Government issues decree on support for maritime transport

The Government's proposal for an additional appropriation of EUR 24.8 million for assisting shipping was approved in the Government's fourth supplementary budget proposal for 2020 on 26 June 2020. The purpose of the additional appropriation is to maintain the capacity to support maritime transport services whenever that is considered necessary in the light of the circumstances.

The Government issued a decree on the matter on 9 July 2020. The decree entered into force on the same day. The decree lays down provisions on the imposition of a transport service obligation and on the specific terms and conditions for awarding a grant.

As a result of the COVID-19 pandemic, the operating conditions for Finnish cargo and passenger shipping companies have become considerably more difficult. The purpose of the grant is to promote the sufficiency of maritime transport capacity and the restoration of confidence in maritime transport and to help maintain the operational capacity of shipping companies.

Maritime transport can be supported on routes where transport services would be unprofitable without support and where there would be little, if any, market-based transport services. A precondition for awarding a grant is that a public service obligation or another obligation to provide transport services is imposed on the shipping company applying for the grant in terms of the subsidised route, vessel and frequency of services.

What next?

The decree entered into force on 9 July 2020. The grant is intended as a temporary solution in the exceptional circumstances caused by the COVID-19 pandemic. Because of this, the decree will remain in force until 31 December 2020.

The Finnish Transport and Communications Agency Traficom will assess the need to impose a transport service obligation and supervise the use of grants awarded for transport services.

Maritime transport operators for the subsidised routes will be selected through a competitive tendering procedure for public procurements. The grant can be applied for at a time and in a manner specified by the Finnish Transport and Communications Agency.

More information

 Director of Unit Miikka Rainiala, tel 050 571 7751, Twitter: @MRainiala