The UK’s Department for Transport has been told to turn its flag registry into a partly privatised company in order to make it more competitive.
A report issued by KPMG and commissioned by the government recommends that the UK registry becomes a privately held but state-owned company, the FT reported.
This “govco” would be subject to governmental supervision but with more commercial freedoms.
Andrew Linington, director of communications at Nautilus International, said he was not surprised with the development.
“The government has been trying to reform the ship registry for many many months now, so nothing comes as a surprise,” he told TradeWinds.
He added that the union is supportive of some elements of the proposal but there are a few concerns as well.
“We have long thought that there should be a separation between Maritime and Coastguard Agency’s responsibilities for safety and its responsibilities to expand the ship registry,” Linnington noted.
If it ever materialised, this semi-privatisation would be unprecedented for the UK maritime industry.
The UK fleet has been squeezed by 18% in the past five years in terms of tonnage, although the number of UK-flagged ships has risen.
A commercialisation of the ship registry is even more pivotal in the wake of Brexit, according to the UK Chamber of Shipping.
The Chamber has tried to highlight the opportunities created for the maritime industry after Britain’s decision to leave the European Union (EU).
Nautilus’ concerns also stem from the UK government’s shift toward classification societies.
Linington said: “It is not a privatisation but it is taking away jobs that have been traditionally been done by the state and giving them to class. This is an important shift of emphasis.”
