Batangas – The provincial government of Batangas is set to transform the province into a major logistics hub in the Philippines, aiming to complement existing hubs such as the Port of Manila, Subic-Clark, and Cebu. Governor Hermilando Mandanas, in a meeting on Monday with News and Information Bureau Director Luis Morente and staff from the Philippine News Agency, cited Batangas’ strategic coastal location and its central position in the rapidly developing Calabarzon region, along with its proximity to the National Capital Region (NCR), as key factors in this initiative.
According to Philippines News Agency, Governor Mandanas, the existing Port of Batangas in the city presents a significant opportunity to boost the local and national economy. A logistics hub typically integrates various business operators in logistics, including manufacturers, shipping lines, air cargo companies, and logistics service providers. It serves as a central point for the storage, processing, and management of raw materials and goods before they are delivered to consumers. Mandanas also revealed plans to establish a ‘food port’ near the Batangas port, aimed at enhancing the traditional concept of a fish port.
In addition to logistics, Mandanas highlighted the interest of the information technology and business process management (IT-BPM) sector in Batangas as a more cost-effective alternative to the NCR. However, he noted the need for harmonization of incentive policies across Batangas’ cities and municipalities, as some local government units offer more attractive tax benefits than others. The governor expressed hope that the full implementation of the Supreme Court’s Mandanas-Garcia ruling would expedite provincial development and improve services for residents. This ruling could provide local governments with a fairer share of government tax revenues, currently largely remitted to the national government.
The IT and Business Process Association of the Philippines (IBPAP) has been advocating for IT-BPM sector investment in Batangas, highlighting access to top talent and fiscal incentives. Celeste Ilagan, IBPAP’s chief policy and regulatory affairs officer, emphasized the potential of Batangas as a thriving IT-BPM regional hub during a recent event with Aboitiz InfraCapital and the Philippine Economic Zone Authority (PEZA). PEZA Director General Tereso Panga, at a joint event held at the 700-hectare LIMA Estate in Lima-Malvar, Batangas, pointed out the province’s advantages, including a 1 million-strong labor force, lower cost of living, and robust infrastructure, making it an attractive destination for business and investment.