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Feasibility Study

Infrastructure Supportto the Economic Program of the

Municipality of Sarangani,

Davao del Sur

Project Development Assistance Center

Regional Development Council XI

Davao City

June 2002


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A C K N O W L E D G M E N T

This pre-investment study was completed with assistance from the Project Developmentand Monitoring Fund, a facility established pursuant to Republic Act 8182 (ODA Law)in furtherance of the latters overall goal of achieving equitable growth and developmentin the provinces through priority development projects for the improvement ofeconomic and social service facilities.

The local government and constituency of the Municipality of Sarangani, Davao del Sur,led by their municipal mayor, the Honorable Amel B. Amierol, gratefully recognize thisassistance, as well as that extended by the Regional Development Council XIs ProjectDevelopment Assistance Center (PDAC) in the conduct of this study.

Also collaborating in this work were the following departments of the municipalgovernment: Municipal Agriculture Office, Municipal Budget Office, MunicipalEngineering Office, and Municipal Planning and Development Office; as well as theMunicipal Local Government Operations Office of the Department of the Interior andLocal Government.

Acknowledgment i


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PROJECT SUMMARY

Project Title : Establishment/Construction of Multi-Purpose Port

Project Cost : P48.88 Million

Proponent : Municipal Government of Sarangani

Location : Mabila, Municipality of Sarangani, Davao del Sur

Project Description : Development of a port complex at Barangay Mabila,including the reclamation of the foreshore area; extensionand improvement of the existing pier and causeway; andconstruction of auxiliary facilities such as administrationbuilding, passenger terminal, food stalls, comfort rooms

and guardhouse. The project also provides for theestablishment of an ice plant by private sector initiative.

Feasibility Indicators : Multi-Purpose Port Component (public sector)

Financial Net Present Value at 12%IR: -P22 millionFinancial Internal Rate of Return : 0.55%Economic Net Present Value at 15% SDR: P139.2 millionEconomic Internal Rate of Return: 70%

Although the multi-purpose port component may not befeasible from the financial viewpoint, due mainly to itslarge initial investment cost, it is still recommended forpublic sector development, since: (a) it can generateenough cash inflows to sustain its operationalrequirements over its economic life; (b) it exhibits a veryhigh economic net present value; and (c) it has a verystrong potential for opening up livelihood opportunitiesfor the local community, starting with the establishment ofa commercial ice plant facility.

Ice Plant Component (private sector)

Net Present Value at 16% IR: P7.1 millionFinancial Internal Rate of Return at 16%IR: 25.06%

The ice plant component is financially attractive to privateinvestment. However, the market analysis indicates thatthe viability of its operation hinges substantially on thedevelopment of the existing Mabila Pier into a multi-purpose port.

Project Summary ii


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Page No.CHAPTER 1 THE PROJECT

1.1 Rationale/Background 1-11.2 Project Goal and Purpose 1-21.3 Project Spatial and Sectoral Context 1-21.4 The Project Feasibility Study Undertaking

1.4.1 Study Area 1-31.4.2 Objectives of the Study 1-31.4.3 Study Approach and Methodology 1-4

CHAPTER 2 PROFILE OF SARANGANI MUNICIPALITY

2.1 Physical Profile 2-12.1.1 Geographic Location and Political Subdivision 2-12.1.2 Topography 2-12.1.3 Coastal Area 2-12.1.4 Climate 2-22.1.5 Water Resources 2-22.1.6 Land and Mineral Resources 2-2

2.2 Demographic Profile 2-2

2.3 Infrastructure Profile 2-32.4 Economic Sector Profile 2-42.5 Social Sector Profile 2-4

CHAPTER 3 MARKETING ASPECT

3.1 General Market Description 3-13.1.1 The Multi-Purpose Port Component 3-13.1.2 The Ice Plant Component 3-23.1.3 The Warehouse Component 3-2

3.2 Demand for the Project 3-23.2.1 Availability of Data and Methods Used in 3-2

Data-Gathering3.2.2 Results of Data-Gathering Activities 3-33.2.3 Analyses of Demand and Demand Projections 3-3

for the Project3.2.3.1 Multi-Purpose Port Component 3-33.2.3.2 Ice Plant Component 3-113.2.3.3 Warehouse Component 3-11

3.3 Demand and Supply Gaps 3-133.3.1 Passenger and Cargo Traffic Pressure on the 3-13

Existing Mabila Port

CONTENTS


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Page No.

3.3.2 Mabila Ports Attractiveness to Fishing Vessels 3-153.3.3 Block Ice Supply Deficiency 3-163.3.4 Mabila Ports Warehouse Capacity Requirement 3-183.3.5 Other Economic Opportunities 3-21

3.4 Marketing Plan 3-213.4.1 Project Outputs 3-213.4.2 Product Pricing & Projected Revenues 3-223.4.3 Marketing Strategy 3-24

3.4.3.1 The Need for a Two-Stage Marketing 3-24

Strategy3.4.3.2 A Suggested Pre-Implementation 3-24

Marketing Strategy3.4.3.3 A Suggested Post-Implementation 3-25

Marketing Strategy3.5 Summary of Findings and Conclusions 3-25

CHAPTER 4 TECHNICAL ASPECT

4.1 The Project 4-14.2 Projects Location Natural Attributes 4-1

4.2.1 Geographic Location 4-1

4.2.2 Meteorological Condition 4-14.2.2.1 Climate/Rainfall 4-14.2.2.2 Wind 4-24.2.2.3 Temperature 4-2

4.2.3 Oceanological Conditions 4-24.2.3.1 Tides 4-34.2.3.2 Current 4-34.2.3.3 Tsunamis 4-3

4.2.4 Hydrographic Survey and Water Depths 4-44.2.5 Topography 4-44.2.6 Soil and Sub-soil Classification 4-5

4.3 Description of Existing Port Facilities 4-5

4.4 Proposed Facilities and Improvement Activities 4-64.5 Assessment of Alternatives4-6

4.5.1 Location 4-64.5.1.1 Site of the Port 4-64.5.1.2 Site of the Ice Plant 4-74.5.1.3 Site of the Warehouse 4-7

4.5.2 Size 4-84.5.3 Technology and Services 4-9

4.5.3.1 Port Operations 4-94.5.3.2 Ice Plant Technology 4-9

CONTENTS


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Page No.4.6 Description of Preferred Alternative 4-10

4.6.1 Reclamation of the Foreshore Area 4-104.6.2 Causeway 4-104.6.3 Pier Structure 4-104.6.4 Port Stalls 4-104.6.5 Administration Building 4-114.6.6 Toilet/Bathroom 4-114.6.7 Passenger Terminal 4-114.6.8 Ice Plant 4-11

4.6.9 Warehouse 4-114.6.10 Guardhouse 4-12

4.7 Cost Estimates 4-124.7.1 Investment Cost 4-124.7.2 Operating Cost 4-12

4.8 Machinery and Equipment 4-124.8.1 Port 4-124.8.2 Ice Plant 4-12

4.9 Timetable of Implementation 4-134.9.1 Pre-Implementation Phase 4-134.9.2 Implementation Phase 4-13

4.10 Environmental Impact and Mitigating Measures 4-13

CHAPTER 5 FINANCIAL ASPECT

5.1 Project Cost 5-15.2 Source of Funds 5-2

5.2.1 Multi-Purpose Port 5-25.2.2 Ice Plant Component 5-3

5.3 Basic Financial Projections 5-35.4 Financial Viability Criteria 5-45.5 Financial Analysis 5-5

5.5.1 Income Statement 5-55.4.2 Cash Flow Statement 5-6

5.6 Financial Viability Indicators 5-65.6.1 Multi-Purpose Port 5-75.6.2 The Ice Plant 5-7

5.7 Sensitivity Analysis 5-75.8 Conclusions and Recommendations 5-10

CHAPTER 6 ECONOMIC ASPECT

6.1 Economic Benefits 6-16.1.1 Benefits Accruing from Port and Ice Plant 6-1

Operations Direct Benefits to the Stakeholders 6-1

CONTENTS


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Page No.6.1.1.1 Port Revenues and Ice Plant Revenues 6-16.1.1.2 Salvage Value 6-16.1.1.3 Working Capital 6-1

6.1.2 Direct Benefits as a Result of the Project 6-16.1.2.1 Reduction in Fish Spoilage 6-16.1.2.2 Time Saving Benefits 6-26.1.2.3 Savings in Fuel Costs 6-26.1.2.4 Other Benefits 6-2

6.2 Economic Costs 6-2

6.2.1 Capital Costs 6-26.2.2 Operating and Maintenance Cost 6-2

6.3 Valuation of Benefits and Costs 6-36.4 Results of Economic Analysis 6-46.5 Economic Sensitivity 6-46.6 Conclusion 6-5

CHAPTER 7 OPERATION AND MANAGEMENT

7.1 Political and Legal Consideration 7-17.2 Project Organization and Management 7-2

7.2.1 Existing Port Management and Operations 7-2

7.2.2 Pre-Operating Phase7.2.2.1 Management and Organization 7-37.2.2.2 Manpower Requirements 7-3

7.2.3 Operating Phase 7-47.3 Port Management and Operation 7-57.4 Socio-Economic and Cultural Implications 7-6

ANNEXES

Chapter 2Figure.2.1 Map of Davao RegionFigure 2.2 Map of Davao del SurFigure 2.3 Map of Sarangani Municipality

Chapter 3Table 3.1 Berthing FeesTable 3.2 Passenger Terminal FeeTable 3.3 Cargo Handling FeeTable 3.4 Warehouse Storage FeeTable 3.5 Parking FeeTable 3.6 Anchorage FeesTable 3.7 Land Rental-Ice Plant and StallsTable 3.8 Public Restrooms

