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Freeman Cebu Business

Government positions Phl as RORO hub in Asia

Ehda M. Dagooc - The Freeman

CEBU, Philippines - The Philippine government, through the Board of Investment (BOI) has started to work on making the Philippines as the Roll-On-Roll-off (RORO) hub in the ASEAN region.

With this, Fe Del Rosario, OIC-Director of BOI's Investment Policy and Planning Service, announced that the Philippines may also become the manufacturing center for high standard RoRo vessels that will be used to connect the ASEAN routes.

BOI, she said is now on the planning stage with Japan International Cooperation Agency (JICA).

The 2013 JICA Master Plan and Feasibility Study on the Establishment of an ASEAN RO-RO Shipping Network and Short Sea Shipping study showed that the new shipping route Davao-General Santos-Bitung (Sulawesi, Indonesia) would increase trading opportunities for potential Philippine commodities to ASEAN markets. Commodities like processed seafood, tuna, corn, Cavendish bananas and dried fruits products are among those that can be exported via the said route to Philippine trade partners in BIMP-EAGA (Brunei-Indonesia-Malaysia-Philippines East Asia Growth Area).

The Philippines, BOI said has a high potential to make these type of RoRo vessels.

According to JICA, the RORO route will help the Philippine economy and expand development reach in the country. Increased trade and tourism brought about by the RO-RO will consequently translate to more jobs and enhanced bilateral relations between the Philippines and its neighboring countries in ASEAN.

The JICA studies meanwhile recommended maximizing trade and ensuring sustainable RO-RO shipping operations by ASEAN through alignment of customs, immigration, quarantine and security policies with the RORO's seamless transport concept.

The ASEAN RO-RO presents opportunities for the Philippines to gain foothold in the ASEAN market in both trade and also tourism at the onset of regional economic integration, the study emphasized.

East Asian countries including Japan, Korea, and China and the European Union (EU) have used the RO-RO concept to boost seamless connectivity in their trade and cross-border tourism. (FREEMAN)

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