PCAFI pushes P100M port overhaul to unclog island supply chain

The Philippine Chamber of Agriculture and Food Inc. (PCAFI) is urging the government to invest P100 million to modernize a key port in Northern Samar as part of a proposed nationwide strategy to decongest inter-island trade routes and improve the movement of agricultural goods.

At the center of the proposal is the reconfiguration of the Philippine Ports Authority’s San Isidro Ferry Port, a currently underutilized facility that PCAFI believes can be transformed into a container and reefer barge terminal to address severe supply bottlenecks in Eastern Visayas.

“Modern dry and reefer container logistics are essential for access to production inputs and export markets,” PCAFI President Danilo Fausto said.

Fausto said the port upgrade – costing a maximum of P100 million – would involve the installation of forklifts and reach stackers to load and unload 20-foot containers from landing craft tanks (LCTs). The logistics system would allow for up to 200 twenty-foot equivalent units (TEUs) per day, significantly reducing reliance on roll-on/roll-off (RoRo) operations through congested crossings such as Matnog and Amandayehan.

The group’s push comes amid transport limitations in the region due to load restrictions on the San Juanico Bridge. The bridge is a vital link between Samar and Leyte but is currently undergoing repairs that have further exposed weaknesses in the country’s fragmented logistics network.

According to PCAFI, the Samar pilot would serve as a blueprint for similar upgrades in other key agricultural islands, such as Bohol, Mindoro, and Palawan. These areas face logistical challenges in importing vital farming inputs and exporting high-value crops to major markets.

“Reefer container logistics is especially important for high-value frozen seafood and aquaculture, frozen meat and chilled fruits,” Fausto noted, stressing the economic value of building cold chain capability across the islands.

The proposed project would also make it easier to ship out raw agricultural products like coconuts, bananas, ube, and coffee to urban centers such as Cebu and Iloilo, located just 130 to 150 nautical miles from San Isidro.

Aside from addressing supply disruptions, PCAFI said the port project could help lower food prices in Metro Manila and other cities by ensuring consistent inter-island movement of rice, canned goods, animal feeds, fertilizers, and other essential commodities.

Fausto emphasized that this model mirrors the efficient river barge systems in the US and Europe – adapted for Philippine geography using shallow-draft cargo vessels suited for open-water routes.

Broader vision for agri-financing

Alongside infrastructure, PCAFI is also seeking reforms in agricultural financing. The group called on President Ferdinand Marcos Jr. to transfer the administration of the Agriculture Guarantee Fund Pool (AGFP) from the Department of Finance (DOF) back to the Department of Agriculture (DA) to improve access to affordable credit for farmers and fisherfolk.

Fausto said that despite the AGFP holding P10.7 billion in funds as of end-2021, only P4.7 billion in loans had been guaranteed, far below its potential to back up to P32 billion in lending.

“To provide easy access to cheap credit for our farmers, the administration of the AGFP should be transferred back to the DA,” he said.

The AGFP, funded by bank penalties under Republic Act 10000 and government contributions under Administrative Order 225-A, guarantees up to 85 percent of unsecured loans issued to small agricultural borrowers.

By pushing both port infrastructure upgrades and agri-financing reforms, PCAFI hopes to address structural inefficiencies in food production and distribution – starting with a P100 million investment in Samar that could set the stage for nationwide improvements.