Shippers count cost of slow steaming
Cargo owners are facing higher warehousing costs in Hong Kong and other Asian countries as they need to keep more inventory of goods and raw materials to overcome possible supply disruptions as a result of container shipping lines slowing the speed of their ships, reported the South China Morning Post.
Jacques Chan, general manager for Hong Kong and South China with global logistics group BDP International, said shippers in Hong Kong were also experiencing a shortage of space, in addition to higher costs.
He warned that if Hong Kong was saturated with cargo with no spare warehouse space, shippers would move to Singapore. "There would be a loss of Hong Kong business."
Chan was speaking after BDP International released the results of a survey of 290 cargo owners on the impact of container lines cutting vessel speeds. Of the shippers surveyed, 37 per cent were from the Asia-Pacific region.
Arnie Bornstein, BDP International executive director, said carriers such as Orient Overseas Container Line, Cosco Container Lines and Taiwan's Evergreen Marine, had cut the speed of their ships from around 25 knots to about 14 knots following the economic downturn in 2008. This has cut fuel consumption and exhaust emissions by 40 to 50 per cent.
But he said slow steaming had also increased voyage times. A transpacific trip from Hong Kong to Los Angeles that previously took 14 days now took an extra four to seven days. A 20-day trip from Hong Kong to Europe was lengthened by five to seven days, he said.
Bornstein said there was a lack of information from carriers over which services were sailing slower. Consequently, shippers were faced with uncertain delivery schedules and now no longer knew when their consignments would arrive. Shippers had to boost inventory, increasing their costs, to overcome these potential supply shortages.
"Practices companies have honed over the last 20 years have had to change," Bornstein said.
He added that shippers were "paying the price" in uncertain delivery schedules and higher inventory carrying costs, while shipping lines reaped the benefit of lower fuel bills.
Bornstein said the economic advantages of slow steaming enjoyed by carriers meant "all the signs are that slow steaming is here to stay".
But he said BDP's survey of exporters and importers, representing firms in the chemical, consumer goods, health-care and electronics industries, revealed that 92 per cent of cargo owners in Asia were feeling an impact from slow steaming.
Bornstein said the biggest impact for shippers in Asia was on customer service, inventory levels and scheduling of shipments. Some 48 per cent said they had changed the way they sourced raw materials.
About 38 per cent said they had moved from using three or four carriers to multiple shipping lines to get the best transit times and freight rates, while 36 per cent of firms had increased inventory levels.
Asked about how shipping lines could share the benefits, Bornstein said 73 per cent of Asian cargo owners would like lower freight rates, while 40 per cent wanted improved customer service.
Bornstein said: "In carriers' zeal to protect their business, they have overlooked they're also in business to serve their customers. Shippers want a more collaborative environment with carriers."
The results of the survey, which was carried out in March and April, bore out the responses given to the US Federal Maritime Commission when it launched an inquiry into slow steaming earlier this year. Shippers, including big US retail groups, said they had not seen any benefit from slow steaming. They complained that fuel cost savings had not been passed on to them.
B
Thursday, July 28, 2011
Monday, July 25, 2011
MARITIME-ENVIRONMENT
Improving ships environmental performance
The shipping sector could become cleaner than the aviation industry following the approval by the UN shipping agency of a new energy efficiency design index and other measures aimed at improving ships' environmental performance, according to an NGO.
The new rules, adopted by the International Maritime Organisation earlier this month, could also save the shipping industry US$5 billion in fuel costs and cut carbon dioxide emissions by 20 million tonnes a year on new ships by 2020, said Peter Boyd, chief operating officer of the Carbon War Room, an NGO set up by a group including British billionaire Richard Branson.
Boyd said the IMO's new rules would lead to fuel savings of $50 billion a year and an annual reduction in carbon dioxide emissions of more than 220 million tonnes if the standards were applied to the existing fleet of 60,000 ships, reported the South China Morning Post.
Boyd was commenting after the IMO approved regulations to implement efficiency ratings for ships over 400 gross tonnes, which are expected to enter into force on January 1, 2013. The measure, which will apply to ships ordered after a specific date, was approved overwhelmingly by 48 countries that voted at the IMO's marine environment protection committee about 10 days ago.
