Regulation on Pilotage and Towage Services Published

With the Regulation on Pilotage and Towage Services (“Regulation”), published in the Official Gazette dated 11.02.2025 numbered 32810, provisions have been set forth regarding the technical requirements, service standards, conditions applicable to natural and legal persons providing the services, as well as the procedures for tendering, authorization, and supervision concerning pilotage, towage, and mooring services rendered within Türkiye’s maritime jurisdiction areas, waterways, and inland waters.

The explanations regarding the pilotage and towage services provided by port facilities under the Regulation are summarized below for your information.

Authority to Provide Services Under the Permit Issued by the Administration

Under the Regulation:

i. Public institutions,

ii. Enterprises operating port facilities pursuant to the Decree-Law No. 233 on State Economic Enterprises dated 8.6.1984,

iii. Privatized port facilities through the transfer of operating rights, provided that their contracts concerning the transfer of port facility operating rights or build-operate- transfer agreements contain relevant provisions,

iv. Port facilities operated under the Law No. 3996 on the Procurement of Certain Investments and Services within the Framework of the Build-Operate-Transfer Model dated 8.6.1994,

v. Individual port facilities that are not related to regional service areas or port clustering, may provide pilotage and towage services for the port facilities they operate themselves.

However, pursuant to this provision, exercise of the existing authority for the performance of this service shall not be deemed to grant the facility owners a vested right, nor shall it confer a permanent, irrevocable, or guaranteed right against future regulations or amendments.

Minimum Criteria for Service Provision

The minimum criteria set for the provision of pilotage and towage services for each port facility shall be determined by the Directorate General of Maritime Affairs of the Ministry of Transport and Infrastructure (“Administration”), taking into account factors such as the physical structure of the port facility, the meteorological and oceanographic conditions of the region, the number, type, or tonnage of vessels calling at the facility, as well as the rest periods and annual leave durations of pilotage masters.

Vessel and Personnel Requirements

The vessels and maritime vehicles to be used in the services must meet the conditions for being a Turkish vessel as specified in Article 940 of the Turkish Commercial Code No. 6102 (“TCC”); all personnel providing the services must be Turkish citizens; and the services must be carried out in accordance with the provisions of the Law No. 815 on Maritime Transport and Trade Rights within the Turkish Shores (Cabotage Law) and Ports, as well as the regulations governing territorial waters.

According to Article 940 of the TCC, in order for a vessel to be considered a Turkish vessel, it must fly the Turkish flag and be owned by Turkish citizens. In the case of vessels with multiple owners, the majority of the shares in a jointly owned vessel must be held by Turkish citizens, and in the case of a vessel with undivided ownership, the majority of the owners must be Turkish citizens. Furthermore, for vessels owned by legal entities, the majority of the members of the governing body must be Turkish citizens, and for vessels owned by Turkish commercial companies, the majority of the individuals authorized to manage the company must be Turkish citizens, with the majority of votes in the company's decision-making process held by Turkish shareholders as per the company's articles of association.

Under Maritime Transport and Trade Rights Law No.815 within the Turkish Shores (Cabotage Law) and Ports, maritime transportation and port services within Turkish territorial waters are exclusively reserved for Turkish citizens and vessels flying the Turkish flag. Additionally, maritime services such as fishing, pilotage, and captaining can only be performed by Turkish citizens.

Provision of Services through Service Procurement

Under the Regulation, port facility operators, in cases where they are unable to directly perform or prefer not to carry out pilotage and towage services themselves, may procure these services through service procurement, with the approval of the Administration.

Additional Minimum Criteria Requirement

Port facilities privatized through the transfer of operating rights, provided that their contracts regarding the transfer of operating rights or build-operate-transfer agreements contain relevant provisions, as well as port facilities operated under the Law No. 3996 on the Procurement of Certain Investments and Services within the Framework of the Build-Operate-Transfer Model dated 8.6.1994, must meet specific additional minimum criteria for pilotage or towage services if they provide these services independently within their regional service area or procure them from another operator for the relevant port facility.

However, the Administration has the authority to reduce these criteria, taking into account the general needs of the regional service area.

In the Case of Port Clustering

If a port cluster gradually forms around individual port facilities that are not related to regional service areas or port clustering, and the Administration designates it as a regional service area, the provision of pilotage and towage services will also be subject to the provisions outlined in the Regulation.

Service Permit Application Requirements

Under the Regulation, port facility operators are required to apply to the Administration and obtain a service permit in order to carry out pilotage and/or towage services.

For the application, a series of documents must be submitted, including the operator's authorized persons and commercial registry information, documents confirming that the vessels used meet the requirements for being Turkish vessels, citizenship and social security documents of the personnel, and a list of the vehicles and equipment to be used.

Additionally, the qualifications of the pilotage masters and a bank guarantee letter must be included in the application. If the services are to be provided through service procurement, the suitability documents of the service provider must also be submitted.

Applicants must meet at least 60% of the conditions specified in the undertaking and commit to completing the remaining portion within the designated period.

Undertaking

Operators applying for a pilotage and towage service permit must sign the undertaking included in the annex of the Regulation. The undertaking must be obtained from the Administration prior to the application.

The blanks in the undertaking will be determined by the Administration according to the specific characteristics of each port facility, and provisions related to services that are not permitted will be removed.

Additionally, in the event of changes to the minimum criteria, operators must meet the new requirements within the specified timeframe and submit an updated undertaking.

Guarantee

Another important point to note under the Regulation is that the Administration requires a bank guarantee letter from port facility operators for pilotage and/or towage service permit applications. The letter must be unconditional and indefinite.

The guarantee amount will be determined separately for pilotage and towage services and will be calculated in Turkish lira based on the U.S. dollar buying exchange rate of the Central Bank of the Republic of Turkey on the date of application. The amount will be set at 6% of the gross revenue from pilotage and/or towage services of the relevant port facility for the previous calendar year. Additionally, the provided guarantee will be renewed annually on the date the service permit is issued.

The guarantee for newly established port facilities will be determined by the Administration based on a comparable value calculation, taking into account the service revenues derived from vessel movements at similar port facilities.

The bank guarantee letter of port facility operators who fail to obtain or whose service permit has expired will be fully refunded to the operator, provided there are no outstanding debts to the Administration. However, if the operator has debts, these debts will be deducted from the guarantee, and the remaining amount will be refunded. If the service permit is revoked, the guarantee will not be refunded and will be transferred to the Treasury as revenue.

Transfer of the Permit, Shares, and Port Facility Operating Rights

Under the Regulation, it is prohibited for port facility operators to transfer the service permit.

However, any changes in the operator’s and service providers’ partnership structure, shareholding structure, and management require prior approval from the Administration. In any case, if these changes result in the loss of the conditions required to be considered a Turkish ship under Article 940 of the Turkish Commercial Code, the operator will no longer be permitted to provide pilotage and/or towage services.

The operator will be given a three-month period to restore the conditions, and during this period, the Administration may implement temporary arrangements.

Additionally, in the case of port facility operators privatized under the provisions of Privatization Practices Law No. 4046, the transfer of operating rights will be valid, provided that the conditions specified in the transfer agreements are met.

Finally, in the case of the transfer of the port facility operating rights, the new operator must submit the service license application to the Administration within six months from the date of the transfer.