The government is considering the creation of a body that will focus on addressing inefficiencies in the fragmented logistics sector, where policies, issues, and concerns are currently handled by different agencies, including local government units (LGUs).
Undersecretary Rosemarie G. Edillon of the Department of Economy, Planning, and Development (DepDev) raised this Wednesday, May 6, in her keynote speech at the Logistics Services Philippines (LSPH) Conference & Exhibit 2026, co-organized by PortCalls and the Department of Trade and Industry (DTI).
In an interview following her speech, Edillon said the planned government body need not be a full department. Instead, it could take the form of an inter-agency committee, a subcommittee, or even a technical working group under the Economic Development (ED) Committee headed by Secretary Frederick Go.
The undersecretary said the creation of such an inter-agency body should be prioritized, given the limited time remaining in the current administration.
However, she first urged logistics sector stakeholders to come up with two sets of recommendations—one for the immediate term and another for the longer term.
Once submitted, the ED Committee will study and discuss the proposals. “We have to temper the expectations on what can be done right away and what should be tabled for next step,” she said, adding that the first set of recommendations should focus on measures that are most feasible and can be implemented immediately.
“I hope this conference can come up with actionable points that we can take up at the ED committee,” she said.
Disconnect
In her speech, Undersecretary Edillon recognized the “disconnect” in the logistics sector. She cited instances of vegetables being thrown away and low farm gate prices alongside high consumer prices, contributing to elevated inflation. “In between these is the logistics sector itself facing lots of challenges that we need to address.”
She also pointed out that there is no dedicated logistics subsector in the national income accounts. Instead, logistics activities fall under transport and storage, which contribute less than 4 percent of GDP and are therefore considered low value-added sector.
While the sector’s direct contribution to the economy appears small, its backward and especially forward linkages are significant because it transports inputs and outputs for manufacturing. As such, it plays a critical role in connecting businesses.
However, Edillon noted that no single department is responsible for overseeing the logistics sector, as functions are spread across various government agencies.
For example, port operations fall under the Bureau of Customs for revenue collection but also under the Department of Transportation. Meanwhile, digital platforms such as ride-hailing and online delivery apps fall under the Department of Information and Communications Technology.
Meanwhile, storage and warehousing, on the other hand, are largely regulated by LGUs.
