A northern gateway for PH trade – analyst

LocalBusiness & Finance
18 Feb 2026 • 12:09 AM MYT
The Manila Times
The Manila Times

One of the longest-running English broadsheets in the Philippines

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THE Philippine maritime logistics sector is undergoing changes, with attention on the development of the Port of Aparri in Cagayan province. According to analyst, policy researcher and communications strategist Dindo Danao, the strategic development of the Port of Aparri could influence trade dynamics in Northern Luzon.

Danao cited data from the Philippine Ports Authority (PPA) showing that the country’s ports handled 308.5 million metric tons (MT) of cargo in 2025, a 6.6-percent increase from the previous year. Container traffic also exceeded eight million twenty-foot equivalent units (TEUs). “This reflects rising demand for both raw materials and finished goods, as Philippine industries ramp up production and trade links expand regionally,” Danao said.

PPA data also showed that ship calls rose to 664,817 in 2025, while roll-on/roll-off (RoRo) movements increased to 12.81 million vehicles. “These figures indicate a Philippine economy increasingly integrated into global supply chains,” Danao added.

Danao explained that Aparri’s geographic position at the northern tip of Luzon provides direct access to the Babuyan Channel and proximity to key Asian sea lanes. Maritime route calculations estimate the distance from Aparri to Kaohsiung, Taiwan at approximately 285 nautical miles (528 kilometers). “This is a relatively short sea journey by international shipping standards, compared with rerouting through southern hubs,” Danao said.

He added that this proximity creates potential for direct feeder services linking Northern Luzon cargo to Northeast Asian markets, which could reduce transit time and freight costs. According to Danao, such services could benefit exporters of agricultural products and light manufactured goods from Northern Luzon by providing a more direct route to overseas markets.

Danao also noted the scale of China-Philippines trade. In 2024, Philippine exports to China totaled about $9.42 billion, while China’s exports to the Philippines reached $52.27 billion. “A northern logistics hub could affect Philippine exports, especially those destined for China and Northeast Asia, by reducing the need to transship via Manila or Cebu,” he said.

He added that with China as a major source of imports, such as industrial machinery, electronics, and intermediate goods, efficient northern maritime logistics could influence costs and supply chain predictability for domestic industries. “Importers could see lower transportation costs and improved delivery times, which may benefit manufacturers and retailers in Northern Luzon,” Danao explained.

While there are no official cargo projections for the Port of Aparri, Danao said national port throughput trends suggest that a modernized Aparri could handle a share of regional trade flows. “With investments in infrastructure, deeper berths, dry-port logistics facilities, and multimodal connections, Aparri could serve as a feeder port for Asia-Pacific shipping routes and as a northern export corridor for agricultural and light manufacturing products,” he said.

Danao explained that the port could generate employment in logistics, warehousing, transport, and services, and could support value-added industries such as cold chain processing, packaging, and light manufacturing. He added that it could also help decongest Southern Luzon ports, which currently handle the majority of the country’s international cargo.

According to Danao, development of the Port of Aparri could also strengthen the Philippines’ position as a regional maritime partner in Asean and beyond. “By aligning infrastructure investments with trade patterns and strengthening multimodal connectivity, the Philippines could achieve shipping efficiencies and broaden its export base,” he said.

Danao added that Aparri could become a gateway for Filipino enterprises to international markets, serving as a northern maritime axis for economic activity. He noted that realizing this potential would require coordination among national government agencies, local government units, and private sector stakeholders to ensure that infrastructure development, customs processing, and logistics services meet international standards.

The Department of Transportation and the Philippine Ports Authority have both indicated that they are studying proposals to upgrade regional ports, including Aparri, as part of a broader strategy to decentralize maritime trade and improve national logistics performance. No timeline for completion of upgrades at Aparri has been officially announced.

Stakeholders in Northern Luzon, including local business groups and exporters, have expressed interest in using the Port of Aparri for shipments, citing potential savings in time and cost compared to current routes through Manila or Batangas. However, they have also highlighted the need for reliable shipping schedules, adequate port facilities, and efficient customs clearance to make the port viable for regular use.

According to analysts and government data, the development of the Port of Aparri could play a role in reshaping Philippine maritime logistics by providing a northern gateway for trade, particularly with Northeast Asian markets. Its success will depend on investments in infrastructure, coordination among stakeholders, and integration into national and regional supply chains.

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