CONTENTS


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Page No.Chapter 4

Figure 4.1 Map of the PhilippinesFigure 4.2 Climate Map of the PhilippinesFigure 4.3 Normal Path of Tropical CyclonesFigure 4.4 Earthquake-Induced Tsunamis and Tsunami-

Prone Areas in the PhilippinesFigure 4.5 Tsunami Risk Areas in the PhilippinesFigure 4.6 Hydrographic Control Survey Plan of the Existing PortFigure 4.7 Hydrographic Control Survey Plan of the Alternative

Port (Cove Area)Figure 4.8 Sketch Plan of Existing and Alternative PortsFigure 4.9 Distribution of Active Faults and Trenches in the

PhilippinesFigure 4.10 Significant Earthquake in the PhilippinesFigure.4.11 Seismicity Map of Sarangani IslandFigure 4.12 Site Development Plan of the Proposed PortFigure 4.13 Master Plan of the Proposed PortFigure 4.14 Perspective of the Proposed Ice PlantFigure 4.15 Floor Plan of the Proposed Ice PlantTable 4.1 Total Investment CostTable 4.2 Total Operating Cost

Table 4.3 Project Implementation Schedule

Chapter 5Table 5.1 Replacement Cost of Depreciated EquipmentTable 5.2 Equipment/Facility Depreciation ScheduleTable 5.3 Amortization Schedule-Ice PlantTable 5.4 Income Statement Multi-Purpose Port (Scenario 1)Table 5.5 Income Statement Multi-Purpose Port (Scenario 2)Table 5.6 Income Statement Ice PlantTable 5.7 Cash Flow Statement-Multi-Purpose Port (Scenario 1)Table 5.8 Cash Flow Statement-Multi-Purpose Port (Scenario 2)Table 5.9 Cash Flow Statement-Ice PlantTable 5.10 Sensitivity Analysis-Multi-Purpose PortTable 5.11 Sensitivity Analysis-Ice Plant

Chapter 6

Table 6.1 Economic Costs-Benefit FlowStatement of Assumptions and Costs

Table 6.2 Sensitivity AnalysisPhilippines

CONTENTS


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Chapter 1

THE PROJECT

1.1 Rationale/Background

Sarangani is a fifth class municipality of the province of Davao del Sur located inthe southernmost tip of Davao Region. It is composed of two main islands,namely: Sarangani and Balut islands. Sea transportation is the only means ofgoing to and from the island municipality. The municipality is considered ahard-to-reach area because of the lack of convenient sea transport system.

Economic activities in the municipality remained stagnant for many yearsbecause of inadequate infrastructure that could support the agriculture andfishing industries in the municipality. The local government found it difficultattracting investments because of this deficiency.

To become economically progressive the municipality felt the need to have agood port, a warehouse and ice plant. These projects became their investmentpriority and compose the Infrastructure Support to Economic Program ofSarangani. The conduct of the feasibility study of which was approved forassistance under the Project Development Monitoring Fund (PDMF).

The project was started in December 2001 through the technical assistance of theProject Development Assistance Center (PDAC). The project was designed todevelop the capability of the Local Government Unit of the Municipality ofSarangani in project development, and at the same time, come up with afeasibility study for the identified proposals of the municipality.

The inception activities on the preparation of the FS commenced last February2002 with an orientation on Project Development Cycle and FS. The succeedingmonths were devoted to preparation of data gathering instruments, actual datageneration, technical surveys, preparation of designs and consultations with lineagencies and experts from the private sector. The drafting of the feasibility studywas conducted last May 27 to June 7, 2002.

The feasibility study for the Infrastructure Support to the Economic Program ofSarangani is hereby presented as an output of the series of activities undertakenby the local government unit of Sarangani and the Project PDAC Team inaccordance with the prescribed requirement set forth under the PDMF Project.

1.2 Project Goal and Purpose

The project aims to provide infrastructure facilities that would support theeconomic program of the municipality of Sarangani. The provision of portfacilities, warehouse and ice plant is expected to enhance the economic activitiesin the area through increased trade, tourism, and livelihood activities. Having agood port system would also encourage the opening of additional sea transport

The Project 1-1


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routes and improve the sea transport system plying in the area. Fishing activityis expected to gain more from this project being the major industry in themunicipality.

1.3 Project Spatial and Sectoral Context

Since the creation of the municipality in 1978, economic activities remainedstagnant because of the remoteness of the area, risk of travel due tounpredictable sea condition, and the poor condition of port and other facilities.Few medium size cargo/passenger boats are providing services to the area onthe alternate basis to cater the needs of the people. More often, small fishingboats served as the means of transport especially on emergency basis. In the latenineties, a company based in General Santos City attempted to establish newroute in the area using a fast craft passenger vessel. Because of the difficulty inberthing and minimal patronage due to high fare, the operation was withdrawn.

The islands of Sarangani served as a regular path of fishing vessels in going tothe fishing grounds at Celebes Sea and other areas near Indonesia and NewGuinea. The Island also served as a haven of fishing boats during typhoons andthe nearest place to shelter for repair or light recreation, either before or after thefishing trip. As a common experience, the local government of Sarangani seesthis trend as a prospect that could help the municipality improve their economicactivity. Improving the municipal port that can cater to both the fishing andcargo/passenger vessels requirements as well as the establishment of otherfacilities that can produce or supply the basic needs for the fishing trip such asice, fuel, food supply and other requirements are potential enterprising activitiesthat could spur economic development in the area.

The municipality of Sarangani, as it is position near the Philippine-Indonesianterritorial waters and fishing grounds, is a strategic place for emergency reliefand anchorage especially in times of bad weather. The area, being located alongthe regular travel path of fishing vessels in going to and from the fishing groundscould also serve as a station wherein an inventory of fishing supply requirementscan be made, filled up or replenished for the final journey.

As an island municipality, fishing activity in the area is a promising industry.While the municipal and deep-sea fishing activities are flourishing in the area,facilities that are needed to support the industry are not made available. The

inability of the municipality to provide enough berthing space on their existingports and other necessary facilities such as ice plant, fuel depot, etc. have madethe local fish operators to station their fishing vessels in General Santos Citywhere these facilities are available. The situation would be different if thefacilities are present and could have been a major factor in economicdevelopment of the area.

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Based on initial assessment of the study team, the demand for ice by the fishingoperators relying on ice plant facilities in General Santos City, has not beensatisfied yet. Because of lack of supply, oftentimes, the fishing operators have toqueue for about 2 to 3 days before the commodity can be served to them. Giventhat there is an unfilled demand for ice, along with other commodities such as

fuel, fishing gears, food supply, etc., the local government of Sarangani sees theseaspects as market potentials. Thus, the coming up of a study for theimprovement of port and establishment of other necessary facilities in themunicipality was made as an initial step to develop the infrastructure facilities tosupport the economic program of the municipality.

In view of the existing conditions of the area, the development and/orimprovement of the port facilities in the municipality became imperative toachieve the economic progress envisioned by the municipality in the long-term.

1.4 The Project Feasibility Study Undertaking1.4.1 Study Area

The feasibility study for the improvement of the municipal port andestablishment of an ice plant, warehouse and other infrastructure facilities thatwould support the economic activities of the municipality of Sarangani isfocused at barangay Mabila, the seat of government of the municipality. Thestudy, however, considered other potential areas for development within themunicipality such as the existing port at barangay Patuco including the conductof a fishing industry profile that covered the areas of General Santos City andGlan. A quick assessment of the ice plant industry in General Santos City wasalso conducted which form part of the basis for the establishment of an ice plant

facility in the municipality.

1.4.2 Objectives of the Study

The general objective of the study is to determine the viability of improving themunicipal port and establishment of other infrastructure related facilities atbarangay Mabila in support to the economic activities of the municipality ofSarangani. Specifically, the study aims to determine the following:

1. To determine the overall viability of improving the municipal port and therequired new infrastructure support facilities to economic program of the

municipality;

2. To develop the capability of the local government officials of the municipalityof Sarangani in line with project development and preparation of feasibilitystudy;

The Project 1-3


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1.4.3 Study Approach and Methodology

The study was conducted using multi-disciplinary approach in accordance withthe agreement forged between the municipal government of Sarangani andProject Development Assistance Center (PDAC). As a joint venture projectfunded by the Project Development and Monitoring Fund (PDMF), the activity

included training on feasibility study preparation for the local officials of themunicipality, actual field surveys, conduct of technical studies, project site andagency visits, and packaging of the study. This endeavor approximates all therequired multi-disciplinary approach to planning encompassing the variousexpertise required in the study.

The Project 1-4


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Profile of Sarangani Municipality 2-1

Chapter 2PROFILE OF SARANGANI MUNICIPALITY

2.1 Physical Profile2.1.1 Geographic Location and Political Subdivision

The municipality of Sarangani was created by virtue of Presidential Decree No.1550 issued by the late President Ferdinand Marcos on June 11, 1978. It is anisland municipality located in southernmost tip of Davao Region below theprovince of Davao del Sur and mainland Mindanao (Figures 1 & 2). It lies southof the equator from 50 22 50 to 50 29 50 north latitude; and from 1250 16 33 to1250 29 52 east longitude. The municipality is composed of 2 main islands, theSarangani and Balut Islands separated by Sarangani Straight from Jose AbadSantos. It is approximately 2-3 hours by boat from Glan and 4-5 hours fromGeneral Santos City or equivalent to 49.84 nautical miles. The municipality has

12 barangays with a total land area of 106.18 square kilometers (Figure 3).

