MCCI partners with key logistics players

CEBU, Philippines — The Mandaue Chamber of Commerce and Industry (MCCI) has partnered with key players in the logistics sector to address the fluctuating inflation rate and capitalize on the positive growth potential of the logistics industry, particularly in Cebu province.

“The logistic sector is the backbone of our economy and the driver of our economic activities. So, whatever happens to the logistics sector affects our consumer goods and our inflation rate,” said MCCI President Mark Anthony Ynoc during the recently concluded 2024 Logistics Conference, an activity organized by MCCI in partnership with the Chamber of Customs Brokers Inc., Cebu, and the Visayas Unitified Trucker Association (VUTA Inc.).

According to Ynoc, this year’s Logistics Conference is just part of a series of events and collaboration initiatives that will be jointly implemented by MCCI and the logistics stakeholders in Cebu.

“Logistics is one of the biggest contributors to the consumer price. MCCI organized the logistics conference to help the sector identify the technology needed to improve its efficiency and learn best practices from each other,” said Ynoc, adding that in terms of technology adaption, stakeholders can track their trucks better, and plan the routes better to optimize revenues. “We can also track our gasoline usage.”

“In Mandaue City and Cebu province, the logistics sector is responsible for enabling trade, supporting businesses of all sizes, and providing employment to thousands of people. Across the country, logistics is the engine that powers industries such as manufacturing, retail, and agriculture, ensuring that products reach their markets efficiently and on time. Without a robust and effective logistics network, economic activity slows down, opportunities shrink, and growth becomes stagnant,” Ynoc explained.

Amid the promising outlook for logistics, stakeholders admitted that the industry is plagued with challenges, such as traffic congestion, port congestion, manpower shortage, and unstable prices of fuel, among others.

VUTA Inc. President Israel Alin noted that the conference is the final platform for collaboration, dialog, and sharing of best practices.

“Innovation, sustainability, and resilience must be at the forefront of the sector’s efforts,” said Alin, stressing that the sector faces challenges and needs inputs to improve the sector’s efficiency.

During the conference, economist Emilio “Jun” Neri Jr., affirmed the promising outlook for the logistics sector, however, it needs to iron out some challenges that may slow down its growth, and urged private sector players to invest in cold storage facilities to sustain supply and avoid increase of prices.

“When supplies (food consumer goods) are low, we can fill the gap through the cold storage system. So, with the refrigerants and cold storage facilities available, we can expect the price of the commodity products to be more stable in the future,” said Neri, who is also the lead economist of the Bank of the Philippines Islands (BPI).

With heightened interest from capitalists to take advantage of the cold storage investments in Cebu, the province will expect stable food and consumer goods prices that will help lower the inflation rate.

Neri emphasized the importance of having cold storage facilities, explaining further that having cold storage facilities will help stabilize the price of food and other basic commodities.

According to Chamber of Customs Brokers Inc., Cebu president Elizir Lao, the industry needs to embrace and explore new technologies to address the challenges and tap new potentials for sustained growth, efficiency, and innovation.

“The future of the logistics industry in the Philippines is promising, especially with the continued growth of e-commerce and the expanding manufacturing sector. By investing in technology, improving infrastructure, and fostering collaboration between the public and private sectors, the logistics industry can further enhance its role as a key driver of economic growth,” Lao said.

However, the sunny outlook for logistics would only be achieved depending on close collaboration between industry and the government, noted Ynoc.

“It is crucial that policymakers recognize the role logistics plays in driving national and regional economies. By creating favorable conditions for innovation, streamlining regulatory processes, and investing in infrastructure, governments can help the logistics sector reach new heights of efficiency and performance. At the same time, we, as industry leaders and players must continue to push for the adoption of new technologies, embrace sustainable practices, and advocate for policies that enable growth and competition,” added Ynoc.

The increasing demand for logistics is in line with the growing e-commerce industry, which heavily relies on cross-border shipments of goods. A study by Google, Temasek, and Bain & Co. projects the Philippines’ e-commerce sector will be worth US$22 billion by 2025.