Transport & Infrastructure
From The Report: The Philippines 2016
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Though still trailing its neighbors, the transport sector in the Philippines is in the process of modernizing as the current government continues to fast-track relevant infrastructure projects, while also taking modest steps to improve inter-agency cooperation and good governance. The sector is a key component of the national economy, which will be better able to achieve its potential through improved linkages between economic centers and cities on the archipelago. Road transport remains by far the most dominant mode of travel, and, according to the Asian Development Bank, road transport accounts for 98% of passenger traffic and 58% of cargo traffic. However, due to a lack of adequate financing, levels of servicing have fallen behind. The World Bank has predicted that the economy will grow 6.7% in 2015 – although this growth will depend on the government’s ability to improve spending and encourage public-private partnerships. Regulatory uncertainty and convoluted bidding procedures have hindered the progress of such projects so far and must be righted so that the advantages of private sector interest can be realized. This chapter contains interviews with Maximo Mejia Jr, Administrator, Maritime Industry Authority; and Rashid Alexander Delgado, President, Transnational Diversified Group; and a dialogue with Eric Francia, President and CEO, AC Infrastructure Holdings and Jose Ma K Lim, President and CEO, Metro Pacific Investments.

Articles from this Chapter

Overview

Making connections: Policy reforms and investments are improving the sector
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The Philippines’ unique geographic position flanking key global and regional trade routes, combined with its historical ties to the US, provide the country with a unique advantage in the competitive global transport and logistics sector. One of the country’s largest trading partners remains the US, although the Philippines has also been able to capitalise on strong regional growth recently by increasing its trade with important regional players including China, South Korea, Japan, and other ASEAN…

Interview

Advancing new solutions: OBG talks to Maximo Mejia Jr, Administrator, Maritime Industry Authority (MARINA)
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Interview:Maximo Mejia Jr In what ways can domestic manpower standards for seafaring in the Philippines be harmonised with international standards? MAXIMO MEJIA JR: Full implementation of the Republic Act 10635 took place in January 2015, providing MARINA complete oversight over the certification process of seafarers. It also provides for enforcement of the Standards of Training Certification and Watch (STCW) by the International Maritime Organisation (IMO) to ensure that the certificates…

Analysis

Decongestion solutions: New investment and upgrades are boosting public transport capacity in Metro Manila
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While the Philippine economy continues to post healthy growth rates, a strong case can be made that the country’s full potential has yet to be realised. This is in part due to inefficiencies in the mass-transport network. Comprised of 16 townships and one municipality, which have had their boundaries blend into each other over decades of growth, Metro Manila has matured into one of the biggest cities in a region known for its megacities. Automobile traffic is now clogging the streets and impairing…

Overview

Under way: OBG talks to Eric Francia, President and CEO, AC Infrastructure Holdings; and Jose Ma K Lim, President and CEO, Metro Pacific Investments
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Interview:Eric Francia,Jose Ma K Lim What lessons have been learned following the roll-out of the government public-private partnership (PPP) programme? ERIC FRANCIA: The PPP programme was launched in 2010, generating excitement and anticipation among investors given the portfolio of projects presented. At the same time, however, came the realisation that the pipeline was too ambitious to deliver during the current administration’s six-year tenure. Rolling out projects requires significant…

Analysis

Ports of call: The archipelago’s maritime infrastructure system is critical to the national economy
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From the country’s humble origins as fishermen and traders, the Philippines has developed a multitude of modern ports spread across the country today. With no direct land ties to any nation, and a population spread out over thousands of islands large and small, developing and maintaining an efficient marine transport network is crucial to every sector of the economy. In recent years continued population growth, and growing demand for imported goods, along with increased industrial output and tourism…

Interview

Raising the bar: OBG talks to Rashid Alexander Delgado, President, Transnational Diversified Group
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Interview:Rashid Alexander Delgado What support infrastructure should be prioritised to mitigate disruptions to the trade supply chain in Metro Manila and ports across the archipelago? RASHID ALEXANDER DELGADO: Over the past few years, the shipping and logistics industry has faced some unique challenges that have encouraged key players to develop new alternatives and seek more opportunities, as in the case of truck ban and subsequent port congestion in the City of Manila during 2014. Whereas…

Analysis

Enlisting the private sector: Public-private partnerships are vital to upgrading national infrastructure
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There is little question that public infrastructure in the Philippines has been underfunded. In the World Bank’s most recent Logistics Performance Index, published in 2014, it ranked 75th out of 160 countries surveyed, with a score of 2.5 out of 5. Policy Shift In an effort to accelerate growth in infrastructure investments, in 2015 the administration of President Benigno Aquino III re-oriented government policy to enlist greater private sector participation in the construction and operation…

Analysis

Road to prosperity: Improvements are being made to the vital road network
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The road network in the Philippines plays a critical role for both commerce and social movement of citizens. While seaports and airports are instrumental in moving goods in and out of the country, it is the road network upon which Filipinos must rely heavily upon for key tasks, such as moving goods to and from distribution centres, supplying inputs to factories, transporting finished goods to international trade terminals and transporting agricultural goods from farms to markets. As such, road transport…

Analysis

Greener transport: With pollution a concern, new initiatives are under way to reduce green house gas emissions
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In looking closer at the interworking of plans being made to alleviate the gridlock within the Metro Manila area, the longer-term strategic goals of the Philippine government include an emphasis on employing more environmentally-friendly modes of transport and cleaner fuels, in a concerted effort to curtail the increasing air pollution indicative of excessive carbon emissions in Manila. Combating this issue is not just a beneficial public relations tactic to appease the powerful pro-environment camps…

Analysis

Trading up: Busy shipping lanes are providing potential growth advantages
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Situated on some of the busiest trade routes in the world, and catering to an inflow of raw materials from Africa and the Middle East as well as an outflow of manufactured goods, the Philippines’ transport and logistics sector is uniquely positioned to take advantage of the massive movement of goods steaming past its front doorstep. More than half of the world’s annual merchant fleet tonnage passes through the Straits of Malacca to the west of the Philippines and the Straights of Sunda and Lombok…