The Philippine government expects to sustain the growth momentum in the services sector, which includes the transport and storage industries, at 6% to 6.9% this year.
In 2013, the services sector grew an average of 4.1%, comprising 2.8% share of the country’s total output, National Economic and Development Authority deputy director-general Dr Emmanuel Esguerra said in his presentation at the Transport Summit 2014 at the Sofitel Philippine Plaza on April 23.
Esguerra noted that the services sector continued to have the lion’s share of the country’s gross domestic product, but that the industry — especially manufacturing — was increasingly picking up as a major growth driver in 2013.
Land transport represented 1.6% in 2013, while storage, water and air transport accounted for 0.7%, 0.5%, and 0.5% respectively.
Esguerra was one of the resource speakers in the transport summit organized by the Philippine International Seafreight Forwarders Association (PISFA) and PortCalls.
NEDA is aiming to sustain the growth momentum in the services sector at 6-6.9% in 2014, 6.8-7.8% in 2015, and 7.2-8.1% in 2016.
Esguerra pointed out that the transport sector needed adequate port infrastructure and support infrastructure for landside access to and from ports to production areas, even as he noted the lack of economies of scale.
Under the country’s updated and recently released Philippine Development Plan, the government will encourage investments in the development of logistics infrastructure to cater to both the domestic and international supply chains.
It will also review and develop/reform-related policies and rules, such as customs practices; transshipment of cargoes through various modes (i.e. air-air, sea-air, and air-sea); and foreign shipping services along the entire multimodal transportation chain.
In coordination with the private sector, the government will formulate and implement the National Logistics Plan and target to reduce the share of logistics costs (including shipping) in the cost of goods and services from 23% to 15% by 2016.
Esguerra said the World Bank is forming a Philippine Transport Infrastructure Development Framework Plan, similar to the Japan International Cooperation Agency’s Roadmap for Transport Infrastructure Development for Metro Manila, Region III and Region IV-A. –– Text and photo by Roumina M. Pablo
