IMPROVING LOGISTICS FOR MINDANAO’S AGRI BUSINESS (2nd of 2 parts)

The agriculture sector continues to be remarkable in its performance mainly due to the fact that the island is within a typhoon-free zone. Production of crops such as banana and pineapple had substantial growth rates during the year. Staple food such as rice and corn have registered growth rates due to end of the drought induced by the El Nino

phenomenon. Currently, 37% of the total Mindanao output comes from the agriculture sector while 36% is from the services sector. The remaining 27% of the total output is from the industry sector.

Roads are important components to agricultural growth .The major road projects in Mindanao are mainly intended to bring farm produce to the market faster and at least cost and to cut travel time for travelers. These projects, which will be constructed until 2010, are being built for a total cost of P12.868 billion.

The Dinagat Island Road Network in Surigao del Norte involves the improvement and rehabilitation of 15 kilometersof the main road that shall connect the municipalities of Cagdianao and Loreto, Dinagat, San Jose, Basilisa, Libjo, and Tubajon. At a cost of P100 million, the project is divided into nine (9) sections. Construction started in April 2007 and the project shall be completed towards the end of this quarter.

The Surigao-Davao Coastal Road Project involves the rehabilitation and improvement of 448 kilometers of road at a cost of P6 billion. It functions as the main trunkline for the coastal municipalities that leads further to the Pan-Philippine Highway. Currently, the Manay - Mati Section in Davao Oriental is 93% complete, while the rest of the other sections are also undergoing civil works. The project is expected to be completed by May 2010.

The Zamboanga West Coast Road with a total length of 169 Kms. (begins at the boundary of the municipalities of Gutalac and Baliguian and traverses southwest along the western coast of the Zamboanga Peninsula through the Municipalities of Baliguian, Siocon, Sirawai,and Sibuco and ends at the Sibuco, Zamboanga del Norte and Zamboanga City ; has a total project cost of P 3.428 Billion with an overall accomplishment of 7% andwill be completed on December 2009. The P 385.40 Million initially released to the project is composed of ten (10) on-going sections with an accomplishment of 35.85%. However, the implementation of the project was hampered due to bad weather conditions.

Upi-Lebak Road, is an 88km project that traverses the provinces of Maguindanao and Sultan Kudarat. It shall provide access to the centers of agricultural, industrial, fishing, commercial and tourism activities in Mindanao. The whole project will be completed by October 2009.

INCREASING INTER-ISLAND TRADE

Southwestern Mindanao Roll on-Roll off (RORO) connections are Zamboanga City, Zamboanga del Sur Isabela and Lamitan in Basilan, Jolo and Siasi Island in Sulu

Agricultural products like fish products, fruits and vegetables, rubber are shipped to Zamboanga City from Basilan (Isabela). Inbound cargoes to Basilan include rice and palay, flour, bottled cargoes, manufactured goods, food and other consumer products. Volume of cargoes had increased from 19,000MT in 2006 to 27,000MT in 2007. Passenger traffic between Zamboanga and Basilan is also in an uptrend; from 268,000 in 2006 to 298,000 in 2007.

The Ozamis-Mukas RORO route facilitates the travel of students to the universities in Ozamis City. Before the establishment of the route, students used to spend P500/week for lodging. Now, they only spend P160/week on RORO fare.

RORO has reduced transport cost in Mindanao and has resulted to increased mobility of people which resulted to growth in domestic tourism.

With all of these developments in infrastructure, Mindanao will be able to sustain its economic momentum inspite of all of the odds. There may be events that seems to beyond the control of businesspersons like me; but we all continue to have confidence in our region and this can be clearly seen with the many new investments, both big and small in the countryside. In Davao alone, there is the new Robinson’s Cyberpark which will soon be the hub of businesses in ICT (information communication technology) and the Ayala Shopping Mall and ICT Park which is now under construction. For us in business, all is well in Mindanao.

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The Mindanao Chambers of Commerce and Industry headed by VP-Mindanao, Ms. Elene Haw, came in full force to participate in the 34^th Phil. Business Conference of the Phil. Chamber of Commerce and Industry chaired by Ambassador Alfredo Yao, a firm supporter of Mindanao . It is these Chambers all over the island that makes these businesses thrive in their regions; it is them who continuously invests in their areas that results to jobs and better living conditions.

(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 jojibian2@yahoo.com)