Philippines Shipping Group Pushes Expressways, RoRo Fee Removal

The Philippine Coastwise Shipping Association (PCSA) has proposed comprehensive infrastructure and policy reforms aimed at reducing logistics costs across the Visayas and Mindanao regions. The association, representing over 50 member companies operating 800 vessels, is calling for government investment in eight strategic expressway corridors totaling over 1,600 kilometers and the removal of roll-on roll-off (RoRo) terminal fees that currently add 5 to 15 percent to freight costs. These proposals address a systemic supply chain challenge where geographic fragmentation, concentrated manufacturing in Metro Manila and CALABARZON, and inefficient island connectivity drive up transportation costs that ultimately reach consumers through higher food and commodity prices. The PCSA frames this issue as a national development priority rather than simply an industry concern, arguing that logistics costs directly impact inflation, business competitiveness, and regional economic opportunity.

RoRo terminal fees alone can consume 15 percent of total freight costs on short-haul routes, while inefficient road networks throughout the Visayas and Mindanao add significant delays and expense to the estimated 800-vessel coastwise shipping network. The association proposes treating RoRo ports and vessels as extensions of the national highway system, similar to models in Japan and Norway, which would justify fee elimination and enable DPWH management rather than revenue-focused port authority operations. For supply chain professionals managing operations in the Philippines or sourcing from the region, this advocacy signals both medium-term policy uncertainty and potential long-term structural improvement. The government has indicated receptiveness to industry input through Cabinet-level participation in PCSA meetings.

However, major infrastructure projects require feasibility studies, funding mechanisms, and political alignment, suggesting implementation timelines extend beyond 12 to 24 months. Companies should monitor policy developments while continuing to optimize existing logistics networks and potentially factor policy advocacy participation into stakeholder engagement strategies.