China was one of only five countries that voted against the measure. Consequently, while mainland shipyards are likely to build more energy-efficient ships for foreign owners, there will be no pressure on those shipyards to comply when building ships to be registered in China for mainland owners such as China Ocean Shipping (Group).
Clauses in the pact allow countries to delay implementation for up to four to six years after the commencement date of the rules. As a result, there is some uncertainty over how quickly the energy-efficiency design index and the associated energy efficiency management plan will be implemented.
Under the IMO regulations shipowners will have to meet the new efficiency ratings for each type of vessel they order. Dry cargo bulk carriers will have a different rating than tankers or container ships.
The IMO also leaves the choice of technologies used in a specific ship design to the maritime industry. This could include changes to the hull design or propulsion system, which are already being incorporated by some shipowners, including Hong Kong operators.
Asked if shipping companies would seek early compliance with the ratings or take advantage of the potential delay given to some countries, Arthur Bowring, managing director of the Hong Kong Shipowners' Association, said: "It really depends on the cost of compliance. Shipbuilders might try to ask for a premium [on the cost of a new ship] to implement early because it is not yet required by regulation."
But Bowring said the industry was "suffering an overcapacity of shipbuilding and so the cost might well be absorbed, at least partially".
"Whether flag states will take advantage of the four-year delay could well be a political decision to object to the process rather than anything else," Bowring said. He also thought it was "actually in the owner's interest to have the energy efficiency design index for his new buildings, in that it should make the ship more attractive as a sale candidate later on."
Tim Huxley, chief executive of Wah Kwong Maritime Holdings, which operates a fleet of tankers and dry cargo ships, said it was too soon to assess the impact of the regulations on its operations, "although it will obviously have an impact on any new ships we might build in the future. The interesting part is going to be how quickly the shipbuilding and engine manufacturers respond."
One Hong Kong shipowner said vessels were designed to have a lifespan of 25 to 27 years, but the impact of the IMO regulations meant that some ships being delivered now could already be obsolete.
Jan Rindbo, chief operating officer of Pacific Basin Shipping, said: "We are supportive of the creation of sensible but effective industry-wide measures to reduce emissions, and for such measures to be the jurisdiction of the IMO."
The shipping sector could become cleaner than the aviation industry following the approval by the UN shipping agency of a new energy efficiency design index and other measures aimed at improving ships' environmental performance, according to an NGO.
The new rules, adopted by the International Maritime Organisation earlier this month, could also save the shipping industry US$5 billion in fuel costs and cut carbon dioxide emissions by 20 million tonnes a year on new ships by 2020, said Peter Boyd, chief operating officer of the Carbon War Room, an NGO set up by a group including British billionaire Richard Branson.
Boyd said the IMO's new rules would lead to fuel savings of $50 billion a year and an annual reduction in carbon dioxide emissions of more than 220 million tonnes if the standards were applied to the existing fleet of 60,000 ships, reported the South China Morning Post.
Boyd was commenting after the IMO approved regulations to implement efficiency ratings for ships over 400 gross tonnes, which are expected to enter into force on January 1, 2013. The measure, which will apply to ships ordered after a specific date, was approved overwhelmingly by 48 countries that voted at the IMO's marine environment protection committee about 10 days ago.
China was one of only five countries that voted against the measure. Consequently, while mainland shipyards are likely to build more energy-efficient ships for foreign owners, there will be no pressure on those shipyards to comply when building ships to be registered in China for mainland owners such as China Ocean Shipping (Group).
Clauses in the pact allow countries to delay implementation for up to four to six years after the commencement date of the rules. As a result, there is some uncertainty over how quickly the energy-efficiency design index and the associated energy efficiency management plan will be implemented.
Under the IMO regulations shipowners will have to meet the new efficiency ratings for each type of vessel they order. Dry cargo bulk carriers will have a different rating than tankers or container ships.
The IMO also leaves the choice of technologies used in a specific ship design to the maritime industry. This could include changes to the hull design or propulsion system, which are already being incorporated by some shipowners, including Hong Kong operators.
Asked if shipping companies would seek early compliance with the ratings or take advantage of the potential delay given to some countries, Arthur Bowring, managing director of the Hong Kong Shipowners' Association, said: "It really depends on the cost of compliance. Shipbuilders might try to ask for a premium [on the cost of a new ship] to implement early because it is not yet required by regulation."
But Bowring said the industry was "suffering an overcapacity of shipbuilding and so the cost might well be absorbed, at least partially".
