- The Philippines Development Plan by government for the period 2017-2022 is aimed at accelerating infrastructure programs and projects thereby positively impacting demand for logistics.
- Philippines Port Agency is aiming to accelerate the implementation of infrastructure projects in ports nationwide under the ‘Build-Build-Build’ program to decongest ports for cargo and passenger.
- In order to keep up with the rapid demand of logistics, the warehousing facilities will look forward for speedy upgradation to handle larger volumes of traffic with digitized and efficient management systems.
Growing Economy of Philippines: Strong economic growth is likely to boost the logistics market in the country during the forecasted period. The sectors which are expected to be particularly depending on logistics services include healthcare, telecommunication, electronics and retail. An increase in the consumer spending will provide a strong impetus for the growth of these sectors thereby affecting the logistics market positively. The country aims to achieve national Ambisyon by the year 2040 which will witness its GDP per capita grow by three times. This will positively impact the demand for products such as apparel, electronics, food and beverages which will also augment demand for logistics services in the country.
Encouraging trade among ASEAN: The establishment of ASEAN Economic Community in the year 2015 was aimed at improving the trade scenario in the region by freeing up the movement of people and goods across the bloc. The Blueprint for 2025 adopted by ASEAN leaders at 27th ASEAN Summit in 2015 will help in facilitating the utilization of ASEAN Trade in Goods Agreement and allow liberalization of logistics services across the nations including Philippines.
Emergence of Technological Advancements: The logistics companies are expected to invest on advanced technologies solutions such as autonomous logistics, real-time tracking, automation and robotics in order to provide an improved customer service. With the growing international trade, incorporation of advanced technology based solutions will help in an efficient delivery of products by the logistics providers. New technological services such as real time tracking and warehouse management systems provide complete information about the shipment by offering real time data to the customers and proper track record of movement of goods in storage facilities. The country also witnesses a rising demand for blast freezing in its cold storage facilities. Such advanced technologies are expected to keep the operations of logistics and warehousing industry in Philippines both effective and efficient.
Booming Industries: FMCG products, food processing and pharmaceuticals sector have showcased considerable growth in the Filipino economy and have raised the requirements of specialized integrated logistics services. Advanced warehousing capabilities which require temperature control environments will look forward to increase in the coming years to support the growth of specialized industries such as pharmaceuticals and energy sectors.
Analysts at Ken Research in their latest publication “Philippines Logistics and Warehousing Market Outlook to 2024 – By Freight Forwarding (Air, Sea, Land), Domestic and International Freight Flow Corridor; By Warehousing (Industrial/Retail Freight, Container Freight, Cold Storage, Agriculture and Others), Express and E-commerce Logistics, Balikbayan Box, Third Party Logistics“ believe that the logistics industry is in its growth stage and is projected to expand in future through increasing government investment to improve the nation’s infrastructure and rising demand for e-commerce logistics to meet the consumption requirement of growing population. The market is expected to register a positive CAGR of 8.2% in terms of revenue during the forecast period of 2018-2024.