CEBU, Philippines — Aside from office building projects, developers in Cebu are urged to build modern warehouses to support the province vibrant economic growth.
Colliers International Philippines believes that building automated warehouse systems will ensure the smooth and cost-efficient system of transferring goods from factories to households in Cebu.
“This is particularly important for Cebu developers as modern warehouses are crucial in supporting the growth of the region’s e-commerce,” said Collier’s latest market intelligence report.
The significant growth of trading, eCommerce, import and export trade should be supported with modern facilities such as sophisticated warehouses.
Colliers believes that developers need to upgrade their warehouses continuously to keep up with the needs of logistics tenants.
The consulting firm mentioned the recently opened modern warehouse in Cebu, DoubleDragon, a Philippine developer which recently diversified into the development of industrial parks and warehouses.
Companies like DoubleDragon are addressing the looming concern for warehousing needs in Cebu by constructing standard factory buildings that have proper ventilation, high headroom, and extensive floor sizes.
A report indicated that the Philippines logistics and warehousing market augmented positively from 2012 to 2017 at a positive CAGR during the review period 2012-2017. Additionally, the country has witnessed increasing container freight traffic volume during the same period.
The Philippines has been considered as one of the most strategic locations in the Indo-Pacific Ocean. Industrial / Retail sector is the largest contributor to the warehousing sector, followed by container freight, cold storage, agriculture and others in terms of revenues in 2017. Increasing prominence of online shopping will increase the size of E-commerce industry in the country.
Companies from the retail sector, FMCG (Fast-Moving Consumer Goods or Consumer Packaged Goods) sector, pharmaceutical sector, apparels and other accessories are anticipated to witness robust growth.
E-commerce companies require warehousing facilities to store the products which will trigger the demand for warehousing space in coming future.
The express delivery companies meanwhile, have created a door to door linkage across domestic and international markets and have developed advanced shipment tracking facilities to cater to time-sensitive needs of the logistics sector.
Air express has dominated the express delivery market in terms of revenue during 2017, followed by road express in the Philippines. (FREEMAN)