The Department of Transportation (DOTr) reiterated President Rodrigo R. Duterte’s invitation to investors and business leaders of both the Philippines and Indonesia on “harnessing the potentials” of the newly inaugurated ASEAN roll-on, roll-off (ASEAN RORO) shipping network which was formally opened by President Duterte and Indonesian President Widodo last April 30.
This new trading route will significantly reduce shipping time of transported goods from the usual five weeks to just two to three days.
This will, in effect, reduce the logistical cost of trade by about US$1,500 (Php75,000) per twenty-foot unit or TEU. The expected cost would only become US$700/TEU (Php35,000) from the previous US$2,200/TEU (Php110,000) freight cost of taking the previous route of Davao, Manila, Singapore, Jakarta and Bitung.
With greater accessibility and cost-efficient shipment of goods, the connecting line is expected to open new opportunities for trade, investments and tourism. This will, in turn, spur local economic activities in both countries and provide jobs to its people.
The M/V Super Shuttle Roro 12 which is operated by the Cebu-based company Asia Marine Transport Corp., has an initial capacity of 500 TEU, voyaging once every week.
Mindanao products such as fresh fruits, poultry, meat, coffee blends, fishing supplies, and synthetics were identified for export to Indonesia. On the other hand, Bitung will export coconut, copra, corn, high value crops, soya products, coffee beans, sugar, cement, and charcoal to Mindanao.