"Whether flag states will take advantage of the four-year delay could well be a political decision to object to the process rather than anything else," Bowring said. He also thought it was "actually in the owner's interest to have the energy efficiency design index for his new buildings, in that it should make the ship more attractive as a sale candidate later on."
Tim Huxley, chief executive of Wah Kwong Maritime Holdings, which operates a fleet of tankers and dry cargo ships, said it was too soon to assess the impact of the regulations on its operations, "although it will obviously have an impact on any new ships we might build in the future. The interesting part is going to be how quickly the shipbuilding and engine manufacturers respond."
One Hong Kong shipowner said vessels were designed to have a lifespan of 25 to 27 years, but the impact of the IMO regulations meant that some ships being delivered now could already be obsolete.
Jan Rindbo, chief operating officer of Pacific Basin Shipping, said: "We are supportive of the creation of sensible but effective industry-wide measures to reduce emissions, and for such measures to be the jurisdiction of the IMO."
MARITIME-PORT PERFORMANCE
Malaysian ports see 10% rise in box throughput
Malaysian ports handled 10.5 per cent more containers in the first six months of the year, said Transport Minister Kong Cho Ha, reported Bernama Daily News.
He said 9,856,859 TEUs were handled between January and June against 8,921,113 TEUs registered in the same period last year.
"This reflected a booming container handling business in the country," he said.
Kong said the encouraging performance indicated that Malaysian ports were strategically located to handle containers to and from abroad.
He also disclosed that Port Klang and Port of Tanjung Pelepas last year succeeded in retaining their 13th and 17th position in the top 20 list of container ports in the world.
The ministry said Port Klang handled the largest number of containers in the first six months of the year. Westports and Northport together handled 4.7 million TEUs of containers against 4.3 million TEUs registered in the same period last year.
Malaysian ports handled 10.5 per cent more containers in the first six months of the year, said Transport Minister Kong Cho Ha, reported Bernama Daily News.
He said 9,856,859 TEUs were handled between January and June against 8,921,113 TEUs registered in the same period last year.
"This reflected a booming container handling business in the country," he said.
Kong said the encouraging performance indicated that Malaysian ports were strategically located to handle containers to and from abroad.
He also disclosed that Port Klang and Port of Tanjung Pelepas last year succeeded in retaining their 13th and 17th position in the top 20 list of container ports in the world.
The ministry said Port Klang handled the largest number of containers in the first six months of the year. Westports and Northport together handled 4.7 million TEUs of containers against 4.3 million TEUs registered in the same period last year.
Thursday, June 30, 2011
URBAN TRANSPORT - Taxi Service Mess
Ease their burden for better performance
INCONSISTENCY is the reason for the taxi service mess, says Chartered Institute of Logistics and Transport (CILT) Malaysia.
“There were a few Cabinet ministers who wanted to change the taxi industry landscape but before they could, they were transferred to other ministerial portfolios.
"Their terms were too short to introduce steps to improve the situation,” said CILT's examination board secretary Rosena Mohd Ali.
In 2004, Rosena had conducted a preliminary study with Malaysian Institute of Transport (Mitrans) director Professor Sabariah Mohammad, titled Towards an Enterprising Taxi Industry.
"In our study, we proposed setting up a commercial drivers academy to educate drivers, especially about professionalism, defensive driving techniques, customer service, map knowledge, safety, vehicle maintenance and others,” said Rosena.
"The government should also introduce an insurance scheme for taxi drivers to safeguard their welfare and ease their burden so they will perform better."
She said there was also a need to limit the age of taxi drivers.
“With all due respect to veteran taxi drivers, the authorities need to check on their fi tness and health. Some taxi drivers are unable to cope with heavy traffic situations where there are more passengers, and only service less hectic areas."
(The Malay Mail)
INCONSISTENCY is the reason for the taxi service mess, says Chartered Institute of Logistics and Transport (CILT) Malaysia.
“There were a few Cabinet ministers who wanted to change the taxi industry landscape but before they could, they were transferred to other ministerial portfolios.
"Their terms were too short to introduce steps to improve the situation,” said CILT's examination board secretary Rosena Mohd Ali.
In 2004, Rosena had conducted a preliminary study with Malaysian Institute of Transport (Mitrans) director Professor Sabariah Mohammad, titled Towards an Enterprising Taxi Industry.
