Climate change challenges in the transport and logistics sector

THE Philippines, an archipelago of over 7,600 islands, relies heavily on efficient transport and logistics systems for economic growth and social development. However, climate change presents significant threats to the transport and logistics sector, including rising sea levels, more intense typhoons and changing weather patterns.

According to The Southeast Asia Climate Outlook 2024 Report, typhoons and floods rank as the top two concerns among Filipinos. In the last 15 years, the top 10 costliest typhoons in the Philippines have occurred, with four of them — Odette (2021), Ulysses (2020), Rolly (2020) and Paeng (2022) — happening in the past four years alone. The total damage to properties, infrastructure and agriculture has reached P363.70 billion.

During the Transport and Logistics Forum 2024, organized by the Italian Chamber of Commerce in the Philippines, I discussed four challenges that climate change poses to the transport and logistics sector.

Increased frequency and intensity of typhoons. The Philippines experiences an average of 20 typhoons annually. While the Intergovernmental Panel on Climate Change forecasts that climate change will increase both the frequency and intensity of typhoons, a new international study released by Nanyang Technological University Singapore in August 2024 reveals that tropical cyclones in Southeast Asia are now forming closer to coastlines, intensifying more rapidly and lingering longer over land, which could pose new risks to the region.

The recent Super Typhoon Kristine, which resulted in 116 deaths and P4.06 billion in damages, is a stark reminder of our vulnerability to extreme weather events. Beyond the loss of lives, damage to properties and displacement of almost a million Filipinos, approximately 754 areas were flooded across 13 regions, including the capital. The impacts of devastation, especially in the Bicol Region, were massive and widespread, and expected to be much greater than those of Super Typhoon Carina in July 2024.

Typhoons like Yolanda (2013) caused catastrophic damage to infrastructure, leading to extensive economic losses, disrupted supply chains and reduced market access. Severe weather events often render roads, bridges, ports and airports nonoperational, resulting in delays in goods delivery and increased transportation costs.

Typhoon Odette (2021) caused extensive flooding and destruction in the Visayas and Mindanao, disrupting critical transport routes and logistics operations. The costs associated with repairs and recovery have diverted resources from essential development projects, further impeding long-term economic stability.

Infrastructure damage

Coastal erosion and rising sea levels. The global average of sea level rise is 19 centimeters. The observed rise in the country is significantly higher, reaching 60 centimeters — three times the global average.

Many transport infrastructures, particularly coastal roads and ports, are highly susceptible to sea-level rise and coastal erosion. With more than 60 percent of Filipinos residing in coastal areas, rising sea levels endanger not only the infrastructure but also the communities that depend on these transport networks. This poses significant access issues, particularly during extreme weather events, further isolating vulnerable populations.

Major ports like the Port of Manila have reported challenges in managing increased tidal action and flooding due to rising sea levels. These issues can lead to delays in cargo handling and ultimately raise logistics costs, impacting the broader supply chain.

Road infrastructure damage. Increased rainfall and flooding resulting from climate change compromise road conditions, leading to the deterioration and destruction of transport networks. Many rural areas lack adequate drainage systems, exacerbating problems during heavy rainfall, causing road washouts and landslides. The Asian Development Bank estimates that the Philippines loses approximately P130 billion annually due to road damage caused by extreme weather.

Impact on logistics operations. Transport disruptions resulting from climate-related events adversely affect logistics operations, reducing supply chain efficiency. Longer journey times can lead to the spoilage of perishable goods, increased fuel costs and an overall decrease in the competitiveness of Filipino products in both domestic and international markets.

Extreme weather events’ unpredictability complicates logistics planning. Companies struggle to assess risks, resulting in inefficient stock levels, missed delivery deadlines and higher operational costs.

As climate change escalates, the transport and logistics sector in the Philippines faces a critical crossroads. Industry stakeholders like governments, companies and communities must take immediate and collaborative steps to address the impacts of climate change and embrace sustainable initiatives.

Extreme weather events are frequently increasing, posing significant threats to our infrastructure, disrupting supply chains and driving up operational costs. It is crucial to understand that failing to act will only worsen existing vulnerabilities, impede economic growth and endanger the resilience of our communities.

The transport and logistics sector must prioritize sustainability by adopting innovative solutions, such as improving fuel efficiency and investing in renewable energy sources. Transitioning to greener transport not only lowers greenhouse gas emissions but also promotes energy independence and creates long-term financial savings.

The author is the founder and chief strategic advisor of the Young Environmental Forum and a director of Climate Tracker Asia Inc. He completed a climate change and development course at the University of East Anglia (UK) and an executive program on sustainability leadership at Yale University (USA). You can email at [email protected].