The Philippine government’s plans to create a more efficient transport and logistics system, including a government body for supply chain, has moved forward in a meeting of key organisations in the sector.
The Department of Trade and Industry and members of the United Port Users Confederation of the Philippines (UPC) and the Philippine International Seafreight Forwarders Association (PISFA) discussed the critical issues and action needed to improve the country’s domestic and international trade.
“A more efficient transport and logistics system can better serve the international market, raise the country’s competitiveness, and enable local industries to take full advantage of a healthy economy,” said Department of Trade and Industry secretary Adrian Cristobal.
The government also announced that its planned Logistics Industry Roadmap, which proposes the creation of a government body on supply chain and logistics, was in its final stages.
The roadmap aims to establish strategies and programs to further develop the country’s transport infrastructure, particularly roads and ports outside Manila such as Batangas and Subic.
The government body on supply chain and logistics will coordinate all initiatives related to the supply chain and to follow through on implementation and compliance of policies. The roadmap will serve as a guide to improving the National Logistics Plan being drafted by the DTI’s supply chain and logistics management division in partnership with USAID’s Advancing Philippine Competitiveness (COMPETE) Project.
Cristobal said harmonising supply chain and logistics initiatives and programs would help in the efficient allocation of limited resources to fix logistics problems.
In the Philippines, logistics costs account for 24% to 53% of wholesale prices, with shipping and port handling costs making up 8% to 30%, depending on the goods and routes, and 5% of retail price of goods.