Plan to make better use of EU’s mid-sized ports
Commission proposal will boost activity at ports.
The European Commission will today (23 May) make a proposal designed to boost activity at mid-sized ports in the European Union. The goal is to reduce the over-dependence on the three largest ports, Rotterdam, Antwerp and Hamburg, which together account for 20% of goods arriving in the EU by sea.
“We are facing major challenges in terms of congestion, traffic growth and investment,” said Siim Kallas, the European commissioner for transport. “More of our ports need to reach these high standards. More and more ships go to the best-performing ports,” he said. “Congestion builds up on the surrounding roads, and other ports are under-used.”
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The proposal, which would apply to 319 key seaports out of a total 1,200, would set rules to prevent price abuses by operators with exclusive rights, and to make sure that users receive efficient and fair treatment. Port-users advisory committees would be created. The proposal would also widen the freedom of ports to levy infrastructure charges and introduce new transparency requirements for how those charges are set.
Ground-breaking
This is the first time that the Commission has created sector-specific legislation in this area. Until now, ports have been covered by general EU law on the freedom of establishment and competition rules.
The port-upgrade proposal is part of a Commission action plan aligned to the Single Market Act II adopted last year. The Commission will shortly present an additional proposal to cut customs formalities in ports and convert these administrative procedures into a digital format.
Earler Commission attempts to regulate competition in ports have been controversial. The European Parliament has rejected earlier attempts to liberalise ports through the Port Services Directive after labour protests. British ports industry association UKMPG said it wants to see this proposal defeated by the Parliament also.
Richard Bird, UKMPG executive director, said the proposal is unnecessary because ports are already covered by EU general state aid and competition rules. He said it would also interfere with ports commercial judgement in areas such as charging and stakeholder consultation.
“We continue to support competition between ports, not, as this proposal would introduce, competition within ports,” he said.
Some 74% of goods coming from outside the EU arrive by sea, and 37% of intra-EU freight traffic uses EU ports. The Commission estimates that implementation of the new requirements would increase activity at mid-sized ports, saving the European economy up to €10 billion by 2030.
Europe’s fourth-largest port, Marseille, handles less than a quarter of the cargo volume handled by Rotterdam, Europe’s largest port. Other top-ten ports which the Commission wants to see increase activity include Algeciras in southern Spain, Le Havre in western France and Immingham in northern England.