President Ferdinand Marcos Jr. said the logistics system in the country would soon become a “powerful force” guaranteeing economic growth for Southern Luzon and Metro Manila.

The President on Wednesday led in the grand opening of the Maersk Optimus Distribution Center in Calamba, Laguna.

The newly built structure is the largest distribution center in the Philippines, boasting a 76,000-pallet storage capacity with a 100,000-square meter landmass.

In his speech, Marcos said the logistics hub is expected to generate thousands of jobs for nearby communities as well as other stakeholders.

“In the coming years, the Maersk Optimus Distribution Center is expected to create employment for one thousand people in its surrounding communities and indirect employment for another thousand individuals from vendors and service providers to truckers and beyond,” he said.

Marcos noted the importance of logistics in our daily lives, as the public “often overlooks” the system behind it.

“[It] quietly keeps the rhythm of our daily lives, ensuring food on our tables, medicine for the sick and packages at our doorsteps,” he said.

But Marcos pointed out that the seamless flow of logistics, which “we have grown accustomed to,” could be disrupted, as was evident when the pandemic struck the country a few years ago.

“We hear at this point, especially after the pandemic, a lot of talk about supply chains and robust supply chains. And these arise from the lessons that we learned during the pandemic where supply chains were broken, and many of them no longer came back,” he said.

Marcos said the Covid-19 pandemic revealed a weakness in logistics, stressing the need for a robust system to move products around.

He recalled that in 2018 and 2019, the transportation and storage industry steadily grew until it was disrupted by the pandemic. The industry, however, recovered in the last few years.

In the second quarter of 2024, Marcos noted that the transport and storage sector recorded growth of 14.8 percent.

This figure makes it the second fastest growing industry in the Philippines, trailing only the construction sector.

Based on the World Bank’s 2023 Logistics Performance Index, the Philippines’ rank improved, rising to 43rd from 60 out of 139 countries.

“[This is a] great improvement from our previous place at 60th in 2018. Our gains in customs efficiency, infrastructure quality, [and] on-time deliveries made this rank improvement possible,” he said.

As the logistics hub will begin to operate fully, it will serve as the transport hub for Southern Luzon. It features 75 docks equipped with a fleet operational control center, enabling the company to manage its transport fleet while maximizing operational efficiency.

According to Maersk, it will integrate major warehouse operational and co-packing activities to cater to key industries such as consumer goods, food and beverage, leisure and lifestyle, healthcare, technology, automotive and retail.

Marcos said the facility would also decongest Metro Manila and bolster import and export activities in Southern Luzon, especially in Bicol and Calabarzon.

“This strategic location in Calamba aligns with our efforts to decongest Manila and to unlock the economic potential of the countryside,” he said.

Sustainable practices

Maersk Logistics executives said the warehouse will be solar powered to reduce its grid consumption by 30 percent. It will also deploy electric vehicles for last-mile services.

Marcos said that “environmental stewardship” is a cornerstone of his administration’s agenda.

“It is heartening to see the private sector partners echoing this commitment,” he said.

He added that it is imperative for both the public and private sectors to adopt effective, responsive, and ecologically sound practices.

Ease of doing business

Meanwhile, Trade Secretary Cristina Aldeguer-Roque said the center, one of the largest logistics facilities in the Philippines, will complement the government’s ongoing efforts to enhance the ease of doing business in the country, provide critical logistical support to both local and international investors, streamline supply chains, improve the efficiency of transport, and strengthen the country’s position as a competitive destination for investment.

Echoing the administration’s vision for a Bagong Pilipinas, the trade chief underscored that the Philippines is open for business and encouraged more investors to continue “Making It Happen in the Philippines!”