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Mindanao delivers: Logistics leaders look to Davao for next supply chain hub

Industry leaders from the logistics, mobility, and e-commerce sectors agreed that Mindanao is the hub that can create a seamless supply chain for the entire country during the final installment of the Davao ICon 2021 Innovation Series held virtually on October 27.

“All the industry leaders across all the webinars so far have agreed that Davao, and Mindanao in general, are extremely important markets for their respective businesses. It was most encouraging to hear from our experts that they all felt that in order to be an industry leader for their respective products, they needed to have a Mindanao strategy,” Davao ICon 2021 chairperson Ricardo Lagdameo said.

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The webinar, entitled “Mindanao as the Logistics Hub of ASEAN: First and Last Mile Logistics,” featured mostly women leaders and experts who tackled ways to improve the shipping and logistics sector so that the nation can keep up with the global shift to online platforms and the resulting demand for more efficient deliveries.

The discussion, hosted by Davao Tourism Association President Gatchi Gatchalian, was held ahead of the Davao Investment Conference on November 11 and 12.

“With an economy that’s consistently growing at a higher rate than the national average every year, coupled with a large population, the Davao region presents numerous possibilities for all investors,” Lagdameo said.

The event featured two keynote speakers: Zoe Chi, the Vice President for Philippines Global at J&T Express, and Dino Austria, District Collector at the Bureau of Customs in Davao.

In her speech, Zoe Chi discussed the potential of Mindanao, which J&T recognized as a prime location for expansion despite only starting operations in the Philippines in 2018.

“After just two years of operation, J&T Express saw the potential of Mindanao as a growing region because of business opportunities, realty investments, and its modern international seaports and container terminals. The Mindanao region presented a significant opportunity for J&T to invest in building more branches and warehouses and further spur the growth of the logistics industry,” she said.

Austria, for his part, admitted that the public sector often acts as a barrier to commerce and trade, especially when processes are outdated and inconvenient.

“This is exactly why we’ve been pressured to keep up in government: because the world, the private sector has been evolving quite fast around us. We don’t want to pose as barrier for economic activity, for the movement of goods. We realize and fully understand the very crucial role that we play. Heavy investments have been made for us to be at par, for us to be responsive to your needs,” he said.

Tatiana Cziomer, Chief Operations Officer of e-commerce enabler Etaily, said Davao City in particular has an advantage being IT-enabled as e-commerce continues to boom in a post-pandemic economy.

“In Etaily, we really believe in empowering our merchants via technology. Having great universities in Mindanao and Davao and being able to lean more people towards tech is the way to go for progress and innovations in the e-commerce space,” she said.

Sabina Lopez-Vergara, Chief Commercial Officer of Ninja Van, highlighted the importance of being flexible and adaptable, especially when locating a logistics company in a region that has underdeveloped areas.

“It’s very important to have consolidation warehouses. Ninja Van has mobile hubs or warehouses, sometimes we use the storage of commercial businesses or employ trucks to be the hubs themselves so that riders can easily go back and forth,” she said.

Davao ICon 2021 co-chairperson Nicole Bian-Ledesma said more than just a logistics hub, Mindanao can also be the next investment magnet of the country.

“Davao City and Mindanao as a whole are geographically in a favorable position—with access to its neighboring countries, ASEAN countries, and BIMP-EAGA. Mindanao can very well be not just the logistics hub, energy hub, but the next investment magnet because of our infrastructure and growth of e-commerce,” she said.

To save a virtual spot in the Davao Investment Conference from Nov. 11 to 12, visit www.davaoicon.com. For inquiries, reach out to the Davao ICon 2021 team at davaoicon@davaochamber.com.

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