A recent study by transport industry analysts shows the logistics industry in the Philippines is expected to have a compounded annual growth rate of 10 to 16 percent annually from 2013 to 2020.
Analysts believe the domestic contract logistics market will expand from 478 million euros (P30.8 billion) in 2013 to 1.412 billion euros (P90.9 billion) by 2020. This upward swing will represent a compounded annual growth rate of 16.7 percent over the said period.
The Philippines may be dubbed as the rising tiger of Asia in the logistics sector, ranking 71st among 160 countries worldwide. In Southeast Asia, Malaysia is at 32, Thailand at 46, Indonesia at 63, and Vietnam at 64.
“We need to play catch up because we are far from our full potential”, said Jerryme Garcia, chief finance officer of leading truck body builder Centro Manufacturing Corp. “And to support the country’s rapid growth in logistics, Centro has introduced the C-Van.”
He explained the C-Van is Centro’s top-of-the-line aluminum logistics van with double stainless steel lock rods, stainless hinges, aluminum claddings, and more durable components such as checkered plate flooring, EPDM door rubber seals, marine plywood interior panels, and LED lights.
“With these features, it is expected to last longer. Thus, our C-Van is becoming more and more popular among logistics companies who are now increasingly looking for higher value for money and giving more importance to quality and durability,” he added.
The World Bank says the Philippine economy grew by 6.7 percent last year, making it the 10th fastest growing economy in the world. The growth can be partially attributed to President Rodrigo Duterte’s plan to increase the infrastructure-to-GDP (gross domestic product) ratio to 7.4 percent, which will usher the golden age in infrastructure. It has also benefited from a stable macroeconomic environment of low inflation and low debt-to-GDP ratio.
“With the expected improvement in infrastructure, the logistics industry is also predicted to take advantage of the demand for bringing raw materials, finished goods, various other products and even passengers to markets faster and easier across the archipelago than ever before. Naturally, this serves to stimulate Philippine growth further and Centro will be there to support it with the C-Vans of various sizes and other required vehicle solutions,” Garcia said.