Shipbuilding Industry Fights Against Approval of Bill

Senator Álvaro Dias’ Bill (PODE-PR) Sparks Mobilization from Unions and Shipowners’ Associations in Favor of the Naval Industry.

Law 9432 of 1997, which governs the frameworks of the navigation and naval industry sector in the country, is seriously threatened by radical changes.
A bill drafted by Senator Álvaro Dias aims to change the current rules, providing more flexibility in chartering and purchasing vessels for use in Brazilian cabotage.

As soon as the senator’s bill was published, it triggered quick actions from the entire naval sector. The unions of builders and workers believe that the approval of such a bill would be a death knell for Brazilian shipbuilding.
According to the senator, the national fleet has neither expanded nor renewed due to the restrictions of the current law, and that his project creates facilities for the importation of new ships.

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The senator further states that the current law, in effect since 1997, was created to protect the Brazilian naval industry, but has not succeeded and now only serves as a barrier to the growth of waterway transportation in Brazil.
In the text of Bill 2948/2019, the senator even mentions that the protection policies for the merchant navy and shipbuilding have not been able to develop these sectors.

Excerpt from the Full Text: “The high cost of acquiring vessels built in Brazil, combined with the inability of national shipyards to meet demand, keeps the size of the national transportation fleet nearly stagnant.”

In Favor of the Bill

There are, however, those who support the bill; the CNA (National Confederation of Agriculture and Livestock) believes that a change in the law would address the difficulties of chartering vessels abroad currently faced, due to the tonnage rule of law 9432/97.
The confederation also states that the construction costs here in Brazil are very high and that a reduction in costs would only favor an increase in the competitiveness of national companies in the external market.

Against the Bill

The Syndarma (National Syndicate of Maritime Navigation Companies) acknowledges the need for fleet renewal but believes that the bill does not solve the problem and that studies are already being conducted with the Ministry of Infrastructure and the executive branch aimed at implementing more organized measures.
The union emphasizes that it has been recording an increase in demand for cabotage, especially in container transportation.

The main concern of the union is with those who have invested in the naval industry over the years and rely on the current regulatory framework.
Sinaval is also against the bill and believes that it does not contribute to job creation and economic improvement, which are the government’s goals at this time.

Sinaval’s vice president, Sérgio Bacci, stated that with the approval of the measure, any shipowner who brings a ship from abroad (purchased at a lower cost) to operate here would be on equal footing with those who invested and believed in Brazil.

This week, shipyard directors will be in Brasília to monitor the progress and discuss the proposal at the mixed parliamentary front meeting for the defense of the merchant navy.

See also! São Paulo State Government Prepares Incentive Package for the Industry.