SCMAP Perspective is our fortnightly column on PortCalls, tackling the latest developments in the supply chain industry, as well as updates from within SCMAP. On this column, Henrik Batallones looks at one way for the government to codify its commitment to the logistics sector.
…and logistics
I didn’t notice this change until I was finishing work on the latest issue of SCMAP’s official magazine, Supply Chain Philippines.
Hong Kong now has a secretary for transport and logistics.
I’ve had the privilege of being able to attend the annual Asian Logistics, Maritime and Aviation Conference in Hong Kong – physically and virtually – over the last few years. All this time, updates on the city’s logistics initiatives came from the secretary of transport and housing. Not that it diminished their commitment to further developing their logistics network – indeed, I also heard in most of those years from Hong Kong’s chief executive, most recently Carrie Lam, and before that, C.Y. Leung. And there were a lot of initiatives, some of which I’ve written about in this column over the years: expanding the Hong Kong International Airport, boosting competencies in the maritime sector, and providing support for logistics businesses, among others.
I suppose putting housing and transportation together made sense, though. As the city grappled with building more homes for its growing population, it had to keep in mind residents’ ability to get around. The city does boast of a world-class public transport system – but then again, I say this in comparison to the pitiful offering in the Philippines, specifically in Manila. It is important that, no matter how far you live from the center(s) of business, you can easily go to work. We all realize this, now that working from home is becoming a good-to-have in the view of management, rather than a necessity.
However, in 2022, the Hong Kong government reorganized itself, and one of the major moves was the splitting of the Transport and Housing Bureau into two: the Housing Bureau and the Transport and Logistics Bureau.
The addition of “logistics” is pretty significant. It’s not that it wasn’t covered in previous transportation initiatives – again, the city has done a lot for their supply chain networks over the years – but the name does put its commitment to improving the city’s internal and external logistics front and center.
Maybe it’s a good idea for the Philippines to do the same. The Department of Transportation already has in its portfolio initiatives that will improve mobility for both passengers and cargo. Under its purview are our airports, seaports and roads, as well as the franchising of public transportation options like buses and jeepneys. That doesn’t just impact commuters: efforts to reduce congestion will benefit businesses as well, as it reduces delivery delays, improves service levels, and makes enterprises more competitive.
The focus on improving our logistics networks has further intensified when the then Department of Transportation and Communications was split into two. DOTr was freed to devote its resources to making our transport networks competitive. It helped that the past few years saw other parts of the public sector step up to improve our supply chains. The Department of Trade and Industry focuses on the competitiveness of the logistics services sector; the DOTr rightly focused on ensuring our existing logistics and transportation hubs are efficient.
The current Marcos administration’s directives to focus on improving our supply chains – and the expertise of DOTr’s leadership in the supply chain sector, led by secretary Jaime Bautista, formerly of Philippine Airlines – lends further to this commitment.
Perhaps it’s also high time that we codify this commitment. I don’t know how much will be spent in changing the office signs, letterheads, business cards and the like – and maybe the opposition from some will lie there, too. But, imagine: a Department of Transportation and Logistics taking an even stronger role in truly moving our supply chains, ensuring businesses are competitive and that Filipinos have a better quality of life. Perhaps it’s time we put this commitment on the front door. But, well, you know, it’s just an idea.