| Market Research A to Z | Company Profiles A to Z | Register | Contact Us |
| +44 (0) 203 086 8600 Call us on |
Philippines Freight Transport Report Q2 2010
Market |
Logistics |
Report Type |
Market Research |
Country |
Philippines |
Published |
26 February 2010 |
Number of Pages |
63 |
Download |
|
Immediate |
|
Publisher |
Business Monitor International |
In January 2010, the Philippine Ports Authority (PPA) awarded a 25-year contract to Asian Terminals Inc (ATI) for upgrading, managing and operating Container Terminal ‘A-1’ in phase II of the Port of Batangas. Under the terms of the contract, the company will pay US$125mn to the authority over the contract period. ATI also operates Phase I of the Batangas port. The port aims to be an attractive alternative to the Manila harbour for shipping lines. We believe the development of the Batangas Container Terminal will help boost the country’s trade, which has been hampered by a lack of investment in its ports sector. A number of ports in the Philippines are suffering from congestion.
We are more optimistic over the Philippines’ macroeconomic prospects, compared to our last quarterly report. While we reduced 2009-estimated GDP growth to 0.8% (down from 1.5%), we have boosted the forecast for 2010 to 4.4% (up from 2.6%). The outlook for the five-year forecast period from 2010 to 2014 is for average GDP growth of 4.1% per annum, which is, however, below the 4.4% rate achieved in 2005-2009. This would give freight a reasonable platform for development, although companies may face greater pressure on their margins than before. Our predicted tonnage growth of 4.4% will be just ahead of the average expansion of GDP over the next five years. While in many developing economies freight growth usually exceeds GDP growth by a significant margin, this relatively smaller gap between the two rates in the Philippines shows the extent to which the transport sector is failing to live up to its full potential.
The airfreight sector is expected to experience the most significant growth rate, averaging 5.4% y-o-y, and taking into account cooling demand. Next in importance will be rail freight, growing by 5.0% from a low base as a result of the Northrail and Southrail projects. We see shipping growing by 4.3% as the sector emerges from the 2009 recession. One constraint facing the industry is the environment in which it operates. Comparatively speaking, the Philippines’ freight rating is relatively disappointing in relation to regional peers, with an overall score of 48.4 (out of 100). Under most categories, the national industry received a medium to low score. Freight and infrastructure growth rates, together with the transport intensity index (a measure of the dynamism of foreign trade) are all at the lower end of the scale.
For the 2010-2014 forecast period, we expect the transport and communications sector to lead the economy as a whole, as far as value of output is concerned. It will achieve average annual growth of 4.3%, versus 4.1% for overall GDP. Again, the gap between these two rates is narrower than experienced in many other emerging economies. The total value of transport and communications GDP will rise to US$22.5bn in nominal terms by 2014, representing 7.2% of the Philippines’ GDP.
Last Viewed
Philippines Freight Transport Report Q2 2010South Korea Commercial Banking Report Q3 2010
Global Recruitment Market Report: 2010 Edition
Central America Infrastructure Report Q3 2010
Saudi Arabia Freight Transport Report Q3 2010
Become an Affiliate
Do you manage an industry specific website or blog? Are you looking to monetise your web traffic further? Are you a B2B website?
Why not offer your visitors industry specific strategic market reports and company profiles? Our Affiliate Program enables you to provide quality content on your website and to earn money from passing on visitors to our website. If a sale is made from your visitor, you earn commission (a fixed percentage of the price of a product).
Custom Research
Cannot find what you need? We can tailor a report for you. Complete the Custom Research Form and we will provide a quote.
