Ports and Terminals

Cabotage Provisional Measure: Civil House Resolution anticipates measure points

Sep, 02, 2019 Posted by Sylvia Schandert

Week 201936

On August 30, the Civil House of the Presidency of the Republic published Resolution no. 70, of August 21, 2019, which favorably supports the Cabotage PM, also known as BR do Mar.

See below for the full resolution:

RESOLUTION No. 70, AUGUST 21, 2019

Strongly supports the establishment of the federal cabotage transport incentive policy, embodied in the BR do MAR cabotage stimulation program.
THE COUNCIL OF THE INVESTMENT PARTNERSHIP PROGRAM OF THE PRESIDENCY OF THE REPUBLIC, pursuant to the powers conferred upon it by art. 7, caput, item l and in view of the provisions of art. 4, I, all of Law No. 13,344, of September 13, 2016,

Considering that waterway transport is comparatively more efficient, safer, and has lower costs and environmental impacts than road or rail;

Considering that a greater involvement of waterway transport, especially cabotage transport, in the country’s logistics matrix is the most effective and expeditious measure to balance excessive spending by the Union, States, Federal District, and municipalities on road and rail infrastructure projects;

Considering the need to allocate localized areas within ports organized for temporary use and viability of investments to meet cargoes in type, route, or market not yet existent or not yet consolidated in Brazilian cabotage, seen as essential for the reconfiguration of the country’s logistics matrix;

Considering the feasibility of the cabotage incentive policy encompasses measures that optimize the use of Union revenues from the collection of the Freight Additional for the Renewal of the Merchant Navy (AFRMM), including to ensure investments in coastal navigation safety by the Brazilian Navy;

Considering that actions and other measures to encourage cabotage, especially those that allow greater participation of foreign vessels in Brazilian cabotage, will be considered of relevant public interest and strategically prioritized for all legal purposes;

Considering the powers assigned to the Special Secretariat of the Investment Partnership Program to strengthen national policies for the integration of different modes of transport of persons and goods, in accordance with national, regional, and urban development, national defense, environmental policies, and security of populations formulated by the various spheres of government, and

Considering the provisions of Informative Note no. 23/2019/SCT/SPPI/SEGOV-PR, resolves:

Article 1 To favorably submit to the deliberation of the President of the Republic a proposal to qualify, within the scope of the Presidency of the Republic’s Investment Partnership Program (IPP), the federal policy for the encouragement of cabotage transport, embodied in the program for stimulating cabotage BR do MAR.

Art. 2 The policy referred to in art. 1 should be regulated by considering, among others, the following elements:
I – guidelines;
II – objectives and sectors initially prioritized;
III – measures and instruments for their implementation;
IV – actors involved and their competences;
V – commitments by the Government and the private sector;
VI – rules of governance and integrity; and
VII – other appropriate normative measures.

Art. 3 The objectives of the policy referred to in art. 1, among others, are to:
I – increase the supply and quality of cabotage transport;
II – encourage competition and competitiveness in the provision of cabotage transportation services;
III – expand the availability of fleet in the national territory;
IV – encourage the formation, training, and qualification of national seafarers;
V – stimulate the development of the national naval industry for the construction, jumborization, conversion, modernization, docking, and repair of vessels used for cabotage navigation;
VI – review the linkage of cabotage navigation policies to shipbuilding policies;
VII – encourage special cabotage operations and investments in port facilities to meet cargoes in type, route, or market not yet existing or consolidated in Brazilian cabotage; and
VIII – optimize the use of resources from the collection of the Additional Freight for the Renewal of the Merchant Navy – AFRMM.

Art. 4 These are guidelines for the achievement of the objectives set forth in art. 3rd, among others:
I – permission to use foreign-flagged vessels to make up part of the Brazilian Shipping Companies fleet;
II – adoption of Brazilian seafarers to form part of the crew in foreign flag vessels operating in cabotage;
III – reduction of entry barriers to the Brazilian cabotage market;
IV – reduction of investment costs in vessels;
V – equalization of operating costs in relation to the social benefits of cabotage;
VI – reevaluation of the Union’s intervention policy in support of the development of the Brazilian merchant navy and of the shipbuilding and repair industry and the burdens arising therefrom; and
VII – support for investments in coastal navigation safety by the Brazilian Navy.

Article 5 This Resolution shall enter into force on the date of its publication.

ONYX DORNELLES LORENZONI
Minister of State Chief of Staff of the Presidency of the Republic

MARTHA SEILLIER
Special Secretary of the Presidency of the Republic’s Civil Partnership Investment Partnership Program

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An opinion about “Cabotage Provisional Measure: Civil House Resolution anticipates measure points”

  1. To early to comment as new regulations have not been detailed.
    Some remarks on the separation of specific Terminals and areas for domestic cargo as it would jeopardize planning and economic utilization of always scarce storage capacity. Better would be that the Import and Export Info Systems operated by our Customs would be capable to release domestic cargo automatically, creating a Domestic Blue Lane for these cargo.
    Also the relation between Shipbuilders and Shipowners have to be dealt with via Shipbuilding Programs and concrete commitments by both sectors in terms of rights to import, obligations to invest and shipyards commitment to lower prices and true effort to export and face the international Market.

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