Budget opens the door to more efficient coastal shipping

Shipping Australia Limited welcomes the proposed coastal shipping reforms as reflected in the Budget measures to simplify shipping regulations.

“The proposed changes will breathe new life into coastal shipping,” SAL CEO Rod Nairn said. “This sector has languished since the 2012 Coastal Trading Act was introduced. These reforms are absolutely necessary to allow domestic goods to be efficiently carried by sea.”

Among the proposed reforms are:

  • replacing the unwieldy five-licence requirement, with a simple coastal permit;
  • reducing the amount of compliance reporting; and
  • allowing the carriage of petroleum products.

The proposed reforms will also remove current exemptions for large passenger vessels, and introduce minimum Australian crew requirements for all vessels operating on the coast for more than 183 days in a year.

“These new requirements will need to be looked at carefully by the shipping industry. They may cause a few concerns,” Rod Nairn said.

All our major ports currently have excess capacity. Removing the strangling legislation from coastal shipping is a way of improving the efficiency of moving domestic freight without spending one cent on additional infrastructure.

“This has to be good for Australia’s economy and good for all Australians,” Nairn concluded.

On 20 May, the Hon. Warren Truss, Deputy Prime Minister and Minister for Infrastructure and Regional Development, will speak on the key aspects of new coastal shipping legislation and the consultation process on the new legislation at the Sydney Harbour Marriott. A limited number of seats are still available for this event – for more details visit: shippingaustralia.com.au/event

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