Publication:
Promoting Open and Competitive Markets in Road Freight and Logistics Services: The World Bank Group’s Markets and Competition Policy Assessment Tool Applied in Peru, The Philippines and Vietnam

Loading...
Thumbnail Image
Files in English
English PDF (5.76 MB)
6,567 downloads
English Text (432.9 KB)
346 downloads
Published
2018-12-01
ISSN
Date
2019-08-07
Editor(s)
Abstract
This study shows how the World Bank Group’s Markets and Competition Policy Assessment Tool (MCPAT) can help economies identify reform areas that would make government interventions in freight and logistics services more conducive to competition. The study focuses on three case studies among Asia-Pacific Economic Cooperation (APEC) countries - Peru, Philippines and Vietnam - to illustrate the importance of identifying specific areas for behind-the-border reforms. The analysis focuses on containerized cargo and multimodal transport links between road and maritime transportation, building on primary data collection through novel questionnaires for stakeholders. This study identifies potential competition issues to monitor and makes specific recommendations by country and topic. Potential competition issues include abuse of dominance through exclusionary or discriminatory practices, predominantly in access to multimodal infrastructure and slot allocation along the chain, as well as potential collusive practices in the wholesale segment (for example, among carriers) and in highly specialized services, such as pilotage and towing in port terminals. Furthermore, given the tendency toward (horizontal and vertical) mergers and acquisitions in freight forwarding, it is essential to continue evaluating changes in market structure and the potential impact of these changes on market contestability.
Link to Data Set
Citation
World Bank Group. 2018. Promoting Open and Competitive Markets in Road Freight and Logistics Services: The World Bank Group’s Markets and Competition Policy Assessment Tool Applied in Peru, The Philippines and Vietnam. © World Bank. http://hdl.handle.net/10986/32197 License: CC BY 3.0 IGO.
Digital Object Identifier
Associated URLs
Associated content
Report Series
Other publications in this report series
Journal
Journal Volume
Journal Issue

Related items

Showing items related by metadata.

  • Publication
    Review of Logistics Service Regulations for Freight Forwarding Businesses
    (World Bank, Washington, DC, 2015-08) Watanuki, Maika
    Regulatory frameworks on logistics regulations are often opaque, especially in developing countries, because of the complex nature of logistics services. World Bank client countries have faced difficulty finding the issues that hinder them from improving logistics competence. Therefore, it is beneficial to understand how the logistics service industry is regulated and what should be addressed in building the regulatory framework to improve logistics competence. This note proposes questions to be addressed for beneficial regulations by reviewing existing logistics service regulations in 14 countries, particularly regulations for the freight forwarding industry. These questions will help in assessing a regulatory framework and identifying regulatory weaknesses. This note suggests that the regulatory framework should take into consideration national recognition of freight forwarding business, an institutional arrangement with clear division of responsibility among stakeholders, and streamlined but flexible regulations adapted to the country context.
  • Publication
    Air Freight : A Market Study with Implications for Landlocked Countries
    (Washington, DC, 2009-08) World Bank
    To facilitate air freight, landlocked countries need to improve operations at their airports and liberalize access for foreign airlines. But until those countries become major exporters, it is unlikely that scheduled air cargo operators will have significant operations. Instead, most air cargo will move as belly cargo on passenger airlines, with some complementary use of chartered air freighters during shipment peaks. Landlocked countries should therefore provide greater access to foreign passenger airlines.
  • Publication
    Trade Dimensions of Logistics Services : A Proposal for Trade Agreements
    (World Bank, Washington, DC, 2013-01) Mustra, Monica Alina; Kunaka, Charles; Saez, Sebastian
    Services have a direct impact on the competitiveness of the goods sector. This paper illustrates the importance of logistics services, their trade dimension, and how regulatory issues act as perhaps one of the most significant barriers to competitiveness. The paper discusses recent developments and the role and benefits of logistics services and argues that from a trade agreement standpoint, logistics is a network industry that ultimately provides one service to a final client. It analyzes logistics services from a services trade perspective and proposes that trade agreements should ensure access to and use of the infrastructure required to provide these services recognizing their interconnectedness. The paper offers suggestions on additional policies World Trade Organization members, and countries negotiating services agreements regionally or bilaterally, could follow in order to fully exploit the opportunities provided by logistics services. Local regulations and complementary policies in areas such as trade facilitation will always remain important.
  • Publication
    Enhancing Competition Conditions and Competitiveness of Philippine Domestic Shipping
    (World Bank, Washington, DC, 2014-09) World Bank Group
    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.
  • Publication
    Logistics in Lagging Regions : Overcoming Local Barriers to Global Connectivity
    (World Bank, 2011) Kunaka, Charles
    This report is based on two case studies carried out in Brazil and India on the impact of various strategies to reduce the cost of trade for small-scale producers. Small scale producers especially those located in lagging regions in developing countries lack easy access to efficient logistics services. They are faced with long distances from both domestic and international markets. Unless the enterprises are able to consolidate traffic volumes they can be excluded from international supply chains. However, the process of consolidation is not without cost nor does it occur on its own accord. It is typically handled by outside parties in the form of intermediaries. The study was designed around the horizontal relationships between the small scale producers and their vertical connections to higher tier parties involved in the same supply chain. It analyzes the cooperative approach to linking producers, the role of itinerant traders, and a newer and innovative approach to the same problem through virtual integration of farmers using modern information communication technologies. These approaches were explored by studying two separate supply chains, sisal in Brazil and soybean in India, enabling the assessment of logistics patterns from the farm gate to onboard vessel at the export gateway. The assessment of logistics performance at the sub-national level is still evolving. The more widely used density-type indicators emphasize the infrastructure dimension of logistics but do not handle effectively the relationships and service quality attributes identified by the study. A model built around spatial and social networks is proposed to represent the horizontal and vertical attributes of logistics in lagging regions.

