A survey released by Ken Research states that the gross domestic product (GDP) of the Philippines is contributed by the logistics sector between 4 and 6%. As a result, it is anticipated that the Philippine logistics industry would expand at a compound yearly growth rate of 8.2% between 2022 and 2027, with a projected market value of P1.160 trillion at that time.
A General Look Into Transport Systems
To facilitate trade, link people, and spur economic progress, logistics and transport systems must be effective and well-functioning.
Technological Perspective
Realizing the full potential of technology remains a challenge for the Philippine business. As a matter of truth, the nation still significantly depends on human resources and manual processes. The lack of skilled people is one of the industry’s biggest obstacles, according to a report by S&P Global Market Intelligence. This problem can be initially addressed by implementing digitally enabling technology.
Infrastructure Development Perspective
Particularly in remote areas, roads, ports, and airports frequently lack the modern equipment required for effective transport and logistics. As a result, in recent years, both the public and private sectors have boosted their expenditure on significant projects. The government’s “Build, Better, More” program focuses on energy, water resources, and transportation and involves extensive infrastructure construction.
Of the 76 transport and logistics projects, the government is funding 12 of them, while development aid is funding 35 of them or will fund them. Twenty unsolicited bids are included among the 24 projects that remain under the Public-Private Partnership (PPP) paradigm.
Through the ability to move people and goods across distances, transport and logistics have aided in Philippine business. Nonetheless, these issues still need to be handled to ensure inclusion in the transportation industry.
Local Demands for Transport and Logistics
Source: Philippine Statistics Authority
The Annual Survey of Philippine Business and Industry (ASPBI) for 2016, studied 2,860 establishments that are all involved in the transportation and storage of goods. The percentage distribution of all establishments for the sector by industry sub-class in 2016 is shown above. It demonstrates that, with 600 establishments, or 21.0% of all establishments for the sector, freight forwarding services had the most establishments of any industry. The freight truck operation came in second, with 580 enterprises, or 20.3%. Third place went to customs brokerage (ship and aircraft), with 251 establishments, or 8.8%.
Third Party Logistics Providers in the Philippines
There were also other emerging developments when it comes to transport and logistics like Third Party Logistics (3PL) Outsourcing. 3PLs assist in managing intricate supply chains, which are primarily required by foreign businesses doing business in the Philippines. It is anticipated to hold a 40% revenue share in the sector by 2024. Known 3PLs in the Philippines include:
- Transportify
Transportify is a 3PL third-party logistics provider that provides businesses in Luzon, Visayas, and Mindanao with a very flexible option for delivering goods to end customers in various places. Visit their website to see if their Standard Service Area covers your desired pick-up location.
- Lalamove
Delivery trucks, vans, motorcycles, and automobiles are available for use by businesses through Lalamove’s third-party logistics service (3PL). Their Monthly Corporate Rebates starting at ₱425.
- Omni Logistics
Omni Logistics is a global 3PL provider, assisting businesses in managing their supply chains by providing third-party logistics services. They currently serve a large number of international clients by offering distinctive, personalized supply chain solutions.
- Ernest Logistics Corporation
Ernest Logistics Corporation continues to offer dependable, knowledgeable, and forward-thinking 3PL and B2B logistics solutions ranging from consolidations to containers to trucking.
- CEVA Logistics
Leading the way in shipping and logistics worldwide is CEVA Logistics. Large and medium-sized national and international businesses have complicated and frequently changing supply chain needs, and their professionals specialize in building end-to-end bespoke solutions and 3PL to suit those needs.
Upcoming Event: 4th Philippine Commercial Vehicle Show
The 4th Philippine Commercial Vehicle Show here in Manila is set to take place this July 18 -20, 2024 at SMX Convention Center Manila in Pasay City. It aims to be the foremost business-to-business event for the commercial vehicle industry in the Philippines.
This event serves as a platform for trade buyers, manufacturers, and suppliers within the public transport and logistics sectors. It has been instrumental in fostering business deals and promoting the adoption of modernized transport solutions to enhance the country’s transport infrastructure. The show offers opportunities for exhibitors and buyers to connect and explore the future of transport systems in the Philippines.
For more details or to participate, visit PhilCVS website.
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