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Business |
ICCC seeks policy shift in coastal shipping ops
THE Independent Consumer and Competition Commission is
recommending changes in the way the policy functions of the PNG
coastal shipping industry are administered and in particular on
the arrangements in which shipping licences are issued.
These, according to ICCC Commissioner and chief executive officer
Thomas Abe, were the main terms of references of the final report
into the coastal shipping industry.
The report will be forwarded to the Government through the
Minister for Treasury.
Mr Abe said the shipping industry report along with reports on two
other industries (airline and tourism) were commissioned by the
Government in January last year and had been prepared following
extensive consultation with the industry and other stakeholders.
“The (shipping) report highlights the urgent need to rehabilitate
port infrastructure throughout the country for increased
efficiency and reduced shipping costs,” Mr Abe said.
He said the commission was encouraged by the projected new capital
works foreshadowed by PNG Ports but noted that much of this will
represent catch- up designs to recover losses in port operations
in the recent years.
The commission also recommended the administration of the awarding
of licences to coastal shipping operations be amended to remove
any possibility of vested interest influencing licencing
decisions.
“There is a need for transparency and equity in the awarding of
new licences as this provides the opportunity for the entry of new
participants in the industry resulting in greater competition and
more efficient shipping operations,” Mr Abe said.
The report also discussed the role of cabotage or restriction of
vessels that can operate on coastal routes.
While recommending that its present form be retained, ICCC said it
should provide licencing arrangements that gives greater
opportunity for new participants to participate in coastal routes.
However, it will be subject to independent assessments of the net
benefits their activities would bring to the nation.
The report also commented on matters relating to pricing of
coastal shipping services and pilotage arrangements.
It said it was favouring the amendment of the current price
regulation.
 
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