2.1.2 Topography

The municipality of Sarangani is characterized by hilly and mountainous areaswith eleven of its barangay centers are proximately located in coastal area andonly one barangay is considered as landlocked. Barangay Gotamco in the islandof Balut harbors the summit of Mount Balut, a dormant volcano with a height of800 meters above sea level. In Sarangani Island, mountain ranges starts atbarangay Patuco and ends at sitio Sasapo. It has steep banks and cliffs withedges having heights ranging from 80 to 120 feet above sea level. Approximately67 percent of the municipalitys land area is suited for agricultural production(0-18% slope) while 33 percent is considered mountainous (18% slope andabove). The table below shows the slope classification of the municipality.

Slope Classification Land Area(In has.)

% of Total

0-3% 975 9.18

3-8% 2,450 23.07

8-18% 3,575 33.67

18-30% 2,207 20.79

30% and above 1,411 13.29

2.1.3 Coastal Area

Sarangani as, an island municipality, has a vast coastline covering a total of 94.0kilometers. The length of coastal line of Balut Island is 57.0 kilometers whileSarangani Island has 37 kilometers.


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2.1.4 Climate

The municipality belonged to type IV Climate with no pronounced dry or wetseason. The rainfall is more or less evenly distributed throughout the year. Theaverage annual rainfall recorded in the municipality was 123 mm. The months

of December to May and June usually had fair weather condition with prevailingwind slightly variable and generally coming from northeast to southwestdirection. On the other hand, southwest monsoon wind or known as Habagatprevails from July to October of the year. The municipality has rarelyexperienced typhoons being located outside the typhoon belt. However, the eastto west driven wind locally known as Amihan has been found to be dangerousfor seafarers because during this period sea condition is at its worse. The averagetemperature in the municipality ranges from 27 degrees to 29 degrees centigrade.Warm temperature is experienced from February to September while the coldestmonths start from November up to January.

2.1.5 Water Resources:

There are seven known creeks in the municipality. These creeks arecomplemented by springs served as tributaries and natural floodway duringheavy rain. Three (3) of the creeks, namely: Torang, Tumanao, and Sukor arefound in Sarangani Island while six (6) namely: Sabang, Tambulos, Sasapuan,Malambako, Mabila and Tinina are found in Balut Island.

2.1.6 Land and Mineral Resources:

Sulfur-filled crater of Mt. Balut offers a clue to the origin and elements thatcomposed the Island of Balut. Igneous rocks like basalt, granite, even adobe

stone litter the surrounding landscape of balut land areas are among the mineralresources abound in the island. San Stone and quartz are abundant in SaranganiIsland. Adobe stones can be extracted in Lipol. Pebbles and red clay can bemined in Obas-Manabay area of Patuco. Eighty percent of sulfur elements can befound at the extinct crater of Mount Balut as tested by TEXCAN.

2.2 Demographic Profile

Based on the 2000 Census, Sarangani has a population of 18,382 with an averageannual growth rate of 2.28 percent from 1995 to 2000. The municipalityspopulation density is placed at 146 persons per square kilometer of land area .

The population of Sarangani is generally young with 45.21 percent aged 0-14years. Economically productive population aged 15-64 years constitutes about52.97 percent of the municipalitys total population. Total dependency ratiostands at 88 percent for every 100 persons of productive age. The averagehousehold population size is 5. Indigenous people living in the municipality areBla-ans and Sangils, which comprised about 60 percent of the total population.


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Population, Land Area and Population Density, CY 2000

BarangayPopulation

(2000)Land Area

(Sq. Kilometer)Population Density(Person/sq. Km.)

Batuganding 1,783 11.26 158Camahual 1,911 13.06 136Camalig 870 9.02 96

Gomtaco 989 11.37 87Konel 1,602 6.90 232Lipol 1,532 7.96 192Mabila 2,869 5.52 520Patuco 2,498 9.03 277Laker 1,372 9.03 152Tinina 1,698 5.73 296Tagen 1,201 12.21 84Tucal 1.034 5.07 204

Total 18,832 106.18 173

2.3 Infrastructure Profile

The road network connecting the barangays in the two islands of themunicipality has not been establish yet and the fastest means of transportation,aside from riding a horse or walking in going from one barangay to the other, isby means of a boat. The municipality has two semi-permanent ports located atMabila serving the Balut island and Patuco for the Sarangani Island. These portshave equally important functions that support the economic activities of themunicipality.

The power requirement of the municipality is being supplied by a generator setoperated by the National Power Corporation (NPC) and distributed by Davaodel Sur Electric Cooperative (DASURECO). As of 2000, however, only 2barangays, namely: Mabila and Batuganding in Balut Island were energized,with 355 household connections. The means of communication is through asingle side band radio owned by the municipal government and a nationalgovernment telegraph station.

In terms of social infrastructure, the municipality has 8 elementary schools and 2high schools. Facilities for the elementary schools include 102 classrooms, and 1multi-purpose building while secondary schools has 23 classrooms and 12

buildings. Likewise, the municipality has 1 Rural Health Unit (RHU), 2Barangay Health Stations (BHS) and a 10 bed capacity primary hospital servingthe entire population. Around 38 percent of the total population has access toLevel II and Level III water system while the remaining 62 percent rely on springwater sources, shallow wells and open dug wells. As of 2000, the municipalityhas the following water system facilities: Level I - 25 units, Level II - 2 units, andLevel III - 2 connections.


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2.4 Economic Sector Profile

The municipality is primarily an agriculture area and has a rich fishing grounds.Its prime agricultural product is coconut wherein 96 percent of agricultural landis planted to it and only 1.21 percent is planted to corn. Because of mono

cropping, 99 percent of its population gets their staple food from General SantosCity and other neighboring areas. Copra as the main product of the municipalityis sold to General Santos City.

Livestock production is minimal and not sufficient for its population. Thefarmers are raising horses, carabaos, cattles for draft purposes while goats,swines and poultry are raised for human consumption. Aside from livestock andpoultry, people in the area also rely on fishing as their main and/or alternatesource of livelihood. However, majority of the catch are sold to General SantosCity because of the lack of storage facilities. Fishpond operations are also presentin some areas as a form of livelihood.

2.5 Social Sector Profile

In year 1999-2000, the total enrolment in public schools for elementary andsecondary levels reached 3,328 and 1,328, respectively. The classroom-pupil ratioin public elementary schools is recorded at 1:67 while the classroom-student ratioin public secondary schools is placed at 1:74. Participation rates in both levelswere pegged at 80.82 percent for the elementary level and 42 percent forsecondary level. Basic literacy rate of the municipality is placed at 86.75 percent.

Health situation in the municipality is critical. In 1999, the recorded infantmortality was 12.28 percent per 1,000 livebirths while maternal mortality rate is

reported at 4.84 deaths per 1,000 livebirths. The crude birth rate, on the otherhand, stands a 23 livebirths per 1,000 people, while crude death rate was placedat 38 deaths for every 1,000 population. As shown in the table below, theleading causes of morbidity and mortality in the area are mostly preventablediseases:

Malnutrition is also prevalent among children in the municipality. About 3percent of pre-school children suffered from severe to moderate malnutritionwhile 16 percent are mildly malnourished. Among school children, 14 percentwere severely and moderately malnourished.Ten Leading Causes of Morbidity and Mortality

Leading Causes of Morbidity Leading Causes of Mortality

Acute Respiratory Infection Cardio-Vascular DiseasesDiarrhea UnknownPneumonia AccidentsHypertension PneumoniaBronchitis CancerChicken Pox HypertensionPTB Kidney Diseases


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Chapter 3

MARKET ASPECT

This chapter presents and examines the demand for the projects proposed outputs, the

possible levels that they ought to be produced, if warranted, the prices at which theymay be sold or dispensed to the beneficiaries, and, in general, the distinct characteristicsof the projects identified markets that could represent needs which the project couldaddress.

3.1 General Market DescriptionThe market identified for the projects three components is broken down intotwo general groups: (a) the local residents of Sarangani; and (b) the tuna fishingindustry that thrives in the rich fishing grounds of the Celebes Sea just off thecountrys border with the Republic of Indonesia.

To the residents of Sarangani the project represents the realization of a long-feltneed for a port facility that presents less risk to navigation and a hub that wouldstir the island-municipalitys sleepy economy to action. To Southern Mindanaosthriving tuna industry, the project represents an opportunity to stretch eachfishing ventures margin of profitability by providing a forward base forprovisioning, or emergency re-provisioning, and shelter.

The market presents both distinct and complementary niches for the projectsthree components. These niches are more particularly described below.

3.1.1 The Multi-Purpose Port Component

The projects multi-purpose port component aims to serve the broadest spectrumof the identified market. It will be the basic seaport that will service Saranganiscommuting public, the inter-island commuter service being the main means oftransportation to and from the island municipality. The same importance will beplayed by the port on the municipalitys agriculture, which is dominated bycopra production. At present, the inter-island commuter service doubles as themeans out to the market for this industry.

The port will also serve the tuna fishing industry as a provisioning depot and asa rest and recreation haven where fishing vessels may seek refuge in times of badweather. The establishment of the ice plant component would be a critical

incentive factor in drawing this sub-market to the port. Finally, in keeping withthe present piers utility, the port is expected to continue serving the localresidents in terms of providing a landing facility for their bancas and pump-boats, which constitute the main means of transportation within the Saranganiisland group.

Marketing Aspect 3-1


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3.1.2 The Ice Plant Component

The ice plant component primarily aims to cater to the block ice requirements oftuna fishing ventures, while mostly based at General Santos City, invariablytraverse the island municipalitys waters enroute to the common fishing groundin the Celebes Sea. This sector represents a projected 99% of the ice plantsmarket. The establishment of the ice plant at Sarangani will bring significantlycloser to this sub-market its source for the all-essential ice, the main medium forthe preservation of the fish harvest.

