Philippine Intermodal Logistics System and Policies

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Philippine Intermodal Logistics System and
Policies
Logistics Conference February 5, 2009 Dusit
Hotel, Makati, Metro Manila
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OUTLINE OF PRESENTATION

• Characteristics of Philippine Intermodal
  Logistics System
• Brief Overview of Logistics and Policy Measures
• Issues, Concerns and Weaknesses of Philippine
  Logistics System
• Philippine Logistics Policy Measures

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Philippine Intermodal Logistics System
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• Being an archipelagic country, the Philippines
  intermodal logistics system is anchored on its
  maritime transport system, supported by
• a road network linking the ports to production
  areas, markets and logistics terminals
• an air transport system with strategic regional
  and local airports

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Maritime Trunk Routes
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Comparative Logistics Costs in the Philippines
Source Global Competitiveness Ranking
(World Bank, 2006-07)
Source Cash Crop Distribution Systems in the
Philippines (JBIC, 2002)
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Total number of days to process a container
(Export and Import)
Source World Bank Doing Business (2009)
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Source World Bank Doing Business (2009)
Customs Clearance Fee per Container
Ports and Terminal Handling Fee per Container
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Example of Impact of Logistics Infra
Efficiency(Comparing RoRo with Containerized
Transport, PhP/Kilo)
Transporting tomatoes from Cagayan de Oro to
Manila
Source UNDP Seed to Shelf Study (2005)
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Basic Overview of Logistics and Policy Measures
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Logistics policies by the governments
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Grouping of policy measures
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Issues, Weaknesses Concerns in Philippine
Logistics System
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A. Key Issues  
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B. Weak Points  
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Policy Objectives and Measures in the
Philippines the Case of Manila
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• Philippine Intermodal Logistics Policy
  Objectives
• Local Level
• Focused on reducing traffic congestion,
  alleviating environmental and social impacts and
  improving the economic and technical efficiency
  of the transportation system
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• National Level
• Aimed at providing efficient intermodal
  transportation system
• Global
• Focused on how to improve the efficiency of
  moving people and freights, reducing the impacts
  of transportation on the global environment and
  providing a global competitive trading

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Prioritized Logistics Policy Objectives in Manila

• Efficiency and Economic Objectives
• Safety and Environment
• Infrastructure and Urban Structure

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Freight Transport Characteristics of Manila

• Primary Objective Efficiency Economy
• Underlying Problem Congestion
• Prioritized Measures Road Links, Terminals,
  Info System
• Main Expected Effects Costs, Reliability,
  Capacity
• Link Road Network
• Operation Off-peak Deliveries
• Regulations Truck Restriction

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Preference survey of experts
Weights of objectives
Numbers in parenthesis indicate rank order of
importance.

• Developed cities priority on safety and
  environmental objectives
• Developing cities priority on economic and
  efficiency objectives
• Bangkok KL priority on safety and
  environmental objectives due to current severity
  of pollution and high accident rates

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Freight transport characteristics of cities
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Philippine Policy Objectives

• How to improve the intermodal system of the
  country
• To be at par with the WTO member countries,
  notably its neighboring countries is the
  promotion and enhancement of its information
  technology (IT)
• Advantages of ITS a) enhancing seamless
  movement, b) reducing traffic impacts, c)
  alleviate traffic congestion, d) improve the
  logistics and physical distribution system, and
  d) enhance the global competitiveness of the
  country.
• Standardization of customs and freight systems,
  such as customs clearance system, processing of
  papers, containerization, etc.,
• To complement the above policies, it is also
  imperative that institutional mechanisms have to
  be initiated.

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Reference

• DPWH Atlas 2007
• World Bank
• Logistics Developments Supported by ICT and ITS
  in the Asia-Pacific Region, Prepared by the Asian
  Task Force, Institute of Highway Economics, Japan
  for OECD RTR Outreach Activity-Asian Logistics
  Project, 2003
• Efficient and Sustainable Intermodal Logistics
  Network in the Asia-Pacific Region, Prepared by
  the Asian Task Force, Institute of Highway
  Economics, Japan for OECD RTR Outreach
  Activity-Asian Logistics Project, 2007
• JBIC
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