Users also downloaded

Showing related downloaded files

  • Publication
    El Salvador - Public Expenditure Review : Enhancing the Efficiency and Targeting of Expenditures, Volume 2. Chapters and Statistical Tables
    (Washington, DC, 2010-11) World Bank
    This Public Expenditure Review (PER), produced jointly by the World Bank and the Inter-American Development Bank (IADB), is an in-depth economic and sector report on El Salvador. The study builds on the analysis and recommendations of the PER delivered in 2004 that concluded that El Salvador faced the dual challenge of addressing deteriorating fiscal trends while financing key investments required to accelerate growth and meet pressing social needs. This report is intended to provide the government with practical and useful near-and medium-term recommendations that will support the country's efforts to ensure sustainable fiscal balances and establish effective and transparent mechanisms to allocate public resources to promote broad-based economic growth, improve social indicators, and reduce poverty. Hence, the government knows that El Salvador is faced with two fiscal challenges that will have great influence on the economic performance over the coming years. The first is the need to improve the fiscal balance, by strengthening revenue and reducing expenditure, to ensure medium-term sustainability. The second is the need to finance priority investments required to accelerate growth, reduce unemployment, and cover basic social needs. Meeting both challenges simultaneously will require great skill, given the still fragmented political environment and the difficulties in creating a consensus on future policies. The country needs to strengthen its fiscal stance because not doing so jeopardizes the medium-term macroeconomic framework, and exposes the country to greater vulnerability in the face of external shocks and contingent liabilities.
  • Publication
    Digital Africa
    (Washington, DC: World Bank, 2023-03-13) Begazo, Tania; Dutz, Mark Andrew; Blimpo, Moussa
    All African countries need better and more jobs for their growing populations. "Digital Africa: Technological Transformation for Jobs" shows that broader use of productivity-enhancing, digital technologies by enterprises and households is imperative to generate such jobs, including for lower-skilled people. At the same time, it can support not only countries’ short-term objective of postpandemic economic recovery but also their vision of economic transformation with more inclusive growth. These outcomes are not automatic, however. Mobile internet availability has increased throughout the continent in recent years, but Africa’s uptake gap is the highest in the world. Areas with at least 3G mobile internet service now cover 84 percent of Africa’s population, but only 22 percent uses such services. And the average African business lags in the use of smartphones and computers as well as more sophisticated digital technologies that catalyze further productivity gains. Two issues explain the usage gap: affordability of these new technologies and willingness to use them. For the 40 percent of Africans below the extreme poverty line, mobile data plans alone would cost one-third of their incomes—in addition to the price of access devices, apps, and electricity. Data plans for small- and medium-size businesses are also more expensive than in other regions. Moreover, shortcomings in the quality of internet services—and in the supply of attractive, skills-appropriate apps that promote entrepreneurship and raise earnings—dampen people’s willingness to use them. For those countries already using these technologies, the development payoffs are significant. New empirical studies for this report add to the rapidly growing evidence that mobile internet availability directly raises enterprise productivity, increases jobs, and reduces poverty throughout Africa. To realize these and other benefits more widely, Africa’s countries must implement complementary and mutually reinforcing policies to strengthen both consumers’ ability to pay and willingness to use digital technologies. These interventions must prioritize productive use to generate large numbers of inclusive jobs in a region poised to benefit from a massive, youthful workforce—one projected to become the world’s largest by the end of this century.
