World-class logistics sector

Logistics enthusiasts and industry insiders can rejoice with the arrival of a trusted platform for their daily updates — LogisticsNews.ph. Led by seasoned expert, former Manila Bulletin editor Bernie Cahiles-Magkilat, this newly launched platform is poised to be the top source of timely, reliable news for the supply chain, logistics, and mobility sectors.

LogisticsNews.ph was founded on the vision that trade can be better by publishing news and features related to supply chains, logistics, mobility, and industry movers. Expect insightful columns by thought leaders like former Trade and Industry Secretary Alfred Pascual and Anti-Red Tape Authority Secretary Ernesto Perez.

Cahiles-Magkilat, as founder and editor-in-chief, will be overseeing a lean but mean team composed of Edu Lopez as senior correspondent, Lorie Cabanes as editorial adviser and Eli Recide as admin. We offer our hearty congratulations to LogisticsNews.ph!

Covering the transport and storage sector is a smart move, given its vast potential. The sector posted impressive growth in the fourth quarter of 2024, growing 9.5 percent year-on-year and securing its place as the third fastest-growing industry in the country. The sector climbed 8.8 percent in 2024 despite a slower growth in the overall economy during the period.

The potential is enormous, but as the country inches closer to becoming an economic powerhouse in Southeast Asia, it is essential to assess whether the logistics sector is evolving fast enough to realize the broader ambitions of the nation.

The undeniable truth is that while the sector is growing, it remains trapped in an infrastructural quagmire. Despite improvements in the World Bank’s Logistics Performance Index (LPI) in 2023, which saw the country make strides in areas such as customs efficiency and port capacity, the reality on the ground is still one of chronic inefficiency.

Struggles with bottlenecks, insufficient cold chain infrastructure, and a fragmented network undermine the sector’s ability to meet the demands of a modern economy and continue to hamper the country’s logistics sector.

As DTI Undersecretary Jean Pacheco pointed out at the LogisticsNews launch last week, bold investments are necessary to address these issues. Enhancing critical ports — Manila, Batangas and Subic — is crucial to increasing capacity and reducing congestion.

Upgrading railways, maintaining efficient freight stations, and adding double-track railways should be urgent priorities.

Yet, improving the ports and railways alone won’t solve the problem. The government must also prioritize multimodal transport options and develop more robust cold chain logistics, which are vital for reducing losses in agriculture, pharmaceuticals, and other industries that require precise temperature control.

The sector posted impressive growth in the fourth quarter of 2024, growing 9.5 percent year-on-year.

Technological innovation is another key factor. A fully connected, real-time logistics network can create efficiencies throughout the supply chain. The Philippines must invest in digital platforms to facilitate seamless information exchange among stakeholders, from shippers to government agencies.

Private sector participation will also be paramount to driving this transformation. The 2GO Group Inc., as the country’s largest integrated end-to-end logistics provider, sets an example of the scale and potential that can be realized when private enterprise is aligned with national objectives.

With this, I am honored to share that yours truly will be taking on a new role as consultant to the SM Group, including the 2GO Group, contributing to the future of the Philippine transport and storage sector and furthering 2GO’s position as a strategic partner.

I hope to be part of developing transformative actions that embrace a future where the Philippine logistics infrastructure and solutions are not just adequate for its growing economy but world-class in its competitiveness to keep in step with the increasingly complex demands of global trade and be at the heart of this growth.