Is protectionism the way to grow local ship registration?

THERE’S BEEN a call by industry for the reservation of the South African coasting trade exclusively for ships operating under the South African flag, according to Candice Meyer, senior associate at Bowman Gilfillan Attorneys. “This would render registration of vessels under the South African flag more appealing,” says Meyer, pointing out that it’s common practice in many states in North and South America. “It could result in a number of liners returning to or registering for the first time on the local register and may even extend to southern Africa in the light of NEPAD, SACDC and other developmental policies,” she added. But it runs contrary to the economic principles of the White Paper on National Transport Policy which is committed to maintaining a competitive climate “However, the policy commits to monitoring its options in light of changing international practices and attitudes and to the investigation of the introduction of protectionist legislation. “The attraction of tonnage to the South African register is of fundamental importance to place South Africa at the forefront of the maritime industry,” says Meyer, who believes a degree of protectionism may be required to render South Africa internationally competitive.