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 ifpilotage in Finland would be opened for competition. The purpose is also to find out ifcompetition would strengthen or weaken the safety.In the research a wide perspective was taken over the subject in order to get a good view ofthe factors that would be affected by the change. The price difference from a customers' pointof view and the need for common rules if pilotage is opened for competition in Finland areexamined as well. In order to reach the goal also a comparison to Denmark, where pilotagehas 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 overcompetition and monopoly. Also pilotage acts from Finland, Denmark and Sweden have beenexamined, even though this research is not taking into consideration if private pilotage is legalin Finland or not. The empirical part of this research is made by interviewing persons workingwithin the pilotage segment both in Finland and Denmark.The interviewees were carefully chosen, including authorities, public pilot operators andprivately owned pilot operators. The interviews were analyzed and used as a base for theempirical part. Also new viewpoints consisting of benefits and disadvantages of competitionwere gathered from the interviews.In pilotage benefits could be achieved through competition. The service level would probablybe the biggest competition factor. Also safety and price could be used as competition factorsin the open market of pilotage. The price of pilotage would most probably be decreasedthrough competition and companies buying pilotage services could benefit by being able tobuy services tailored especially for their needs.When implementing a competed market from a monopolistic market new rules must be madefor ensuring that it is functioning also in practice. Competition would put pressure on theoperators and the market would start to innovate itself.