LBC says Philippine infrastructure a challenge for logistics sector

The lack of infrastructure and access to many rural areas remain a challenge for the logistics companies eyeing to expand in untapped places of the country, LBC Express Holdings Inc. said on Thursday.

LBC Corporate Affairs head Rea Gomez told reporters the company intends to put up branches in far-flung areas. "We have the intention, but infrastructure is always the problem kasi madali magpatayo ng tindahan. Ang tanong: Paano magta-transport ang mga vehicles natin?" she said.

"Most companies would identify it as a challenge ... but not much of a hindrance kasi we were able to grow despite that," Gomez noted.

To address the lack of infrastructure and poor accessibility, especially in the rural areas, the Duterte administration is embarking on a spending initiative of P8 to P9 trillion during the six-year term of President Duterte.

LBC is focusing on building more branches beyond urban centers as part of the plan to expand its network with 100 stores a year.

"The focus is deeper to the provinces, third class municipalities ... So we really want to go where the others are not, and then to strengthen the network," Gomez said.

The strategy is to ensure an LBC branch every 10 kilometers nationwide in light of positive growth in courier, logistics, and remittance activities.

LBC now has a network of more than 1,200 owned branches, 159 hubs, and 21 distribution centers.

Gomez noted the company is not yet considering opening more branches overseas.

"We are maintaining the number of areas. I think we have pretty much covered where the bulk of Filipino communities are, but we do have a lot of partners also. There are certain countries which we may not have stores but with agents. So it works out pa rin," she said. — VDS, GMA News