-
Private-public collaboration is key to growing the logistics services sector, according to Trade undersecretary Mary Jean Pacheco
-
Reducing logistics costs, streamlining processes, upskilling professionals, and investing in infrastructure are the focus areas of cooperation
Public and private sector collaboration is key to growing the logistics services sector, Trade undersecretary for E-commerce Group Mary Jean Pacheco said in keynote remarks at the recent 2nd LogiSYM Conference.
She said the Department of Trade and Industry (DTI) is working hand-in-hand with private sector associations to address challenges and seize opportunities in the supply chain and logistics industry.
“The aim is to reduce transport and logistics cost – that’s keeping our eye on the ball,” Pacheco said.
DTI leads Logistics Services Philippines (LSPH), an initiative with the private sector aimed at transforming the country into a premier logistics hub in Asia by reducing transport and logistics costs and ensuring an efficient supply chain.
LSPH is an informal aggrupation of private sector associations representing truckers, shipping lines, freight forwarders, customs brokers, warehouse operators, port users, terminal operators, and supply chain professionals, among others.
LSPH focus areas are cost reduction, infrastructure investment, process streamlining and upskilling, she said.
On reducing transport costs, Pacheco said DTI in cooperation with the Department of the Interior and Local Government is working to ensure implementation of Executive Order No. 41, which prohibits the collection of pass-through fees from cargo trucks.
DTI has also completed LSPH Project Streamlining Phase 1, which carried out an inventory of permits and licenses issued to six logistics subsectors (cold storage, customs brokerage, domestic sea shipping, freight forwarding, trucking, and warehousing) to check for potentially redundant documentation requirements.
Results of the first phase have been endorsed to the Anti-Red Tape Authority.
Additionally, the Harmonized Online Freight Forwarder Accreditation (HOFFA), a joint undertaking between the DTI Fair Trade Enforcement Bureau and the Civil Aeronautics Board (CAB), is on its final stages. HOFFA will harmonize documents submitted by air and sea freight forwarders, which are under two different departments. Air freight forwarders are regulated by CAB, an attached agency of the Department of Transportation, while sea freight forwarders are under DTI.
On skills upgrading, the Technical Education and Skills Development Authority will create a Technical Vocational Education and Training industry board to enhance workforce competencies in support of the logistics sector’s long-term growth.
Pacheco noted the logistics sector is the second-fastest growing after construction, with the transportation and storage sector growing by 14.8% in the second quarter of 2024 based on Philippine Statistics Authority data.
She said construction and tourism-related industries have helped drive supply chain and logistics growth.
In order to promote logistics infrastructure investments, DTI has proposed 885 new projects worth P92 billion for 2025. The projects will be under the Roads Leveraging Linkages of Industry and Trade-Logistics Efficiency and Transport Seamlessness to Enhance Agribusiness Trade program.
“These are in pursuit of our shared goals, that is, to make food available, accessible, and affordable to consumers; and ensure that they get the right product, at the right time, at the right price in a reliable manner,” Pacheco said. – Lils Liwanag