"In our study, we proposed setting up a commercial drivers academy to educate drivers, especially about professionalism, defensive driving techniques, customer service, map knowledge, safety, vehicle maintenance and others,” said Rosena.
"The government should also introduce an insurance scheme for taxi drivers to safeguard their welfare and ease their burden so they will perform better."
She said there was also a need to limit the age of taxi drivers.
“With all due respect to veteran taxi drivers, the authorities need to check on their fi tness and health. Some taxi drivers are unable to cope with heavy traffic situations where there are more passengers, and only service less hectic areas."
(The Malay Mail)
Thursday, June 23, 2011
MARITIME - FISHING
Fishermen band together to overcome difficulty
VietNamNet Bridge -
Many fishermen choose to come together in voluntary fishing cooperation and mutual support groups to overcome the difficulty they face in the offshore fishing industry.
Nui Thanh District of the central province of Quang Nam is one of the provinces with the most fishing trawlers in the Central Vietnam.
170 cuttle-fishing boats of the district have been divided into groups of three to eight, to better facilitate cooperation among the fishermen in their work.
All boats from each group will set sail to sea together on every fishing trip.
The family of Huynh Ngoc Du, a 58-year-old fisherman in Tam Giang Commune, is a typical example of this “team work” approach in Quang Nam.
No longer going out to sea, Du is now the “captain” of a group of six fishing trawlers, two of his two sons and four of his neighbors.
He said these boats support each other by sharing the information about the fisheries.
If one of the boats finds a rich fishing ground, it will inform him via the ICOM communication system, and he will relay the information to the other boats in the group.
“If all 8 trawlers work together in one same area to catch fish, the time and cost will be much reduced,” he said. “Moreover, together we stand a much better chance of fighting against natural disaster or foreign invasions.”
The fishermen in Quang Ngai Province even go further. Their fishing corporations and mutual support groups are now sailing to the foreign seas in the Philippines and Malaysia.''
These fishermen have invested a significant sum in their trawlers, obtained passports for their crews and made direct contacts with foreign partners.
D.V.R., a fisherman in Binh Son District, said all of the crew members in his 20-trawler group are legally registered with the local authorities so they can legally catch fish in the Malaysian waters.
He said the much lower price of diesel in Malaysia, just VND8,000 a liter compared to VND21,100 in Vietnam, plus the high price of fishing products in Malaysia have enabled him to earn big profits from each fishing trip.
If the price for their catch in the Malaysian or Filipino markets is lower than in the domestic market, the boats will inform each other and they will sail back to Vietnam sell it, he added.
Truong Van Ngu, a fisherman who joins a mutual support group of 20 trawlers in Kien Giang Province, said the cooperation has helped reduce the risk and increase the efficiency of their offshore fishing operations.
He said four or five boats in his group are given the logistics responsibilities, which are to transport fuel to the others and to bring their catches ashore for sale once a week.
“We no longer need to head back every time the boat is full,” he said.
“This helps bring down the cost of sailing in and out, and thus gives us more time to focus on fishing.”
Although the teamwork scheme has helped fishermen overcome some difficulties, they still need to make further improvement to achieve bigger targets.
Nguyen Van Manh, an experienced fisherman in Phuoc Tinh, said most of the fishing boats in Ba Ria – Vung Tau are capable of fishing in the deep sea.
But at present, most of them only catch fish by trawling at the swallow depth of less than 200 meters.
Nguyen Ngoc Phuong, deputy director of Kien Giang Department of Agricultural and Rural Development, said the trawling technique consumes a lot of fuel and the products it captures usually have low values.
She said the provincial people’s committee has been encouraging fishermen to switch to fishing at the lowers level of the deep sea in the Hoang Sa and Truong Sa fisheries.
This will save cost and increase the product values, she said.
Source: Tuoi Tre
VietNamNet Bridge -
Many fishermen choose to come together in voluntary fishing cooperation and mutual support groups to overcome the difficulty they face in the offshore fishing industry.
Nui Thanh District of the central province of Quang Nam is one of the provinces with the most fishing trawlers in the Central Vietnam.
170 cuttle-fishing boats of the district have been divided into groups of three to eight, to better facilitate cooperation among the fishermen in their work.
All boats from each group will set sail to sea together on every fishing trip.
