Ro-Ro system raised incomes of agri households – PIDS study

The implementation of the Roll-on/Roll-off (Ro-Ro) policy translated to an increase in income of agricultural households in the country, a study by the Philippine Institute for Development Studies (PIDS) showed.

"In the short-run, we immediately noticed the increase in income of agricultural households. Using our estimates, we have exhibited how the Ro-Ro port operation stimulated both agriculture and non-agriculture related activities," according to the study's discussion paper, The Impacts of Roll-On/Roll-Off Transport System in the Philippines.

The Ro-Ro policy was first implemented in 2003, during the term of then-President Gloria Macapagal-Arroyo, to establish a seamless inter-island connectivity through Luzon, Visayas and Mindanao.

The Ro-Ro system gave vehicles the opportunity to directly board ships and vessels without unloading their cargo.

According to the PIDS study, the increase in income of agricultural households nearby Ro-Ro port areas may be attributed to the full implementation of the system in 2009.

"This observation may be explained by the increase in Ro-Ro towards 2009, where the full-scale operation of the Ro-Ro system may have had a bigger impact. Nevertheless, we observe the short-run effect of the Ro-Ro policy on agricultural household income," it said.

The study noted that children who live near port areas gained the long-term benefits from the Ro-Ro implementation.

"We expect this to have long-term effects on local economies as it enhances the capacity of their future workforce," it said.

"Our result, therefore, indicates that children are kept in school and not forced to work to help their families," the PIDS emphasized.

According to the PIDS, results of the study expose the need for an effective transport system.

"In general, our study highlights the central role the transport system has in an archipelagic country like the Philippines," it said.

"It strengthens the argument that rural growth can be enhanced by providing urban-rural linkages through an efficient and affordable transport network," it added. — Jon Viktor Cabuenas/VDS, GMA News