Maritime Transport Working Group

Transcription

1 Maritime Transport Working Group Key s 1. Allow Transport of International Cargo between Chinese Ports (International Relay) Support the development of more efficient shipping services for China s foreign trade by permitting international cargo relay. 2. Uniformly Implement Customs Regulations Ensure that customs regulations are enforced uniformly in all customs districts Implement Electronic Data Interchange (EDI) across China and phase out paper formats and manual reporting as soon as possible 3. Strengthen Enforcement of Laws Relating to Dangerous Cargo Improve shippers access to information about risks Conduct more examinations and investigations to detect declaration violations regarding cargo content and weight declaration Impose stricter penalties on shippers for misdeclarations 4. Improve Navigational Safety Strengthen enforcement of navigational rules Improve the quality of VTS Monitor compliance with rules for traffi c separation zones. Establish traffic lanes along the coast and close to ports for large commercial vessels where fishing is not allowed Improve English skills and technical skills of pilots to allow better coordination Study best practices from abroad in regards to fog navigation 5. Cooperate on Reducing the Carbon Footprint of International Shipping Support the reduction of polluting emissions from international shipping through globally binding and equally applicable rules set by the IMO. Promote and encourage the use of cleaner fuels in Chinese ports. 6. Strengthen the Supervision of Chinese Ports to Maintain the Harmony of the Market and Avoid Anti-Competitive Behaviour Enhance the supervision of compliance through anti-monopoly laws in Chinese ports and take effective measures to restore a fair and orderly market when ports are found to be in violation of relevant laws. Introduction to the Working Group The Maritime Transport Working Group was established in 2000 to represent European maritime transport enterprises operating in China. The objective of the Working Group is to work for a more efficient and competitive maritime transport environment in China. To accomplish this, the group is engaging Chinese and European officials to contribute to the fair and healthy development of the transportation industry and the promotion of the interests of European transportation companies in China. Recent Developments With more than 80%of global trade being carried by sea, maritime transport is the backbone of international trade and globalisation. The European Union (EU) is China s largest trading partner and China is the EU s second 252 Maritime Transport Working Group

2 European Business in China Position Paper 欧盟企业在中国建议书 2011/2012 largest trading partner, as such maritime transport is an essential and integrated part of Sino-EU economic relations. For the industry to fully realise its potential to enhance global trade and long-term economic growth, it is crucial that the industry and regulators work together to find solutions that will ensure the long-term health and efficiency of the liner shipping industry, e.g. by eliminating barriers to market access and other regulatory inefficiencies. Key s 1. Allow Transport of International Cargo Between Chinese Ports (International Relay) International cargo transport between Chinese ports (international relay) may only be carried out by Chineseflagged vessels operated by wholly Chinese-owned companies. The dialogue with Chinese regulators, including the General Administration of Customs (GAC) and the Ministry of Transport (MOT), is positive and is contributing to continuous improvements in the business environment. New ambitious targets have been set in China s 12th Five-Year Plan for the martime industry. The EU maritime industry welcomes the China s maritime industry aspirations to significantly reduce emissions (ocean shipping at 16%, river shipping at 14%, and ports at 7%) and energy consumption and will contribute to this effort where feasible. In terms of infrastructure development, the Maritime Transport Working Group hopes that relevant authorities will continue to ensure that a healthy balance remains between supply and demand in terms of port capacity. Having in China in the past five years avoided bottlenecks in the port sector in a rapidly growing market is a significant achievement. The Maritime Transport Working Group also welcomes a higher focus on supervision and enforcement of compliance with rules related to maritime safety and anti-competitive behaviours, while encouraging that further deregulation takes place in regards to the ability of foreign maritime enterprises to provide commercial services on terms similar to those of Chinese maritime enterprises. International relay remains an issue of the highest priority for the EU liner shipping community in China. International relay refers to the practice of one company carrying cargo from China to an overseas destination on its own vessels, transferring the cargo from one vessel to another owned by the same company in a Chinese port. For example, a container being transported from Dalian to Africa is loaded on a vessel in Dalian servicing Europe. When this vessel en route to Europe arrives in Shanghai, the container is moved to another vessel on an Africabound service. Permitting international relay will create flexibility for shipping lines, allowing shipping lines to optimise route networks, leading to shorter transit times, lower transport costs, less pollution, and generating increased revenues for Chinese ports. Today, EU shipping lines are forced to trans-ship cargoes originating in China to overseas ports. Permitting international relay in China will bring signifi cant benefits to the EU as well as to Chinese companies, including: The Maritime Transport Working Group is looking forward to the continued dialogue with authorities across China and the EU. Increased revenue for Chinese ports: significant volumes of cargo that are currently trans-shipped overseas, for example to South Korea and Singapore, could potentially be trans-shipped via China. Efficient utilisation of Chinese ports: Chinese ports have excess handling capacity; allowing international relay will aid the development of international hub ports in China and contribute towards the full utilisation of terminal capacity. Competitive advantages for the Chinese economy: transit times and transportation costs to and from China will be reduced, which will encourage the establishment of more direct maritime services to and from China. Maritime Transport Working Group 253