The development of the multi-purpose port component is itself vital to theviability of the ice plant. The present piers at Poblacion Mabila in Saranganipresent a lot of navigational risks for the fishing vessels. Secondarily because ofthe meager projected demand, the ice plant facility will also serve the domesticice requirements of Saranganis local community.

3.1.3 The Warehouse Component

Designed to mainly serve the local economys copra industry, the municipalitysprincipal agricultural produce, the projects warehouse component will alsoprovide transient shelter for the regular bulk procurements of the townsbusiness and household communities.

3.2 Demand for the Project3.2.1 Availability of Data and Methods Used in Data-Gathering

The study examines the projects identified market according to the specific needthat each project component aims to address. To achieve this, a separate demandanalysis is undertaken for each component.

A check with relevant local government offices revealed that virtually nodatabase exists concerning the municipalitys trade and commerce andagriculture and fishery sectors. Moreover, formal warehousing and icemanufacturing businesses are nonexistent in the municipality. Records on portoperations, on the other hand, are limited to the monthly collections generatedfrom the facility. For the study to establish some basis for estimating demand forthe project, it was therefore decided that primary surveys, both formal andinformal, would be resorted to.

Three sets of formal survey questionnaires were formulated to generate data forthe study. The first set targeted fishermen respondents and was designed togenerate data and information on the tuna fishing industry that mainly operatedout of General Santos City. The survey, however, was able to reach a fewrespondents based in the Municipalities of Sarangani, Davao del Sur, and Glan,Province of Sarangani.



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The second set of questionnaires was developed for fish dealer/vendorrespondents in Sarangani, and was intended to generate information on the localfishing industry, particularly on the handling and marketing of the fish catch.

The third set of questionnaires was addressed to ice plant operator respondentsand was aimed at generating information on the business.

These questionnaires were administered from March 10 to May 24, 2002. Alongwith this formal data-gathering activity, informal interviews and consultationswere conducted in Sarangani and General Santos City to fill in data gaps that theformal survey questionnaires could not fill.

3.2.2 Results of Data-Gathering Activities

The formal survey among fishermen generated the largest number ofrespondents at 31. Out of these, 25 represented those based in General SantosCity; 4 represented those based in the Municipality of Sarangani; and 2

represented those based in Glan.

The survey for fish dealer/vendor respondents was able to cover nine (9)respondents, all of whom were Sarangani-based. For the ice plant operator-respondents, on the other hand, three (3) out of the total 18 plant operators inGeneral Santos City were interviewed in the survey.

The relevant data, information and findings generated by the foregoing surveys,interviews and consultations will be cited and discussed in the followingpresentation of the demand analyses for the projects three components.

3.2.3 Analyses of Demand and Demand Projections for the Project

3.2.3.1 Multi-Purpose Port Component

As already mentioned, the projects port component looks to address the needsof Saranganis commuting public, its agricultural produce which constitutes thebulk cargo market for the commuter services that ply the Sarangani-GeneralSantos City sea route, and the tuna fishing industry whose players operate out ofthe Municipality of Sarangani, General Santos City, and Glan in the Province ofSarangani. Each of these sub-markets will be examined in the following sections.

(A) Passenger Traffic

Historical data on passenger traffic at the present Mabila Port were availableonly up to as far back as 1997. These were generated from the manifest records ofthe two cargo-passenger motor launches providing commuter service to themunicipality, and validated by the port docking fee collection records of theMunicipal Treasurers Office. These data indicated the following passengertraffic levels from 1997 to 2001:



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YearNumberof Ship

Calls

PassengerTraffic

AnnualGrowth

1997 292 14,976 -

1998 292 16,416 9.62%

1999 390 22,272 35.67%2000 342 23,424 5.17%

2001 384 30,720 31.15%

It will be observed that moderate increases in passenger traffic were seen in 1998and 2000, while substantial jumps were seen in 1999 and 2001, over theirrespective previous years levels. These fluctuations are attributed to thetraveling pattern of Saranganis local residents, who almost exclusively composethe passenger traffic that move in and out of the existing port. Over the years,this pattern indicates that these residents tend to travel out of Sarangani morewhen copra prices are high, and less when these prices are low. A recollection of

the overall levels of copra prices during the years concerned validates thisconclusion.

Given this irregular pattern of passenger traffic and limited availability ofhistorical data, the study decided that projections on passenger traffic based onthe given data alone would be unacceptable.

The study thus reexamined the passenger traffic data relative to themunicipalitys population count during the corresponding years. Since censusdata on population were available only for the years 1990 and 2000, interpolationwas required to generate the levels for the concerned years, based on the censal

annual average growth rate of 2.62%. The results were then compared with thepassenger traffic data to determine their relativity, thus:

YearMunicipalPopulation

AnnualGrowth

Rate

PassengerTraffic

PassengerTraffic-to-Population

Ratio

1990 14,193

1997 17,010 2.62% 14,976 0.88

1998 17,456 2.62% 16,416 0.94

1999 17,913 2.62% 22,272 1.24

2000 18,382 2.62% 23,424 1.272001 18,864 2.62% 30,720 1.63

These results indicate a close relationship between the municipalitys passengertraffic and population levels. It was thus decided that this conclusion supportsthe use of passenger traffic-to-population ratio in projecting Saranganispassenger traffic for the duration of the projects life. For this purpose, the study



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used only those years when the ratios were greater than 1. The mean of theresulting ratios was then adopted as the factor that determines passenger trafficbased on the applicable projected population, thus:

Year

Municipal

Population

Passenger

Traffic

PassengerTraffic-to-

PopulationRatio

1999 17,913 22,272 1.24

2000 18,382 23,424 1.27

2001 18,864 30,720 1.63

Mean 1.38

Applying this to the municipalitys projected population for the life of theproject, the following passenger traffic estimates were generated:

YearProjected

Population

PassengerTraffic-to-

Population Ratio

ProjectedPassenger

Traffic

2003 19,865 1.38 27,414

2004 20,385 1.38 28,131

2005 20,920 1.38 28,870

2006 21,468 1.38 29,626

2007 22,030 1.38 30,401

2008 22,607 1.38 31,198

2009 23,199 1.38 32,015

2010 23,807 1.38 32,854

2011 24,431 1.38 33,715

2012 25,071 1.38 34,598

2013 25,728 1.38 35,505

2014 26,402 1.38 36,435

2015 27,094 1.38 37,390

2016 27,804 1.38 38,370

2017 28,532 1.38 39,374

2018 29,280 1.38 40,406

2019 30,047 1.38 41,465

2020 30,834 1.38 42,5512021 31,642 1.38 43,666

2022 32,471 1.38 44,810

(B) Cargo Traffic

Coming from the same sources as the data for passenger traffic, data on cargoescoming in and going out of Sarangani by commuter service were available only



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up to 1997. In terms of metric tons, inward and outward cargoes were at thefollowing levels for the given years:

Cargoes in Metric TonsYear

Number ofShip Calls Inward Outward Total Volume

1997 292 40.97 3,223.70 3,264.67

1998 292 45.78 3,233.80 3,279.58

1999 390 49.40 3,284.33 3,333.73

2000 342 54.82 3,250.64 3,305.46

2001 384 52.63 3,326.44 3,383.07

These data show relatively stable and progressively increasing levels, so theywere used as basis for projecting cargo traffic in Sarangani for the duration of theprojects life. The rates of increase of inward and outward cargoes werecomputed separately for the purpose, and then used to project each sector. Thisrevealed that for the period 1997-2002, inward cargoes grew at an average annualrate of 8.48%, while outward cargoes increased at the rate of 0.8%. The projectedcargo traffic for Sarangani for the projects life is thus:

Projected Cargoes in Metric TonsYear

Inward OutwardTotal

Volume

2003 65.36 3,395.50 3,460.80

2004 70.90 3,422.66 3,493.56

2005 76.91 3,450.04 3,526.952006 83.44 3,477.64 3,561.08

2007 90.51 3,505.47 3,595.98

2008 98.19 3,533.51 3,631.70

2009 106.51 3,561.77 3,668.28

2010 115.55 3,590.27 3,705.82

2011 125.34 3,619.00 3,744.34

2012 135.97 3,647.95 3,783.92

2013 147.50 3,677.13 3,824.63

2014 160.01 3,706.55 3,866.56

2015 173.58 3,736.20 3,909.78

2016 188.30 3,766.09 3,954.392017 204.27 3,796.22 4,000.49

2018 221.59 3,826.59 4,048.18

2019 240.38 3,857.20 4,097.58

2020 260.77 3,888.06 4,148.83

2021 282.88 3,919.16 4,202.04

2022 306.87 3,950.51 4,257.38



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(C) Ship Calls

The project eyes three categories of sea craft as potential users of the port. Theseare the commuter service boats that ply the Sarangani-General Santos City route;fishing vessels of the Fuso type that more substantially make up the fleetsengaged in the tuna fishing industry; and the motorized or non-motorized bancasthat the local residents use for both their municipal fishing activities and forcommuting within the island group.

The commuter service boats have an average length of 17.5 meters and breadthof 4.5 meters, and average about 70 tons of gross capacity. They generally have adraft depth of 1.2 meters and require a spacing factor of about 10% of the lengthof their hulls.

