Jersey To Launch Major Study Of Ports And Shipping

by Robert Lee, Tax-News.com, London

08 August 2006

Following a request by the Economic Development Minister, the Jersey Competition Regulatory Authority (JCRA) has decided to undertake a major study of competition and regulatory issues in the shipping and port services sector.

The study will cover the following services in particular:

• Freight forwarding and haulage;
• Shipping services (including passenger, car ferry and freight services);
• Port infrastructure (land, berths, cranes, warehouses, etc);
• Stevedoring services (the loading and unloading of cargo); and
• Pilotage, towage and mooring.

The JCRA has been asked to enquire into, report and make recommendations on:

• The current structure of, and level of competition in, markets for the provision of shipping and port services in Jersey;
• The current structure and level of fees and charges in these sectors;
• Measures that could be taken under the Competition (Jersey) Law to increase the level of competition and efficiencies in these sectors; and
• Alternative measures that could be taken to improve efficiencies in sectors that are naturally monopolistic and not amenable to action under the Competition (Jersey) Law, including measures to regulate and monitor prices.

Bill Brown, Executive Director of the JCRA stated that:

“Shipping and port services are effectively a lifeline for Jersey consumers and local businesses. These services are controlled by a very limited number of operators (and in certain cases a monopoly)."

"It is important to look at whether the interests of consumers and local businesses are adequately protected as things stand, or whether there is scope for any improvements to be made. We are therefore pleased to be able to undertake this study."

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