Home » Ports/Terminals » Logistics study: Mindanao must have more box-friendly roads

ROADS and highways in Cagayan de Oro and Misamis Oriental need upgrading so that they can be more container-friendly. This was part of partial findings of a logistics study spearheaded by the Japan International Cooperation Agency along with the Phividec Industrial Authority (PIA), owner of the Mindanao Container Terminal (MCT).

PIA port department manager Dante Clarito told PortCalls the study also noted that the current road system may not be able to handle additional container volumes in the future.

The logistics study is designed to determine what needs improvement not only at MCT but also outside its borders to attract more business.

Since the 1990s, international carriers and different business groups have asked government to improve infrastructure in Mindanao, particularly those adjacent to MCT in Misamis Oriental and the Cagayan de Oro port.

Carriers have asked for additional port equipment and deeper draft while shippers wanted better roads for faster transit times.

Little has been done not only due to lack of funds but also because there was no study identifying needed facilities.

Container cargo passing through MCT increased 52% in the first quarter of 2010 to 37,940 twenty-foot equivalent units (TEUs) compared to 24,868 TEUs in the same period in 2009. The growth was anchored on strong volume from a mining project in nearby Surigao.

From the total volume, 66% was supplied by the domestic trade and 34% by foreign trade. The bulk came from large clients such as Nestlé and Del Monte.

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