AUSTRALIA is considering scrapping laws designed to protect local ship operators from foreign competition after a study revealed how the restrictions might be overturned.
Australia considers dropping cabotage restrictions on foreign shipsAUSTRALIA is considering scrapping laws designed to protect local ship operators from foreign competition after a study revealed how the restrictions might be overturned.
The study, "Approaches to Regulating Coastal Shipping in Australia" cited Infrastructure Minister Warren Truss saying Australia's shipping industry was being hindered by red tape and a lack of competition, reported Lloyd's List.
The paper states that the cabotage regulations introduced in 2012 are damaging the national economy as they result in higher shipping costs and limit access to timely and flexible services.
Under existing laws, foreign-flag vessels operating in Australian waters require a licence and are subject to local employment and taxation laws.
The licence process allows Australian ships to make the case to undertake voyages that are proposed to be undertaken by foreign vessels.
"The lack of competitiveness of Australian shipping has not only led to a decline in its participation in international trades, but has also affected the domestic coastal trades through high freight rates or the loss of freight to the road and rail sectors," the paper said.
The number of Australia-flagged ships has halved over the past decade, according to Mr Truss.
