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Government approves proposal to gradually open cabotage market to foreign ships

Written by Valdemar Medeiros
Published 23/12/2020 às 10:11
Ships - cabotage - Government
foreign ship

Government decided to approve text that opens cabotage market for ships from other countries

Among other points, the PL 4199 / 2020 released by the government in a progressive manner, it releases the use of foreign ships in cabotage navigation without the obligation to contract the construction of vessels in Brazilian shipyards. With the publication of the new government legislation, companies will be able to charter a bareboat vessel, that is, rent an empty vessel for use in coastal navigation.

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Foreign ships will be released one per year by the government

Under the terms of cabotage matters, after one year of the law being in force, two ships may be used; already in the second year, three ships; and in the third year of effectiveness, four vessels.

From then on, there will be no quantity restriction according to the government. However, safety conditions defined by regulation must be observed.

Another important point of the project highlighted by the government deals with the reduction of the rate of the Additional Freight for Renewal of the Merchant Marine (AFRMM) in the course from 25% to 8%. This measure, in turn, leads to a decrease in the cost of import freight, especially for inputs imported by the Brazilian productive sector.

Cabotage can leverage the Brazilian economy from 2021

This diversification of cargo transport is one of the points that make cabotage a key to the development of infrastructure in our country. This thought is not far from reality, when we remember that heavy investment in trucks and highways guided the Brazilian expansion towards the interior in the last century.

It's time to use the same commercial power to give even more structure and efficiency to the use of our coast. A great reason for this is to note that, even with continental dimensions, 70% of the country's population lives within 200 kilometers of the coast.

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Valdemar Medeiros

Journalist in training, specialist in creating content with a focus on SEO actions. Writes about the Automotive Industry, Renewable Energy and Science and Technology

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