One Transport Policy To Rule Them All

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On April 7, the Department of Trade and Industry presented the first draft of the National Logistics Master Plan to stakeholders. Led by the agency’s Supply Chain Management and Logistics Division (headed by Sarah Lope) with the help of USAID’s Advancing Philippine Competitiveness program (led by Dr. Henry Basilio), it outlines the strategies and actions that must be taken to ensure well-integrated and competitive logistics systems, and better connectivity for farms, factories, markets and customers.

 

A significant portion of the document identifies the need for expanding and improving existing infrastructure. Apart from major road projects currently under planning or construction — say, the NAIA Expressway, or the Skyway Stage 3 connecting SLEX to NLEX — it was also recommended that the DILG and DPWH tie up to pave local roads. These are typically under the purview of local governments, but they are unfortunately limited by budget constraints set by law.

 

It was also recommended that government prioritize the development of certain airports and seaports in order to accommodate increased passenger and cargo traffic. It also called for concretizing the Dual Airport Policy set by the government, by expanding Clark International Airport’s passenger terminal, and possibly adding a runway to accommodate larger aircraft.

 

The NLMP goes beyond infrastructure, however. It calls for several policy and regulatory reforms, designed to clarify and harmonize existing regulations, address overlaps in the mandates of concerned agencies, preserve existing infrastructure and encourage investment in transportation and logistics systems.

 

Perhaps the NLMP’s most important recommendation on the policy side is the formulation of a National Transport Policy. Such a policy would promote inter-modal transport systems: car, rail, air, sea, perhaps even by foot or by bike. Which mode takes priority in which setting? How would farms be connected to production facilities? How will goods be transported from one point to another?

 

Such a policy would be a big help in planning sustainable and resilient communities. A transport policy would allow for clustering of industries and services, encouraging development and investment through economies of scale.

 

Our government has had several policies relating to transport over the years, but it is a surprise that these have not been consolidated into one document. We’re a country with 7,107 islands — surely improving the connections between those islands should take priority, right? How can we ensure “inclusive growth” becomes a reality, and not just an Aquino administration buzzword, if we can’t properly connect centers of industry with the farthest communities?

 

A transport policy would also go a long way in planning more sustainable communities. As an important element of urban planning, it would determine transport systems that would best serve areas with a higher population density, or areas that have high traffic at particular times of the day, such as commercial areas.

 

For an example of how a coherent transport policy contributes to a nation’s development, just look to Singapore. Upon its independence in 1965 its government deliberated on the best transport system for the city-state, considering its very limited land area. It was decided — after much deliberation — to limit the number of vehicle registrations to prevent traffic congestion and lessen environmental impact. Connectivity is provided via the construction of a mass rail transit system, supplemented by a public bus system.

 

Now, Singapore’s public transport system is the envy of the world, and one can go from Changi on one end, to Tuas on the other, without having to drive a car. Well, not yet; they’re still building the MRT stations to Tuas. But it will happen soon.

 

Can the Philippines do it? It will take long, but we can. We’re already working on some elements: we’re lengthening our highways, improving our ports and expanding the RORO system in the provinces. We just need one policy to rule them all, and we should be good to go.

 

And finally: We can confirm two speakers for the upcoming Supply Chain Immersion, happening on May 18-21 on board MV St. John Paul II headed to Cagayan de Oro. Joining us are Gus Arguelles of the Ateneo de Manila University and Dario Arive Jr. of Universal Robina Corporation.

 

Also joining us at our first Mindanao Supply Chain Conference are Ronilo Balbieran of REID Foundation, Dr. Henry Basilio of USAID-COMPETE, Nestor Felicio of United Laboratories, Viel Popera Jose of Vjandep Bakeshop, and Anghelita Santor of Nestlé Philippines. This will be held on May 20 at the Limketkai Luxe Hotel in Cagayan de Oro City. To sign up, email secretariat@scmap.org.

 

Henrik Batallones is the marketing and communications executive of SCMAP. A former board director, he is also editor-in-chief of the organization’s official publication, Supply Chain Philippines.