  • Publication
    Recipe for a Livable Planet
    (Washington, DC: World Bank, 2024-09-20) Sutton, William R.; Lotsch, Alexander; Prasann, Ashesh
    The global agrifood system has been largely overlooked in the fight against climate change. Yet, greenhouse gas emissions from the agrifood system are so big that they alone could cause the world to miss the goal of keeping global average temperatures from rising above 1.5 centigrade compared to preindustrial levels. Greenhouse gas emissions from agrifood must be cut to net zero by 2050 to achieve this goal. Recipe for a Livable Planet: Achieving Net Zero Emissions in the Agrifood System offers the first comprehensive global strategic framework to mitigate the agrifood system’s contributions to climate change, detailing affordable and readily available measures that can cut nearly a third of the world’s planet heating emissions while ensuring global food security. These actions, which are urgently needed, offer three additional benefits: improving food supply reliability, strengthening the global food system’s resilience to climate change, and safeguarding vulnerable populations. This practical guide outlines global actions and specific steps that countries at all income levels can take starting now, focusing on six key areas: investments, incentives, information, innovation, institutions, and inclusion. Calling for collaboration among governments, businesses, citizens, and international organizations, it maps a pathway to making agrifood a significant contributor to addressing climate change and healing the planet.
  • Publication
    World Development Report 2007
    (World Bank, 2006) World Bank
    The theme of The World Development Report 2007 is youth - young people between the ages of 12 to 24. As this population group seeks identity and independence, they make decisions that affect not only their own well-being, but that of others, and they do this in a rapidly changing demographic and socio-economic environment. Supporting young people's transition to adulthood poses important opportunities and risky challenges for development policy. Are education systems preparing young people to cope with the demands of changing economies? What kind of support do they get as they enter the labor market? Can they move freely to where the jobs are? What can be done to help them avoid serious consequences of risky behavior, such as death from HIV-AIDS and drug abuse? Can their creative energy be directed productively to support development thinking? The report will focus on crucial capabilities and transitions in a young person's life: learning for life and work, staying healthy, working, forming families, and exercising citizenship. For each, there are opportunities and risks; for all, policies and institutions matter.
  • Publication
    Falling Long-Term Growth Prospects
    (World Bank : Washington, DC, 2024-02-01) Kose, M. Ayhan; Ohnsorge, Franziska
    A structural growth slowdown is underway across the world: at current trends, the global potential growth rate is expected to fall to a three-decade low over the remainder of the 2020s. Nearly all the forces that have powered growth and prosperity since the early 1990s have weakened, not only because of a series of shocks to the global economy over the past three years. A persistent and broad-based decline in long-term growth prospects imperils the ability of emerging market and developing economies to combat poverty, tackle climate change, and meet other key development objectives. These challenges call for an ambitious policy response at the national and global levels. This book presents the first detailed analysis of the growth slowdown and a rich menu of policy options to deliver better growth outcomes.