Bizmen: More roll-on, roll-off ports

Manila — Some of the country’s largest companies have reported sharp reductions in transportation and storage costs while increasing cargo and passenger traffic in the country due to the roll-on, roll-off system, business groups said over the weekend.

At the same time, the Philippine Chamber of Commerce and Industry (PCCI) and the Employers’ Confederation of the Philippines (ECOP) backed the call of Albay Gov. Joey Salceda for the establishment of more steel modular Ro-Ro ports around the country to spur the economy at the least cost to the government.

These business groups also issued a joint resolution supporting a proposed modular Ro-Ro project to boost inter-island and regional trade.

“Companies like Nestle have reduced their distribution centers from 36 to two, creating massive savings without compromising the price or availability of goods,” PCCI chair Edgardo Lacson said in a statement. “San Miguel Corp., meanwhile, has reduced its transport cost by 57 percent.”

“Allowing vehicles to roll on and roll (vessels) off has spared (these companies) inventory and warehousing costs,” he added. “This illustrates why businesses have clamored for more Ro-Ro ports for two decades, to cut transport and distance costs.”

He cited an Asian Development Bank study that cited large corporations and government agencies whose transportation costs declined through the use of the Ro-Ro system.

For instance, the Department of Health’s cost for transporting medical kits from Iloilo to Bacolod declined by 60 percent. Standard shipping for these medical kits cost approximately P10,000 per shipment compared to only P4,000 through the Ro-Ro system.

In the meantime, the transport of dry goods from Manila to Cebu declined by 20 percent, while ferrying live cattle from Negros Island to Manila declined by 43 percent, according to the ADB study.

In the case of San Miguel Corp., the transport of liquid carbon dioxide for their facilities in Cagayan de Oro or Davao City to Bacolod dropped by 68 percent. In particular, the cost of one shipment of liquid carbon dioxide stood at only P72,000 via Ro-Ro compared to P225,000 through standard shipping.

“We talk of globalization and the need to compete but our infrastructure restricts our over 21,000 members and their businesses from accessing major hubs in the country and foreign markets,” ECOP chair Miguel Varela added.

The same study cited the experience of Big-E baked goods that had its delivery time shortened from five days via conventional shipping to one day through the Ro-Ro system.

The shortened delivery time resulted in smaller inventories but more frequent shipping, delivering fresher goods to the market.  /INQUIRER