As in the case of passenger and cargo traffic, historical data on commuter serviceship calls at Mabila Port were available only up to as far back as 1997. Theseindicate that the port had identical 292 ship calls in the years 1997 and 1998, 390

in 1999, 342 in 2000, and 384 in 2001. The fluctuation in the number of commutership calls from year to year follows the pattern established by the passenger andcargo traffic in that it is determined by the general price levels of copra duringthe given year. This is because volume-wise, copra is the single biggest cargoitem transported by the commuter service from Sarangani to General SantosCity, and demand for ship calls is determined by the amount of copra, waiting tobe shipped out of Sarangani.

An analysis of the passenger and cargo traffic patterns discussed aboveconcluded that it will not be necessary for the commuter service to increase itsship calls at the Mabila Port during the life of the project. The projected cargo

traffic would be peaking on the last year of the projects life at about 11 tons pertrip; while passenger traffic would peak on the same year at about 59 persons pertrip. These load levels could easily be served by the present commuter service.

The commonly known Fuso type fishing vessels are actually motorized, wooden-hulled outriggers that are usually propelled by diesel truck engines with 140- to170-horsepower rating. They have an average length of 15 meters, a breadth of2.5 meters, and about 30 tons of gross capacity. Their outriggers span an averageof 11 meters from float to float (i.e., katig). They usually have a draft depth of 1meter and require a spacing factor of about 12% of their outriggers wingspan.These vessels are usually denominated as fishing boats or F/Bs in theirregistration papers with the MARINA.

The studys survey and separate informal interviews among fishermendetermined that an estimated 2,035 Fuso type fishing vessels were engaged inSouthern Mindanaos tuna fishing industry in 2001. It was also determined thatan overwhelming majority of these vessels (i.e., 27 out of 31 respondents or 87%)docked at Sarangani in the course of a fishing trip. The leading reasons given forsuch dockings were (a) shelter from bad weather (24 of 27); (b) re-provisioning ofice supply (20); (c) re-provisioning of food supply (17); and (d) re-provisioning of



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fuel supply (16). Barangay Patuco was the main docking point, with 23 of the 27docking respondents making the cove-encased barangay their regular stopover.

When asked in the same survey whether an improved Mabila Port represents astrategic importance to their fishing operations, 30 of the 31 respondents repliedin the affirmative. The leading uses they saw for the port were (a) forprovision/re-provisioning of ice supply (30 of 30); (b) shelter from bad weather(30); (c) for provisioning/re-provisioning of fuel supply (29); and (d) forprovisioning/re-provisioning of food supply (25). They also identified vesselrepair (17) and rest and recreation (16) as possible roles for the port.

Projecting the growth of the Fuso type fishing vessels was a problem for thestudy. Historical data on this type of vessel are virtually inexistent because fewoperators bother to register their units and the MARINA seems to neglectenforcing the registration requirement.

While the rate of growth of the Fuso type vessel could not be determined with

certainty, calculations made by the study from observations intimated byindustry players indicate that this has been dramatic. From an estimated 267units in 1992, this popular craft had ballooned to 2,035 in 2001, for an averageincrease of 177 units annually. Since these figures are all estimates, the study didnot use them for projection purposes. It was decided instead that the commercialfishery production levels of South Cotabato, which is almost entirely representedby the tuna fishing industry based at General Santos City, be used as proxyindicator. This assumes that there is direct correspondence between the growthof the commercial fishery sector and that of the Fuso vessels.

The resulting analysis indicated that the Fuso sector may have grown at the

geometric rate of 27% from 1995 to 2000. Applied to project the growth of thecraft, it was determined that this vessel type would number around 3,007 in 2003and 8,382 in 2022. Below is the projection for this type of fishing vessel duringthe projects life.

The motorized passenger outrigger bancas are usually driven by 16-horsepowerin-board, gasoline-fueled engines. They have an average length of 8 meters andbreadth of 0.80 meter, and average about 8 gross tons. They usually have a draftdepth of 0.45 meter. They do not require a spacing factor because of theirrelative lightness, which does not expose them as a risk to similar vessels.

Smaller motorized as well as non-motorized bancas are used as regular means oftransportation within the island group. They regularly use the present piers atPoblacion Mabila for docking and parking purposes, and are expected tocontinue to avail of these amenities once the project is implemented.



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Target Cients

Year

ProjectedNumber of

FishingVessels

Sarangani-Based

GSC-Based

Total

2003 3,007 3 2,914 2,9172004 3,601 4 3,489 3,493

2005 4,312 5 4,178 4,183

2006 5,164 6 5,003 5,009

2007 6,183 7 5,991 5,998

2008 6,307 8 6,110 6,118

2009 6,432 10 6,229 6,239

2010 6,561 12 6,352 6,364

2011 6,693 14 6,478 6,492

2012 6,827 17 6,605 6,622

2013 6,963 20 6,734 6,754

2014 7,102 24 6,865 6,8892015 7,244 29 6,998 7,027

2016 7,389 35 7,132 7,167

2017 7,539 42 7,271 7,313

2018 7,688 50 7,407 7,457

2019 7,844 60 7,549 7,609

2020 7,998 71 7,687 7,758

2021 8,158 86 7,827 7,913

2022 8,382 103 8,028 8,131

Assumption: 97% potential patronage based on primarysurvey result.

(D) Past Productivity & Capacity

Berth Gross Productivity of Total Cargo

The following cargo productivity levels were estimated for the Port of Mabila forthe period 1997-2001:

YearCargo

Volume(MT)

ServiceTime(Hrs)

Productivity(MT/Hr)

1997 3,265 1,008 3.241998 3,280 1,008 3.25

1999 3,334 1,344 2.48

2000 3,305 826 4.00

2001 3,383 1,344 2.52



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Berth Occupancy & Capacity

From past record, the average lengths of the commuter service plying theSarangani-General Santos City Route have been 16.25 meters in 1997 and 16.75meters in 2001. They required a spacing factor of 10% of vessel length. Based onthe approximate berth length of 18 meters, the Port of Mabila had a capacity ofonly one berth from 1997 to 2001, as follows:

YearAverage

Length ofVessel

Lengthper

Berth

Number ofBerths

1997 16.25 18 1

1998 16.30 18 1

1999 16.10 17 1

2000 16.75 18 1

2001 16.75 18 1

During the same period, the maximum berth time recorded in the port was 2,880hours sometime in 1999. This corresponded to a berth occupancy rate of 46.67%.Following is Mabila Ports highest berth occupancy records for the years 1997 to2001:

YearServiceTime(Hrs)

MaximumBerth Time

(Hrs)

BerthOccupancy

Rate

1997 1,008 2,304 43.75%1998 1,008 2,160 46.67%

1999 1,344 2,880 46.67%

2000 826 1,770 46.67%

2001 1,344 2,688 50.00%

Port Capacity

The existing Port of Mabila has 2 berth spaces with a total length of 17 meters,but sufficient enough to handle 2 vessels at a time, hence, a longer berth time foranother vessel is provided, thus:



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Capacity per Berth Total Capacity

YearAllotted

BerthOccupancy

MaximumTime(Hrs)

AllottedTime(Hrs)

CapacityNumberof Berths

TotalCapacity

1997 0.4375 8,760 3,832.50 12,417.30 1 12,417.301998 0.4667 8,760 3,832.50 12,455.63 1 12,455.63

1999 0.4667 8,760 3,832.50 9,504.60 1 9,504.60

2000 0.4667 8,760 3,832.50 15,330.00 1 15,330.00

2001 0.5000 8,760 4,380.00 11,037.60 1 11,037.60

3.2.3.2Ice Plant Component

Based on results of the survey among fishermen respondents, the typical Fusotype fishing vessel stocks an average of 80 100-kilo (or 8 tons) ice blocks for each

fishing trip that lasts all of 21 days. These fishing vessels average one fishing tripper month or 12 fishing trips in a year. As discussed above, there were anestimated 2,035 of these fishing vessels in 2001 that were based in both GeneralSantos City and Sarangani. This meant that the sub-market demanded a total of162,800 pieces of the 100-kilo ice blocks per month, or 1,953,600 pieces for theyear.

When the Municipality of Sarangani drafted its Municipal ComprehensiveDevelopment Plan (MCDP) in 1995, its leadership determined that the localeconomy, which mainly relied on its copra produce and fishing output, could bepump-primed with the infusion of a substantial infrastructure project, preferablyone that includes an income-generating or livelihood-enhancing component.This conclusion was affirmed when the local government went into theformulation and eventually adopted its Local Poverty Alleviation Plan (LPAP) in2000. The enormous demand for ice blocks by the tuna fishing industry, coupledby the strategic location of Sarangani relative to General Santos City, presentedSaranganis local government with the ideal economic enterprise option thatcould complement the long-envisioned improvement of its port structure.

3.2.3.3 Warehouse Component

Demand for the projects warehouse component was estimated based on thepresent ports cargo throughput. The above-described cargo turnover, for

instance, translates into a five-year annual average of 7,150 cubic meters ofdemand for storage space between 1997 and 2001. For the rest of the projectslife, the following cargo turnover projections are estimated:



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Projected Volume of Cargoes(Cubic Meters)

YearInwardCargoes

OutwardCargoes

TotalUnloaded at

Port

Total Numberof Sacks

@ 0.108 cubicmeter/sack

2003 141.18 7,334.28 7,475.46 69,217.22

2004 153.14 7,342.95 7,496.09 69,408.24

2005 166.13 7,452.07 7,618.20 70,538.89

2006 180.23 7,511.70 7,691.93 71,221.57

2007 195.50 7,571.82 7,767.32 71,919.63

2008 212.09 7,632.38 7,844.47 72,633.98

2009 230.06 7,693.42 7,923.48 73,365.56

2010 249.59 7,754.98 8,004.57 74,116.39

2011 270.73 7,817.04 8,087.77 74,886.76

2012 345.62 7,879.57 8,225.19 76,159.17

2013 318.60 7,942.60 8,261.20 76,492.592014 345.62 8,006.15 8,351.77 77,331.20

2015 374.93 8,070.19 8,445.12 78,195.56

2016 406.73 8,134.75 8,541.48 79,087.78

2017 441.22 8,199.84 8,641.06 80,009.81

2018 478.63 8,265.43 8,744.06 80,963.52

2019 519.22 8,331.55 8,850.77 81,951.57

2020 563.26 8,398.21 8,961.47 82,976.57

2021 611.02 8,465.39 9,076.41 84,040.83

2022 662.83 8,533.10 9,195.93 85,147.50

For purposes of simplification, the standard 50-kilogram copra sack is adopted asan alternative unit of measurement, and is assumed as the projects fee-chargeable warehouse commodity. Copra is the municipalitys main agriculturaloutput, which it produces at the rate of about 24,500 metric tons annually.

