Photo: Paulus Ain
The Independent Consumer and Competition Commission has postponed the review of the coastal shipping industry until 2023.
In a statement, ICCC Commissioner Paulus Ain said the review, which was started earlier this year to address issues with the market structure and efficiency of the coastal shipping industry, has been postponed until next year after a number of problems were found in the submissions the watchdog received.
He said that on April 25, 2022, a discussion paper was published in order to get feedback or opinions from all stakeholders.
According to Mr. Ain, the ICCC has received a number of submissions that highlight important industry challenges that also apply to PNG's domestic maritime sector.
“The purpose of this review is to understand the current market dynamics and development that have taken place since the last review by the ICCC in 2006.
“Since then, market dynamics within the shipping industry have changed, in terms of market efficiency, structure, legislative and regulatory requirements, policy directives, processes and procedures of operations in the coastal shipping industry.
“Ultimately, the goal is to identify opportunities to promote and improve market competition conditions,” Mr Ain said.
“Some of the concerns raised relate to matters such as institutional bench-mark practices, cabotage, labour-supply needs, subsidies and oversight of freights, infrastructure demand, competition and costs.”
According to Mr. Ain, the review included, among other things, the lowest economic market price possible prices, Quality shipping services provided, promote incentives available to shipping service providers to innovate practises and products and increase or promote opportunities for shipping service providers to maximise their profits.
“The ICCC thanks those stakeholders that have provided their written submissions on the
Discussion Paper and further advise that consultations on these concerns will not continue until the review commences in early 2023.”
Reference: Post-Courier (23 August 2022). “Shipping Industry Review Moved To 2023”.
