Regulatory Challenges in the Philippine Logistics Industry

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According to the World Bank, the Philippine logistics sector currently has a low logistics performance index (LPI). The organization imputed this weak performance to the country's inadequate infrastructure, inefficient customs, and poor competency of its logistics providers. This Policy Note assesses the local logistics sector by looking at its LPI. Among others, it finds the current centralized administration of Philippine ports problematic because it stifles interport competition. As such, it recommends the separation of the regulatory and operational functions and the establishment of one separate entity in-charge solely of port regulation. It also encourages the government to improve competition among ports by allowing more private sector participation by way of concessions through build-operate-transfer or lease agreements.