3 Permitting international relay would only have a marginal effect on domestic Chinese shipping lines. Today, foreign shipping lines choose to trans-ship containers outside of China rather than to use a domestic feeder service that would increase costs. Similar inefficiencies apply to Chinese carriers who are fl ying a foreign fl ag. Support the development of more efficient shipping services for China s foreign trade by permitting international cargo relay. International relay ok of EDI has greatly reduced the amount of required paperwork. However, some customs districts have implemented EDI while in many districts, EDI still co-exists with the old paper formats, creating ineffi ciencies. Ensure that customs regulations are enforced uniformly in all customs districts Implement EDI across China and phase out paper formats and manual reporting as soon as possible 3. Strengthen Enforcement of Laws relating to Dangerous Cargo 2. Uniformly Implement Customs Regulations Customs processes are crucial elements in global supply chains and the efficiency of such processes is also the key to competitiveness and has a large impact on the cost of international transport solutions. In China, there is still scope to further enhance the effi ciency of customs processes without compromising national security. In many ways, changes that would improve the efficiency and cost of transport service providers may indeed enhance national security. Please also refer to the Logistics Working Group Position Paper on customs issues. 1. Uniformly Implement Customs Regulations: The inspection ratios of containers and interpretation of customs regulations is not uniform between customs districts. The EU maritime industry has experienced that, as a consequence, some exporters are deliberately choosing ports with less strict criteria. This is inefficient from a transport and economic perspective and is not desirable from a security perspective. As an example of simplification it could be considered to dispense with the vessel/voyage information requirement as the General Administration of Customs has done for the airfreight industry. As China presently accounts for one-third of worldwide exports by container, ensuring the safe transport of dangerous cargoes has become increasingly important. Numerous accidents impairing normal operations have resulted in casualties or even loss of ships. There needs to be coordination between the relevant departments such as the MOT and Customs, and the shippers and shipping lines to fully address this issue. Sea transport of dangerous cargo is regulated by the International Maritime Dangerous Goods (IMDG) code system. Many cases of fraudulent declarations of dangerous cargo from China have been reported, resulting in frequent fires and the increased risk of casualties, vessel damage, and heavy pollution. For instance, cargo declared as plastic toys could in fact be fireworks; loading these containers close to the engine room could be catastrophic. Fraudulent declarations of cargo weight also impair safe navigation. Improve shippers access to information about risks Conduct more examinations and investigations to detect violations regarding cargo content and weight declaration Impose stricter penalties on shippers for misdeclaration 4. Improve Navigational safety 2. Speedy introduction of Electronic Data Interchange (EDI): One of the most significant improvements to customs processes in China is the introduction of EDI between transportation providers and customs. The introduction Many local Chinese vessels do not abide by navigational rules and pose a significant risk to safety. Safety and effi ciency are further compromised by the insuffi cient use of Vessel Traffi c System (VTS) and communication issues with pilots. 254 Maritime Transport Working Group

