CO-BENEFIT ASSESSMENT OF LOGISTICS OPTIMIZATION PROGRAMS: THE CASE OF THE PHILIPPINE GREATER CAPITAL REGION

Abstract

In recognition of the impact of logistics sprawl on economic development, there arises a need
to find the optimum direction in freight transport development. This paper employs the co-benefit framework
to assess three freight development programs: a) Freight consolidation centers; b) Freight volume shift to outer
ports and c) Rail freight. Using the benefits of travel time reduction, operating cost reduction and savings in
accident losses and CO2, SOx, NOx, and PM emissions as assessment metrics, the policy assessment procedure
undertaken was able to cover the interests of both the stakeholders and the community. It was found that for
the Greater Capital Region of the Philippines, shifting freight traffic to the outer ports while consolidating truck
trips at designated locations was most effective, resulting to a combined annual benefit of as much as PhP
362.72 billion by the year 2050. Modeling results showed that shifting freight traffic to the outer ports
dramatically reduces travel time, while consolidation of truck trips optimizes freight operations, and thus,
reduces emissions. It was also found that this combination has a profound relationship, emphasized by the
traffic safety benefit.