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The Impact of Government Policies on Domestic Grain Transport in the Philippines
Dissertation Abstract:
The study attempted to evaluate the country's transport systems relevant to grain marketing, and assess the impacts of various policies affecting grain transport. The objective was to identify policy areas of concern that have to be addressed if the country's grain transport system is to efficiently contribute to rice and corn self-sufficiency. Survey data and secondary sources were used to quantitatively assess and describe the impact of transport infrastructure development, transport industry regulation, port services, trade and domestic tax policies on grain transport, and associated costs.
The findings indicated that transport infrastructure is an important determinant of grain transport costs. More and better maintained infrastructure is needed to lower grain transpott and marketing costs. The four-tier regulated freight rates in inter-island shipping discriminate against grain cargo and small grain traders, hence there is a need to restructure the rate schedule to closely reflect actual shipping costs. The isolation of domestic tax costs from actual operating costs incurred by the transport industries indicated that substantial reductions in grain transport costs could be realized with corresponding reductions in the domestic tax burden of the transport industries. Bringing fuel prices at par with neighboring countries could reduce transport costs by about 10 percent.
