HIGH logistics costs and unreliable deliveries could keep Cebu from turning its strategic location into operating businesses, officials said at the FAST Logistics Solutions Forum 2026, even as government and industry tighten coordination to ease supply chain bottlenecks.
Paulo Uy, Cebu Provincial Investment and Promotion Office head, said attracting investors is only the first step, saying “an investor inquiry is not yet an investment as far as our office is concerned. A proposal is not yet an operating facility.”
Geography alone does not guarantee efficient movement of goods, he said. Ports, airports and roads must translate into reliable deliveries, reasonable operating costs and better access to suppliers and markets.
Cost of delays
Transport, storage and handling are only part of the cost, Uy said. Delays and unpredictable schedules can mean missed sales, higher inventory requirements and more working capital tied up in operations. Businesses may also turn down large orders or abandon expansion plans if they cannot guarantee delivery, costing the province investments and jobs.
Marivic Aguilar, provincial director of the Department of Trade and Industry (DTI), made a similar point about smaller firms, saying micro, small and medium enterprises (MSMEs) need more than quality products to compete.
Goods must arrive on time, in good condition and at costs that keep them competitive. High shipping costs and difficulty arranging deliveries can make it hard for small businesses to accept orders, especially in new markets, she said.
Government response
Aguilar said that since 2024, the DTI has held focus group discussions with Cebu supply chain and logistics players. These have fed into a logistics alliance of government agencies, industry and institutional partners.
In March, the DTI, the Provincial Government, the Cebu City Government and business groups met with about 120 representatives to discuss transport, fuel and supply concerns stemming from the Middle East crisis.
In May, Cebu Gov. Pamela Baricuatro issued Executive Order 28, setting a common truck ban schedule within the Provincial Government’s jurisdiction to make deliveries more predictable. Details on implementation and coverage, however, have yet to be established.
The DTI’s Supply Chain and Logistics Center also offers MSMEs, exporters, importers and logistics providers information, consultancy, business matching, regulatory facilitation and training. The agency is urging firms to use it.
Food hub, roads, partnerships
Uy cited the proposed Cebu Mega Food Hub in Naga City as a chance to link farmers and fishers with supermarkets, hotels, restaurants and buyers in other provinces through consolidation, cold storage, processing, packaging and distribution.
The benefits, however, depend on reliable suppliers, committed buyers, adequate storage, dependable utilities, reasonable service charges and an effective distribution network,Uy said. Stakeholders must first settle who will use the facility, how much volume it can handle, who will run it, and whether it can compete with existing options.
The Provincial Government has invested more than P100 million in an access-road network to support development in southern Cebu, improving access for manufacturers and for agricultural and post-harvest facilities.
Public-private partnerships could deliver infrastructure by pairing government responsibilities with private capital and expertise, but they need credible feasibility studies, transparent processes and clear allocation of risks such as cost overruns and delays, Uy said.
Local firms must benefit
According to Uy, investment promotion should be measured not only by the size of announced projects but also by whether local enterprises become qualified suppliers and gain new markets. Manufacturing investments, for instance, can create demand for local trucking, warehousing, maintenance and food-service firms.
Uy also emphasized the importance of cooperation among businesses, including competitors, in developing more efficient supply chains.
Cebu has opportunities in manufacturing, food processing, maritime services, logistics, tourism and other productive sectors, he said. However, realizing these opportunities requires coordination among government agencies, infrastructure providers, investors and local businesses.
Uy urged businesses facing bureaucratic difficulties with the Provincial Government to seek help from the provincial investment promotions office.
For Cebu businesses, the test is whether these initiatives translate into lower logistics costs, more reliable delivery schedules and wider access to domestic and international markets. / MVG