ROLL-ON/ROLL-OFF (RoRo) shipping links need to be developed across the region to lower logistics costs, business groups said.
“One area that I think moving forward that we should look into is RoRo logistics … ASEAN should have a RoRo system,” Philippine Chamber of Commerce and Industry President George T. Barcelon said at a panel discussion at the 21st International CEO Conference.
“There are already plans … And if this were to (become) reality, the logistics costs within the ASEAN region will be reduced,” he added, noting the existence of a blueprint for links that connect the Philippines, Indonesia, Malaysia, and Thailand.
Mr. Barcelon said during the visit of Indonesian President Joko Widodo six years ago, a RoRo service started plying the Davao City-General Santos City-Bitung (Sulawesi) route. However, he said that the service faced challenges and was not given much support.
“Somehow that was not really focused on (and then the) pandemic came in. So, now that we are opening up and having this ASEAN meeting, I’m really just going back from where we left off,” he said.
He added that the revival of the RoRo network will benefit Mindanao in particular, generating exports for a major Philippine agricultural hub.
“If agriculture is properly developed, then we will have enough produce to export. And exporting to neighboring countries like Malaysia and Thailand… will be cost-effective via RoRo,” he said.
Thailand Management Association Chairman Nithi Patarachoke said with global trade carried mainly by ship, ASEAN needs to better leverage its strategic location astride the Pacific and Indian Oceans.
“Therefore, we need to unlock ASEAN’s free trade potential by developing ports and surrounding areas, enhancing connections with other global ports, developing coastal tourism and most importantly, marine environment preservation,” he said.
Philippine Exporters Confederation, Inc. President Sergio R. Ortiz-Luis, Jr. said that the RoRo service is the most “practical” way to build up regional links.
“We need to revive it because we cannot build bridges everywhere. RoRo is the most practical way for us to do so,” he said.
He added that this will drive Philippine exports by addressing challenges in the supply chain, particularly in the Visayas and Mindanao.
“They have difficulty delivering products, especially agricultural products, and RoRo is the cheapest way for them to do it,” he said. — Justine Irish D. Tabile
