ASEAN Ro-Ro Initiative Leads to 2/3 Lower Transport Cost

The ASEAN Ro-Ro network found its roots one decade ago. The initiative of the ASEAN leaders in 2007 to transform…

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The ASEAN Ro-Ro network found its roots one decade ago. The initiative of the ASEAN leaders in 2007 to transform ASEAN into a single market and production base is becoming more and more visible in day to day life. The inter-regional connectivity within ASEAN enjoys enhanced trade, investment and tourism. The base for this is a regional roll-on/roll-off shipping network, or ASEAN Ro-Ro.

THE DAVAO-GENERAL SANTOS (PHILIPPINES) – BITUNG (INDONESIA) ASEAN Ro-Ro LINK

The Davao, General Santos -Bitung route was the first selected to be established as ASEAN Ro-Ro. In April 2017 this ASEAN Ro-Ro service was launched, as part of one of the ASEAN Flagship Projects.

Ro-Ro transport technology is extensively used in Europe, and is expanding in East Asia.

There are currently 15 Ro-Ro routes between China and Korea:
six (6) Ro-Ro routes between Japan and China, and
five (5) Ro-Ro routes between Japan and Korea.

In the Philippines, there are well established domestic RO-RO nautical highways that connect Luzon and Mindanao via the Visayan Islands.

In Indonesia, there is a domestic RORO program called “Sea Toll”

The proposed ASEAN Ro-Ro routes are:

1. Davao City – General Santos – Bitung (Operational)
2. Tawau – Tarakan – Pantoloan
3. Brooke’s Point – Labuan – Muara
4. Muara – Zamboanga City
5. Sintete – Johor
6. Dumai – Malacca
7. Belawan – Penang
8. Belawan – Phuket

In March 2017 initial discussions started for the launch of the second ASEAN Ro-Ro route (Palawan – Kudat Ro-Ro-Ro link) and the business community is looking at a Batangas (Philippines) – Humen (China) – Da Nang in (Vietnam) route.

Economic benefits ASEAN Ro-Ro

This first ASEAN Ro-Ro route is expected to reduce the transport cost (from $2,200 to $700, or 2/3 lower cost, per twenty-foot container) and time of travel (from 4-5 weeks to 1.5 days) between the Philippines and Indonesia.

Proven advantages of Ro-Ro technology:
– Eliminates cargo handling on labor and equipment
– Reduces amount of time in port
– Allows significant reductions in transport cost and
– improvement in service quality

Higher Service Quality

Philippines Tourism Secretary Teo, mentioned the Ro-Ro trips, where air-conditioned tourist buses can board the ships or barges and new cruise ship lines may yet enhance tourism and trade within the Southeast Asian growth area.

Alignment infrastructure and regulation various countries

To lower transport cost partners amended the Ro-Ro policy and allowed Chassis-RORO (Cha-Ro). This amendment was needed to deal with right-hand/left-hand land transport systems, movement of natural persons like truck drivers and vehicle registration.

Our experience on Ro-Ro technology

Thanks to our experience in various countries across the region, but also outside ASEAN July Marine has the experience to face the challenges on dealing with regulatory, operational and infrastructural constraints.

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