| This study analyzes the structure of maritime transport in the Philippines as it relates to the broad framework of spatial hierarchical relations. A framework for analysis of development transport systems is provided, with special attention to the role of institutions in effecting changes and in transforming geographic space through technological innovations and implementation of policy directives.;The private sector traditionally offered a wide range of shipping services with minimum involvement by the government. Containerization, introduced in 1976 along major routes proved to be a success, and palletized RO-RO vessels have gained acceptance on the shorter ferry routes. Although the static transport structure has remained basically the same, both qualitative and quantitative changes have taken place in both the nature and magnitude of flows.;There has been greater involvement by the government over the past two decades, and the industry has become a public utility under Philippine legislation. Overcapacity, poor safety records and low service standards resulting from division of institutional responsibilities were the major reasons for regulation. Institutional changes under the Martial Law regime allowed political favoritism and the implementation of policy directives which contributed to the high costs of interisland shipping and to high prices charged to users.;The regulated liner sector is dominated by three big shipping companies. Together with several others, these companies are organized into a shipping conference which functions as a cartel in all major and secondary routes. The operations of the cartel have been supported by the regulatory regime through policy directives, particularly those which limit competition and the perpetuation of the exceedingly high rigid tariff. |
