RESTRICTED
WORLD TRADE S/NGMTS/W/2/Add.9
31January 1995
ORGANIZATION(95-0209)
Original: English Negotiating Group onMaritime Transport Services
COMMUNICATION FROM EGYPT
Response toQuestionnaire onMaritime Transport Services
The following communication iscirculated attherequest ofEgypt toMembers ofthe
Negotiating Group onMaritime Transport Services.
_______________
I. Market structure
Vessels
1.
NATIONAL FLAG
No.ofvessels DWT tonnage
Oiltankers 9 234,410
Bulk carriers 16 702,417
General cargo 90 572,867
Refrigerated carriers 3 10,906
Ro-ro 7 22,145
Ferries andpassengers 6 7,880
(4,654 passengers)
Total 131 1,550,625
(4,654 passengers)S/NGMTS/W/2/Add.9
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2. Total trade bySea: Quantity Percentage
30,117 million tons 71percent
3. Exports Imports
8,078 thousand t. 22,039 thousand t.
4. National Flag
25percent
5. Cross-trading does notexist except through bilateral agreements.
Organization ofcargo
6. Liner Shipping DryBulk Liquid Bulk
10,331 million tons 13,046 million tons 6,740 thousand tons
7. 50-75 percent.
8. 25-50 percent.
9. 50percent.
10. 25-50 percent.
11. Notapplicable.
Ports andauxiliary services
12. National total porttraffic: 10,215 vessels
Total porttraffic inmajor national ports:
Alexandria :3,516 vessels
Port Said :863vessels
Damietta :750vessels
Suez :1,712 vessels
Containerized total national porttraffic: 0-25 percent
13. Noforeign suppliers.
14. Noforeign suppliers.S/NGMTS/W/2/Add.9
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II. Regulatory structure
General
1. There arelaws andresolutions regulating themaritime transport sector aswell asalltheother
sectors.
2. TheMaritime Law onTrade No.8of1990 wasissued regulating theEgyptian foreign trade
Agreements andCodes regulating thetransport ofbulk (dry andliquid) shipping areenforced.
3. Egypt ratified theConvention onaCode ofConduct forLiner Conferences which became part
oftheNational Legislation.
4. TheArab Republic ofEgypt isintheprocess ofapplying thismode oftransport.
5. Ports aremanaged bytheGovernment except forsome services inwhich thenational private
sector participates such asloading, unloading andstoring services provided thatmodern units areused.
6. "International Maritime Transport": allnational cargoes carried byseabetween theEgyptian
ports andports oftheother countries both onnational andforeign vessels.
7. "National shipping enterprise": anyshipping enterprise which islocated inEgypt andowned
byEgyptian natural person orbylegal person with themajority ofcapital owned bynationals. The
shipping enterprise isalso anyenterprise established according totheprovisions oftheEgyptian
Investment Law. Such enterprises carry outshipping business bymeans ofowning andchartering
vessels according totheregulating Egyptian Laws andDecrees.
Market access
8. Yes, concerning themaritime transport sector. Thelimiting measures areasfollows:
- Ships 'crew: only 5percent ofthecrew areallowed tobeforeigners.
- Key personnel ofacompany supplying both transport services andrelated auxiliary
services: theChairman andmajority oftheboard ofdirectors should benationals.
- Keypersonnel ofacompany supplying auxiliary services only: foreign members of
theboard ofdirectors may exceed 50percent.
9. Yes.
(a) Commercial presence ofacompany supplying transport services should taketheform
ofajoint venture.
(b) Commercial presence ofacompany supplying auxiliary services only should takethe
form ofajoint venture.
10. Yes.S/NGMTS/W/2/Add.9
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11. Allships owned bytheestablished companies should beregistered attheEgyptian ship
register asaprerequisite toflytheEgyptian flag. Also, alicence should beobtained from theGeneral
Authority forInvestment inorder tohave acommercial presence.
National treatment
12. No.
Access toanduseofportfacilities
13. Allthelisted services areavailable attheport.
14. Mandatory services:
- Pilotage;
- Towing andtugassistance;
- Navigational aids;
- Anchorage, berth andberthing services.
15. Alltheservices areavailable onanon-discriminatory basis except forthefactthatforeign
users payinaforeign currency (i.e.United States dollars).
16. No.
17. No.
18. Yes, forthecontainer andoilterminal facilities. Noforeign suppliers exist.
19. No.
Most-favoured-nation treatment
20. Yes. Cargo-sharing isapplied toliner cargo andacargo-sharing mechanism isapplied.
21. Themeasures areapplied through bilateral agreements according tothe40-40-20 cargo share
basis. Thecountries covered bysuch cargo-share basis areBangladesh andSaudi Arabia.
22. Yes, cargo-sharing isapplied onthebasis ofArticle 2oftheCode ofConduct forLiner
Conferences. Themeasures taken bytheGovernment inapplication ofthisprovision arecoordinated
with thenational shipping companies.
23. No.
24. No.
25. No.
26. No.S/NGMTS/W/2/Add.9
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Government procurement
27. Yes. Measures taken inthisregard arecase-specific. Thenon-commercial cargoes fallunder
thecategory ofweapons andradioactive substance.
28. No.
Competition law
29. TheEgyptian Government isintheprocess ofimplementing theprivatization system where
competition laws andregulations aretobefully enforced.
Shipping conferences
30. Yes, there aremeasures thatrender theadmission ofnewmembers toaparticular conference
subject totheapproval ofexisting members, andamember maywithdraw from aparticular conference
without incurring anypenalty.
31. Conference agreements arenotrequired tobenotified.
32. Tariffs applied byconferences arenotified tothemember States. The monitoring entity
inflicts penalties onthelines notcomplying with thetariffs.
33. Yes.
34. (a) Afidelity rebate isoffered toshippers toguarantee their loyalty tothelines'members
totheconference andisdisturbed attheendoftheterm.
(b) Noagreements exist between conferences andoutsiders.
Shipper/carrier relations
35. Thebilloflading defines thecommitments ofboth theshipper andcarrier asitisconsidered
tobetheoriginal transport contract aswell asthecontractual framework between theshipper andthe
conference through which theconference 'scommitments aretransferred tothecarrier especially in
terms ofprices, fidelity rebates, freight rates, etc.
36. Thesecretariat oftheconference andtheshipper negotiate directly toobtain anexemption
from thefreight rateorwhether toapply aspecial rate. Once agreed upon such matters, they become
binding tothemembers.
The secretariat oftheconference settles disputes with regard tothepricing policy, the
application ofanyadditional prices orallowances. Disputes arising between theconference and
shippers/receivers aresettled directly within thecontractual framework (bill oflading) concluded
between them andthecarriers.