PHL Ranks 71 in Logistics Performance Index

The Philippines is at rank 71 among 160 countries in World Bank’s Logistic Performance Index (LPI) 2016 released Tuesday.

The Philippines scored 2.86 in the latest World Bank’s logistics report.

The LPI ranks countries on their trade logistics performance looking at indicators such as customs, infrastructure, international shipments, logistics quality and competence, tracking and tracing, and timeliness.

The LPI 2016 noted that the Philippines is among the top 10 top-performing lower-middle-income economies along with India at rank 35, Kenya at 42, Egypt at 49, Indonesia at 63, Vietnam at 64, Pakistan at 68, Ukraine at 80, El Salvador at 83, and Guyana at 85.

The country’s ranking this year however fell from rank 57 in the same report released in 2014.

In a chance interview during the National Economic and Development Authority forum on Ambisyon Natin 2040 with Economic Journalists Association of the Philippines Tuesday, National Competitiveness Council Philippines Guillermo M. Luz said the country’s decline in LPI 2016 ranking was mainly due to the congestion in Port of Manila in 2014.

“The Logistics Performance Index, that is taken only every two years. In this two years what really hurt us is trading across borders indicator before last year was when there was truck ban installed that triggered off Manila port congestion. Once that started, it took so long to fix the backlog only by decision of one LGU (local government unit),” said Luz.

He added that the Philippine ranking in this World Bank’s report will be improved if the government will further invest in physical infrastructure in addition to the reforms made by the current administration like the Customs Modernization and Tariff Act.

In ASEAN, Singapore ranked 5th in LPI; Malaysia at rank 32; Thailand, 46; Indonesia, 63; Vietnam, 64; Cambodia, 73; Myanmar, 113; and Laos, 152. (PNA) RMA/KMC