Transport & Infrastructure

Though still trailing its neighbors, the transport sector in the Philippines is in the process of modernizing as the current government continues to fast-track relevant infrastructure projects, while also taking modest steps to improve inter-agency cooperation and good governance. The sector is a key component of the national economy, which will be better able to achieve its potential through improved linkages between economic centers and cities on the archipelago. Road transport remains by far the most dominant mode of travel, and, according to the Asian Development Bank, road transport accounts for 98% of passenger traffic and 58% of cargo traffic. However, due to a lack of adequate financing, levels of servicing have fallen behind. The World Bank has predicted that the economy will grow 6.7% in 2015 – although this growth will depend on the government’s ability to improve spending and encourage public-private partnerships. Regulatory uncertainty and convoluted bidding procedures have hindered the progress of such projects so far and must be righted so that the advantages of private sector interest can be realized. This chapter contains interviews with Maximo Mejia Jr, Administrator, Maritime Industry Authority; and Rashid Alexander Delgado, President, Transnational Diversified Group; and a dialogue with Eric Francia, President and CEO, AC Infrastructure Holdings and Jose Ma K Lim, President and CEO, Metro Pacific Investments.