The shipping transport industry plays a very important role in the country's development. An efficient shipping industry that facilitates the movement of commodities, products and people is therefore vital to the growth of the country. The country's domestic shipping industry, however, has been regarded as inefficient. Past studies suggest that government regulations and policies affecting the industry have been the cause of such inefficiency. This study examines the inefficiency of the industry in terms of the complex interaction between regulation and competition; and then analyzes the effects of the policy reforms on competition and market structure.