Four RP-Russia trading centers to open

CEBU, Philippines - The Philippine International Trading Corporation (PITC) has signed a memorandum of agreement (MOA) with the Philippine Russia Inc. (PRI) to open up four trading centers in the Philippines, helping exporters here to effectively access the huge Russian market.

PITC vice chairman and chief executive officer (CEO) Jorge Mendoza Judan said that the joint venture between PITC and PRI will start with the opening of a Product Depot Center in Manila this month, similar facilities will be installed in Clark, Cebu and Davao.

In Cebu, Judan said PITC will be working closely with the Department of Trade and Industry (DTI-7) here to be able to assist the exporters in Cebu in showcasing their products to the Russian market.

The Product Depot Center will showcase different export-quality products that have potential to the Russian market.

Under the agreement, PRI will invest on the construction of the facility, while PITC will assist on the consolidation of products that will be showcased in the Product Depot Centers, and process necessary documents for exportation to Russia.

PITC will help Russian bulk buyers of export products from the Philippines, such as home furnishing, fashion accessories, and others for logistics and other documentary processes.

The Russian counterpart on the other hand, through PRI will help Filipino exporters find access to the Russian market, which is now regarded as one of the emerging markets for export products, like furniture, gifts-toys and housewares, fashion accessories, processed foods, with dramatically increasing purchasing power.

Without this bulk-buying facility, exporters are having hard time in delivering products to Russia, because of high cost of logistics and transportation. A one export company alone spends at least P2 million for the transportation costs.

In Cebu, PITC will initially tap the members of the Gifts, Toys and Housewares Exporters (GTH-Cebu) to fill in the upcoming Product Depot Center here, Judan said.

Marketing concerns and logistical problems in penetrating the Russian market, will be well taken care of by the PITC and PRI through this partnership, Judan stressed.

“This will help our exporters access the huge market potential in Russia,” Judan said in an interview.

In 2005, Philippine exports to Russia increased by 96 percent reaching $36.34 million from $18.58 million in 2004.

Aside from food, Cebu could also help pulled up the country’s export figure to Russia, as furniture, fashion accessory and home décor market are of great potential.

Russia the world’s ninth-largest population could be a good target market for Cebuano exporters, who are now experiencing turbulent times, because of US market softening, and the continued strengthening of the peso value versus the US dollar.

The four Product Depot Centers, will serve as the showroom for export products in each area for Russian buyers to visit.

PITC is a chartered, government - owned International Trading Organization with over 35 years proven competency in the Outsourcing, Export Consolidation, Logistics Solutions, Supply Chain Management, Import as well as Marketing of a wide range of commodities, products and services.

Through its myriad trading platform, PITC is confident and ready to facilitate and implement trade opportunities, establish joint ventures, exclusive representation and distribution including business development for emerging markets. —Ehda M. Dagooc