EU Changes Cabotage Contract Guidance

Posted by George Backwell
Tuesday, April 29, 2014
File image

The European Commission has given new guidance on the interpretation of EU cabotage regulation, which allows contracts of up to 12 years instead of the current six years, according to trade organisation Maritime London.

The EC statement explains: “With the new guidance competent authorities will have more legal certainty when awarding public service contracts and imposing public service obligations. Shipowners will also benefit from more legal clarity, allowing them to better organise their business in Europe.”

It says that the updated guidelines provide further clarifications on:

  • The scope of the freedom to provide services in the maritime cabotage sector (who enjoys that freedom and which services the regulation covers)


  • The award procedure for public service contracts and the duration of these contracts


  • The manning rules on vessels providing maritime cabotage

• Transitional arrangements for Croatia


According to the statement, the main change in the Commission's interpretation relates to the duration of public service contracts. It says that public service contracts should have a limited duration in order to allow regular and open prospecting of the market. With a view to complying with the principle of proportionality in any market intervention, member states should choose the least 'distortional' means to meet essential maritime transport needs.

It adds: “In its interpretative Communication of 2003 the Commission allowed public service contracts of up to six years. However, the Commission's experience since 2003 has shown that in some cases the six years limit puts shipowners off bidding as they consider this duration to be too short to recoup the investments in the operation of the service. Likewise, contracts of short duration might discourage shipowners from making more substantial investments, thus hampering innovation and possible improvements in the quality of the service.”

The new guidelines say that public service contracts lasting up to 12 years can “meet the proportionality requirement provided that they are justified by objective criteria, such as the need to recoup the investments made in operating the maritime cabotage service under normal operating conditions (e.g. investments in vessels or infrastructure)”.

Source: Maritime London
 

 

 

 

Maritime Reporter February 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

Maersk Drilling Secures Contract for Newest Drillship

Maersk Drilling was awarded a contract from eni Ghana Exploration and Production Ltd. for employment of the newbuild drillship Maersk Voyager.   The contract

Corvus Energy Wins Order for Battery Hybrid Ferries

Scandlines ferries designed with battery hybrid propulsion to operate on the Rostock-Gedser commercial route.    Corvus Energy, Siemens AS and Scandlines have

Elcome Enters Sales, Service Deal with JRC

Elcome International has signed a distribution agreement with Japan Radio Company (JRC) and its technology partner Alphatron Marine.   Under the agreement, the

Legal

Green Groups Sue Port of Seattle

A coalition of environmental groups has sued the Port of Seattle over a leasing agreement to host Shell Oil’s Arctic drilling fleet, claiming the deal was negotiated

Strip Club Barge Accused of Dumping Sewage into Harbor

Owners of floating Kodiak strip club indicted by Federal Grand Jury; Wild Alaskan operators accused of dumping raw sewage into Kodiak Harbor, Alaska   A federal

MOL Expands Container Fleet

Mitsui O.S.K. Lines, Ltd. has signed a deal for construction of four 20,000 TEU containerships with Samsung Heavy Industries. MOL also concluded an MOU for long-term chartering of two 20,

Vessels

Lomar Adds Seven Container Ships to its Fleet

Lomar Corporation, a Libra Group company, has again added to its fleet of container ships with the purchase of three vessels plus an order for up to four new buildings from the Yangzijiang Shipyard,

25,000-TEU Ships Possible, Not Practical

Maersk Line CEO Soren Skou said ships with capacities of 25,000 twenty-foot-equivalent units are possible but not practical today, and that he expects 18,000-19,

'K' Line to Shrink Container Fleet

Japan's third-biggest shipping company Kawasaki Kisen Kaisha ('K' Line) plans to beef up its LNG and bulker vessels over the next four years, while downsizing its container shipping fleet.

Government Update

Manila Port Congestion Eased: Palace

Malacañang has declared that the congestion at the Port of Manila has been resolved, noting the various measures that the government and the private sector have implemented to address the problem.

Canadian Navy Delays Opening of Arctic facility

Canada's military has again delayed the opening of a major new Arctic port, a sign the government is struggling to assert sovereignty over a remote resource-rich region.

Zeroing in on Zukunft

The U.S. Coast Guard Commandant addresses a packed Passenger Vessel Association meeting and outlines both the challenges and opportunities facing his organization.

Logistics

Lomar Adds Seven Container Ships to its Fleet

Lomar Corporation, a Libra Group company, has again added to its fleet of container ships with the purchase of three vessels plus an order for up to four new buildings from the Yangzijiang Shipyard,

25,000-TEU Ships Possible, Not Practical

Maersk Line CEO Soren Skou said ships with capacities of 25,000 twenty-foot-equivalent units are possible but not practical today, and that he expects 18,000-19,

'K' Line to Shrink Container Fleet

Japan's third-biggest shipping company Kawasaki Kisen Kaisha ('K' Line) plans to beef up its LNG and bulker vessels over the next four years, while downsizing its container shipping fleet.

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Navigation Pipelines Salvage Ship Electronics Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.3810 sec (3 req/sec)