News Content

Inadequate infrastructure big challenge to Cebu's air cargo industry

ADDITIONAL international direct flights servicing Cebu is likely to drive up air cargo volumes, according to the Aircargo Fowarders of the Philippines Inc (AFPI)-Cebu Chapter.

"It would be tasking if we use all flights out of Manila," said AFPI-Cebu president Marivic Esmero, who noted that Manila stopovers mean higher handling charges.

"The direction of the organisation this year is to align (our programmes) with that of the different local government units and government offices and be active in the logistics mapping," said Ms Esmero, reported the Cebu Sun Star.

She noted that infrastructure remains the key challenge faced by local air cargo players. Inter-island transport in the country remains expensive due to the country's archipelagic nature.

Ms Esmero pointed out that it is more expensive to ship from Cebu to Manila than from Cebu to Hong Kong.

"The integration between international and domestic movements is a challenge and, as a result, created a somewhat silo approach and eliminated opportunities for reducing cost through end to end optimisation," said former Bureau of Customs chief Alberto Lina.

Mr Lina noted the absence of defined regulations and clear cut policy on domestic multi-model transportation hinders the growth in this sector and the opportunity to drive down cost across the island.

While efforts are in place to improve infrastructure, the former customs official advised Cebu not to copy Manila.

"Don't think about a truck ban and number coding. Think about long-term solutions like mass transport system, truck dispatch system, cargo hubs and distribution centres, cargo and delivery consolidations," Mr Lina said.

The country's first National Logistics Master Plan (NLMP) is being drawn up by the Department of Tourism and Industry (DTI) in partnership with the United States Agency for International Development Advancing Philippine Competitiveness (USAId-Compete).

Scheduled to be implemented in the fourth quarter, the NLMP is intended to address issues and concerns that affect the competitiveness of the Philippine logistics industry, including the lack of infrastructure and difficulties arising from regulatory bottlenecks.