DTI Urged To Develop Industry Cluster

Magsaysay Group of Companies Chief Executive Officer Doris Magsaysay-Ho urged the Department of Trade and Industry (DTI) to develop industry clusters that would build an ecosystem of suppliers to reach the full potential of the country’s shipping ports.

In Magsaysay-Ho’s report, “Portropolis” last November 9, she shared that ports can be fully utilized if DTI can attract an ecosystem of suppliers serving more than one customer to create opportunities to invest in production as part of the supply and value chain that will lead to lower shipping and logistics costs.

She added that international ports in Batangas handled by International Container Services Inc. (ICTSI) and Asian Terminals Inc. are already contributing “valuable revenue to the government,” a “whole-of-government” was needed to maximize the full potential of ports.

Magsaysay-Ho then suggested that Batangas, Subic, and Cagayan de Oro can serve as pilot areas for the industry clusters as some regions become economic zones “with incentives to allow the production cluster to compete successfully.”

“We’re excited about the Trade secretary’s idea to create clusters because the most important part about trade and the most important impact on the cost of transport is scale,” she said, adding that Secretary Alfredo Pascual has discussed clusters.

DTI recognizes the importance of port operations in an archipelago such as the Philippines.

“It is important for the government to acknowledge that shipping and logistics are crucial infrastructure needed for the country’s development and are not impediments,” Magsaysay-Ho said.

She said that DTI building industry clusters would address the low trade volume that keeps mother ships away from the Philippine ports.

Source: The Manila Times