A year after Typhoon Tino devastated parts of the Visayas, the Philippine Coastwise Shipping Association (PCSA) is urging the Marcos administration to remove roll-on, roll-off (RoRo) terminal fees and improve transport infrastructure to lower logistics costs and strengthen inter-island connectivity.
PCSA Chairman Lucio Lim Jr. presented the proposals during the association’s general membership meeting at NUSTAR Resort and Casino in Cebu City on Friday, Oct. 23, under the theme “One Nation, One Network: Lower Logistical Costs, Lower Inflation.”
Lim said RoRo terminal fees account for 5% to 10% of the total freight cost for a 10-wheeler truck and can reach 15% on some short-haul routes, adding to the cost of transporting food, construction materials and other goods between islands.
“When logistical costs rise, food prices rise. When logistical costs increase, businesses become less competitive. When connectivity is slow and inefficient, economic opportunities become limited,” Lim said.
The association has been seeking the removal of RoRo terminal fees for nearly two decades, arguing that the charges increase expenses for truckers, shippers and producers, which consumers ultimately shoulder through higher prices.
The PCSA wants the government to treat RoRo vessels as extensions of road networks and their ports as part of the national highway system, rather than as revenue-generating facilities.
It also proposed transferring the management and maintenance of RoRo ports outside the base ports of the Philippine Ports Authority and Cebu Port Authority to the Department of Public Works and Highways.
Lim cited Japan and Norway as examples of countries that integrate RoRo facilities into their highway networks. He estimated that building a standard RoRo port would cost about P200 million, with relatively low maintenance expenses.
The group welcomed the Cebu Port Authority’s temporary suspension of passenger terminal fees amid rising fuel costs but said the PPA had not granted a similar request despite the association’s appeal.
Beyond port charges, the PCSA is seeking a feasibility study for eight expressway corridors linking production centers, ports and major markets across the Visayas and Mindanao.
The proposed routes are Calapan City to Roxas in Oriental Mindoro; Caticlan in Aklan to Iloilo City; Bacolod City to Dumaguete City; Dapitan City to Zamboanga City; Bogo City to Santander in Cebu; Aroroy to Esperanza in Masbate; Allen in Samar to Liloan in Southern Leyte; and Surigao City to Davao City.
The proposed corridors range from 121 to 406 kilometers, including the 230-kilometer Bogo City-Santander route in Cebu.
Lim said the projects could be funded through public-private partnerships or long-term congressional appropriations.
He cited the planned 420-kilometer South Luzon Expressway Toll Road 5, which will connect Lucena City in Quezon province to Matnog in Sorsogon, as an example of how expressways could improve connectivity and reduce travel time.
Lim said the concentration of manufacturing hubs in Metro Manila and the CALABARZON region contributes to higher transportation costs and longer delivery times for goods shipped to the Visayas and Mindanao.
The PCSA is also exploring a maritime industrial park in Northern Cebu to address the shortage of shipyards and ship repair facilities.
PCSA President Paul Rodriguez said during the meeting’s open forum that the association was discussing the proposal with Cebu Gov. Pamela Baricuatro.
Lim said the shortage of shipyards was a nationwide concern, particularly in Cebu, a key hub for domestic shipping.
Passenger and cargo vessels must undergo dry-docking every two years for mandatory inspections of their underwater structures, propulsion systems and propellers. However, shipyard development has not kept pace with the number of vessels requiring maintenance and inspection, he said.
Lim added that difficulties in securing government approval to convert agricultural land for industrial use had discouraged potential investors.
He cited a proposed investment in Tabogon, where the land-conversion process took three years despite the local mayor’s willingness to support the project.
A designated maritime industrial park could provide space for shipyards and other maritime businesses while easing the process of establishing facilities, Lim said.
The association is working with the provincial government on the proposal, but it has not set a timeline for implementation.
Lim also cited the effects of Typhoon Tino, saying storm surges caused vessels to collide with piers as water levels rose.
The PCSA said the proposals aim to improve inter-island connectivity, reduce logistics expenses and ease inflationary pressures. The proposed infrastructure projects, however, still require further study and government action.
Photo: Kaiser Jan Funetes
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