Rural Development Update in Mindanao Philippines 2022: New Loreto Public Market and Land Transport Terminal

Loreto Public Market

One of the best investments in the Philippines 2022, is in the Municipality of Loreto, Agusan del Sur.

A Vision Realized

Around two (2) years ago, the current Municipal Mayor of Loreto, Agusan del Sur, envisioned an upscale Loreto Public Market where people can comfortably and conveniently purchase their household needs in one place. Today, that vision is becoming a reality. 

Side and back view of Loreto Public Market Building

The Municipal Local Government is gearing up to make Loreto emerge. Look at the photo above. Can you tell it is a public market at a glance? 

Back view of the New Loreto Public Market

If you have been to the public markets in Agusan del Sur, even in the Philippines, most of them are not as attractive as the New Public Market in this Municipality. 

The wet market inside the New Public Market

The Wet Market Section of the Loreto Public Market was carefully designed to meet the sanitary and safety requirements of the leases and purchasing public.

The wet market inside the New Public Market

Inside the New Loreto Public Market (Wet Section)

The Municipal Mayor with her staff checking the (under construction) Public Market in the photo above. 

Back view of the Loreto Land Transport Terminal

Market trends 

Based on business articles, the demand for commercial spaces will rise by around 40% and will continue to be in demand in 2022 and the coming years.

Market Analysis 

The industrial segment is expected to expand alongside, as the demand for industrial spaces grows and manufacturers expand their operations, amid the government’s thrust to rebalance the economy long driven by domestic consumption and services. (https://ppp.gov.ph/)

Market trends 

In statistical data from the Department of Trade and Industry website, the total number of business enterprises operating in the country is 957,620 in 2020. A huge percentage (99.51% or 952,969) of that is composed of MSMEs. Of that 952,969 MSMEs, 89.21% are micro-enterprises. The remaining 10.79% constitute small (10.30%) and medium (0.49%) enterprises.

The demand for commercial spaces in Loreto is increasing. This is proven by the increase in the number of commercial spaces for lease in the Municipality and the number of people willing to pay a considerable amount (Php 5,000.00 - Php 10,000.00) for a stall based on interviews from the locals. 

Historical demand for the product or service 

In 2018, the municipality (CBMS 2018) recorded a total of 355 business establishments which caused a 45% increase in the count of the formal business sector compared to the total number (162) of registered firms in 2015. Most of the business establishments are in wholesale (161) and retail (21) trading. Gasoline stations, pharmacies, agriculture supply stores, hardware, motor parts stores, general merchandise, and variety stores are some of the businesses present in the municipality. 

In Tagum City, the total “actual income” from its Public Market in 2020 is 51,645,293.90. The market is divided into 6 sections. There are 811 stalls in the “Perimeter, Wet and Dry Sections”, 200 in the New Vegetable Building/ Bagsakan Section, 16 in Refreshment Section, 10 in Flower Section, and 9 in the fish landing/ wholesaler section. 

Projected demand/supply gap 

The projected number of stalls and spaces this Public Market can offer is 83. Considering the population (43,880) in the Municipality in 2020 is increasing and the numbers of businesses are noticing the possible economic boom in Loreto, the demand might go higher than the projected supply. 

Feasibility

The City of Tagum is the best example in determining the feasibility and viability of a public market as a local economic enterprise. Its income in the 1st quarter of 2008 (eight years after the Economic Enterprise which constitutes the public market, trade center, and other enterprises was created) reached Php 11.3 million. The public market is the top earner of the six enterprises. In 2020 alone, the total actual income of its public market is Php 51,645,293.90. The income consistently increases year by year. Based on an interview with the (Acting) Economic Enterprise Manager of the City, Mr. Pocholo Melendres, the success of their enterprises is greatly attributable to their Mayor’s will and experience in the corporate realm. According to him, the Public Market Economic Enterprise became self-reliant within 3 years of operations.

When asked about their strategies, Mr. Melendres added that they set their yearly target and do their best to achieve or surpass the target. They do close monitoring and internal audit of the operations of their enterprises. He also added that the enterprise is “not a dumping ground of political appointees”. The people they hire are competent people who can really do the job. They also indicated in their enterprise code the maximum budget allocation for personnel services which should not exceed 40% of the total income of the preceding budget calendar year.

Loreto Land Transport Terminal

Front view of the Land Transport Terminal

The Need

Formal land transportation terminals do not exist yet in the Municipality. The buses of AC, Inc. operating in the Municipality, vans, and other public vehicles park on the designated sides of the street or wherever the passengers want to ride or stop.

Aerial (back) view of the Land Transport Terminal

Some Statistics

In 2018, the Municipality recorded a total of 91 tricycles operating within the urban area of the Municipality and 20 Piaggio (a three-wheeled motor vehicle) bound to the Municipality of Trento (and vice versa).

Inside the Loreto Land Transport Terminal

It is expected that the number of vehicles getting in and out of the Municipality will exponentially increase after the restrictions based on the number of views of the Municipal photos posted on Google Maps totaled 13,562 as of November 7, 2022.

The second floor of the Land Transport Terminal

This terminal will be the first upscale Land Transport Terminal in Agusan del Sur or even Caraga region.

Photo Credits: Shine Loreto Bibo Loreto