Transportation and Logistics Facilities in Mindanao

Issues, Challenges and Imperatives

∗ Tri-modal transport and logistics network needs to be integrated to foster intra-regional complementation, move products more efficiently to outside markets, and ease access to tourist destinations.

∗ Land, water and air transport facilities still need substantial improvement and conscious integration into a seamless logistics system to move people and goods efficiently and inexpensively.

Mindanao Transport & Logistics:Much unfinished business

Land TransportMindanao has the most unpaved roads

Land TransportLimited budgets hamper progress

∗ Local roads are 6 times longer than national roads, with a smaller proportion of them paved

∗ ARMM has lowest paved local roads (11%); LGUs typically do not have the resources for barangay roads

∗ Mindanao Railway System: An elusive dream

∗ Cagayan de Oro to Iligan line (82.5 km) most advanced in preparation, but funding remains elusive (DOF rules out GAA resources)

∗ 12 base ports, 15 terminal ports, 47 other national or municipal ports & 64 private ports in Mindanao

∗ Major cargo ports: Davao, GenSan, CDO, Zambo∗ Shipcalls & passenger traffic falling even as cargo

traffic, esp containerized cargo is on the rise (Shift to Ro-Ro, Air)

∗ JICA forecasts up to 101.6 MT yearly cargo traffic by 2030

∗ Mindanao is main beneficiary of Ro-Ro; moved far more vehicles on Ro-Ro than Luzon & Visayas

Water TransportRising needs, changing nature

∗ Mindanao airports moved 5.1 M passengers in 2009

∗ Mindanao has 27 airports: International (3-4), Principal Class 1 (3), Principal Class 2 (9), and Community (11).

∗ Mostly at or near the coasts; only 3 inland (Malaybalay, M’lang and Surallah)

∗ Inland populace need to travel up to 4 hours to nearest airport

∗ Davao, CDO & Zamboanga among 10 busiest; traffic growing at double-digit rates and projected to continue rapid growth

Air TransportRapid growth now & in the future

∗ Improving nationwide; PH LPI ranking rose from 65th in 2007 to 44th in 2010

∗ Trade facilitation costs still high, customs processes cumbersome

∗ High shipping costs a major issue (Cabotage Law, negotiated rates, not regulated in spite of single operator, etc.)

∗ Ro-Ro has raised efficiency, reduced costs 23-67% (WB)

LogisticsImproving, but a long way to go

∗ Low road density, lack of paved roads

∗ Telecom facilities in need of upgrading

∗ Road linkages to Polloc Port from production areas long neglected; need refrigeration facilities?

∗ Commodities being shipped out of CDO & Davao instead

ARMM ChallengesAddress critical constraints, e.g.

Blueprint for a Mindanao Transport

and Logistics Network

∗ Goal: An integrated inter-modal transport and logistics network, with high-standard highways and railways and strategically-located, climate-resilient transport terminals (air, sea & land)

∗ Must comprehensively and seamlessly inter-connect Mindanao growth centers, linkproduction areas into the value chains, andwith the rest of the country and the world

Sarangani

Zamboanga

del Norte

Zamboanga

Sibugay

Lanao

del Norte

Misamis

OrientalMisamis

Occidental

Camiguin

Davao

Oriental

Davao

del Sur

Surigao

del Sur

Surigao

del Norte

Basilan

Sulu

Tawi-Tawi

South

Cotabato

Zamboanga

City

Cotabato

City

Davao

del Norte

Cagayan de

Oro City

North

CotabatoZamboanga

del Sur

Compostela

Valley

Agusan

del Norte

Agusan del Sur

Ipil

Pagadian

City ••

•

•

Dipolog

City

Ozamis

City

Iligan

City

Butuan City

Surigao City

•

•••

•

•Maramag

Kabacan

Gen. Santos

City

•••Tacurong

Koronadal

•••Palimbang

Maitum

•Mati

Lanao

del Sur

••

•

•

Tagum

City

Davao

City

Existing Paved Road

On-going Road Project

LEGEND:

Source of Basic Data: DPWH, CAAP, PPA

International Airport

Base Seaport

DIPOLOG-

DUMAGUETE RORO

MAMBAJAO-JAGNA

RORO

SURIGAO CITY- LILOAN RORO

Zamboanga-Lamitan RORO

Zamboanga-Siasi RORO

Zamboanga-Bongao RORO

Zamboanga-Sta. Maria RORO

Western Nautical Highway

Eastern Nautical

Highway

Central Nautical Highway

Bukidnon

Sultan

Kudarat

Integrated Multi-modal

Transport Infrastructure

CORTES-TANDAG-MARIHATAG

MARIHATAG-

HINATUAN-

BISLIG SECTION

Road Project for Funding

∗ Widen and expand the role of inland, coastal and inter-island water-based transport

- Revive river & coastal ferries (e.g. SSSB, ZN)

- Promote shipping and shipbuilding (e.g., Lamitan City)

∗ Policy reforms to lower transport & logistic costs (Cabotage Law, pocket open skies)

∗ Foster LGU alliances (SLAM, IDC, Wao-Bumbaran) towards efficient local roads construction, among others

Mindanao 2020 Strategies

- Identify critical road links with great strategic value in unleashing expanded agricultural and agribusiness activity (e.g., access to Polloc Port, Cagayan de Oro from prod. areas)

- Upgrade facilities in key ports and airports(Sta. Maria, ZN; Polloc Port, Maguindanao)

- Improved air access inland (e.g., Lanao Sur) and airport facilities (i.e., in Zamboanga City, Cotabato City; Jolo, Sulu and Bongao, Tawi-Tawi)

- Upgrade Telecoms & widen ICT accessibility

Some Imperatives

Maraming Salamat Po!