The logistics industry is expected to grow 11 percent to 18 percent annually over a five-year period until 2020, according to a think thank.
Enrico Basilio, a transport and logistics expert at the Center for Research and Development, said in a report the logistics sector could expand from a P100 billion market in 2013 to an industry valued at more than double or triple this value by 2020.
Basilio said the sector was poised to grow by a low of 11 percent annually to P204 billion and up to 18 percent annually to P326 billion by 2020.
Basilio said the rosy outlook depended on certain conditions being put in place by the government, including the right infrastructure, policies and institutional support.
He said the government should accelerate priority infrastructure development and provide sufficient funding for their completion, estimated at P5.7 trillion for 2017 to 2022.
Multimodal logistics infrastructure development is a requisite to support the industry’s growth, and covers roads, airports and seaports, he said, citing the results of the study.
The report said for road development, existing rail systems and thoroughfares should be expanded and improved and new ones developed across the country. More provincial, city and municipal roads need to be paved, it said.
It said for airport infrastructure, top priority should go to international gateway airports to support tourism such as Ninoy Aquino International Airport, Mactan, Clark, Kalibo, Davao, Iloilo/Bacolod, Daraga and Puerto Princesa gateways.
It said the international airports of Laoag, Zamboanga and Laguindingan should also be upgraded.
Among the secondary airports, focus should go to developing those in Legaspi, Panglao, Siargao, San Vicente, Busuanga, Camiguin, Dipolog and Tacloba as well as the aviation facilities in Naga, Masbate, Marinduque, San Jose, Butuan and General Santos, it said.
The think tank said there should also be initiatives to expand airports with the goal of boosting cargo volumes, especially at Naia, Clark, Cebu, General Santos and Davao.
On seaport infrastructures, the study suggested the development of ports and cruise berthing facilities to support tourism activities especially the seaports of South Harbor, Puerto Princesa, Caticlan, Cagban, Coron, Iloilo, Romblon, Currimao, Aparri, Subic, Batan, Hundred Islands and Lingayen Gulf as well as Sasa Port in Davao into domestic port and berthing facility for cruise shipping.
Other recommendations to boost logistics include enacting into law the proposed Omnibus Maritime Code, issuing the dual airport policy, and amending Executive Order No. 170.
The study also pushed for the resolution of the overlapping and conflicting functions of regulatory agencies by amending the charters of the Philippine Ports Authority and Civil Aviation Authority of the Philippines.