Transport Policy Study Promoting Efficiency and Productivity of Flow of Goods: A Focus on the Transportation Needs of Mindanao Region

This study analyzed the impact of road and seaport networks on the supply chain players of key fruits and vegetables in Mindanao, with a view to recommend policy directions and development approaches to meet the demands for transportation infrastructure in relation to need, the attainment of growth potentials, and improvement of agricultural competitiveness. The inter-regional trade of major fruits and vegetables between the major island groups in the Philippines between 1990 and 2009 was also examined, as well as the factors that influenced the observed trade flows and how they apply to the trade patterns of Mindanao. The effects of inter-island transport and infrastructure on inter-regional trade of agricultural products were also quantified. Lastly, using Mindanao as a case study, the factors that contributed to high transport cost and other problems, in relation to the flow of goods, was analyzed, focusing on the possible direct and indirect influence of government regulations and investment programs.

Results of the gravity model estimation used in the study revealed that economic size, level of market development, presence of good quality transport infrastructure, particularly road network and seaports, and geographical proximity, are important determinants of inter-regional agricultural trade in the Philippines. The results also validated and explained the inter-regional trade flow of agricultural commodities that has taken place between Luzon, Visayas and Mindanao.

Based on the key findings, the recommendation was to increase government investments in roads and seaport infrastructure and create better roll-on-roll-off shipping services for greater connectivity of markets. It was also recommended that government should provide timely and accurate market information, especially to farmers, improve monitoring and coordination systems of markets, and strengthen the existing regulatory institutions and ensure effective regulations that affect the supply chain of agricultural products.

Partners:

• Australian Centre for International Agricultural Research
• Philippine Institute for Development Studies

Date Completed: March 2013

Publication:

[rokdownload menuitem="143" downloaditem="710" direct_download="true"]Strengthening Markets of High Value Fruits and Vegetables in Mindanao[/rokdownload]