The family of Huynh Ngoc Du, a 58-year-old fisherman in Tam Giang Commune, is a typical example of this “team work” approach in Quang Nam.
No longer going out to sea, Du is now the “captain” of a group of six fishing trawlers, two of his two sons and four of his neighbors.
He said these boats support each other by sharing the information about the fisheries.
If one of the boats finds a rich fishing ground, it will inform him via the ICOM communication system, and he will relay the information to the other boats in the group.
“If all 8 trawlers work together in one same area to catch fish, the time and cost will be much reduced,” he said. “Moreover, together we stand a much better chance of fighting against natural disaster or foreign invasions.”
The fishermen in Quang Ngai Province even go further. Their fishing corporations and mutual support groups are now sailing to the foreign seas in the Philippines and Malaysia.''
These fishermen have invested a significant sum in their trawlers, obtained passports for their crews and made direct contacts with foreign partners.
D.V.R., a fisherman in Binh Son District, said all of the crew members in his 20-trawler group are legally registered with the local authorities so they can legally catch fish in the Malaysian waters.
He said the much lower price of diesel in Malaysia, just VND8,000 a liter compared to VND21,100 in Vietnam, plus the high price of fishing products in Malaysia have enabled him to earn big profits from each fishing trip.
If the price for their catch in the Malaysian or Filipino markets is lower than in the domestic market, the boats will inform each other and they will sail back to Vietnam sell it, he added.
Truong Van Ngu, a fisherman who joins a mutual support group of 20 trawlers in Kien Giang Province, said the cooperation has helped reduce the risk and increase the efficiency of their offshore fishing operations.
He said four or five boats in his group are given the logistics responsibilities, which are to transport fuel to the others and to bring their catches ashore for sale once a week.
“We no longer need to head back every time the boat is full,” he said.
“This helps bring down the cost of sailing in and out, and thus gives us more time to focus on fishing.”
Although the teamwork scheme has helped fishermen overcome some difficulties, they still need to make further improvement to achieve bigger targets.
Nguyen Van Manh, an experienced fisherman in Phuoc Tinh, said most of the fishing boats in Ba Ria – Vung Tau are capable of fishing in the deep sea.
But at present, most of them only catch fish by trawling at the swallow depth of less than 200 meters.
Nguyen Ngoc Phuong, deputy director of Kien Giang Department of Agricultural and Rural Development, said the trawling technique consumes a lot of fuel and the products it captures usually have low values.
She said the provincial people’s committee has been encouraging fishermen to switch to fishing at the lowers level of the deep sea in the Hoang Sa and Truong Sa fisheries.
This will save cost and increase the product values, she said.
Source: Tuoi Tre
Monday, June 20, 2011
BIMP EAGA - Infrastructure Investment
Infra lack preventing Mindanao’s dev’t as BIMP-EAGA transport hub
By Rico Biliran | Tuesday| June 21, 2011
DAVAO CITY (MindaNews/20 June) – The lack of infrastructure investments and deflated transport and logistics system in Mindanao is holding back the island from becoming one of the strategic transport hubs of the Brunei-Indonesia-Malaysia-Philippines – East Asean Growth Areas (BIMP-EAGA), a top government official said.
“This is mainly why we are pushing through the Mindanao 2020 Peace and Development Framework Plan to interconnect Mindanao through state-of-the-art infrastructure,” Sec.
Luwalhati Antonino, Mindanao Development Authority (MinDA) chairperson, said in a statement.
She noted that Mindanao, one of the Philippines-EAGA focus areas, has a great potential to become a transport hub in the sub-region.
The Mindanao 2020 is 20-year peace and development framework for the island from 2011 to 2030 initiated by MinDa.
Meanwhile, the BIMP-EAGA Transport, Infrastructure, and ICT Development Cluster meeting will be held from June 21 to 23, 2011 in Puerto Princesa City, Palawan.
Key transport industry players in the BIMP-EAGA are poised for greater mobility of trade, tourism and investment across the sub-region as they are set to discuss significant updates and improvements on cross-border air, land and sea transport connectivity, the MinDA statement said.
The meeting will look into the status of the various priority projects geared towards enhancing connectivity in the sub-region, including the establishment of new priority air routes and revival of suspended air and sea transport linkages.
