The new document is to develop the provisions of RF Merchant Marine Code and to solve the problem of insufficient legal control of relations arising in seaports. Excess bureaucracy of the procedures results in loss of 30% of domestic cargo, which is handled by foreign ports, Katrenko says. According to him, the law is to stop inconsistence of operation and to raise competitiveness of Russian ports. It is to be achieved owing to delineation of powers between the port authorities and through execution of a list of major services and charges. State Duma also considered an alternative bill developed by the government. However, deputies found it unable to solve the problems of seaport development in full. They say the bill has no mechanisms for attraction of new investments, solving the issues of land titling, or creation of tax situation favorable for business development in ports.
State Duma passes the bill On RF Seaports on first reading
Russia's lower chamber of parliament has passed the bill On RF Seaports on first reading, ITAR-TASS reports according to GZT.ru. The document is to regulate construction, opening, closing and functioning of ports. The bill developed by a team of deputies representing Edinaya Rossiya faction specifies the procedure for the use of land plots and water objects within the limits of seaports. A number of rulings are aimed at development of a precise mechanism for registration of investments into port sector. The bill also specifies major requirements to the owners of ports’ infrastructure facilities. According to Vladimir Katrenko, deputy chairman of State Duma "the principal provision is the ban for privatization of ports by foreigners or stateless persons". As the developers say, growth of cargo turnover makes the development of port infrastructure a strategic task of the state. "The law is to push development of our ports and to make our transit possibilities more efficient," Boris Gryzlov, speaker of State Duma says.