Legislative Amendments in the Maritime Trade and Ship Registration Laws

Introduction

As part of Egypt’s efforts to enhance the maritime sector and update legal frameworks to align with international standards, three primary laws have been issued addressing significant amendments to the existing laws regulating ship registration and maritime safety. These laws are Law No. 2 of 2025 amending certain provisions of Law No. 232 of 1989 regarding ship safety, Law No. 3 of 2025 amending certain provisions of the Maritime Trade Law issued by Law No. 8 of 1990, and Law No. 4 of 2025 amending certain provisions of Law No. 84 of 1949 regarding the registration of commercial ships.

Key Amendments to the Legislations:

First: Law No. 2 of 2025

This law was issued to update the provisions related to ship safety by amending certain provisions of Law No. 232 of 1989. The legislative amendments include:

1. Change in Responsible Entities Designation The term “Minister of Maritime Transport” was replaced with “Minister responsible for transport affairs” in all instances of Law No. 232 of 1989 and any other relevant laws. This amendment aims to broaden the scope of responsibility and specialization in the management of the maritime transport sector.
2. Conditions for Raising the Egyptian Flag on New Ships The amendments stipulate that the designs and specifications of newly built ships and maritime units must be approved by the competent authority, and the construction must be supervised by this authority or an authorized delegate.
3. Conditions for Raising the Egyptian Flag on Ships Registered in Foreign Countries The new amendment also specifies the conditions for raising the Egyptian flag on ships registered in foreign countries, stipulating that the ship’s age must not exceed twenty-five years, and for passenger ships, the age must not exceed twenty years. The ship’s age is calculated from the date of construction as stated in the permanent registration certificate.
4. Conditions for Purchasing or Leasing Foreign Ships The amendment also requires that before purchasing or leasing foreign ships for registration in Egypt, the designs and documents related to the ship must be submitted to the competent authority for inspection and assessment at the expense of the concerned party. This assessment is to determine the suitability of the ship for the intended purpose of purchase or lease.
5. Exemptions The new amendment exempts state-owned ships and maritime units designated for non-commercial purposes from the age requirement specified in the amendments.

Second: Law No. 3 of 2025

This law addresses the amendment of certain provisions of the Maritime Trade Law issued by Law No. 8 of 1990, aiming to improve the legal environment for maritime trade. The legislative amendments include:

1. Acquiring Egyptian Nationality for Ships Article 5 of the law was amended to include conditions under which a ship can acquire Egyptian nationality. The new amendment outlines the following conditions:
   • If the ship is owned by a natural or legal person holding Egyptian nationality.
   • If the unequipped foreign ship is leased to a natural or legal person holding Egyptian nationality for a period not less than two years.
   • If the unequipped foreign ship is leased for financing to a natural or legal person holding Egyptian nationality for the duration of the lease. In all cases, if the ship is owned in common or has multiple lessees, it is required that the majority of shares owned or leased are held by Egyptians.
   • Without prejudice to the ownership rights of the unequipped foreign ship, the Egyptian lessee under paragraphs (2 and 3) of the first clause of this article assumes the responsibilities of the shipowner.
   • The registration of the unequipped leased Egyptian ship for the purpose of registering it under a foreign flag can be suspended for the duration of the lease.
2. Transactions Related to Ownership and Real Rights The new amendment also nullifies all transactions aiming to create, transfer, or terminate ownership rights or other real rights on the ship unless done by an official document. The fees for notarizing these transactions are set at one pound per ton of the ship’s gross registered tonnage, with a minimum of one thousand pounds and a maximum equal to five percent of the ship’s gross registered tonnage. These fees are collected by non-cash means according to the law.

Third: Law No. 4 of 2025

This law aims to update the Law of Registration of Commercial Ships issued by Law No. 84 of 1949 to ensure its compatibility with modern developments in the maritime sector. The new amendments include:

1. Updating Designations of Responsible Entities The terms “Ports and Lighthouses Authority” are replaced by “Egyptian Authority for Maritime Safety,” the term “Minister of Transport” is replaced with “Minister responsible for transport affairs,” and the term “General Directorate of Maritime Inspection at the Ports and Lighthouses Authority” is replaced by “Central Administration for Flag State Control at the Egyptian Authority for Maritime Safety.”
2. Procedures for the Loss or Transfer of Ship Ownership The amendments to Article 14 require the owner, outfitter, or captain to immediately notify the Egyptian Authority for Maritime Safety or the registration office in the event of the ship sinking, burning, breaking, or transferring its ownership to a foreigner. The ship’s registration is canceled in these cases.
3. Penalties The new amendment includes various penalties ranging from imprisonment to fines as follows:
   • Imprisonment for not less than three months and a fine between one hundred thousand and one million pounds, or either penalty, for anyone sailing an unregistered ship under the Egyptian flag, with the possibility of confiscating the ship.
   • Imprisonment for not more than one year and a fine between fifty thousand and five hundred thousand pounds for anyone sailing a ship based on a voided certificate.
   • Imprisonment for not more than one year and a fine between fifty thousand and five hundred thousand pounds for any owner, outfitter, or captain who conceals, defaces, or erases any of the data specified in Article 8 of the law, unless to avoid enemy capture.
   • A fine between twenty thousand and two hundred thousand pounds for any owner, outfitter, or captain who neglects the maintenance of the data specified in Article 8 of the law.
   • A fine between fifty thousand and five hundred thousand pounds for anyone holding a ship registration certificate and refusing to deliver it to the rightful user.
4. Additional Articles The new amendment adds two new articles, Article 6 bis and Article 6 bis 1, including:
   • Article 6 bis: It requires the lessee of an unequipped foreign ship or an unequipped foreign ship leased for financing, who wishes to register it in one of the ports to raise the Egyptian flag on it throughout the lease period, to submit a request to the Egyptian Authority for Maritime Safety with specific data and accompanying documents.
   • Article 6 bis 1: It requires the owner of an unequipped Egyptian ship who wishes to lease it for a period not less than two years and suspend its registration under the Egyptian flag for the purpose of registering it under a foreign flag, to submit a request with specific data and accompanying documents to the Egyptian Authority for Maritime Safety.

Conclusion

These amendments come within the framework of Egypt’s efforts to enhance the maritime sector and ensure the safety and rights of all concerned parties. These changes are expected to improve the quality of maritime services, increase efficiency in ship registration and maritime trade operations, and reinforce Egypt’s status as a regional and international maritime hub.