MPIC logistics unit putting up centers in Bulacan, Cavite

MANILA, Philippines — Metro Pacific Investments Corp. (MPIC), the infrastructure conglomerate chaired by tycoon Manuel V. Pangilinan, is strengthening its logistics business with the development of two major distribution centers in Luzon. 

MPIC, through its logistics arm MetroPac Movers Inc. (MMI), is building distribution centers in Cavite and Bulacan.

MMI has partnered with Aboitiz Construction Inc. for the development of MMI’s South Mega Distribution Center or South Mega DC. 

South Mega DC will be developed on a 202,000-square meter land which MMI bought for P1.2 billion last year.

MMI also acquired parcels of land with a total combined space of 277,857 square meters in San Rafael, Bulacan at a price of P204.8 million for the construction of North Mega DC.

The two large mega distribution centers will serve the company’s existing and potential clients in various industries. 

It is expected that both the South Mega DC and the North Mega DC will create thousands of new jobs in Cavite and in Bulacan, respectively, the company officials said.

Under the memorandum of agreement signed by the two conglomerates, Aboitiz will prepare the master plan and basic design for the development of the massive South Mega DC, which will be built over a sprawling property purchased by MetroPac Movers along the stretch of Arnaldo Highway in Gen. Trias City, Cavite.

MPIC made its foray into the logistics business in 2016, noting its potential to become a lucrative new leg which is less regulated than its other businesses.

Its tollroad and water businesses have been affected by regulatory issues. 

MMI started operations in May 2016. Its services now include warehousing, transport, freight forwarding, cross docking and parcel delivery services.

It owns a massive fleet of 520 trucks of different sizes and configurations and operates over 200,000 square meters of aggregate warehouse space in strategic locations across Metro Manila, Luzon, Visayas and Mindanao.

Aside from investments in equipment, land acquisitions and large distribution centers, the company has been investing heavily in technology and training, as it seeks to become the top logistics provider in the Philippines.

Last year, MMI completed the acquisition of a 12 percent stake in Air21. It is open to acquiring a bigger stake later on, depending on the business environment.

Air21 is under the Lina Group of Companies, which was founded by businessman Alberto Lina, who also served as Customs Commissioner during the time of former president Gloria Macapagal-Arroyo and president Benigno Aquino III.

MPIC’s warehousing capacity is targeted to more than double to roughly 70 hectares in two years from about 32 to 35 hectares.

The company will be expanding its warehousing capacity in Visayas and Mindanao. At present, it has existing capacity in Luzon, Visayas and Mindanao as well.

MPIC can also provide cold storage facilities and other common warehousing needs.

The country’s conglomerates, including MPIC,  have been betting big on the highly lucrative and less regulated logistics industry, which is now dubbed as the new battlefront among businesses.