Regions urged to use tech to make logistics cheap

MANILA,  Philippines  -An industry player raised the need to ramp up technology adoption in the regions to make cargo shipping process cheaper and more efficient.

“To lower the cost of logistics through technology is to make sure the technology is accessible in the far-flung areas where the goods are actually needed,” Regional Container Line operations manager Joseph Collantes said in a recent open dialogue hosted by Digital Pilipinas and Transnational Diversified Group (TDG).

“Metro Manila is a very high consumption area but these goods do not stay in Metro Manila,” he said, noting these items were usually shipped to other locations like Iloilo, Zamboanga and Cotabato City.

The logistics sector has been in the spotlight due to the boom of e-commerce, which requires warehousing and last-mile delivery services.

TDG logistics division president Daniel Ventanilla cited the need to apply technology in order to improve documentation of cargo movement.

“The documentation of shipping lines … needs to be more seamless,” he said.

Apart from the availability of technology, Collantes also stressed the need to train employees on how to use these tools to maximize their potential.

RJ Madamba, president and chief operating officer of Lorenzo Shipping Corp., noted that the lack of infrastructure in many sea ports has been causing delays in shipments, thus resulting in additional costs.

“So it constrains our ability to turn around our assets,” he said, noting: “The longer time it takes for you to turn around both your containers and your vessel, the higher your cost. And of course, it is all passed on to the customers.”

Cargo and container traffic at local ports are expected to grow by 7 percent to 8 percent this year as borders further reopen and more trade activities resume, Philippine Ports Authority General Manager Jay Daniel Santiago said earlier.

In a consumption-based economy, the industry was driven mainly by imports, he said.

“There are a lot of products not available locally for whatever reason. You need to import that,” he added. INQ