In the Philippines, centers of economic activity and distribution hubs are the greatest consumers of rebar. Minimizing freight or transport costs is a significant cost savings that benefits both the large-scale developer and the rural home builder. To minimize transport-related costs for buyers, SteelAsia established rebar mills across the country in and around these economic and distribution hubs. As of 2008, 100% of all rebar mills were located around the Greater Manila Area, which meant Visayas and Mindanao buyers had to ship rebar from Luzon. Today, SteelAsia’s investment in regional expansion has placed rebar mills in Cebu, Cagayan De Oro and Davao, aside from its Luzon locations in Bulacan and Batangas.
Low freight spending for island buyers
Sea freight in the Philippines is expensive. Shipping from Manila to Cebu is the same cost as shipping from Russia to the Philippines- and it is even more expensive to ship to Davao. Port charges, difficult rebar handling at the ports, transport from port to storage, and storage to site add to these costs. Every buyer, from Mr. Juan dela Cruz to the big mall developers, have to deal with these costs when shipping from Manila.
SteelAsia’s regional locations open the opportunity for buyers to cut out these transport related costs and transport bars straight from the mill to the construction site.
Rebar are not always readily available when shipping by sea. Arranging transport is difficult once long distances are involved. Shipments can be delayed because of vessel availability, vessel loading queues, loading difficulties from congestion and rebar handling, and the same problems all over again when unloading. Time is money.
Nothing beats having a community rebar mill when it comes to being readily available.
Reduced country carbon footprint
Shipping rebar used to involve burning thousands of liters of diesel every year. Buying from a community rebar mill, reduces the carbon footprint associated with shipping rebar.