EU Proposed Directive on Market Access to Port Services - Proposed Amendments to the Directive

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24th August 2001

Introduction

The European Shippers' Council has welcomed publication of theCommission's draft directive on market access to port services. We believe that the directive has the potential to bring about a major improvement in the quality of services that are offered by European ports, and that improvement will manifest itself in increased opportunities for European industry and increased business for the ports and port service companies.

Cargo Handling

For European industry, the efficiency with which ports can handle cargoes is of paramount importance. With the development of just in time and similar distribution techniques, the reliability and performance of ports is of critical importance to the future prosperity of European industry.

We believe that the Directive offers a unique opportunity for European ports to improve the quality of their services, and the services that they provide to both exporters and shipping lines. We believe that the inclusion of cargo handling services in the Directive is critical to the success of the Directive, the future competitiveness of European exporters and the success of the ports themselves. We therefore believe that is fundamental for port services to be retained within the Directive.

We also believe that a number of amendments are required to the draft directive if the full benefits of it are to be realised. They are outlined below:-

Article 2 - Scope

Paragraph 2 - To read "This Directive applies to any sea port or port system located in the territory of a Member State, including access to and from the sea and/or inland waterway"

Explanation :- This amendment extends the requirements of the Directive to cover inland waterways and ports. It also removes the minimum threshold requirement, thereby applying the Directive to all ports, regardless of size.

Article 7 - Limitations

To read "…allow the highest number of service providers possible under the circumstances. The port should seek to facilitate competition wherever possible, and where competition is constrained due to space or capacity constraints, then a tendering process should be used to select which company would be selected to provide the service.

Explanation : - This amendment removes the requirement for at least 2 competing service providers with a requirement for ports to facilitate competition. If a port is not able to allow all the companies which wish to offer a service to do so, the amendment requires the port to use a competitive tendering process to select which provider(s) are able to offer services.

Article 9 - Duration

To read "If there is more than one applicant, providers of port services shall be selected for a limited period of time following a competitive, open and fair tendering process. The provider that is selected should be authorised to operate the services for a period sufficient to allow him to achieve a suitable return on the investment that it has committed to the project.'

When a new service provider is selected, he shall compensate his predecessors at the current market rate for the value of equipment that he inherits

Explanation : - This amendment ensures that companies that choose to invest in equipment are able to obtain an appropriate return on their investment, while ensuring that successor companies are unable to gain access to newly acquired infrastructure and equipment without making suitable recompense to the original investor.

For further information contact: Nicolette van der Jagt, Secretary General of the ESC - Brussels 00 322 230 2113

News Source : EU Proposed Directive on Market Access to Port Services - Proposed Amendments to the Directive