Page 8: of Maritime Reporter Magazine (September 2016)

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Two for the Price of One

For the pure pageantry and drama of it all, it’s tough to beat a harbor pilot rate request hearing. Unless of course, you are talking about an effort to challenge the traditional state pilot model commonly found in U.S. deep draft ports, from coast-to-coast. It turns out that we’ll not only have

JOSEPH KEEFE both scenarios playing out on this side of the pond, but both ‘discussions’ will also take place in Galveston County,

Texas.

ccording to an Enewslet- nor shall the law of primogeniture or en- Secondly, the timing of the rate request This summer, the Board of Commis- ter (8/19) received from tailments ever be in force in this State.” and the seven outside pilot applications sioners of Pilots for Galveston County the West Gulf Maritime That – apparently – is Texas state law. also puts the Pilot Commissioners in an- Ports will apparently have some inter-

AAssociation, the Board of Now, I have no idea what all that means, other interesting spot: A roughly simul- esting decisions to make. As a general

Commissioners of Pilots for Galveston but it sounds pretty ominous. But, since taneous ‘yes’ vote for the rate increase statement, rate increase petitions by state

County Ports will meet on August 22 to the phrase contains the word ‘monopo- and a ‘no’ vote to the seven professional pilot organizations are rarely denied. convene in a public meeting at the Port lies,’ let’s assume that the premise of the mariners sends a decidedly negative Sure, it happens. Granting one at the of Texas City. Reportedly, the board will monopoly for state pilots everywhere is message to shippers who might like to same time as turning away seven ‘quali- determine procedures for the substantive about to get tested. see (a.) more available pilots and (b.) a ? ed’ pilot candidates is another thing al- hearing on the application for a rate in- Justin Renshaw, a Houston-based at- rate system that more closely re? ects a together.

crease submitted by the Galveston-Texas torney representing the seven applicants, market economy. At the end of the day, the seven appli-

City Pilots. Let the fun begin. told us that the timing of the applica- To be sure, the old (tried and true) ar- cations for a state commission are prob-

Separately, and on August 18, a total of tions, submitted at roughly the same time gument is that pilot rates and state pilot ably secondary to the real question: can a seven applications for state pilot licens- as the state pilot’s own rate increase ap- organizations shouldn’t have to compete municipality or state unreasonably with- es/certi? cates were purportedly submit- plication, was purely coincidental. That in an open market because the low bid- hold a license from nominally quali? ed ted to the Board of Pilot Commissioners may well be the case. Nevertheless, the der for any job is likely not going to be mariners just because they don’t belong for Galveston County, Texas. The mari- con? uence of the two applications, arriv- the safest. To be fair, it’s been tried in to the local organization? We’re about to ners, according to their representative, ing almost simultaneously on the desks other places. Take Long Island Sound, ? nd out.

all have federal licenses; two for the of the Board of Pilot Commissioners for for example: a Balkanized, poorly regu- Two for the Price of One: a rate in- waters in question. Hence, the applicants Galveston County, does more than just lated group at one time formed the basis crease request and a challenge to the can pilot enrolled U.S.-? ag deep draft amount to a sudden, perhaps unexpected of a local pilot system that predictably concept of the state pilot model. This, tonnage (in some waters), but currently, blizzard of paperwork. It also gives the had pilots unilaterally competing against and the prospect of competing pilot or- minus the ‘state’ ticket, they are barred Board a great deal to think about. one another, sometimes as the vessel ganizations in the Lone Star state. It just from engaging registered foreign traf? c. Let’s also assume for a moment that was within sight of the sea buoy. No one doesn’t get any better than this. Sit back

Registered tonnage, of course, makes up all seven applicants are incredibly well wants that. and enjoy the ride. the overwhelming majority of deep draft quali? ed for the licenses that they seek, The 600 pound gorilla in the room – traf? c plying U.S. ports. with impeccable credentials and experi- here and across the fruited plain from

The group of seven – presumably hop- ence to bring to the table. Beyond this, coast-to-coast – is the cost of pilot- Joseph Keefe is the lead commentator ing to provide competent, suitable and if they were granted those state licenses, age for deep draft, blue water traf? c. of MaritimeProfessional.com. Addition- reasonably priced competition to the es- that they would form a formidable com- It wouldn’t be a stretch to say that the ally, he is Editor of both Maritime Lo- tablished group in place – won’t be the petitive group which would give shippers average annual salary for a state pilot in gistics Professional and MarineNews ? rst to try this kind of maneuver, but this and vessel operators something they’ve the United States approaches $500,000. print magazines. He can be reached at time, they’ll go at it in a slightly different never had before: a choice. That choice Are they worth it? Maybe a better ques- [email protected] or at manner. might also translate into a more reason- tion to ask is: What price can you put [email protected]. MaritimePro-

The pilot hopefuls base their argument able price for local pilotage. A Board of on safety, right? Nevertheless, much of fessional.com is the largest business for a State Issued license, in part, on the Pilot Commissioners that in theory rep- those movie star wages are a function of networking site devoted to the marine premise that “Perpetuities and monopo- resents the interests of all parties, would the monopoly that the typical state pilot industry. Each day thousands of industry lies are contrary to the genius of a free have to give careful consideration to that enjoys. You can’t deny it – not with a professionals around the world log on to government, and shall never be allowed, possibility. straight face. network, connect, and communicate.

8 Maritime Reporter & Engineering News • SEPTEMBER 2016

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