Home » 3PL/4PL » Integrated logistics system for oil products being eyed

AN integrated logistics system that would reduce the cost of oil products in the country is being developed through a government-private sector partnership.

The Development Bank of the Philippines (DBP), Department of Energy, Petron Corporation and Pilipinas Shell Petroleum Corporation recently signed a memorandum of understanding (MOU) to facilitate the construction of common facilities for the distribution of petroleum and other gas products.

The program takes off from the Sustainable Logistics Development Program (SLDP) meant to cut the cost of materials and purchases in the country.

Under the MOU, DBP will make available its financing programs to qualified oil companies for the acquisition, purchase and construction of common facilities to be
used in the efficient and fast movement of petroleum and other gas products.

"At the bottom of the initiative is to try and see if we can improve the logistics cost – or make it less – of bringing petroleum products to the consumer," DBP chairman Vitaliano N. Nañagas said.

Both Petron and Shell have pledged to identify common facilities where joint and maximum use could achieve the desired efficient operations and reduction of petroleum distribution costs.

These common facilities include common oil depots, tanker ship and trucks service, storage facilities, and stockpiling sites.

The energy department, meanwhile, will encourage and coordinate with companies in the identification of the location of the common facilities in line with its Petroleum Storage Rationalization program.

It will also assist in the evaluation of technical and financial data relating to the acquisition, purchase, and construction of the common facilities.

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