Antonino said enhancing transport connectivity and infrastructure investments are crucial initiatives that support Eaga’s aim of becoming the regional food basket of the Asean.
“Strategic ports and stations in the Eaga sub-region will facilitate faster transfer of goods and services, reduce logistic cost, and promote productivity and competency,” the MinDa chair added.
The cluster will also review the proposed provision of incentives to support transport infrastructure and transport services, various transportation studies as well as pending agreements such as the Memoranda of Understanding on Non-convention Sized Ships, Transit and Inter-state Transport, and on the expansion of air linkages.
To be held simultaneously with the cluster meeting is the BIMP-EAGA CEO Forum on Information and Communications Technology that will gather key private sector players in the sub-region’s telecommunications and information technology sector to discuss and agree on major ICT projects.
Among the priority ICT projects to be discussed are the $15O-million alternate submarine cable link project dubbed the BIMP-EAGA Rink, an alternative network routing through either submarine cable or satellite.
The proposed BIMP-EAGA Rink will cover the entire Mindanao, Sandakan and Tawau in Sabah and Tarakan via the terrestrial Kalimantan. Kalimantan, Sulawesi and Papua in Indonesia are also eyed as potential international gateways of the project. (Rico Biliran/MindaNews)
By Rico Biliran | Tuesday| June 21, 2011
DAVAO CITY (MindaNews/20 June) – The lack of infrastructure investments and deflated transport and logistics system in Mindanao is holding back the island from becoming one of the strategic transport hubs of the Brunei-Indonesia-Malaysia-Philippines – East Asean Growth Areas (BIMP-EAGA), a top government official said.
“This is mainly why we are pushing through the Mindanao 2020 Peace and Development Framework Plan to interconnect Mindanao through state-of-the-art infrastructure,” Sec.
Luwalhati Antonino, Mindanao Development Authority (MinDA) chairperson, said in a statement.
She noted that Mindanao, one of the Philippines-EAGA focus areas, has a great potential to become a transport hub in the sub-region.
The Mindanao 2020 is 20-year peace and development framework for the island from 2011 to 2030 initiated by MinDa.
Meanwhile, the BIMP-EAGA Transport, Infrastructure, and ICT Development Cluster meeting will be held from June 21 to 23, 2011 in Puerto Princesa City, Palawan.
Key transport industry players in the BIMP-EAGA are poised for greater mobility of trade, tourism and investment across the sub-region as they are set to discuss significant updates and improvements on cross-border air, land and sea transport connectivity, the MinDA statement said.
The meeting will look into the status of the various priority projects geared towards enhancing connectivity in the sub-region, including the establishment of new priority air routes and revival of suspended air and sea transport linkages.
Antonino said enhancing transport connectivity and infrastructure investments are crucial initiatives that support Eaga’s aim of becoming the regional food basket of the Asean.
“Strategic ports and stations in the Eaga sub-region will facilitate faster transfer of goods and services, reduce logistic cost, and promote productivity and competency,” the MinDa chair added.
The cluster will also review the proposed provision of incentives to support transport infrastructure and transport services, various transportation studies as well as pending agreements such as the Memoranda of Understanding on Non-convention Sized Ships, Transit and Inter-state Transport, and on the expansion of air linkages.
To be held simultaneously with the cluster meeting is the BIMP-EAGA CEO Forum on Information and Communications Technology that will gather key private sector players in the sub-region’s telecommunications and information technology sector to discuss and agree on major ICT projects.
Among the priority ICT projects to be discussed are the $15O-million alternate submarine cable link project dubbed the BIMP-EAGA Rink, an alternative network routing through either submarine cable or satellite.
The proposed BIMP-EAGA Rink will cover the entire Mindanao, Sandakan and Tawau in Sabah and Tarakan via the terrestrial Kalimantan. Kalimantan, Sulawesi and Papua in Indonesia are also eyed as potential international gateways of the project. (Rico Biliran/MindaNews)
BIMP-EAGA
Expansion of Ro-Ro route within BIMP-EAGA ok'd
By Allen V. Estabillo | Sunday| October 31, 2010
HANOI, Vietnam (MindaNews/30 October) — Southeast Asia has adopted a master plan that would further link up key growth areas such as expansion of the Philippines’Roll on/Roll off (Ro-Ro) system into the East ASEAN Growth Area (EAGA) and pave the way for the region’s full development as a major market and production base in the next decade.
