World Bank Group2016-08-042016-08-042014-07https://hdl.handle.net/10986/24801The purpose of this policy note is to present reform options on cabotage liberalization. The goal of cabotage liberalization is to help i) foster more competition in the domestic shipping industry, ii) reduce shipping cost, and iii) improve efficiency, maritime services, and safety standards. These, together with complementary reforms in domestic shipping and ports, can help enhance consumer and producer welfare through lower consumer prices, higher household real income, timely delivery of goods, and ultimately, job creation and poverty reduction through greater market access. This policy note on cabotage is organized as follows. Part one provides an overview of the domestic shipping industry and discusses the key issues that it faces. Part two discusses the underlying reasons for the industry’s inefficiency. Part three discusses the concept of cabotage, the cost and benefit of cabotage liberalization, and the cabotage regimes of the Philippines and of selected countries. Part four closes with a discussion of reform options.en-USCC BY 3.0 IGOTRANSPORT SECTORPUBLIC UTILITIESTRANSPORTATION LAWPROFIT MARGINSTRANSPORTATION MANAGEMENTAIR SERVICESINTERNATIONAL AIR SERVICESAIRPORTPASSENGERSFERRIESINTERNATIONAL AIRPORTVEHICLESTRANSPORTATION COSTSCASUALTY RATEFREIGHT TRANSPORTFARESQUALITY OF TRANSPORTTRENDEMISSIONSAIR CARRIERSTRICTER ENFORCEMENTGASOLINEENVIRONMENTAL BENEFITSJOURNEYFLAGS OF CONVENIENCEFLEET SIZECARRIERSTRAFFICHIGHWAY SYSTEMROAD INFRASTRUCTURETAXAIRPORTSINCOME TAXROUTESAIR FARESALTERNATIVE MODESSAFETY REGULATIONSAIRTRANSPORT SERVICESROAD CONGESTIONVEHICLEREGIONAL TRANSPORTROADCOSTSTRANSPORT OPERATORSPORT AUTHORITIESTRANSPORT SYSTEMSROAD NETWORKTRANSPORTPORT AUTHORITYTRANSPORT PLANNINGALTERNATIVE MODES OF TRANSPORTATIONPORT OF ENTRYMOBILITYPUBLIC SAFETYFREIGHT DELIVERYTRANSPORT OF GOODSTRUEPOLLUTIONMARITIME ACCIDENTSAVERAGE FLEET AGEFUEL CONSUMPTIONROUTETRANSPORT INDUSTRYFUEL COSTSSUBSIDIESSERVICE RELIABILITYFREIGHT COSTSINFRASTRUCTURETAXESREGIONAL TRANSPORT PLANNINGBUSESPROFIT MARGINBUS TRANSPORTBUSTRANSPORT FACILITATIONSHIPPING MANAGEMENTCONGESTIONTRAVELTRANSPORTATIONTRANSITCOST OF CONGESTIONPOLICIESTRANSPARENCYTRUCKSPOLICEINTERNATIONAL PORTSCARSLAND TRANSPORTARTERIAL ROADSMOTOR VEHICLEEXCISE TAXQUALITY OF TRANSPORT SERVICESEFFICIENT TRAVELRAILWAYHIGHWAYSPORT INFRASTRUCTUREMINISTRY OF TRANSPORTCOST OF TRANSPORTATIONROADSPORT FACILITIESCROSSINGHIGHWAYMARITIME TRANSPORTRAILROADRAILWAYSAIR TRANSPORTECONOMIES OF SCALEDOMESTIC AIRLINESAVIATION INDUSTRYACCIDENTSAIRPORT CONGESTIONRAILROADSRAILFUELTRIPAIR PASSENGERSTRAILSTRANSPORT SYSTEMFREIGHT MARKETINVESTMENTSDOMESTIC AVIATIONCOMMON CARRIERSTRANSPORT COSTSAIR SERVICEROAD TRANSPORTSAFETYPASSENGER TRANSPORTFUEL COSTFREIGHTReportWorld Bank10.1596/24801