RP poised to take bigger share of $3.6-trillion logistics mart

SAN JOSE, Bulacan , Philippines —The Philippines is poised to take a bigger share in the $3.6-trillion global logistics market with growing number of related projects and investments as well as the country’s improved worldwide ranking on the sector, President Arroyo said yesterday.

In her speech at the inauguration of the main building of the Bulacan Polytechnic College here, she said the country’s economy has taken huge strides since she assumed office in January 2001 when the nation was mired in political turmoil and bankruptcy.

“As an economist, I know discipline is needed to restore the economy and fill the national coffers and invest in people and infrastructure, including for the Urban Luzon Beltway (ULB),” Mrs. Arroyo said in Filipino.

The ULB, one of the six “super regions” created in 2006, covers Calabarzon (Cavite, Laguna, Batangas, Rizal and Quezon provinces), Marinduque and Mindoro provinces, Metro Manila and southern Central Luzon. It accounts for two-thirds of the country’s gross domestic product or the total valve of goods and services produced in the country.

Most of the projects in the ULB are ports, airports and road projects that are aimed at easing transport of passengers, goods and services.

Since the establishment of the ULB, the Arroyo administration and the private sector have invested at least P40 billion on 14 major road projects, she said.

“To realize our vision of a globally-competitive logistics and services hub, the government together with the private sector have invested in maritime, aviation, and land transport capability; the development of a highly-skilled workforce; and the promotion of an environment conducive to business,” she said.

The World Bank, in its 2010 Logistic Performance Index, cited the Philippines as performing well on six indicators, namely efficiency of the customs clearance process; quality of trade and transport-related infrastructure; ease of arranging competitively priced shipments; competence and quality of logistics services; ability to track and trace consignments; and frequency with which shipments reach the consignee within the scheduled or expected time.

The Philippines was ranked third among 54 low-middle income countries and 44th among 155 countries, according to the WB.

According to the Center for Research and Communication’s Transport and Logistics Institute, the logistics market is expected to grow between three percent to 10 percent over the next 10 years.

Press Secretary Cris Icban said among the projects that are aimed at transforming the ULB into a major global logistics and services hub are the investments in the Diosdado Macapagal International Airport in Clark and the P792-million improvement of the NAIA International Passenger Terminal 3 Project; the P8-billion rehabilitation of the Subic Bay port; P6 billion Batangas Port Development project; P63 million Lucena port project; and the P32 million Cawit Port project.

Apart from massive road and rail projects like the Northrail project and the P2.3-billion Marikina-Infanta Road, there are eight power generation and transmission projects for the region, including the P2-billion Concepcion-Clark power transmission project and the Binan-Sucat power transmission project.

During her visit to the Clark Freeport Zone yesterday, Mrs. Arroyo said there are now 10 logistics and services hubs in Clark.

She noted the $1-billion Global Gateway Logistics by the Kuwait Gulf and Link Investment Company, the largest single logistics hub in the country, is nearing completion.