BAHAMAS Trends and Developments Contributed by: Richard Horton and Emma Van Wynen, Alexiou, Knowles & Co.
mian waters, and non-compliance constitutes an offence. Like the imposition of higher fees for visitor cruising permits, the new AIS requirement has sparked significant pushback from casual visitors. While the government has explained that the Royal Bahamas Defence Force finds AIS extremely helpful in locating vessels under a variety of circumstances, others have expressed concern that the AIS measure may serve to deter smaller boats and drive them away from visiting The Bahamas. No doubt, these measures would tend to prevent collisions and deter shadow fleet vessels from entering the jurisdiction. The Port Authority amendments also fundamentally restructure the seabed leasing regime. Any person or entity undertaking construction or activity on or affect - ing the seabed (including jetties, wharves, marinas, moorings, pipelines and private destinations) must now obtain a formal seabed lease. Applications are subject to environmental compliance requirements and technical review, with express reference to the EPPA as a guide for the Minister’s decision-making. Seabed leases are capped at a maximum term of 25 years (subject to renewal) and are accompanied by prescribed lease rates and an annual seabed envi - ronmental levy. The legislation introduces a phased penalty structure for non-payment, authorises lease termination for breach, and restricts assignment or transfer without ministerial approval. These reforms provide greater clarity around compli - ance obligations, environmental responsibility and operational risk, while emphasising The Bahamas’ continued commitment to modern maritime govern - ance aligned with international standards. Modern Merchant Shipping Act Coming Into Force The government of The Bahamas enacted a new Mer - chant Shipping Act in 2021 (the “MSA 2021”), mod - elled on the UK Merchant Shipping Act, 1995. It is beyond the scope of this article to analyse the antici -
pated changes in detail, but suffice to say that this new piece of legislation is intended and expected to bring about a substantial modernisation of the mari - time legislation that has governed Bahamian shipping for decades, and brings The Bahamas into alignment with contemporary international maritime standards and the country’s obligations under major IMO con - ventions. The previous primary piece of shipping legislation in The Bahamas was the Merchant Shipping Act, 1976 (the “MSA 1976”); although the old legislation lent pre - dictability to those familiar with UK shipping law, and was amended over the years and supplemented with other primary and secondary legislation to try to keep pace with developments in the industry (including the many international conventions that The Bahamas became a party to), the MSA 1976 itself was mod - elled after the UK Merchant Shipping Act, 1894 – The Bahamas therefore decided to start afresh with a more modern and clear regime. Although the MSA 2021 was enacted in 2021, it was not immediately brought into force, in order to give time for all necessary complementary subsidiary leg - islation to be completed. At the time of writing, the MSA 1976 continues to apply; however, it is under - stood that the subsidiary legislation is nearing readi - ness, and the MSA 2021 is therefore expected to be brought into force in the coming weeks and months. Outlook and Market Impact Looking ahead, the convergence of enforcement- driven jurisprudence, environmental accountability and administrative reform is likely to further entrench The Bahamas’ position as a leading maritime jurisdic - tion within the Atlantic and Caribbean regions. While compliance expectations will continue to evolve, the jurisdiction’s commitment to clarity and alignment with international maritime norms is expected to remain a defining feature of its maritime offering in the year ahead.
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