An official from the Shanghai Maritime Safety Administration hands over registration certificates to the owners of the vessel Xin Lian Yun Gang on May 17. [Photo/xinmin.cn]

In a significant development, the Shanghai Maritime Safety Administration on May 17 handed over a slew of key documents – the ownership registration certificate, bareboat charter registration certificate, minimum safe manning certificate and other certificates – to the owners of the vessel Xin Lian Yun Gang.

Local media reported they were handed over at Yangshan Port in the Lin-gang Special Area of the China (Shanghai) Pilot Free Trade Zone, located in the city of Shanghai in East China.

The significance is that it was the first of the 48 Chinese ships belonging to COSCO Shipping that have signed to transfer over their registry port to Yangshan Port this year, in response to the progressive and attractive policies of Lin-gang.

It is understood that these have created competitive advantages for the ship registration system of the city's maritime department over other ports in China and elsewhere in the world.

It is common practice in the commercial shipping world for vessels to be registered in different ports in different countries to where they were built, or their owners are based – to take advantage of the best, most convenient, or cheapest services on offer.

According to the maritime safety bureau of Yangshan Port, the port has rolled out a series of innovative polices since the launch of its international shipping registration operations. The policies include streamlined registration procedures, value-added tax rebates and incentive awards.

To top it off, the Shanghai Maritime Safety Administration recently drafted the Regulations on the Administration of International Ship Registration in the Lin-gang Special Area of the China (Shanghai) Pilot Free Trade Zone.

This effectively lowered the bar for international ships registering in Lin-gang.

Under the new regulations, ships that meet the requirements can apply for international ship registration in Lin-gang, without the current restriction that the investment amount of Chinese investors shall not be less than 50 percent.