Tuesday, July 08, 2008

SAILING THE BIMP EAGA SEAS

The sea linkage between two trading points, or among several others, is very important considering that this is needed in hastening the movement of goods and products at a lower cost. Businessmen and traders will always want lower transportation cost.

I notice that while much has been taking place in the air linkages within the Brunei-Indonesia-Malaysia-Philippines (BIMP) East Asean Growth Area (EAGA) in an effort to facilitate tourism promotion, the sea linkage proposals have not improved that much despite the signing of two memoranda of agreement last year among the four countries.

INITIATIVES

Based on the report of the Mindanao Economic Development Council, as a result of the meeting in April in Bandar Seri Begawan, the capital of Brunei Darussalam, there was no significant movement in the sea linkages among the four countries.

However, the report mentioned some "flagship programs and projects" that the top officials of the four countries were considering,

Among others, the report cited the discussion on a proposal for a tariff reduction of the roll-on roll-off ship operation between Zamboanga and Sandakan, Malaysia. In that meeting, Philippine representatives wanted the Philippines and Malaysian governments to enter into a bilateral arrangements that will reduce port tariffs for their ports. For Malaysia, the agreement will be implemented in its Sandakan port.

The Philippines also requested that the ship be accommodated at a roll-on-roll off terminal.

SOLE LINKAGE and OTHER INITIATIVES

Today there is only the Zamboanga-Sandakan shipping route that is being served by two Zamboanga City-based companies, the Aleson Shipping Lines and the Sampaguita Shipping Lines.

The servicing of the General Santos City-Bitung, Indonesia route has been suspended.

The implementation of a memorandum of understanding on the "establishment and promoting efficient integrated sea linkages" was also one of the key points being explored. The officials for the four countries raised the issue of updating one another on the development of port facilities including the privatization of some of them. This is necessary because this will allow each of them to come up with their respective plans on sea linkages, taking into consideration the viability of using the ports of their trading partners.

The representative of the Asian Development Bank, the sub-regional advisor, was tasked to update the four countries on the pre-investment study that would identify the "shortfall in ports performance and capacity among the designated BIMP EAGA gateway ports and develop project priorities for bridging the performance and capacity gaps as mandated by the BIMP EAGA MoU on Sea Linkages."

There is so much has to be done to improve sea linkages and that it will take much time and political will for all the stakeholders , both government and private sector to make these sea linkages sustainable. Volume of traffic, both passengers and goods have to be present. More business activities have to be created.

I share the optimism of those who are involved in these endeavor, taking note of their efforts in promoting trade among the four countries.

As a leader of the Mindanao business sector, it is also my desire to see that every plan, big or small, finally takes shape to realize the dream of making the sub-region one big borderless economy.

(Joji Ilagan Bian is a strong and respected advocate for the development of the region. She is Chair of Joji Ilagan Foundation ( www.jojiilagancareercenter.com) ; President , Phil. Call Centers Alliance and Mindanao Tech Voc Schools Association; Mindanao Rep, Export Development Council. Email comments joji@jojiilagancareercenter.com

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