The heads of states of the Association of Southeast Asian Nations (ASEAN), including President Benigno Simeon Aquino III, formally adopted at the ongoing 17th regional summit here the 91-page Master Plan on ASEAN Connectivity, which includes a proposal for the development of a regional nautical highway that would essentially expand the Philippines Roll on/Roll off (Ro-Ro) system.
The plan, which will serve the main vehicle of the 10-nation bloc’s planned economic integration by 2015, intends to enhance the physical, institutional, and people-to-people interconnectivity across Southeast Asia.
Pushpanathan Sundram, ASEAN deputy secretary general for the ASEAN Economic Community, said the master plan essentially puts into action the ongoing regional integration process through the implementation at least 15 identified priority projects within the region.
These include six major physical infrastructure, five institutional and four people-to-people, including tourism, connectivity initiatives, he said.
“These are priority projects that would be implemented as soon as possible so we can see some early and quick wins,” he said in a press briefing at the National Convention Center here.
To improve physical connectivity, the plan cited the need to address the lingering problem on poor quality of roads, incomplete road networks, missing railway links, inadequate maritime and port infrastructure, inland waterways and aviation facilities, widening of digital divide, and growing demand for power in the region.
Among the identified strategies is the establishment of a regional RoRo network that will connect the region’s archipelagic areas and open up efficient and reliable shipping routes.
The opening of Philippines Nautical Highway or Ro-Ro system has provided an alternative and cheaper mode of domestic travel and drastically cut down the shipping costs of products coming from various production bases in the country.
Citing an impact assessment conducted by the Asian Development Bank (ADB) on the country’s Ro-Ro system, the plan cited that “the system demonstrate significant benefits in terms of reduction in transport costs, the creation of new regional links and expansion of regional markets, more efficient shipment of goods and people that have particularly benefited the poorer provinces in the maritime routes, acceleration of local area development, realignment of logistical practices with more frequent deliveries and greater competitive pressure on the domestic shipping industry.”
Pushpanathan said the proposed regional Ro-Ro network will take off with the expansion of the Philippines’ Ro-Ro system in areas under the Brunei, Indonesia, Malaysia, Philippines-East ASEAN Growth Area (BIMP-EAGA).
He recalled that during the 6th BIMP-EAGA Summit in Hua Hin, Thailand last year, the heads of states of the four sub-regional grouping initially agreed to expand the Ro-Ro routes within the region.
“We’re taking leverage on these projects that are being done as part of the overall regional connectivity,” Pushpanathan said. To complement the establishment of the regional Ro-Ro network, he said they initially identified at least 47 ports within the region to undergo immediate improvements and expansions to specifically accommodate Ro-Ro ships or vessels.
In terms of road networks, Pushpanathan said the master plan has set the expansion of the “Trans-Asian Highway” to pave the way for the establishment of the ASEAN highway network.
The project includes the improvement of at least 3,073 kilometers of the designated transit transport routes from Luzon to Mindanao and the upgrading of some 211.5 kilometers of roads that are classified as below Class III standards, he said.
Under the institutional connectivity component, Pushpanathan said the identified initiatives will be more focused on s trade and transport facilitation, mutual recognition and investment facilitation.
He said the people-to-people connectivity aspect dwells on the implementation of strategies that will ensure the seamless flow of goods and services as well as facilitate tourism-related investments and activities within the region.
Pushpanathan said ASEAN leaders have agreed to establish a special body that will handle the implementation of the master plan and help come up with the projects’ financing requirements.
“We still have to determine the exact funding needed for these projects through feasibility studies. For the financing part, we’re looking at our existing cooperation with our dialogue and development partners and the setting up of an infrastructure fund that will be made of contributions from the member-states,” he said.
According to a 2009 ADB and Asian Development Bank Institute (ADBI) paper, Southeast Asia needs to spend around US$290 billion on specific regional infrastructure projects in transport and energy that are currently in the pipeline.
In another working paper, ADBI said that ASEAN countries will require infrastructure investments amounting to US$596 billion during 2006-2015, with an average investment of US$60 billion per year (Allen V. Estabillo/MindaNews)
By Allen V. Estabillo | Sunday| October 31, 2010
HANOI, Vietnam (MindaNews/30 October) — Southeast Asia has adopted a master plan that would further link up key growth areas such as expansion of the Philippines’Roll on/Roll off (Ro-Ro) system into the East ASEAN Growth Area (EAGA) and pave the way for the region’s full development as a major market and production base in the next decade.