The foregoing figures, however, do not totally reflect the municipalitys demandfor warehouse space. Interviews with local officials, copra farmers andbusinessmen involved in the copra trade, as well as actual observations made bythe study team indicate that the bigger bulk of the towns copra output is notshipped out through the Mabila Port. Some copra farmers use large outriggerpump-boats and similar vessels to ship their copra produce directly to GeneralSantos City. This practice comes naturally for an island municipality, 11 of atotal 12 of whose barangays are coastal.

Aside from the straight-out transport of their copra, other farmers orcommunities enjoy the privilege of special pick-ups for their copra cargocourtesy of the commuter service during the latters outward trip to GeneralSantos City. This practice makes the normal 8-hour trip a 12-hour agony forpaying passengers in many, many instances. These copra volumes that are



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shipped out directly are not accounted for in terms of their demand forwarehouse space at Mabila.

3.3 Demand and Supply Gaps3.3.1 Passenger and Cargo Traffic Pressure on the Existing Mabila Port

Pressure on a ports capacity to handle client demand mainly tests (a) its abilityto accommodate docking boats in its berthing space/s, and (b) its ability toservice passenger and cargo movement so that a docking boats turnaround timeis constantly held to a minimum. Such pressure, however, is exerted on a portdepending on its attractiveness or importance in terms of drawing ship callsfrom client vessels.

For Sarangani without the project, the attractiveness of its port essentially lies inits passenger and cargo markets demand for the commuter service to GeneralSantos City. But this is not a significant market, altogether averaging no more

than 12 metric tons per ship call during the life of the project, when in fact thevessels servicing the route could take in an estimated maximum load of up to 40metric tons apiece.

Clearly then, as far as the commuter service to Sarangani is concerned, it isunlikely that the number of ship calls at the present port is going to increase overthe life the project, except for seasonal fluctuations attributable to travel andcargo patterns that are dictated by copra prices, as already discussed above. Forthis reason, no capacity improvement or development would be warranted forthe Mabila Port during the life of the project if this were to be based on passengerand cargo pressure alone.

Presented below is the projected combined passenger and cargo load per shipcall during the projects life. The outward loads for both passenger and cargowere used because the more voluminous levels for both factors have beenobserved in this traffic direction.



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Projected Traffic LevelsAverage Outward Load

per Ship Call (MT)

Year OutwardCargoes

(MT)

OutwardPassengers

ShipCalls

OutwardPassengers

per Ship

Call

Passengers* Cargoes Total

2003 3,395.50 5,536 384 14 1.79 8.84 10.63

2004 3,422.66 13,747 384 36 1.84 8.91 10.75

2005 3,450.04 14,106 384 37 1.88 8.98 10.86

2006 3,477.64 14,477 384 38 1.93 9.06 10.99

2007 3,505.47 14,855 384 39 1.99 9.13 11.12

2008 3,533.51 15,245 384 40 2.04 9.20 11.24

2009 3,561.77 15,644 384 41 2.09 9.28 11.37

2010 3,590.27 16,055 384 42 2.15 9.35 11.50

2011 3,619.00 16,475 384 43 2.20 9.42 11.62

2012 3,647.95 16,907 384 44 2.26 9.50 11.76

2013 3,677.13 17,349 384 45 2.32 9.58 11.90

2014 3,706.55 17,804 384 46 2.38 9.65 12.03

2015 3,736.20 18,271 384 48 2.44 9.73 12.17

2016 3,766.09 18,749 384 49 2.50 9.81 12.31

2017 3,796.22 19,201 384 50 2.57 9.89 12.46

2018 3,826.59 19,745 384 51 2.64 9.97 12.61

2019 3,857.20 20,262 384 53 2.71 10.04 12.75

2020 3,888.06 20,793 384 54 2.78 10.13 12.91

2021 3,919.16 21,337 384 56 2.85 10.21 13.06

2022 3,950.51 21,896 384 57 2.93 10.29 13.22

* Assumed at 50 kgs. average per passenger

Having determined that there will be no need for any increase in the number ofship calls for the commuter service over the projects life, the study assumes thesame constancy in the number of berths that the Mabila Port must be able toprovide to the commuter service for the next 20 years. Accordingly, since thepresent piers at Mabila have been able to provide more than the requirednumber of berths, there will be no need to increase these over the life of theproject, as follows:

Ship Calls Number of BerthsYears Per Year

Per Day

CapacityPer

BerthRequired Provided

2001 384 1.33 6 0.22 1

2003 -2022 384 1.33 6 0.22 1



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3.3.2 Mabila Ports Attractiveness to Fishing Vessels

The 2,035 Fuso vessels engaged in the tuna fishing industry represent a hugeclientele just waiting to be served by a port facility that is able to satisfy theirneed for certain amenities. Out of the 31 respondents surveyed by the study, 27said that they regularly docked at certain places in Sarangani in the course ofeach fishing trip. These 27 respondents represented operators of 92% of the 242vessels covered by the survey. Assuming that this proportion is representativeof the whole market, then approximately 1,872 of these vessels dock in Saranganieach month.

Twenty-three or 85% of those which docked at Sarangani chose Barangay Patucoas their regular landing point. This barangays coastline is located in a deepindention in the island of Sarangani, thus providing substantial protection to thevessels. These vessels generally shun the port at Mabila because its waters donot have favorable draft depth and navigating toward it is therefore a trickyexercise, especially during low tide.

Curiously, when asked about the usual reason or purpose for their docking atSarangani, 20 of the 27 respondents said that it was for re-provisioning of theirice supply. While nowhere in Sarangani is ice produced, informal interviewsrevealed that it has become common practice for these vessels to trade or selltheir excess ice supply among themselves because General Santos City is a longway back for those vessels short in their ice supply.

Very significantly, 30 or 97% of the aforesaid 31 total respondents indicated theirwillingness to make Mabila Port their regular docking station if the same isdeveloped or improved to make navigation there safer. These respondents were

asked what amenities or functions they preferred this port to play, and theleading responses were:

(a) shelter from bad weather (30 respondents);(b) provisioning/re-provisioning station for their ice supply (30);(c) provisioning/re-provisioning station for their fuel supply (29);(d) provisioning/re-provisioning station for their food supply (25);(e) shelter for vessel repairs (17);(f) haven for rest and recreation (16).

If this market were to be attracted to Mabila Port, parking slots will have to beprovided at the rate of 66 vessels per day at present levels.1 In such case, MabilaPort must be expanded or improved to accommodate the influx, granting thatthe same is also able to provide any or all of the above amenities.

Based on the growth projections for the Fuso type vessel, this sub-market alonewould require about 780 thousand metric tons of block ice annually by 2022. Therest of the projection results are presented below.

1That is, 97% of 2,035 is 1,974 or an average of 66 dockings per day.



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Year

ProjectedNumber of

FishingVessels

TargetCients

IceRequirement

(MT)

2003 3,007 2,917 280,0122004 3,601 3,493 335,325

2005 4,312 4,183 401,533

2006 5,164 5,009 480,872

2007 6,183 5,998 575,761

2008 6,307 6,118 587,308

2009 6,432 6,239 598,948

2010 6,561 6,364 610,960

2011 6,693 6,492 623,252

2012 6,827 6,622 635,730

2013 6,963 6,754 648,395

2014 7,102 6,889 661,3382015 7,244 7,027 674,561

2016 7,389 7,167 688,064

2017 7,539 7,313 702,032

2018 7,688 7,457 715,907

2019 7,844 7,609 730,433

2020 7,998 7,758 744,774

2021 8,158 7,913 759,673

2022 8,382 8,131 780,532

Assumptions:a) 97% potential patronage based on primary survey

result.

b) 96 metric tons average volume of ice required perfishing vessel annually based on primary surveyresult.

c) 0.537 kilo per capita ice requirement for domesticuses annually.

3.3.3 Block Ice Supply Deficiency

All Fuso type vessels engaged in the tuna fishing industry that operate out ofSarangani and General Santos City procure their ice supply in the latter becauseno alternative source caters to this need. This has caused losses among

fishermen in terms of ice shrinkage because of the long journey. The distancefrom General Santos City to the fishing ground ranges from 400 to 600 nauticalmiles. On the average, travel time to this fishing ground is 168 hours or 7 days.According to the fishermen respondents of the study, approximately 10% of theirice supply is lost during this trip. This is why, as already discussed, the primarystrategic role that these fishermen see for Sarangani, aside from serving as theirshelter in times of bad weather, is that it could bring their ice source nearer totheir fishing ground.



