Enhancing Competition Conditions and Competitiveness of Philippine Domestic Shipping
For the economy to attain its full potential, the Philippines requires an efficient water transport system. However, this is presently not the case. The domestic shipping industry is characterized by high costs, low quality of service, and a poor s...
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| Language: | English en_US |
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World Bank, Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/2016/06/26456774/ http://hdl.handle.net/10986/24800 |
| Summary: | For the economy to attain its full
potential, the Philippines requires an efficient water
transport system. However, this is presently not the case.
The domestic shipping industry is characterized by high
costs, low quality of service, and a poor safety record.
Logistics cost accounts for 24-53 percent of wholesale
price, while shipping and port handling cost around 8
percent of wholesale price and 5 percent of retail price.
Philippine domestic shipping is generally more expensive
than in Malaysia or Indonesia, 2 other archipelagos.
Moreover, it is more expensive to transport goods between 2
Philippine ports than between 2 Philippine ports via an
international port. In the East Asia region, the Philippines
trails behind its neighbors in various logistics performance
and connectivity indices. For instance, in liner shipping
connectivity, the Philippines ranked 66th out of 157
countries in 2013, and performs the worst among a group of
East Asian comparators. Delays in shipment, slow cargo
handling, and frequent accidents are the top complaints of
businesses. In the East Asia Region, the Philippines has the
highest absolute casualty rate and this is 40 percent higher
than the second ranked country, Indonesia. On average, there
are 228 ships involved in accidents and 303 casualties per
year in the Philippines. In seeking to enhance competition
in the delivery of domestic shipping services, this
assessment has therefore focused particularly on measures
that would increase the opportunities and incentives for new
players to enter the market, and for existing operators to
expand or vary the services they offer. |
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