The heads of states of the Association of Southeast Asian Nations (ASEAN), including President Benigno Simeon Aquino III, formally adopted at the ongoing 17th regional summit here the 91-page Master Plan on ASEAN Connectivity, which includes a proposal for the development of a regional nautical highway that would essentially expand the Philippines Roll on/Roll off (Ro-Ro) system.
The plan, which will serve the main vehicle of the 10-nation bloc’s planned economic integration by 2015, intends to enhance the physical, institutional, and people-to-people interconnectivity across Southeast Asia.
Pushpanathan Sundram, ASEAN deputy secretary general for the ASEAN Economic Community, said the master plan essentially puts into action the ongoing regional integration process through the implementation at least 15 identified priority projects within the region.
These include six major physical infrastructure, five institutional and four people-to-people, including tourism, connectivity initiatives, he said.
“These are priority projects that would be implemented as soon as possible so we can see some early and quick wins,” he said in a press briefing at the National Convention Center here.
To improve physical connectivity, the plan cited the need to address the lingering problem on poor quality of roads, incomplete road networks, missing railway links, inadequate maritime and port infrastructure, inland waterways and aviation facilities, widening of digital divide, and growing demand for power in the region.
Among the identified strategies is the establishment of a regional RoRo network that will connect the region’s archipelagic areas and open up efficient and reliable shipping routes.
The opening of Philippines Nautical Highway or Ro-Ro system has provided an alternative and cheaper mode of domestic travel and drastically cut down the shipping costs of products coming from various production bases in the country.
Citing an impact assessment conducted by the Asian Development Bank (ADB) on the country’s Ro-Ro system, the plan cited that “the system demonstrate significant benefits in terms of reduction in transport costs, the creation of new regional links and expansion of regional markets, more efficient shipment of goods and people that have particularly benefited the poorer provinces in the maritime routes, acceleration of local area development, realignment of logistical practices with more frequent deliveries and greater competitive pressure on the domestic shipping industry.”
Pushpanathan said the proposed regional Ro-Ro network will take off with the expansion of the Philippines’ Ro-Ro system in areas under the Brunei, Indonesia, Malaysia, Philippines-East ASEAN Growth Area (BIMP-EAGA).
He recalled that during the 6th BIMP-EAGA Summit in Hua Hin, Thailand last year, the heads of states of the four sub-regional grouping initially agreed to expand the Ro-Ro routes within the region.
“We’re taking leverage on these projects that are being done as part of the overall regional connectivity,” Pushpanathan said. To complement the establishment of the regional Ro-Ro network, he said they initially identified at least 47 ports within the region to undergo immediate improvements and expansions to specifically accommodate Ro-Ro ships or vessels.
In terms of road networks, Pushpanathan said the master plan has set the expansion of the “Trans-Asian Highway” to pave the way for the establishment of the ASEAN highway network.
The project includes the improvement of at least 3,073 kilometers of the designated transit transport routes from Luzon to Mindanao and the upgrading of some 211.5 kilometers of roads that are classified as below Class III standards, he said.
Under the institutional connectivity component, Pushpanathan said the identified initiatives will be more focused on s trade and transport facilitation, mutual recognition and investment facilitation.
He said the people-to-people connectivity aspect dwells on the implementation of strategies that will ensure the seamless flow of goods and services as well as facilitate tourism-related investments and activities within the region.
Pushpanathan said ASEAN leaders have agreed to establish a special body that will handle the implementation of the master plan and help come up with the projects’ financing requirements.
“We still have to determine the exact funding needed for these projects through feasibility studies. For the financing part, we’re looking at our existing cooperation with our dialogue and development partners and the setting up of an infrastructure fund that will be made of contributions from the member-states,” he said.
According to a 2009 ADB and Asian Development Bank Institute (ADBI) paper, Southeast Asia needs to spend around US$290 billion on specific regional infrastructure projects in transport and energy that are currently in the pipeline.
In another working paper, ADBI said that ASEAN countries will require infrastructure investments amounting to US$596 billion during 2006-2015, with an average investment of US$60 billion per year (Allen V. Estabillo/MindaNews)
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