Taiwanese firms are looking for possible sources of gravel and sand in the country to supply the six million cubic meter requirement of Taiwan to fuel the construction boom there.

In an interview, Philippine trade attaché Nic Bautista, said personnel from the Manila Economic and Culture Office (Meco) will accompany 14 companies which will visit Northern Luzon provinces to look for sand and gravel.

Bautista said the Taiwanese delegation will concentrate on the coastal areas of Northern Luzon and will visit the provinces of La Union, Abra, Ilocos Sur and Ilocos Norte.

Likewise, Bautista said the Taiwanese are considering getting sand and gravel from Zambales. “They are in the exploratory stage. They want to see if they can use the lahar from Mount Pinatubo.”

Bautista said lahar is inferior to the sand and gravel found in the rivers.

Sand and gravel are taken from rivers through dredging operations.

When asked if the dredging activities can affect the environment, Bautista said they are in close coordination with the Department of Environment and Natural Resources (DENR).

In fact, he said some provinces are even offering to flatten mountains in order to get sand and gravel.

“We are offering them everything,” Bautista said.

He said the reason for the sudden need for more gravel and sand is the clamp down of Chinese exports in Taiwan.

“They are looking for alternative sources and they think Northern Philippines is a good fit because of its proximity,” Bautista explained.

According to the study made by the Taiwanese government, the Philippines has the potential to become the source of up to six million cubic meters of sand and gravel every year.

Right now, however, Bautista said Taiwanese importers of aggregates are only getting about 200,000 cubic meters from La Union, Cagayan and Ilocos.

Also, Bautista said there are other requirements like the river should be near the processing facility, a deep port and there should be by-pass roads.

“There has to be investments in port 17 meters in depth, by-pass roads because the trucks for hauling cannot use the provincial roads, and processing facilities,” he said.

He said the LGUs can opt to spend for all these requirements and just include the expenses in the cost of the aggregates they will be shipping for several years.

Bautista said Taiwan is in dire need of gravel and sand for its various infrastructure projects including buildings, roads and tunnels.

“The Taiwanese government is even giving to its importers $2 incentive for every ton that they will bring in,” he said.

The rate for aggregates, he said, is about $14 per ton.