Royal Cargo Inc. (RCI), the country’s largest integrated logistics company, is investing P1.4 billion to expand its pharmaceutical logistics facility in a five-hectare lot in Laguna in anticipation of the growing capacity requirement.

RCI Chairman Michael Raeuber revealed the new investment at the virtual 6th Joint Economic Briefing of the European Chamber of Commerce of the Philippines (ECCP) stressing the company chose to pour in huge investments in this pandemic year.

RCI Chairman Michael Raeuber (Photo credit:

“We are investing more than P1 billion to develop our South Hub, which will cater to expanding our facilities for farmer logistics, dry goods distribution and liquids transportation,” said Raeuber.

In a separate interview, RCI President and CEO Elmer Sarmiento said the South Hub facility is under construction in a 5-hectare facility in Canlubang, Laguna. Once completed, South Hub will have a capacity of 10,000 pp (pallet position) for dry warehousing, 5,000 pp for temperate controlled storage (mainly for chilled and pharma products), and a container yard.

“We just bought the property. It is now under construction. We are set to operate partial dry warehouse next month, while the TCR (temperate cold storage) full operation next year,” he said.

The P1.4 billion will be mainly for land, building, refrigeration equipment, TCR, among others.

Sarmiento added that South Hub will not only store COVID-19 vaccines, but pharmaceutical products in general, including clinical trial shipments, other vaccines and medicines.

He said that South Hub will offer additional capacity, new service, logistics solution to pharmaceuticals and an alternative to current service providers.

RCI has been engaged in the handling of pharmaceutical products, including vaccines, in the last 15 years at its existing central depot and headquarters in Paranaque City, which is strategically located near the NAIA airport for quick, safe and cost-effective nationwide distribution. The company has also a facility in Plaridel, Bulacan.

The company uses ultra low freezers for vaccines requiring zero degree temperature. It has also ample capacity for refrigerated temperature. Its own fleet of reefer trucks and dry vans deliver vaccines in any part of the country.

To ensure pharmaceutical products are safe and secure, RCI facilities are equipped with 200 percent power contingency with automatic power switch, 24/7 security setup with CCTV systems, temperature monitoring and tracking system, docking systems, and terminal boxes with temperature recording devices.

Source: Manila Bulletin (