SCMAP president Pierre Carlo Curay will be speaking at this Wednesday’s LSPH Conference and Exhibit, happening at the Fairmont Makati. Specifically, he will be speaking at the panel on infrastructure, headlined by no less than Department of Public Works and Highways secretary Vince Dizon.
While I can’t yet provide a sneak peek at what he has to say – we’re still finalizing things as I write this – I’d like to share some of my own thoughts on infrastructure and logistics, most of which I have already explored in previous columns.
Of course, it’s obvious that infrastructure plays a key role in the competitiveness of our supply chain networks. It’s obvious that more (and better) connections would help in speeding up delivery times for goods, reduce costs, and improve customer satisfaction.
Stronger infrastructure would allow us not just to deliver on our promises – making products available for customers – but to be instrumental in the Filipino’s quest for a better quality of life.
Infrastructure is also an essential determining factor for companies as they invest in and expand their operations. We have seen over the last decades or so how construction of logistics facilities have followed the path of newly-opened highways across Luzon.
Some of our members have invested in facilities further up north – from Pampanga, Tarlac, and even all the way to Pangasinan – in response to improved road connectivity. Our members in the real estate sector also report increased demand for warehouse spaces in towns and cities now better served by these highways.
The thinking remains that these companies can better serve their customers by being as close to them as possible. We’re still firmly in the direction where the “mega central distribution center” model is not feasible, thanks to the our archipelagic nature, the complexity of multimodal transport, and issues of congestion – and, as we are very much aware of now, the need to be more energy- and fuel-efficient.
These facilities may be straightforward warehouses now, but we’re also seeing members invest in advanced storage and management technologies in facilities outside of Manila. Imagine the potential this could bring to those working nearby.
While understandable, it is regrettable that investment in infrastructure has slowed down in recent months, so much so that it has reflected in our GDP figures for the final quarter of 2025. The government, of course, should exert every effort to ensure that the projects they spend taxpayers’ money on have integrity and are corruption-free.
But we have swung towards the opposite extreme, in that almost all construction – especially at the local level – has stopped. Apart from its impact on workers who rely on construction projects to be able to make a living, it also delays the logistics sector’s capability to deliver for their customers in these parts of the country. Connectivity is an important step to progress and equitable growth.
I have talked about how it is important now, in these times of economic uncertainty due to the Middle East crisis, that the government picks up some of the slack and resumes spending on essential infrastructure projects. At this point it should also be clear that I don’t just mean transport networks. Our scramble for fuel to power our economy in the coming weeks has highlighted the need to invest in the “invisible” infrastructure that otherwise powers our economy, from petroleum depots to renewable power plants.
Infrastructure development should not just be responsive to what stakeholders need now, but be proactive and anticipate what will be needed. For example, the call for greater EV adoption means we need stronger investment in charging infrastructure, alongside financing programs for businesses to make the transition away from fossil fuels in their transport fleets.
Finally, I’d like to note a thought shared by Maersk’s Jez McQueen during a panel discussion I was part of last April 28. We were asked what would be essential support to further enable logistics providers, and his answer was quick: we need to invest in “social infrastructure”. He is right.
We should also continue investment in schools and hospitals the same way we call for continued investment in roads and ports. What is the use of more competitive supply chain networks if the Filipinos who should benefit from it are sickly and illiterate? How will these networks function to begin with? We can’t fully rely on AI for this. We need people.
That brings me back to the whole question of ensuring integrity in government projects. Ah, a forever chicken-or-egg question, this.
Henrik Batallones is the marketing and communications director of SCMAP, and editor-in-chief of its official publication, Supply Chain Philippines. More information about SCMAP is available at scmap.org.
