THE logistics sector is emerging as one of the brightest opportunities for Cebu and the rest of the Visayas despite rising inflation, global uncertainty and slower economic growth, with both an economist and an industry player citing the continued movement of goods as a key driver of long-term expansion.
Economist sees sustained growth in wholesale, transport and logistics
Economist Winston Padojinog said wholesale and retail trade, transport and logistics will continue to grow because the movement of goods remains essential regardless of economic conditions.
“Anything related to wholesale retail trade, transport and logistics will be doing very well,” Padojinog said. “Whether prices are high or low, we still need to move goods across islands.”
He said studies show the logistics industry in the Visayas is booming, with growth extending beyond freight services to distribution, fuel suppliers and other support industries.
Truck dealer expands with new service center in Mandaue City
That optimism is reflected in the expansion of truck dealer Richport Trading and the 3in1 Group, an authorized Sinotruk dealer, which recently opened the first Sinotruk service center serving the Visayas and Mindanao in Mandaue City.
“We believe in the Philippine economy. It will revive,” said Warren Lloyd Go, president of Richport Trading and the 3in1 Group.
“Although it’s not good now, we think long term. We don’t think only about this year — we’re looking at the next five, six or even 10 years,” Go said.
Sinotruk sees Philippines as strategic market
Ren Wenchao, vice general manager of Sinotruk Philippines, described the country as a strategic Southeast Asian market. Over the past 15 years, the Chinese truck manufacturer has delivered more than 80,000 units in the Philippines and plans to continue expanding its nationwide after-sales network.
The new Cebu facility replaces a smaller service center and is equipped with hydraulic lifters, air-powered tools and upgraded diagnostic equipment to speed up maintenance and repairs. Go said the investment focuses on strengthening after-sales service rather than boosting immediate sales, adding that reliable maintenance keeps customers’ trucks on the road.
Logistics supports demand despite construction slowdown
While the construction sector has slowed because of higher material costs and a weaker peso, Go said logistics continues to support demand for commercial vehicles.
“Our customers are logistics companies, trucking businesses, distributors, mining firms and construction companies,” he said. “But now, logistics is one of the stronger sectors because goods still need to move across the islands.”
He added that more fleet operators are opting for brand-new trucks instead of imported secondhand units because of better fuel efficiency, lower maintenance costs and stronger long-term returns.
Cebu’s structural advantage as central logistics hub
Padojinog said Cebu’s role as the country’s central logistics hub gives it a structural advantage, with imported goods redistributed from the province to the rest of the Visayas and parts of Mindanao.
“Cebu has a very vital role as far as the other regional economies are concerned,” he said.
He noted that Cebu’s economy is anchored on services such as wholesale and retail trade, transport and logistics, while its strong manufacturing base sustains cargo movement. He estimated Cebu’s trade exposure at around 90 percent of economic output, making it more open than the national economy but also more vulnerable to imported inflation.
Higher global oil prices and a weaker peso quickly translate into higher transport, logistics and utility costs, he said, contributing to inflation in Central Visayas exceeding the national average.
Infrastructure investments to benefit logistics firms
Despite these risks, Padojinog said logistics firms stand to benefit from the government’s continued infrastructure investments, citing studies showing that road construction boosts demand for trucks and other vehicles while expanding freight activity.
Call to strengthen supply chains
He also urged businesses to strengthen supply chains by integrating production, distribution and retail operations through logistics providers and digital platforms to improve efficiency and market reach.
Go said the new service center has created additional jobs for technicians, with the company considering further expansion into Mindanao as demand grows.
“We’re optimistic because our customers need someone to look after their trucks,” he said. “This investment is for the long term.”
Other growth sectors beyond logistics
Beyond logistics, Padojinog identified agribusiness, renewable energy, digitalization, battery energy storage, water management and tourism as other sectors offering growth opportunities despite global uncertainty.
