The International Maritime Pilots’ Association (IMPA) has raised concerns about the adverse effects of deregulation and competition in maritime pilotage. According to IMPA, maritime pilotage is a public service essential for safe navigation, protecting lives, the environment, and trade. Some regions mistakenly believe that deregulation and competition will enhance service quality while reducing costs. However, IMPA warns that such policies expose both the public and the shipping industry to unnecessary risks.
Captain Simon Pelletier, President of IMPA, noted that areas implementing deregulation often face increased costs and diminished safety. He emphasized that governments should foster an environment that maximizes the economic, social, and environmental benefits of pilotage. Evidence from jurisdictions that have embraced competition shows alarming trends: pilotage fees have skyrocketed, incident rates have surged, and service efficiency has plummeted.
Deregulation undermines pilots’ professional independence and leads to insufficient investment in training. A 2018 KPMG report highlighted that competition can be more detrimental than a natural monopoly due to underinvestment in safety. As multiple operators duplicate infrastructure, costs rise instead of fall, leading to a paradox where deregulation necessitates more governmental intervention.
A well-regulated pilotage system offers significant benefits, with a recent study revealing that every dollar invested yields $60 in safety and efficiency gains. Deregulation and competition, therefore, threaten to deprive governments and the public of these advantages.
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