“BR do Mar” – Presidential Bill encourages the cabotage transport in Brazil
In August 11, 2020, Brazil’s President, Jair Messias Bolsonaro, submitted for approval by the National Congress, on an urgent basis, the so-called Bill “BR do Mar” which brings several regulatory changes and encourages cabotage transport in Brazil, substantially expanding the capacity of the maritime fleet.
Some of main objectives of this Bill, are the following:
- expanding the offer and improving the quality and efficiency of cabotage transport, as well as increasing the maritime fleet in the national territory;
- encouraging competition, the qualification of national maritime professionals, and attracting investments to cabotage transport;
- the development of the Brazilian naval industry;
- the review of cabotage transport policies, including chartering of foreign vessels; and
- the use of resources coming from the collection of the “Additional Freight for the Renewal of the Merchant Navy – AFRMM”.
This Project is the result of the interaction between the Ministries of Infrastructure, Defense, Economy and Civil Affairs, as well as players in the sector: including the users, shipowners, shipbuilding representatives and maritime professionals unions, which makes it even more interesting given the previous research regarding the real needs of cabotage activity.
The introduction to this Bill has been promised by the Government since last year and it comes at a perfect timing, bringing real perspectives towards greater investments and structure to the cabotage activity.
It is undeniable that this initiative brings positive repercussions for the Brazilian economy, especially in reason of the Covid-19 pandemic and its damages.
The Maritime team is available in case of doubts.