AP Cargo Logistics Network Corporation, the country’s largest domestic air freight forwarder, plans to invest in three cross-docking facilities in Mindanao, the Visayas, and Metro Manila to support growing cargo volumes and speed up deliveries.
Ike C. Castillo, AP Cargo president and CEO, said in a chance interview at the signing ceremony of the Pledge of Commitment by logistics firms to the Department of Trade and Industry’s goals to address logistics concerns in the country, that the new hubs would be located in Cagayan de Oro for Mindanao and Cebu for the Visayas. In Metro Manila, the company plans to split operations from its existing central cargo hub along Domestic Road in Pasay City.
Without disclosing the estimated investment cost, Castillo said the planned expansion is expected to require hundreds of millions of pesos. The project will be fully funded by AP Cargo, a family-owned business of the Villacortes.
“We started working on the model this year, and hopefully, we’ll see that coming to fruition next year,” he added.
Castillo said the expansion of the company’s air freight forwarding network is expected to significantly improve its capability to deliver shipments faster.
With Cebu Pacific as its biggest airline partner, Castillo said that AP Cargo accounts for roughly 28 percent of the domestic air cargo market. Its cargo volume has been growing 14-15 percent annually, outpacing the industry’s average growth of 5-6 percent.
Castillo sees its air freight forwarding business sustaining this growth this year. In the first quarter alone, AP Cargo handled 4.6 million kilograms of shipments, allowing it to retain the top spot among domestic air freight forwarders.
“The economy might be increasing single digit, but AP Cargo has been increasing double-digit. We are actually growing outside of Metro Manila,” he said citing its micro, small, and medium enterprises (MSMEs) as its clients.
He said the company’s continued expansion in the Visayas and Mindanao reflects the increasing demand for its services beyond the National Capital Region.
AP Cargo has also been expanding its nationwide network, which now includes 198 branches across the Philippines and a fleet of 100 trucks dedicated to daily cargo pickup and delivery. The expanded network provides MSMEs with greater flexibility in transporting cargo between AP Cargo hubs and branch locations.
Reflecting on the company’s 26 years in business, Castillo said, “We’ve made our presence felt to the MSMEs through our service.”
