Logistics key to growth

S/ASC underscored the important role of the Philippine logistics industry in economic growth.

Logistical costs account for 24 percent to 53 percent of wholesale prices while shipping and port handling costs cover eight to 30 percent, depending on the goods’ route, and roughly five percent of the retail price of goods. Cristobal noted that the Philippines has the highest logistics cost among ASEAN countries, pointing out that in Cambodia, the cost of transporting 15 metric tons of containerized auto parts from domestic ports to warehouses, in cost per kilometer, is the lowest at US$0.89. It is followed by Thailand at US$1.14. The Philippines, he said, has the highest at US$21.10.

Aldaba named the Logistics Industry Roadmap as another key element in the development plan. Furthermore, she said USAID’s Advancing Philippines Competitiveness (COMPETE) has submitted a comprehensive study on a National Logistics Master Plan.