Theme

Logistics and Trade Opportunities in

a Developing Economy
Topic
Private Sector Wish List


PIEMO Industries, Inc.




Mindanao Shipping
Conference 2014
(SEC CN201131144 )
The Shipping Port and the
Economy
The size of the economy is as big as the
size of the port. The port has an important
role in the creation of the wealth, its
distribution and consumption**
** Japan Embassy Consul MCT Groundbreaking Ceremony
Major Growth Drivers of N.
Mindanao

1. Base Port of Cagayan de Oro
Macabalan, Cagayan de Oro City
2. Mindanao Container Port (MCT)
PHIVIDEC Industrial Estate Economic
Zone
Tagoloan, Misamis Oriental

The Continued Pursuit of
Growth
1. The expanding economy of Northern
Mindanao has placed pressure on the
cargo-handling capacity of the base port
of CDO. The location of the base port in
populated areas has also contributed to
concerns on access.

Wish List No. 1
Improvement of access to the base
port of CDO via road widening and
construction of access road
Improvement of transportation
equipment turn around / provision of
adequate waiting facilities.

The Continued Pursuit of
Growth
2. Mindanao Container Terminal (MCT) has
contributed to the decongestion of the
base port of CDO. Free movement of
cargo from Central Mindanao is, however,
limited by the narrow and unsafe Carmen
Hill portion of Sayre Highway.

Wish List No. 2
Completion of the Carmen Hill by-
pass road from Ala-e to the
Mindanao Container Port for the
safe transport and access of
cargoes from/to central Mindanao.


The Continued Pursuit of
Growth
3. The strategic location and efficient
operation of MCT Port has attracted big
volume of cargoes in a short period of
time. There is need to sustain the cost
advantages offered by MCT Port and
attract more shipments in order for the
region to reap maximum economic
benefits.

Wish List No. 3
Eliminate additional handling cost
and implement total cargo inspection
within the port area.
The Continued Pursuit of
Growth
4. MCT Port has achieved its purpose as a
logistics center. In 2013 the facility
handled 224,539 TEUs almost at
capacity or 83% of its annual 270,000-
TEU capacity.

Wish List No. 4
Expansion of the MCT Port
Hedge against congestion
Accommodate bigger and more
cost- effective vessels
The Continued Pursuit of
Growth
5. There are many overstaying and
abandoned cargoes in the container yard
which have led to congestion, lost cargo
revenues, and opportunity losses from
unused containers.

Wish List No. 5
Implement policy to dispose
abandoned cargoes within a
reasonable period of time through
auction. This will benefit government
through added revenue,
decongestion of the container yard,
and better utilization of stranded
containers.
The Continued Pursuit of
Growth
6. MCT Port, with the huge volume of cargo
it handles, has spurred economic growth
and is now a key player in the
development of the region.


Wish List No. 6
Declaration of MCT as principal port
of entry as opposed to its current
classification as a sub-port
The Continued Pursuit of
Growth
7. The shipping industry supports
government efforts to improve import
regulations via the load port survey (LPS)
scheme which will include containerized
cargoes within this year.


Wish List No. 7


The LPS is an important initiative to
accurately determine cargo value
and for proper collection of duties
and taxes. To support commerce,
the cost of the LPS should be borne
by government as previously
promulgated under the 1987 to 2001
pre-shipment inspection scheme.
The Continued Pursuit of
Growth
8. The trade facilitation initiative of
designating important and priority
cargoes is very commendable and
supports the business of the
manufacturing industry, the driver of
inclusive growth.

Wish List No. 8
Cargoes from accredited &
established industries designated as
priority clearance cargoes under the
Super Green Lane (SGL) program
should not be subjected to further
inspection unless warranted.

The Continued Pursuit of
Growth
9. The liberalization of trade has promoted
free movement of goods. ASEAN
Economic Community (AEC) integration
will further promote greater movement of
goods among countries. The industry
supports government through the
regulation of importer accreditation.

Wish List No. 9
Rationalization of documents
submission for accreditation.
Considering BIR and BOC are both
under the Department of Finance,
data sharing between the two
agencies should be facilitated so
that importers are freed from the
burden of complying with similar
requirements for data submission.

The Continued Pursuit of
Growth
10. Northern Mindanao has yet to maximize
its potentials in producing products
requiring conveyance by air.
Laguindingan Airport is now being
improved for its safety features and for it
to cater to evening flights. There is the
need to also expand its cargo capacity.


Wish List No. 10
Immediate expansion of
Laguindingans Airports Cargo
Terminal and allied facilities.



The Continued Pursuit of
Growth
11. The handicap of domestic shipping is
best described by comments often heard
"It is cheaper to ship to Hongkong from
Mindanao than from Mindanao to Luzon


Wish List No. 11

Easing or lifting of the cabotage by
allowing local shipping access of
non domestic flagged vessels.



Conclusion


The high incidence of shipping accidents should
lead to greater efforts that raise awareness on
the need to make maritime safety the countrys
No. 1 Priority. One such effort should distinguish
between the different degrees of seriousness in
maritime disasters.
Thank You