Davao-Indonesia Ro-Ro operator may cut capacity due to weak demand

DAVAO CITY — The operator of the Davao-General Santos-Bitung cargo service may switch to a smaller roll on, roll off (Ro-Ro) vessel for the route as demand has been lower than expected, according to Indonesian Consul General Berlian Napitupulu. In an interview with Business

World, the Davao City-based Mr. Napitupulu confirmed that the service — which was launched on April 30 in Davao City with President Rodrigo R. Duterte and Indonesian President Joko Widodo in attendance — has been put on hold in the past few weeks due to insufficient cargo.

“The maiden voyage used the very big vessel (for up to) 500 (20-footer) containers. I think for us to start… it’s better to start it with smaller boats,” he said.

The vessel is currently docked at Sasa Port in Davao City.

Mr. Napitupulu said he has talked to officials of the RoRo operator, Asian Marine Transport Corp., who are now considering using a ship with capacity of 100 containers.

At the same time, the Indonesian official said the Indonesian government is doubling efforts in coordinating with the business sector of both countries to expand links and boost trade.

The Indonesian Consulate in Davao City has just concluded a three-day expo featuring Indonesian products and networking events for Indonesian and Filipino businesses.

The consulate is also planning to bring Filipino businessmen to Bitung in August to explore partnership opportunities.

“The potential is there and we need each other, but you have to have somebody to consolidate the cargo both sides, in Indonesia and Mindanao,” Mr. Napitupulu said.

“We really hope that both sides promote direct trade and I know there are connections and existing relationships between our business circles... many of our interests are compatible,” he added.