Possible Benefits of Competing Pilotage in Finland

Abstract

The aim of the research is to find out what kind of benefits and disadvantages would arise if pilotage in Finland would be opened for competition. The purpose is also to find out if competition would strengthen or weaken the safety. In the research a wide perspective was taken over the subject in order to get a good view of the factors that would be affected by the change. The price difference from a customers' point of view and the need for common rules if pilotage is opened for competition in Finland are examined as well. In order to reach the goal also a comparison to Denmark, where pilotage has been under competition for a number of years, has been made. The theoretical part of this research is done by familiarizing with texts and researches over competition and monopoly. Also pilotage acts from Finland, Denmark and Sweden have been examined, even though this research is not taking into consideration if private pilotage is legal in Finland or not. The empirical part of this research is made by interviewing persons working within the pilotage segment both in Finland and Denmark. The interviewees were carefully chosen, including authorities, public pilot operators and privately owned pilot operators. The interviews were analyzed and used as a base for the empirical part. Also new viewpoints consisting of benefits and disadvantages of competition were gathered from the interviews. In pilotage benefits could be achieved through competition. The service level would probably be the biggest competition factor. Also safety and price could be used as competition factors in the open market of pilotage. The price of pilotage would most probably be decreased through competition and companies buying pilotage services could benefit by being able to buy services tailored especially for their needs. When implementing a competed market from a monopolistic market new rules must be made for ensuring that it is functioning also in practice. Competition would put pressure on the operators and the market would start to innovate itself.