Client Alert:

NEW INCENTIVE FOR TURKISH SHIP OWNERS: TURKEY TO PROMOTE THE ESTABLISHMENT OF NEW LINES

NEW INCENTIVE FOR TURKISH SHIP OWNERS: TURKEY TO PROMOTE THE ESTABLISHMENT OF NEW LINES

The Regulation on Supporting the Transfer of Cargo Carried by Road to Carriage By Sea (the “Regulation”) entered into force as of 9 August 2022. The Regulation aims to increase the volume of cargo carried by sea in combined transportation, increase the capacity of maritime transportation between Turkish ports and the ports of other countries and decrease the volume of traffic at the highway border check points by lending support to the Turkish ship owners that will regularly carry goods on newly established lines.

Accordingly, Turkish ship owners will be paid an amount in Turkish Lira that corresponds to 2 US dollars by the Ministry of Transport and Infrastructure, per trailer, semi-trailer and tanker carried by Turkish flagged vessels, for every 10 nautical miles travelled by the relevant vessel. The figure will rise to 3 US dollars if the carriage is performed by Turkish flagged Ro-Pax vessels. Furthermore, if the distance between two ports is less than 20 nautical miles, then the ship owner will be paid 20 US dollars per unit of cargo carried.

However, the incentive does not apply to container vessels. Moreover, only the ship owners who operate their vessels on newly established lines will be entitled to benefit from the incentive, provided that each vessel performs minimum four voyages per month. In other words, the ship owners that continue to operate on existing lines cannot benefit from the incentive as the aim of the Regulation is to increase the number of lines used for combined transportation between Turkish ports and the ports of other countries. Having said that, if the number of monthly voyages of a vessel on an already existing line increases by 50%, the ship owner will still benefit from the incentive.

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