DTI-Cebu leads creation of trade logistics alliance

CEBU, Philippines — The Department of Trade and Industry-Cebu Provincial Office (DTI-CPO) is spearheading efforts to establish the Cebu Trade Logistics Alliance, a strategic initiative aimed at tackling key challenges in the province’s trade and shipping sector.

During the recently concluded “Visayas Shipping Conference 2025” at the Cebu Sports Club, DTI-CPO Officer-in-Charge Director Marivic Aguilar emphasized the need for a coordinated approach to enhance trade logistics.

The proposal follows a series of focused group discussions (FGDs) conducted by the DTI-CPO in 2024, which identified critical industry concerns.

Among the top challenges highlighted were exorbitant logistics costs, exacerbated by the COVID-19 pandemic, and persistent infrastructure bottlenecks that hinder trade flow.

As Cebu continues to serve as the shipping hub of the Visayas—supporting manufacturers, exporters, importers, and consolidators—stakeholders have raised concerns over the absence of a centralized logistics body, outdated port infrastructure, inconsistent trade regulations, and limited 24/7 logistics operations despite high demand.

To address these issues, industry leaders are advocating for the creation of a National Logistics Authority, a government-led body focused on optimizing trade logistics policies, processes, and standards. Stakeholders are also calling for the standardization of logistics operations to ensure uniformity across industries and enhance efficiency.

A key proposal emerging from the discussions is the development of a trade and logistics roadmap for Central Visayas. This strategic plan seeks to solidify Cebu’s role as a major shipping hub for the Visayas and Mindanao, fostering economic growth and streamlining trade operations.

“The industry needs a dedicated body to coordinate efforts and drive improvements in infrastructure, technology, and regulations,” Aguilar said, echoing the suggestions made by stakeholders.

“This alliance will be crucial in unlocking Cebu’s full potential as a logistics powerhouse,” Aguilar added.

The Cebu Trade Logistics Alliance is envisioned as a collaborative platform that will drive policy reforms, push for infrastructure modernization, and enhance Cebu’s competitiveness as a global logistics hub. The proposal is set to undergo further refinement before being presented to relevant government agencies and private sector leaders in the coming months.

Once implemented, it is expected to boost supply chain efficiency, attract investments, and contribute to economic growth in Central Visayas.

The Visayas Shipping Conference 2025, themed “Visayas Trade Logistics: Navigating a Competitive Landscape,” convened key stakeholders from the shipping, logistics, and trade sectors to explore solutions for improving supply chain efficiency and reducing costs across the country.

Mary Jean Pacheco, Undersecretary of the Department of Trade and Industry (DTI), underscored the need to overhaul the national supply chain system, extending beyond the physical movement of goods to include financial flow improvements for businesses.

  “We are now looking at the entire supply chain, not just the physical movement of goods but also the financial flow. Our goal is to improve business operations by making goods more available, affordable, and accessible,” Pacheco said.

The DTI’s Supply Chain and Logistics Group (DTI-SCLG), recently reorganized under the leadership of DTI Secretary Maria Cristina Aldeguer-Roque, is prioritizing infrastructure improvements, digitalization, and policy reforms to address inefficiencies in the logistics sector.

“Transport and storage, particularly logistics, is a growing sector. In the fourth quarter of 2024, it was among the top three fastest-growing industries in the country,” Pacheco noted.

Employment in logistics and transport surged in 2024, with the sector generating 3.76 million jobs, a substantial increase from 256,000 in 2023. Central Visayas, particularly Cebu, emerged as a key driver of this expansion, posting a 27.1 percent growth rate in 2023.

With strong industry backing and government support, the proposed Cebu Trade Logistics Alliance is poised to play a crucial role in strengthening the region’s trade and shipping capabilities, ensuring a more resilient and competitive logistics sector for years to come.