• 2016 October 14

    Safe navigation at seaports begins with pilotage

    The practice of compulsory pilotage is widespread worldwide in the areas with challenging navigation and shipping conditions.  Water areas of most seaports feature such conditions as the flows of vessels meet at the approaches to the port which entails higher risk of incidents.

    So the government sets a requirement on compulsory pilotage in most Russian seaports. However, the legislation does not specify anyone’s obligations on guaranteed pilotage.

    Both state and private organisation provide pilotage services at the seaports of Russia. Private pilotage companies cannot be forced to work at this or that port. The government can fulfill its obligations on ensuring pilotage at seaports where its required via a dedicated state enterprise. In most Russian seaports this function is executed by FSUE Rosmorport through its pilot subdivisions.

    According to IMPA, International Maritime Pilots’ Association, competition between organizations offering pilotage services is inadmissible for navigation safety reasons. Pilotage cannot be considered as a business activities as it is a public service aimed to ensure safe navigation and protection of the environment. Governments should undertake a comprehensive economic regulation and monitor pilot’s activities, IMPA President Captain Michael R. Watson said at the 47th General Meeting of EMPA in Malta on 24 April 2013.

    Hans-Hermann Lückert, President of chairman of the Federal Chamber of Pilots (FCP) of Germany (Bundeslotsenkammer) and Vice-President of IMPA  sees the main role of pilots in protection of the interests of littoral states. The best way to meet this challenge is to make pilotage a state service allowing for pilots to focus on safety and environment rather than making it a private business concentrating on commerce and profit, he said at (Baltic Pilotage Authorities Commission) in Hamburg.

    Developed sea powers apply only two forms of pilotage: state organizations with the government collecting pilot fee and executing the function of pilotage and non-state organizations with pilots collecting the fee and executing the function of pilotage on their own.

    In both cases the organizations operate within a single national pilot service under a dedicated legislation. Pilot’s activities are strictly regulated and are based on non-commercial principles.

    Pilot is a specialist familiar with local conditions and rules of navigation, who provides captains with recommendations depending on the situation at specific ports (districts) to ensure save navigation. It is the pilot who is the first to board a vessel calling a port and the last to disembark from a vessel leaving a port. Pilot service is focused exclusively on safe navigation not on making profit. Pilot fee is a minimum required for stable functioning of the pilot service system. Profitability does not usually exceed 4-6%, no dividends are foreseen.

    In Russia, private pilot organizations established by entrepreneurs and commercial structures operate at ports and terminals where large profit can be made, so such companies are focused on commercial factors.  The last decade has seen a paradoxical situation  at Russian seaports: most profitable operations on pilotage of large capacity vessels are performed by private organizations while low-profit pilotage of technical, short-sea and low capacity vessels is performed by pilots of state organizations. For example, pilot fee for a foreign trade tanker, like Zaliv Vostok (60178 GT), at port Primorsk where services are provided only by private pilots is RUB 199,800, while pilot services for a short-sea tanker Volganeft-103 (3462 GT) provided at Big Port St. Petersburg mostly by state pilots is only RUB 11,400, 17 times less. Thus, with relatively equal expenses for pilotage, dealing with large capacity ships results in profit while that with short-sea vessels – in a loss.

    Curiously enough, state structures are under discrimination in this sphere.

    According to IAA PortNews findings, private pilots operate at the for ports and terminals: Primorsk, Ust-Luga, Vysotsk, Vysotsk Lukoil-II, Saint-Petersburg, Novorossiysk, Kozmino,  Prigorodnoye,  Nakhodka-Nefteport, Vostochny Port, Vladivostok, Rostov-on-Don and Taman.

    Besides, private organizations representing operators of sea terminals work at some seaports like Primorsk, Vysotsk Lukoil-II, Novorossiysk, Prigorodnoye and Kozmino and owners of private pilot companies and terminals are entitled not to let state pilots work at the terminals.

    It is not that easy to start working as a pilot at a specific port: one should be trained by a pilot operating this port, be approved by ship agents, pass an exam at Harbour Master’s committee, obtain a pass to the terminal, have a space for work and rest, and make arrangements for pilot delivery by a boat, either own or rented one.  

    Private pilotage services numbering about 260 pilots today at 12 seaports collect about RUB 1.35 bln of pilot fees per year. According to the report of FSUE Rosmorport, state pilotage services number more than 650 pilots and operate at 56 seaports. Annual amount of pilot fees slightly exceeds RUB 1.4 bln.

    Experts say up to 40% of pilot fees collected by private services are uses for other than the purpose specified.

    There are ports in Russia (most of Arctic ports and the ports of Sakhalin and Chukotka) where foreign shipping vessels of large capacity never call. There are no private pilot companies there as high profit cannot be made here.

    Pilot services provided at northern and small ports of Russia bring substantial losses to state companies. If pilot fee is set at the level to ensure profitability ship owners will charge consignors, who, in their turn, will raise the cargo cost. In the result, the price of fuel, food and other products delivered to Chukotka will increase considerably while state compensation is not foreseen. In fact, they are not needed as there is a more efficient way – to improve the system of pilot services at seaports through a balance between a profit-making and loss-making activities throughout the country in order to ensure pilot services guaranteed by the state at all seaports of Russia.

    What’s to be done?

    There are different opinions and proposals on improvement of pilot services at Russian seaports. Among the proposals prepared by a non-governmental association of private pilot organizations is the establishment of a national self-regulating pilot organization. However, self-regulating organization with its legal status cannot enforce its members arrange operations at specific ports as its key function is to develop and introduce unified standards and regulations on providing of pilot services and control of compliance with them.

    State officials responsible for operation of seaports and safe navigation within their water areas believe that the only efficient solution is to establish a unified organisation on providing of pilot services. This would let integrate a system of maintenance, ensure a transparent financial accounting, form a common staff of professional pilots, free of commercial pressure. In this case, unified state structure will not require any additional subsidies from the federal budget and will be fully responsible for ensuring safe navigation at the seaports of the Russian Federation and at the approaches to them.

    Sophia Vinarova