Freight News, Logistics

Philippines poised for great things in freight

[ May 15, 2015   //   Chris ]

The Philippines could become a major growth market for logistics services providers over the next year – but only if its rulers improve trade flows and invest heavily in the archipelago’s outdated infrastructure, says a new report by analysts Transport Intelligence.
While the country currently lags behind its regional competitors in South East Asia terms of logistics performance, Philippines Transport & Logistics 2015 argues that if policy changes can be made that encourage inward investment by manufacturers, and if this is supported by more infrastructure investment – especially from the private sector – contract logistics and forwarding demand will surge.
Ti’s head of operations in Asia, Michael King, said problems included ports and airports “and, especially, on Luzon’s blocked highways.”
Much will depend on the determination of whichever candidate wins the looming Presidential elections to drive through policy reform, King added.
Many of the same drivers of contract logistics market expansion will determine growth rates for forwarding. Ti concludes that the total freight forwarding market can grow by 9% to 15.1% between 2013 and 2020.

Tags: Ti