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Estimates of current demand and supply of block ice in General Santos Cityindicate that there is abundant surplus in terms of annual aggregate levels (seebelow). But interviews with the studys fishermen respondents revealed thatmany of the vessels have to queue for about 2-3 days on the average before theycan secure their ice requirements. At least two reasons are given to explain this:

(a) Most of the ice plants have a 48-hour freezing cycle for the 100-kilo blockice that the tuna fishing industry requires; and

(b) Majority of the ice plant operators are themselves the fishing industryleaders, and their own vessels, which are considerably larger than the Fusotype, get priority in the ice queue.

Demand for Block IceYear

FishingVessels

Domestic(Sarangani)

TotalDemand

Supplyof Block

Ice(GSC)

Surplus(Deficit)

1992 2,563 8 2,571 161,280 158,709

1993 3,197 8 3,205 161,280 158,075

1994 3,984 8 3,992 161,280 157,288

1995 4,963 8 4,972 161,280 156,308

1996 6,182 9 6,191 290,304 284,113

1997 7,709 9 7,718 290,304 282,586

1998 9,610 9 9,619 290,304 280,685

1999 11,971 9 11,981 338,688 326,707

2000 14,918 10 14,928 338,688 323,760

2001 18,586 10 18,596 338,688 320,092

2002 19,536 10 19,546 370,944 351,398

Assumptions:a) 10 units of ice plants with an average capacity of 40 tons are

available in General Santos City from 1992 to 1995; 18 unitsfrom1996 to 1998; 21 units from 1999 to 2001; and 23 units in2002.

b) 0.537 kilogram per capita ice requirement for domestic usesannually based on 2002 actual consumption.

Considering the size of the industry, the economic implication of the 2-3-dayqueuing period could be colossal. This will be quantified and discussed in theEconomic Analysis in Chapter 6.

The prolific growth of the Fuso vessel market, however, indicates that adeficiency will be experienced in the block ice supply as far as the General SantosCity sources are concerned, starting in the year 2005 and all through the life ofthe project. This will be the scenario even assuming that one 60-ton ice plant willbe constructed in the city every 5 years, as presented below.



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Projected Demand for Ice (MT)

Year Sarangani(Domestic)

FishingVessels

Total

ProjectedSupply(GSC)

ProjectedSurplus(Deficit)

2003 11 280,012 280,023 370,944 90,921

2004 11 335,325 335,336 370,944 35,608

2005 11 401,533 401,545 370,944 (30,601)2006 12 480,872 480,883 370,944 (109,939)

2007 12 575,761 575,773 370,944 (204,829)

2008 12 587,308 587,320 387,072 (200,248)

2009 12 598,948 598,960 387,072 (211,888)

2010 13 610,960 610,973 387,072 (223,901)

2011 13 623,252 623,265 387,072 (236,193)

2012 13 635,730 635,744 387,072 (248,672)

2013 14 648,395 648,408 403,200 (245,208)

2014 14 661,338 661,352 403,200 (258,152)

2015 15 674,561 674,576 403,200 (271,376)

2016 15 688,064 688,078 403,200 (284,878)2017 15 702,032 702,047 403,200 (298,847)

2018 16 715,907 715,922 419,328 (296,594)

2019 16 730,433 730,449 419,328 (311,121)

2020 17 744,774 744,790 419,328 (325,462)

2021 17 759,673 759,690 419,328 (340,362)

2022 17 780,532 780,549 419,328 (361,221)

Assumptions:a) A total of 23 units 60-ton capacity ice plants will be in place in

General Santos City in 2003.b) An average of one 60-ton capacity ice plant will be constructed in

General Santos City every 5 years.

In view of the fact that block ice is a market-tradable commodity, and itsprofitability as a business prospect is anticipated to be high, the establishment ofthe projects ice plant component should be left to the initiative of the privatesector. Moreover, its tendency to compete with similar businesses in GeneralSantos City, which are mostly run by private capital, calls on government toprovide for the most level playing field possible, primarily by avoiding directinvolvement in such venture.

3.3.4 Mabila Ports Warehouse Capacity Requirement

The present piers at Mabila do not offer its clients any warehouse facility. Thisservice is only provided de facto by copra traders as a necessary function of thebusiness in which they are engaged. The study had a survey made to account forall such facilities in Mabila, which were usually just extensions of the tradersown houses, where they usually conduct their copra-buying businesses. Thisrevealed the following number and estimated capacities, including the yearswhen these capacities were established:



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Traders Warehouses

Year CumulativeNumber

CumulativeCapacity(cu.m.)

1993 1 1441994 1 144

1995 1 144

1996 1 144

1997 4 524

1998 4 524

1999 4 524

2000 4 524

2001 4 524

2002 5 810

Against these warehouse capacities, the study examined the past and presentdemand satisfaction levels based on the estimated cargo traffic during the givenyears. Since the cargo traffic data represent annual aggregates for the indicatedyears, it was assumed that warehouse inventories are cleared out each time thecommuter service makes a ship call.

Past & Present Capacity Demand-Supply for WarehouseMabila, Municipality of Sarangani, in square meters

YearWarehouse

Capacity

Total Cargo

Volume

Numberof Ship

Calls

Demand forCapacity

Between ShipCalls

Capacity

Surplus

1998 524 7,052 292 24 500

1999 524 7,084 390 18 506

2000 524 7,201 342 21 503

2001 524 7,140 384 19 505

From the foregoing numbers the study determined that warehouses at Mabilahad always exceeded the warehouse space demanded at any given time in thepast, at an average surplus of 504 square meters.

The study then examined the availability of this capacity for the duration of theprojects life, applying the projected cargo volume and ship calls for the period.The capacity was projected this time using the actual capacity observed for 2002,which was 810 square meters.



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YearWarehouse

CapacityTotal Cargo

Volume

Numberof Ship

Calls

Demand forCapacity

Between ShipCalls

CapacitySurplus

2003 810 7,475 384 19 7912004 810 7,496 384 20 790

2005 810 7,618 384 20 790

2006 810 7,692 384 20 790

2007 810 7,767 384 20 790

2008 810 7,844 384 20 790

2009 810 7,923 384 21 789

2010 810 8,005 384 21 789

2011 810 8,088 384 21 789

2012 810 8,225 384 21 789

2013 810 8,261 384 22 788

2014 810 8,352 384 22 7882015 810 8,445 384 22 788

2016 810 8,541 384 22 788

2017 810 8,641 384 23 787

2018 810 8,744 384 23 787

2019 810 8,851 384 23 787

2020 810 8,961 384 23 787

2021 810 9,076 384 24 786

2022 810 9,196 384 24 786

The same huge margin of surplusage was seen for warehouse capacity during

the projects life. This would normally indicate the local communitys ability toprovide for their warehousing needs for the duration of the projects life.However, local officials and businessmen insist that a substantial portion of themunicipalitys copra output that is directly out-shipped to General Santos Cityfrom the barangays as discussed in section 3.2.3.3 above, would likely be shippedthrough Mabila if its port were less tricky to navigate. Because of thisdisincentive to commercial navigation, copra traders in Mabila cannot offer ahigh buying price relative to that offered at General Santos City, since they haveto pay a high premium for the transport of their copra to the latter.

The strong representation made by local officials and businessmen about a

projected need for warehouse capacity once the Mabila Port is improved mayhave to be heeded. The warehouse is a structure that is essential to any portfacility. The structure could be built as an incident of the port developmentproject.



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3.3.5 Other Economic Opportunities

The tremendous clamor by the studys fishermen respondents for a forwardsource for fuel and food provisions in Sarangani presents the local communitywith great possibilities for economic and livelihood activities. The average Fusovessel consumes about 4,000 liters of diesel fuel per fishing trip. The projectsdevelopment of Mabila Port, on the other hand, would allow it to accommodate150 parking vessels per month. If each of these 150 projected callers were toreplenish even just 10% of their fuel requirement at Sarangani during each trip,diesel retailing would be a P13 million-per-annum industry in Sarangani at thecurrent selling price of P18 per liter!

Other areas with strong client demand based on the studys surveys arewholesale and retail of foodstuff, motor parts supply for vessel repairs, andentertainment houses.

3.4 Marketing Plan3.4.1 Project Outputs

The projects development interventions include the development of the existingport at Mabila so that navigation toward it is made safer and multiple parkingslots are made available for vessels engaged in the tuna fishing industry; and theestablishment of an ice plant within the port complex that will provide for theblock ice requirements of the same industry. The development of the port will berealized through public appropriation, while the ice plant venture will be offeredfor undertaking by private capital.

The projects client-usable outputs may be classified under two generalcategories, namely, (a) port services and (b) ice blocks. The following shallconstitute the port services that will be provided by the project:

(a) passenger terminal facility(b) warehouse services(c) berthing spaces for passenger and cargo ships(d) berthing/parking spaces for fishing vessels(e) offshore anchorage(f) cargo handling services(g) food stall spaces(h) public toilets

The port is proposed to be operated by the Philippine Ports Authority and usercharges will be collected for most port services. Only non-profit commuterpump-boats and bancas will be exempt from payment of docking and parkingcharges.



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The block ice outputs of the project shall cater primarily to the requirements ofthe tuna fishing industry and secondarily to the minimal domestic requirementsof Saranganis local community.

3.4.2 Product Pricing & Projected Revenues

The projects proposed revenues come under two classifications, public revenuesand private revenues. All revenues generated from port services accrue to thegovernment and constitute the projects public revenues. Income generated bythe ice plant component represents the projects private revenues and accrueexclusively to the investor in the ice plant venture.

The ice plant component will produce two product lines, namely: (a) the 100-kilogram ice block, which is mainly targeted at the fishing vessel market; and (b)the crushed ice, which will serve the domestic needs of Saranganis localcommunity. These will be uniformly sold at P115 per block.

