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    Davao’s Sasa Wharf is RP’s foreign
    container hub outside NCR
     
    By Manuel T. Cayon
    Reporter
     

    DAVAO CITY—The Sasa Wharf here, on an expansion program, is the country’s foreign container hub outside the Metro Manila seaports, handling more direct container traffic during the last decade.

    In the last two years alone, foreign containerized cargo surged by 36.8 percent here, which more than compensated for the slight dip in revenue on domestic shipping cargo.

    The Philippine Ports Authority (PPA) here said initial records show that the Davao port’s foreign container traffic rose to 182,564 twenty-foot equivalent units (TEU) in 2007 from the previous year’s 133,367 TEUs.

    A BUSY day at Sasa Wharf, where direct container traffic has risen the past decade. --MANUEL CAYON

    In the initial 2007 report issued by the Port Management Office (PMO)-Davao, the combined domestic and foreign trade at the port here also posted a 3.8-percent increase amounting to 3.2 million metric tons compared with its 2006 performance in terms of total cargo volume. Of that volume, almost half, or 49.6 percent, was attributed to foreign cargoes both for import and export.

    Import and export cargo grew by 7.55 percent during the year.

    Container traffic is measured in TEUs, referring to the 20-footer container vans used in cargo handling.

    Foreign trade performance in the ports refers to the level of import and export cargo volume or throughput measured in metric tons.

    The domestic container traffic at the Davao port, however, dipped by 7.8 percent in 2007, largely due to the change in consolidating, or handling, foreign cargo. Previously, local shippers would handle the shipment of cargoes for consolidation to bigger ships before leaving the Manila International Container Terminal, the South Harbor or North Harbor of Metro Manila for foreign destinations. 

    In the process of consolidating or handling the cargo, the recording would classify the shipment as domestically carried, not foreign.

    “The implication of this figure [a dip in domestic revenues] deserves a second look at the trend of the operations of the transshipment of containerized cargoes, meaning those which are loaded from domestic ports either through chartered or passenger vessels prior to being consolidated in a larger foreign-bound vessel in other ports such as Manila,” said the PMO-Davao report.

    For instance, it said, “As the volume of containerized bananas transshipped to Manila for final foreign destination has been decreasing for the last three years since more ships are now loading cargoes in Sasa Wharf to direct to foreign markets, the loss in the domestic front is a gain in the foreign TEUs, causing the 36.8-percent upsurge in the latter.”

    “Prior to the activation of direct routes of shipping lines in Davao like Southship, Jardine, RCL and Marianas, apart from the existing APL and Maersk, total domestic transit volume from 2004 to 2006 has been well within the 100,000-metric-ton mark,” the PMO-Davao said.

    With Davao’s increasing direct foreign shipping, it has become the country’s foreign terminal hub outside of the three ports in Metro Manila, the PMO-Davao said. Singapore leads the countries with more port of calls here, followed by Kaoshiung, China.

    “This positive development runs parallel to the increasing containerization trend in handling cargoes in more developed economies worldwide, giving way to greater productivity, faster turnaround time of ships at the ports and better trade movement opportunities,” the PMO-Davao said.

    “These updates keep us on our toes in terms of infrastructure responsiveness as well as keeping our clients satisfied with the quality of our services,” the PPA’s Port District Office-Southern Mindanao manager Abdussabor Sawadjaan told a recently concluded district conference in Davao City, according to the PMO-Davao.

    The PMO-Davao statement said that Sawadjaan has asked the government to install at the Sasa Wharf a mobile harbor crane, following a clamor from its cargo-handling operators, the Davao International Port and Stevedoring Services Corp. and the Filipinas Port Services. The groups made the request in their respective cargo-handling service contracts with the PPA.

    The Davao port continued to rely, though, on the slower on-deck cranes of vessels or the land-based reach stacker, instead of the more flexible and larger mobile cranes. The slower cranes, according to the PMO-Davao, “greatly affect labor productivity, causing longer turnaround time for vessels in the port, which increases shipping cost, and can often be the cause of demurrage claims of ships being delayed en route to other ports of call.”

    The PMO-Davao said that “as compared with more advanced ports in neighboring Asian countries such as Malaysia, Singapore, China and Hong Kong, which are well-equipped in terms of container handling, countryside or regional gateways in the SoMin [Southern Mindanao] District such as Davao and General Santos stand disadvantaged in the apparent absence of more efficient cranes to handle fully containerized vessels.”

    Sawadjaan said the newly constructed modern Mindanao Container Terminal in Tagoloan, Misamis Oriental, in Northern Mindanao “with gantry cranes to boot is developing rapidly as more direct routes to and from international destinations [are] run by American President Lines and Maersk.”

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