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The Department of Trade and Industry-Region 7 plans to convene a group that will help address issues faced by logistics stakeholders in Central Visayas
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The creation of the group is part of DTI-7 initiatives to improve the region’s trade and logistics efficiency, reduce costs, and cement Cebu’s role as a major shipping hub
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DTI-7 also plans to develop a regional trade logistics value chain roadmap
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Following focused group discussions, DTI-7 said one of the recommendations to address industry issues is the creation of a national agency that will act as a one-stop authority for trade logistics policies
The Department of Trade and Industry-Region 7 (DTI-R7) plans to convene a group that will help address issues faced by logistics stakeholders in Central Visayas.
The creation of the group, tentatively named Central Visayas Trade Logistics Alliance, is part of DTI-R7 initiatives to improve the region’s trade and logistics efficiency, reduce costs, and cement Cebu’s role as a major shipping hub in the Visayas and the country, DTI Cebu Provincial Office officer-in-charge director Marivic Aguilar said in a presentation during the recent 4th Visayas Shipping Conference and Exhibit 2025. The conference was organized by PortCalls in partnership with DTI-R7.
Aguilar said they also plan to develop a regional trade logistics value chain roadmap.
The creation of the group aligns with the plan of DTI Supply Chain and Logistics Group for the “localization” of Logistics Services Philippines (LSPH), an informal group of organizations representing various sectors in the supply chain and logistics industry formed in 2018. It was tasked to collaborate and help address problems affecting the logistics services sector and ensure its development and competitiveness.
READ: Public-private link key to growing logistics sector – DTI
DTI undersecretary Mary Jean Pacheco, also a speaker at the Visayas Shipping Conference, noted that while there may be similar issues in the national and local levels, localization of LSPH will help make addressing issues in the local or regional level “more efficient.”
For Central Visayas, DTI-R7 last year conducted various focused group discussions (FGDs) to identify the trade and logistics sectors’ issues and challenges, as well as recommendations to address such challenges.
Aguilar noted that logistics “has always been a crucial driver of trade and economic activity, but its significance became even more evident during the pandemic.”
Aguilar said they felt compelled to initiate the FGDs after the COVID-19 pandemic highlighted “critical gaps in our supply chains, particularly the high cost of logistics, bottlenecks in trade flow, and inefficiencies in the movement of goods.”
The FGDs were conducted with seven sub-groups, including manufacturing firms, medium to large production companies, large importers/consolidators, logistics service providers; shipping companies, roll-on/roll-off operators; relevant government agencies, and consumer groups/associations.
Identified challenges include, among others, the lack of a single-coordinating body to oversee and streamline trade logistics policies. Aguilar noted that logistics concerns are currently fragmented across multiple agencies, leading to inefficiencies and lack of accountability.
Relatedly, there is lack of coordination and consistency of policies, such as, for example, Cebu’s varied truck bans, road fees, and regulations.
Another challenge is the need for clearer pricing structures, in particular transparency in shipping, trucking, and port charges.
Infrastructure also remains a challenge, with stakeholders emphasizing the need for port expansion and modernization of road networks.
Service availability was also identified as a challenge. Aguilar noted for example that while logistics operations are 24/7, government services and port operations “are not yet fully aligned with industry needs.”
Recommendations for the identified challenges were also proposed during the FGDs, including the creation of a national agency “to handle everything logistics” and act as a one-stop authority for trade logistics policies and ensure seamless coordination across agencies.
Aguilar said “the dream” is for the national agency to address policy inconsistencies across local government units (LGUs) and national bodies “that slow down trade movement” and to propose standardized logistics regulations and pricing frameworks to prevent arbitrary rate increases.
Another recommendation is the creation of multi-sectoral planning for trade logistics at the regional level, wherein key stakeholders, private sector, and government will come together to make a coordinated plan for sustaining growth.
Also recommended is improvement of communication and collaboration. Aguilar said there is a need for LGUs to harmonize their transport policies, as well as improve real-time communication between port authorities, shipping lines, and trucking firms to prevent delays and quickly resolve trade bottlenecks.
Digitalization across the trade logistics value chain is another recommendation to address transparency issues. For example, Aguilar said an online port and shipping transparency system that will display in real time shipping schedules, trucking availability, and port charges will allow businesses to pre-schedule their movements and avoid unnecessary wait times.
Aguilar said they hope to have stronger collaboration with stakeholders to turn discussions “into really real concrete lasting change.”
“(Us) in government and the policymakers, we know that we should work towards harmonized trade logistics policies, reduce bottlenecks, and strengthen trade facilitation efforts. Our logistics providers and businesses, we hope that you can invest more in digital transformation, cost transparency, and efficiency-driven operations so we can ensure seamless trade flows, and our workforce enablers we hope (to) strengthen logistic skills development and training to prepare for a rapidly evolving industry,” Aguilar said. – Roumina Pablo
