Transport & Infrastructure
From The Report: The Philippines 2017
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Benefitting from an advantageous geographic position flanking critical global trade routes between North America, ASEAN and Australia, the Philippines is well positioned to transform its transport sector into a major economic growth driver in the coming years, bolstered by rising maritime trade, air passenger volumes and commuter traffic. There is plenty of room for improvement, however. Robust population and economic growth, combined with rapid urbanisation and decades of underinvestment in critical infrastructure, has exacerbated congestion across all segments of the sector, particularly within the Metro Manila area and Luzon, the country’s largest and most populous island.

This chapter contains a roundtable with Andrew R Hoad, Executive Vice-President, Asian Terminals Inc; Christian R Gonzalez, Asia Region Head, International Container Terminal Services Inc; and Jay Daniel R Santiago, General Manager, Philippine Ports Authority.

Articles from this Chapter

Overview

Fast track: The new administration is set on overhauling infrastructure and reducing bureaucracy
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Benefitting from an advantageous geographic position flanking critical global trade routes between North America, ASEAN and Australia, the Philippines is well positioned to transform its transport sector into a major economic growth driver in the coming years, bolstered by rising maritime trade, air passenger volumes and commuter traffic. There is plenty of room for improvement, however. Robust population and economic growth, combined with rapid urbanisation and decades of underinvestment…

Overview

Change makers: Andrew R Hoad, Executive Vice-President, Asian Terminals Inc (ATI); Christian R Gonzalez, Asia Region Head, International Container Terminal Services Inc (ICTSI); and Jay Daniel R Santiago, General Manager, Philippine Port Authority
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Interview: Andrew R Hoad, Christian R Gonzalez and Jay Daniel R Santiago What support infrastructure and traffic mitigation measures should be prioritised to bolster future trade and facilitate port operations? ANDREW R HOAD: In terms of infrastructure, both ATI and ICTSI – the operators of the two international gateway ports into Manila – have more than enough capacity and capability to handle present and future container volumes. At present, berths, cranes and yards are more than sufficient…

Analysis

Crucial links: Large-scale railway projects will tackle congestion and slash journey times
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Rail networks in the Philippines are set for a major overhaul as the government moves forward on its sweeping North-South Railway Project (NSRP), which will re-establish a national rail backbone in the coming years. The project’s North-South Commuter Rail (NSCR) will also connect to major mass transit networks in Metro Manila, which suffers from dense traffic and records significant congestion losses annually. The government has made notable progress in delivering the new project, after…

Analysis

Open door: Government looks to unlock potential by addressing gridlock
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One of the most important priorities for transport sector stakeholders in the Philippines is reducing congestion across the country’s urban centres. The new administration of President Rodrigo Duterte has given strong signals that it intends to address this persistent problem, deploying a multi-pronged strategy that includes legal reforms, departmental restructuring and even the granting of emergency powers for a new secretary of transport. However, lack of clarity and cohesion within various…

Analysis

Port of call: Strategic investments and reforms are under way to improve multimodal connectivity
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Limited multimodal connectivity has been a major challenge for the Philippines’ transport sector as economic growth and consumer demand accelerate, driving shipping costs to unsustainable levels and leading to the launch of a new multimodal transport and logistics roadmap in 2016. Emphasising construction of new access roads and sweeping maritime transport upgrades, the plan is expected to be adopted by the Department of Trade and Industry (DTI) as part of its long-term logistics strategy.…

Analysis

The sky’s the limit: Aviation facilities are being expanded to boost capacity for logistics and travellers alike
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The Philippines’ network of airports is facing mounting congestion in the wake of strong passenger growth, pushing new airport developments to the forefront of the government’s infrastructure agenda. Manila’s Ninoy Aquino International Airport (NAIA) in particular is facing serious constraints after passenger volumes hit record highs in 2015, with the airport operating close to capacity just months after an expansion project was completed. Promisingly for private investors, a new NAIA…

Analysis

Shifting waves: Moving more maritime traffic to regional ports will help ease congestion in the Manila area
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The Philippines lacks land borders with any other nation and spans over 7000 islands, making maritime trade the foundation of its economy. Rapid macroeconomic expansion, population growth and increased industrialisation are driving developments at the largest and busiest facilities in Manila. However, persistent congestion and rising tariffs have led the government to examine the possibility of offloading some Manila traffic to nearby facilities in Subic and Batangas. This move will be supported…

Analysis

Low cost, high flying: The country’s largest low-cost carrier is expanding its fleet while adding new domestic and international routes
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Inter-island connectivity and domestic air passenger growth are set to increase significantly alongside rapid expansion of national low-cost carriers (LCC), which have seen surging profits and passenger volumes over the last decade. The Philippines’ largest LCC, Cebu Pacific, is in the midst of an ambitious fleet upgrade that would allow it to maximise limited timeslot availability at Ninoy Aquino International Airport (NAIA). The airline will then focus on augmenting offerings at airports…

Analysis

Money talks: The 2017 national budget prioritises spending for transportation and infrastructure, but inefficiencies must still be remedied
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Transportation and infrastructure development in the Philippines received a major boost with the unveiling of the 2017 budget – the largest ever passed in the country. The Department of Transportation (DoT) and Department of Public Works and Highways (DPWH) will both benefit from a double-digit spending increase, with funds to be used for a series of major upgrades that should kick-start President Rodrigo Duterte’s ambitious infrastructure agenda. The knock-on economic benefits are significant,…