The government of Brazil has approved a proposal to gradually open up its domestic coastal market to foreign ships as part of a program to promote coastal shipping.
The new policy has allowed domestic company to bareboat charter foreign ships without the obligation that the ships have to be built by Brazilian shipyards. There will be a three-year transition period before a limit of the number of chartered foreign ships is lifted.
According to the latest policy, a company is allowed to charter two foreign ships in the first year, three in the second year and four in the third year. The limit will be removed from the fourth year.
The foreign ships are required to be staffed by at least two thirds of Brazilian officers.
The Brazilian government expects the new policy will increase the domestic container volume to 2m teu from the current 1.2m teu.