New Decrees Will Free Brazilian Ship Operators From Previous Regulations

Brazilian infrastructure minister Ozires Silva recently signed decrees freeing Brazilian ship operating companies from regulations that previously limited their activities in international and cabotage, or coastal, transport, in port services and in offshore oil platform support services. The deregulating decrees should lower the current high transport costs for Brazil's exports and imports.

Rules that formerly limited ship operators to certain types of cargoes and services and to specific routes with prescribed vessels were ended with the signing of the decrees.

Paulo Cotta, director superintendent of Alianca Navegacao, the dominant private Brazilian operator serving the conference routes between Brazil and Europe, said the new rules will favor private ship operators willing to make investments.

Some private Brazilian ship operators are already planning to diversify activities and increase their share of conference trade between Brazil, the U.S. and Europe.

Constitutional backing of the state oil monopoly is sidestepped in the new rules by redefining it, limiting it to petroleum of domestic origin.

The new rules also recognize ship operators working as unscheduled outsiders in trades served by ship conferences, in effect opening the trades to newcomers.

Fifty percent of all conference cargoes reserved for Brazilian-flag carriers were assured to state-owned general cargo carrier Companhia de Navegacao Lloyd Brasileiro under the previous legislation.

Maritime Reporter Magazine, page 59,  Feb 1991

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