May 30, 2023
From The Business Manual
The year 2023 is promising for the logistics industry in the Philippines, as it is projected that it can grow into a PHP 970 billion to PHP 1 trillion industry this year. Given this, it is no surprise that new partnerships and investments are being made by industry players, such as DB Schenker.
In fact, it was announced that DB Schenker—a well-known global logistics solutions and supply chain management company—is the newest lessee of a ready-built facility in ALogis Calamba, which is owned by AyalaLand Logistics Holding Corp (ALLHC). This marks the first partnership between the two companies.
According to the report published by ALLHC, DB Schenker will “take up 18,000 sqm of space, which will be used primarily for contract logistics servicing an automotive company.” It likewise notes that the facility has already been turned over and operations are expected to begin in June.
DB Schenker and ALLHC Share Statements on Partnership
Both companies have likewise released statements as part of the announcement of their partnership. “The Ayala Land brand is synonymous [with] excellence, quality, and reliability, which are consistent with the values of DB Schenker as a global organization,” says DB Schenker Contract Logistics Director Irma Diaz-Guevara.
“We are confident that ALogis can build strategic facilities that intend to showcase the quality of operations of DB Schenker in contract logistics,” she adds.
As for ALLHC, Chief Operating Officer Mr. Patrick Avila expresses his thanks. “We are very thankful to DB Schenker for choosing ALogis as a trusted partner, and we look forward to serving them as one of our valued tenants.”
ALogis is the name given to ALLHC’s warehouses or ready-built facilities that can be leased by companies. “These units allow locators to immediately start their business operations with basic utility infrastructures such as wet-type fire protection, water and sewer systems being readily available,” ALLHC’s website notes.
Aside from Calamba, other ALogis locations include Biñan in Laguna, Naic in Cavite, Santo Tomas in Batangas, and Porac in Pampanga.
The Logistics Industry in the Philippines
Aside from the forecast that the logistics industry in the Philippines can grow into a PHP 1 trillion industry, it is also predicted to grow from 8.2% to 8.8% within the years 2018 to 2024.
Why? According to the Lobien Realty Group (LRG), the country’s strategic location makes it one of the most “convenient docking locations for supply routes as it essentially connects many export and import markets of different countries across the globe.”
The freight forwarding sector is also seen to continue dominating the market, followed by the warehousing sector—mainly industrial and retail warehousing. Even the express delivery sector is seen to grow this year, as it is projected to post a 9% compounded annual growth rate during the period of 2018 to 2023.
Moreover, same-day delivery and deliveries that take up to a maximum of three days are part of the express delivery sector. — Bella Javier