Gov't moves to cut logistics costs

The government is pushing to lower logistics costs and improve the delivery of essential goods by expanding road, rail, and port infrastructure to strengthen supply chains and ease distribution expenses for businesses and consumers.

The Department of Transportation (DOTr) and Department of Public Works and Highways (DPWH) are jointly working to boost transport connectivity, particularly between agricultural production areas, major ports, and commercial centers, to address bottlenecks in the movement of goods nationwide.

A key component of the effort is the proposed Subic-Clark-Manila-Batangas (SCMB) Railway under the Luzon Economic Corridor, which aims to connect the major ports of Subic, Manila and Batangas through an integrated freight network.

The planned railway is expected to provide businesses with additional cargo transport options, potentially reducing reliance on road freight and improving the movement of goods between industrial hubs and major gateways.

Transportation Secretary Giovanni Lopez said the government is also modernizing airports and seaports to position the Philippines as a regional transshipment hub.

"We are already modernizing the country's airports and seaports not only to ensure passenger comfort and convenience but also to guarantee an interconnected logistics hub which will lower logistics costs and generate investment opportunities for micro, small and medium enterprises. Upon the President's directive, we must ensure that the Philippines becomes a transshipment hub," Lopez said.

The logistics infrastructure push coincides with the opening of United Parcel Service's (UPS) expanded Clark International Air Hub in Pampanga, which is expected to significantly increase cargo-handling capacity and support growing demand for domestic and international shipments.

The new facility can handle approximately 46,000 packages and cargo shipments daily, more than nine times the estimated volume processed by the existing UPS hub.

The expansion is expected to improve logistics capacity for Filipino businesses while generating additional employment opportunities in Central Luzon.

Clark Hub Manager and UPS Air Operations Head Albert Sapaen Jr. said the facility would create 600 additional jobs, mostly for residents of Pampanga and nearby provinces.

"This facility will employ an additional 600 people, and most of those jobs are sourced from within Pampanga and nearby provinces," Sapaen said.

The facility is equipped with 17 electric ground service vehicles and equipment units, with nine additional units scheduled for delivery next year to improve operational efficiency and support sustainability efforts.

Dedicated immigration and customs lanes are also expected to streamline cargo clearance and reduce processing delays.