The public fees and charges will conform to current levels and regulations of thePhilippine Ports Authority, which is the proposed implementing agency andoperator of the multi-purpose port complex facility. The following fee structureis proposed for the indicated port services:

Revenue Source TariffAssumptions &

Applicability

A. Berthing Fee

Passenger Vessels

Cargo Vessels

P150.00 first 5 hours

P40.00/hour succeedinghours

P130.00 first 5 hoursP35.00/hour succeedinghours

Commuter service plying the

Sarangani- GSC routeAverage berthing duration 1 day per ship call

All other sea craft that ferrypassengers and cargo forprofitAverage berthing duration 2 days per ship call

B. Passenger TerminalFee

P2.00 All outward passengers

C. Cargo Handling Fee P0.50/sack Use of port equipment



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Revenue Source TariffAssumptions &

Applicability

D. Warehouse StorageFee

P1.00/sack 70% of all cargo unloaded atthe port is stored in the

warehouse for an average of 1dayThe 50-kilogram (0.108 cu m)copra sack is the adoptedcharging unit

E. Parking Fee P50.00/day All vessels engaged incommercial fishingAverage parking duration 2 days per vessel

F. Anchorage Fee

Passenger VesselsCargo Vessels

P50.00/dayP40.00/day

All passenger and cargo

vessels dropping anchor inthe channel between Balut &Sarangani IslandsAverage anchorage duration 1 day per vessel

G. Land Rental - IcePlant

P27,720.00/month Rental for the 792 sq. meterland occupied by the iceplant, computed at P35.00 persq. meter per month

H. Stall Space Rental P2,000.00/stall/month Stall spaces measuring 3 m x

3 m each will be available forlease to tenants offering food& other consumer serviceswithin the port complexProjected occupancy rates 40% during the first year ofoperations; average of 80%for the remainder of theproject life

I. Public Restrooms

UrinalToiletBath

P1.00/person/useP2.00/person/useP5.00/person/use

The projects projected revenues from each of these sources are presented inAnnex 3-A.



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3.4.3 Marketing Strategy

3.4.3.1 The Need for a Two-Stage Marketing Strategy

With the projects emergence as an intervention package that requires privatesector participation, its stakeholder acceptability will be tested long before it iseven implemented. Finding the capable private sector partner for the projectsice plant component will be its initial big test. If the project hurdles this andprogresses on to be implemented, it has to come up with a client-attractionpackage so that it is able to reach its intended beneficiaries.

In view of this, the projects marketing strategy should, at the minimum, providefor distinct action plans for its pre- and post-implementation stages. The pre-implementation strategy should focus on finding a private sector capitalist-partner who will be willing to put up the projects ice plant component. Thepost-implementation strategy will center on efforts that will create the

environment that will allow the project to realize its benefit potentials as theyhave been identified in this study.

3.4.3.2 A Suggested Pre-Implementation Marketing Strategy

As pointed out above, the singular objective of the projects pre-implementationefforts is to identify and attract a private sector investor for its ice plantcomponent. A couple of critical local issues needs to be initially addressed here,namely, the municipalitys need for a steady supply of electricity and its lack of areliable source for potable water. These utilities happen to be an ice plants twomain inputs. Because of these concerns, the responsibility for the projects pre-

implementation marketing appears to fall heavily on Saranganis local officials.

The suggested strategy, therefore, is for the local government to form a team oflocal officials, preferably led at the very least by a member of the SangguniangBayan. It will be tasked to sell the idea of investing in an ice plant project inSarangani. A list of candidates will be drawn up for this purpose. This list maygive priority to Sarangani locals who have a stake in the fishing industry. Failingin this, the invitation may then be extended to General Santos City-based fishingindustry stakeholders, particularly those who are already into the ice plantbusiness, and so on.

The prospects may then be visited by the team of local officials and offered the

opportunity to be the LGUs partner-investor. They will be shown a copy of thisfeasibility study report and given a presentation that will highlight the projectcomponents favorable feasibility indicators. Preferably, the local team will alsoshow them a certification from the PPA (or the final implementing agency), tothe effect that the other component of the project has been funded and indicatingthe timetable for its implementation. This personal call approach may beemployed until a private investor is finally secured for the project.



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3.4.3.3 A Suggested Post-Implementation Marketing Strategy

Once the project is implemented and all of its components are in place, theproject will be marketed generally through a word-of-mouth strategy. Thedemand for the facilities and services that it offers gives good reason for aminimalist approach to marketing the project. The following marketing tools arenonetheless recommended:

(a) Flyers and leaflets The formal surveys conducted by the study gave theproject a database starter especially on its fishing vessel market. Thismarket information (e.g., respondents names and addresses) could be usedfor sending out personal notices, flyers, leaflets and handbills to the icepant components potential customers.

(b) High-frequency radio service The projects distance from the bulk of itstargeted market requires it to put up and maintain a dependablecommunication system by which clients can reach the project. At present

Sarangani is beyond the reach of the conventional telephone. As theprojects principal draw and provider of a critical industry commodity, theice plant component should invest in a suitable communication equipmentor service. Project site conditions indicate that at the minimum, this shouldinclude a high-frequency radio equipment. Most Fuso type fishing vesselsare equipped with this type of equipment and through this, clients canplace and pre-validate orders without compromising their fishing ventureplans.

3.5 Summary of Findings & ConclusionsThe foregoing analyses have given the study sufficient basis for the followingfindings and conclusions:

3.5.1 Most vessels engaged in the tuna fishing industry, especially those operating outof General Santos City and Glan in the Province of Sarangani, traverse the watersof the Sarangani island group on their way to the common fishing grounds in theCelebes Sea just off the countrys border with the Republic of Indonesia.

3.5.2 Passenger and cargo projections for the Mabila Port indicate that there is no needfor any capacity development for the port during the proposed life of the project.However, the Fuso vessel sub-market, estimated to number about 2,035 in 2001and constituting a very substantial portion of all vessels engaged in the tuna

fishing industry, has overwhelmingly indicated a willingness to patronize animproved Mabila Port, provided that it is able to cater to their needs for block ice,fuel, food supply, and entertainment. When combined with an ice plantcomponent, therefore, the improvement of the port exhibits bright promise of amultiplier result for the local economy.



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3.5.3 Any port improvement project at Mabila should address the vessel operators

foremost concern for navigational safety. The development should also providefor adequate berthing/parking facilities especially for the Fuso type fishingvessel.

3.5.4 If the Mabila Port is developed, public revenues may be generated from thefollowing sources:

(a) Berthing fee(b) Passenger terminal fee(c) Cargo handling fee(d) Warehouse storage fee(e) Parking fee(f) Anchorage fee(g) Land rental (ice plant site)(h) Stall space rental(i) Public restrooms

3.5.5 If an ice plant is established in Mabila and produces 100-kilogram ice blocks, 97%of the Fuso vessel sub-market is willing to regularly patronize it, even if it sellsice at a 20% premium over the prevailing prices in General Santos City.However, in view of the fact that block ice is a market-tradable commodity, andits profit prospects are bright, the establishment of the projects ice plantcomponent should be left to the initiative of the private sector. Moreover, itstendency to compete with similar businesses in General Santos City, which aremostly run by private capital, calls on government to provide for the most levelplaying field possible, primarily by avoiding direct involvement is such venture.

3.5.6 Cargo volume projections indicate that there is a prevailing surplus inwarehouse capacity at Mabila which is likely to continue throughout theproposed life of the project. This normally indicates the local communitysability to provide for their warehousing needs for the duration of the projectslife. However, local officials and businessmen have pointed out that much of themunicipalitys copra output that is directly out-shipped to General Santos Cityfrom the barangays would likely be shipped through Mabila if its port were lesstricky to navigate. Because of this disincentive to commercial navigation, copratraders in Mabila cannot offer a high buying price relative to that offered atGeneral Santos City, since they have to pay a high premium for the transport oftheir copra to the latter. It is emphasized that this rather huge portion of the

municipalitys copra output is unaccounted for in the studys demand-supplyanalysis for warehouse capacity.

The strong representation made by local officials and businessmen about aprojected need for warehouse capacity once the Mabila Port is improved mayhave to be heeded. The warehouse is a structure that is essential to any portfacility. The structure could be built as an incident of the port developmentproject.



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3.5.7 The attractiveness of a developed Mabila Port among fishing vessels would

depend on the amenities it can offer or fishermens needs it can satisfy. Foremostamong these needs are ice, fuel and food supply. On the other hand, theprojects ice plant component may not, by itself, be attractive to the same fishingvessels if the navigational hazards posed by an unimproved Mabila Port are not

eliminated or significantly reduced. Within this limited context, it may beconcluded that the exclusive pursuit of either the multi-purpose port componentalone or the ice plant component alone, would be an untenable proposition.

3.5.8 If the project is realized, the anticipated influx of fishing vessels will bring abouta parallel demand for other fishing industry incidentals, such as diesel fuelsupply, the wholesale and retail of foodstuff, motor parts for vessel repairs, andentertainment houses that could provide relief to fishermen seeking shelter frombad weather in the island. Some of these economic undertakings have potentialas multi-million-peso-per-annum industries for Sarangani. The others, at theminimum, represent continuing livelihood opportunities.



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Chapter 4

TECHNICAL ASPECT

4.1 The Project

The proposed infrastructure support to the economic program of Saranganiproject has two major components, namely: a) development of the port; and, b)construction of ice plant.

The development of the port will include the extension and improvement of thetwo existing causeways adjoining each other to accommodate more number andbigger cargo and fishing vessels. It will require reclamation of approximately3,590.5 square meters of the foreshore situated between the two existingcauseways. Pier and wharf structures will be constructed to separate theberthing area for cargo/passenger and fishing vessels as shown in the

complete saranggani (2)

Documents