Transportation and Logistics Facilities in Mindanao

Issues, Challenges and Imperatives

Mindanao Transport & Logistics:
Much unfinished business
∗ Tri-modal transport and logistics network needs to be integrated to foster intraregional complementation, move products more efficiently to outside markets, and ease access to tourist destinations. ∗ Land, water and air transport facilities still need substantial improvement and conscious integration into a seamless logistics system to move people and goods efficiently and inexpensively.

Land Transport
Mindanao has the most unpaved roads

Land Transport
Limited budgets hamper progress
∗ Local roads are 6 times longer than national roads, with a smaller proportion of them paved ∗ ARMM has lowest paved local roads (11%); LGUs typically do not have the resources for barangay roads ∗ Mindanao Railway System: An elusive dream ∗ Cagayan de Oro to Iligan line (82.5 km) most advanced in preparation, but funding remains elusive (DOF rules out GAA resources)

Water Transport
Rising needs, changing nature
∗ 12 base ports, 15 terminal ports, 47 other national or municipal ports & 64 private ports in Mindanao ∗ Major cargo ports: Davao, GenSan, CDO, Zambo ∗ Shipcalls & passenger traffic falling even as cargo traffic, esp containerized cargo is on the rise (Shift to Ro-Ro, Air) ∗ JICA forecasts up to 101.6 MT yearly cargo traffic by 2030 ∗ Mindanao is main beneficiary of Ro-Ro; moved far more vehicles on Ro-Ro than Luzon & Visayas

Air Transport
Rapid growth now & in the future
∗ Mindanao airports moved 5.1 M passengers in 2009 ∗ Mindanao has 27 airports: International (3-4), Principal Class 1 (3), Principal Class 2 (9), and Community (11). ∗ Mostly at or near the coasts; only 3 inland (Malaybalay, M’lang and Surallah) ∗ Inland populace need to travel up to 4 hours to nearest airport ∗ Davao, CDO & Zamboanga among 10 busiest; traffic growing at double-digit rates and projected to continue rapid growth

Improving, but a long way to go
∗ Improving nationwide; PH LPI ranking rose from 65th in 2007 to 44th in 2010 ∗ Trade facilitation costs still high, customs processes cumbersome ∗ High shipping costs a major issue (Cabotage Law, negotiated rates, not regulated in spite of single operator, etc.) ∗ Ro-Ro has raised efficiency, reduced costs 2367% (WB)

ARMM Challenges
Address critical constraints, e.g.
∗ Low road density, lack of paved roads ∗ Telecom facilities in need of upgrading ∗ Road linkages to Polloc Port from production areas long neglected; need refrigeration facilities? ∗ Commodities being shipped out of CDO & Davao instead

Blueprint for a Mindanao Transport and Logistics Network
∗ Goal: An integrated inter-modal transport and logistics network, with high-standard highways and railways and strategicallylocated, climate-resilient transport terminals (air, sea & land) ∗ Must comprehensively and seamlessly interconnect Mindanao growth centers, link production areas into the value chains, and with the rest of the country and the world


Surigao del Norte

Integrated Multi-modal Transport Infrastructure
LEGEND: Existing Paved Road On-going Road Project Road Project for Funding Base Seaport International Airport Western Nautical Highway DIPOLOGDUMAGUETE RORO
Zamboanga del Norte Misamis Occidental Misamis Oriental

Surigao City


Agusan del Norte


Eastern Nautical Highway

Butuan City
Surigao del Sur

Dipolog City

Ozamis City

• • •
Lanao del Norte

Cagayan de Oro City

Agusan del Sur


Zamboanga-Sta. Maria RORO
Zamboanga City

Pagadian City


Central Nautical Highway
Zamboanga del Sur

Iligan City


Lanao del Sur North Cotabato

Zamboanga Sibugay

Cotabato City

Zamboanga-Lamitan RORO


• • • • • • • •
Kabacan Tacurong
Sultan Kudarat

Davao Maramagdel Norte

Compostela Valley

Tagum City Davao City



Davao Oriental

South Cotabato

Gen. Santos Davao City del Sur


Zamboanga-Bongao RORO Zamboanga-Siasi RORO



Source of Basic Data: DPWH, CAAP, PPA

Mindanao 2020 Strategies
∗ Widen and expand the role of inland, coastal and inter-island water-based transport
- Revive river & coastal ferries (e.g. SSSB, ZN) - Promote shipping and shipbuilding (e.g., Lamitan City)

∗ Policy reforms to lower transport & logistic costs (Cabotage Law, pocket open skies) ∗ Foster LGU alliances (SLAM, IDC, WaoBumbaran) towards efficient local roads construction, among others

Some Imperatives
- Identify critical road links with great strategic value in unleashing expanded agricultural and agribusiness activity (e.g., access to Polloc Port, Cagayan de Oro from prod. areas) - Upgrade facilities in key ports and airports(Sta. Maria, ZN; Polloc Port, Maguindanao) - Improved air access inland (e.g., Lanao Sur) and airport facilities (i.e., in Zamboanga City, Cotabato City; Jolo, Sulu and Bongao, TawiTawi) - Upgrade Telecoms & widen ICT accessibility

Maraming Salamat Po!

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