Author : Serrano, Segfredo R.

Summary : The study attempted to evaluate the country's transport systems that are relevant to grain marketing and assess the impacts of various policies affecting grain transport to identify policy areas of concern that need 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 impacts of transport infrastructure development, transport industry regulation, port services, trade and domestic tax policies on grain transport, and associated costs. Findings indicated that transport infrastructure is an important determinant of grain transport costs, thus the need for more and better maintained infrastructure as a means of lowering grain transport and marketing costs. The four-tier regulated freight rates in inter-island shipping discriminated against grain cargo and small grain traders. This indicated the 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 ten percent.