European Seaport Policy

Patrick Verhoeven Port Integration Conference

Hanse Office Brussels – 24 April 2012

Summary

1. Evolution of EU ports policy

2. Transport Policy White Paper 2011

3. Essential questions ports policy review

4. Way forward

1. Evolution of EU ports policy

Signing of the Treaty establishing the European Economic Community

Rome, 25 March 1957

Timeline

1961 First call for EU ports policy (« Kapteyn report » Eur. Parliament)

1974 Foundation of the « Community Port Working Group »

1992 First Transport Policy White Paper

1993 Foundation of ESPO

1995 Communication on Short Sea Shipping

1997 Green Paper on Sea Ports and Maritime Infrastructure

2001 First « Ports Package » (rejected 2003)

Ports become part of the Trans-European Transport Networks

2004 Second « Ports Package » (rejected 2006)

2007 Communication on a European Ports Policy

A sometimes bumpy road ...

Dockers unions demonstrate in Brussels and Strasbourg against EU

plans to open market access to port services (2003-2006)

Why did Ports Package I & II fail?

• Ports Package I:

– Consultation minimalist and no preliminary impact assessment

– Focus only on proposal Directive market access to port services,

no real ‘package’ (e.g. State aid guidelines missing)

– Original proposal was ‘copy past’ airport ground handling Directive

– Labour element (self-handling) became overrated symbol of

resistance, leading to ‘unholy’ alliances against the entire Directive

– Compromise for conciliation was acceptable to most parties but

ultimate negotiation was rushed through

• Ports Package II:

– Commission introduced PPII in haste just before end of mandate

– Proposal did not respect final compromise reached on PPI

All this time ports were subject to EU law

• Case-law: – application EU Treaty rules

– decisions European Court of Justice / European Commission

– particularly with regard to competition and internal market

– often far-reaching impact on port governance

• Secondary legislation: – Directives and Regulations

– in the fields of environment, safety, security, customs, ...

– often not specifically written for ports but again far-reaching impact, e.g. for port development

• Up to 2007 no coherent EU policy framework for ports

EU Transport Commissioner Jacques Barrot opens the consultation

on a new European ports policy at the annual conference of ESPO -

Stockholm, 2 June 2006

EC Ports Policy Communication 2007

Implementation

Chapter Concrete proposals Realisation

a) Performance of ports

and connections hinterland

Review TEN-T (hinterland connections

ports)

proposals issued

2011

b) Capacity development

without harming the

environment

Guidelines application EU environment

legislation on port development

published 2011

c) Modernisation - Maritime Transport Space without Barriers

- performance indicators

pilot 2011

project 2011

d) Level playing field - guidelines State aid

- concessions

studies

horizontal

proposal 2011

e) Structured dialogue

between cities and ports

- ‘Open Ports Day’ (European Maritime Day)

- support R&D projects

annual

ongoing

f) Work in ports Social dialogue at EU level request in 2011

2. White Paper on Transport 2011

Trans-European Transport Networks

• Ports so far remained in the margins of TEN-T:

– took until 2001 before they were part of TEN-T

– identification of priorities major taboo

– very little EU support as a result

• New proposals bring ports centre-stage:

– 80 + core network ports / port clusters

– core network ports to have adequate hinterland connections by 2030

– multi-modal corridors start and end in ports

– co-funding under CEF up to 20% (hopefully up to 40%)

– approx. 300 comprehensive ports

– comprehensive ports to have adequate connections by 2050

Ports Policy Review

8 September 2011:

Commissioner Kallas confirms

review during visit Rotterdam

“We have to become harder”

• Issues:

- Administrative simplification (Blue Belt)

- Transparency of port financing

- Quality and market access port services

• Timing:

- 2012: consultation and preparation (studies)

- 2013: results

- Concrete content and form not determined yet

3. Essential questions for the

ports policy review

a) Concessions

b) Public financing and State aid

c) Technical-nautical services

d) Port labour

a) Concessions

• Question: “How can port authorities equitably allocate

port sites and how can they guarantee quality of service

and continuity of investment in a transparent manner?”

• Issues:

– Definition ‘concession’ and transparency implications

– Proportionality: should one always tender ?

– Discretionary powers port authority

– Prolongation and overall flexibility of contracts

• On-going initiatives:

– Proposal horizontal Directive (DG Markt)

European port authorities using public selection

procedures to contract out port land

32%

21%

19%

28% Always

Only for plots of land that are of strategic interest

Subject to other conditions

Never

Source: ESPO ‘Fact-Finding Report’ on Port Governance (2011)

b) Public financing and State aid

• Question: “To what extent can governments contribute

(in)directly to the financing of ports?”

• Issues:

– Long-standing request EP and port sector for State aid

guidelines delayed because of different views within Commission

– Port sector favours traditional distinction between basic

infrastructure (no State aid) and project-related infrastructure and

superstructure

– Transparency of accounts

• On-going initiatives:

– Study commissioned by EP TRAN (published 2011)

– Study commissioned by DG Competition

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Pipelines outside port area

Locks other than sea locks outside port area

Canals and navigable waterways outside port area

Tunnels and bridges outside port area

Road infrastructure outside port area

Railway infrastructure outside port area

Pipelines inside port area

Locks other than sea locks

Canals and navigable waterways inside port area

Tunnels and bridges inside port area

Road infrastructure inside port area

Railway infrastructure inside port area

Other cargo-handling equipment

Mobile cranes

Fixed cranes

Other buildings

Warehouses, sheds, …

Docks, quays, jetties, including back-up land

Land reclamation for port works

Sea locks giving access to port area

Exterior breakwaters

Radar and other electronic aids to shipping

Lighthouses, buoys, etc.

Access channels (dredging)

Port authority

Government

Private operator

Other

Combination

Not applicable

Source: ESPO ‘Fact-Finding Report’ on Port Governance (2011)

Accounting practices European port authorities

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Port authority has to provide for depreciation

Port authority has internal analytical accounting process

Port authority publishes annual accounts

Port authority accounts are audited by an external auditor

Port authority accounts are kept to international accounting standards

Port authority maintains separate accounts

Yes

No

Source;: ESPO ‘Fact-Finding Report’ on Port Governance (2011)

c) Technical-nautical services

• Question: “Under what conditions can technical-nautical

services, and especially pilotage, be run as public

service monopolies?”

• Issues:

– Qualification services of general economic interest

– Modernisation of services (e.g. shore-based pilotage)

– Mandatory use even if not required (pilot exemption certificates)

• On-going initiatives:

– Study on Pilot Exemption Certificates commissioned by DG

Move

d) Port labour

• Question: “To what extent are labour pools compatible

with Treaty principles on free movement of services

and persons?”

• Issues:

– Mandatory use of labour pools

– Restricted access to port labour profession

– Training and qualifications

– Outdated and restrictive practices

• On-going initiatives:

– Study on port labour commissioned by DG Move

– Set up of EU social dialogue

4. Way forward

• TEN-T: – Focus on EU value-added

– Transparent criteria and selection of projects

– EU governance to ensure deadlines are met

– Adequate budget essential (min 32bn)

• Ports policy review: – Legal certainty and level playing field

– Focus on the essential questions

– Avoid an all-embracing instrument

– Intelligent combination of tools (‘soft + case’)

Thank you for your attention

Patrick Verhoeven – Secretary General

European Sea Ports Organisation (ESPO) vzw / asbl

Treurenberg 6 – B-1000 Brussel / Bruxelles - Tel + 32 2 736 34 63 – Fax + 32 2 736 63 25

patrick.verhoeven@espo.be – www.espo.be – @PVerhoevenESPO