4 European Business in China Position Paper 欧盟企业在中国建议书 2011/2012 Chinese waters have a particularly high density of traffic not only in areas near ports but also in the open sea; this density is due to the presence of numerous fi shing boats. To navigate safely in those conditions, it is essential that all vessels strictly follow navigational rules and at the same time communicate clearly with other vessels and the traffic control stations. However, this is not always the case with local vessels. Many local vessels often have poor navigation equipment and disregard the rules (even with regard to traffic separation) impeding normal traffic flows and putting large vessels in dangerous situations, particularly at night or in adverse weather conditions. VTS personnel sometimes lack the English skills required to efficiently communicate with foreign vessels, resulting in dangerous situations. Generally, all VTS services need to be improved by becoming more proactive, cooperative, and effi cient. A good example to follow is the Hong Kong traffic control station. Also, communication with pilots is often difficult due to limited English and technical skills. Fog navigation remains a problem in some Chinese ports with many unnecessary closures leading to ineffi ciencies for liner shipping companies and their customers. Strengthen enforcement of navigational rules Improve the quality of VTS Monitor compliance with rules for traffic separation zones. Establish traffic lanes along the coast and close to ports for large commercial vessels where fishing is not allowed Improve English skills and technical skills of pilots to allow better coordination Study best practices from abroad in regards to fog navigation 5. Cooperate on Reducing the CO 2 Emissions of International Shipping International shipping is one of the very rare sectors that are not currently covered by international binding agreements aimed at reducing CO2 emissions. Recent years have therefore seen strong international political attention on international shipping, and in many countries consumer opinions advocate the idea of buying locally (instead of from abroad). it is necessary for internationally binding agreements to apply equally to all vessels, as carbon leakage may otherwise occur. As a leading maritime nation, China s support is critically important in the effort to reduce CO2 emissions. While shipping is a highly energy-efficient mode of transport, emitting less CO 2 than other modes of transport in terms of emissions per ton/kilometre, there is still significant potential for the shipping industry to further reduce its carbon footprint and emission of other pollutants such as SO x and NO x through the implementation of energy efficient measures, e.g. innovation, operational procedures, and slow steaming. The global shipping industry is international in nature, fiercely competitive and its costs are largely determined by world market prices. At the same time, the cost of meeting higher emissions standards can be very high. Efforts towards setting higher emissions standards will therefore require international regulation to ensure that rules apply equally to all vessels and that companies investing in energyefficient measures are not punished through a reduction in competitiveness due to higher costs. Moreover, if regulations are not equally binding to all nations, fleets in countries with stricter regulations may simply choose to register fleets in countries with lower standards and carbon leakage would be the result. The development of an international level playing field is therefore essential. China and the EU are global leaders within maritime transport. By working together with the International Maritime Organization (IMO) to establish an internationally binding regulation for emissions for shipping, significant environmental benefi ts may be achieved without distorting the competitiveness of individual companies. A first joint step could be the development and support of an energy efficiency index for vessels. Another step would be to introduce binding standards for fuel quality in Chinese ports and coastal waters similar to in the EU. From an emissions perspective, stricter fuel standards are preferred to cold ironing (shore-based electricity solutions) as cold ironing will be of use only when a vessel is actually berthed in a port. Moreover, the actual environmental benefit will be dependent on the source of the electricity. If the electricity is not produced in a clean manner, there may be a limited environmental benefi t. For international shipping to reduce its emissions of CO2, Maritime Transport Working Group 255

5 Support the reduction of CO 2 emissions from international shipping through globally binding and equally applicable rules set by the IMO. Promote and encourage the use of cleaner fuels in Chinese ports. 6. Strengthen the Supervision of Chinese Ports to Maintain the Harmony of the Market and Avoid Anti-Competitive Behaviour Most ports in China are monopolies. As with any monopoly, there is a risk that clients of the monopoly may become the victims of anti-competitive behaviour. Abbreviations EDI Electronic Data Interchange EU European Union GAC General Administration of Customs CO 2 Carbon Dioxide IMDG International Maritime Dangerous Goods IMO International Maritime Organization MOT Ministry of Transport PRC People s Republic of China TEU Twenty-foot Equivalent Unit VTS Vessel Traffi c Services The port industry is by nature asset-intensive and has high barriers to entry. As a consequence, there is typically only one or very few port operators in each port leading to monopoly situations. In larger ports, there are often several terminals with a constellation of owners. Typically, however, the local port group has a controlling stake in all terminals and a monopoly is the reality. While many terminals operate in compliance with antimonopoly and other competition laws, there are also examples that some ports engage in anti-competitive behaviour affecting the fairness of the markets. Examples of anti-competitive behaviours include the bundling of services, e.g. ports forcing shipping lines to use specific companies for unrelated services such as husbandry. There are also examples of discrimination, e.g. ports refusing to serve shipping lines calling at competing ports. Such anti-competitive behaviour adds to the cost of shipping. These costs are eventually borne by Chinese exporters and overseas importers of Chinese products and are ultimately damaging China s competitiveness. Enhance the supervision of compliance with anti-monopoly laws in Chinese ports and take effective measures to restore a fair and orderly market where ports are found to be in violation of relevant laws. 256 Maritime Transport Working Group