THE Philippines is poised to become a major growth market for logistics services providers in the next year - if it can put mega bucks into its infrastructure.
That is the conclusion of a new study by the UK's Transport Intelligence (Ti), a global provider of research and analysis to the logistics industry.
Entitled "Philippines Transport & Logistics 2015", the study argues that if policy can encourage infrastructure investment by manufacturers, supported by private sector investment, then contract logistics and forwarding demand will surge.
"If the Philippines can overcome the difficulties it endures, then it has every chance of becoming a major growth region," said Ti's head of operations in Asia, Michael King.
"It boasts a fast growing economy and a thriving consumer market driven by its growing middle class, remittances and the off-shoring of back office functions by many knowledge and financial institutions," he said.
"Removing logistics performance issues and obstacles to doing business, it is well placed to become a growing market across the various logistics sectors," said Mr King.
Ti believes the size of the Philippines' contract logistics market will increase from EUR478 million (US$574 million) in 2013 to EUR1,412 million by 2020 based on a compound annual growth rate of 16.7 per cent.
But should its political leaders fail to pursue business-friendly reforms, instead this would see its growth over 10 years increase 10.5 per cent to total EUR962 million.
The total freight forwarding market is projected to grow by 15.1 per cent from 2013-2020 but only nine per cent if nothing is done.
"Ti believes that if the next Philippines' government embraces policy it will become a major regional growth engine for both contract logistics and forwarding," said Mr King.
WORLD SHIPPING
21 May 2015 - 23:57
Philippines needs to spend more on infrastructure: Ti report
THE Philippines is poised to become a major growth market for logistics services providers in the next year - if it can put mega bucks into its infrastructure.
WORLD SHIPPING
21 May 2015 - 23:57
Philippines needs to spend more on infrastructure: Ti report
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