The Ministry of Transport and Infrastructure ("Ministry") has published a draft Regulation on Pilotage and Tugboat Services. After receiving opinions from the shipping sector, the Ministry will finalize the Regulation to be published in the Official Gazette, as such, the Regulation will officially enter into force. This draft regulation is set to impose several significant changes affecting service providers, market competition and compliance requirements.
One of the most prominent changes is transitioning from the current licensing system to a competitive bidding process. In the previous system, pilotage and tugboat services were regulated through a licensing system where operating rights were granted to operators without a competitive process. Services were often awarded on the basis of a simpler authorisation process. The new bidding process will ensure that separate bids are conducted for each regional service zone. The Directorate General for Maritime Affairs will define the boundaries and service conditions of each zone, and pilotage and tugboat services will be allocated to different operators to avoid monopolistic dominance in a single zone. This separation ensures a more balanced distribution of operational responsibilities and enhances the market's competitive dynamics. The bidding process will follow a negotiation procedure ending with an open bidding where the final bids will be made.
The draft regulation further defines minimum technical and personnel requirements for each zone. The draft regulation will determine the minimum number of tugboats, their towing capacities, and the required number of pilots to ensure that service providers have the necessary resources to operate safely and efficiently within their allocated zones. In particular, areas such as Kocaeli Bay and Aliaga will be divided into smaller operating regions, allowing for greater competition and participation by smaller operators.
The draft also emphasizes compliance and monitoring, introducing safety and operational standards for vessels and crew. Tugboats must now meet upgraded technical specifications, including increased requirements for towing capacity and fire-fighting systems. The draft also requires crew to have advanced qualifications to ensure service providers meet international safety standards.
Another notable aspect of the draft is the requirement for pilots to have regional competence. Operators bidding for pilotage services must ensure that at least 20% of the minimum number of pilots required for the region have regional competence. This provision guarantees operators meet the region-specific requirements for qualified staff, contributing to safe and efficient service.
It should be noted that the Istanbul and Canakkale Straits, military facilities and military vessels (excluding berthing of foreign flagged military vessels at non-military facilities) remain outside the scope of the draft regulation. Pilotage and tugboat services in the Turkish Straits will continue to be conducted by the General Directorate of Coastal Safety.
The draft also outlines minimum criteria for pilotage and tugboat services aimed to regulate service quality, safety standards, and the operational capacity of operators entering the market. These stringent standards are designed to ensure the highest level of safety and service quality. Non-compliance with these standards could result in significant penalties, including fines and the revocation of operating rights.
The draft regulation marks a comprehensive revision of Turkey's pilotage and tugboat services sector. It aims to increase competition, improve service quality and ensure compliance with international standards. The draft envisages to create new opportunities for market entry for potential service providers, and room to grow their business for current service providers. While it may require significant investment in compliance and staff training, the potential benefits stand to justify such costs. Operators will need to invest in new equipment, upgrade their technical capabilities and ensure compliance with the draft's operational standards to remain competitive.
Although the draft regulation is still under review and has not yet entered into force, it is expected to impact significantly the pilotage and tugboat market in Turkey. Service providers should carefully monitor the enactment process and begin preparations to ensure they are well-positioned for the changes ahead.
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