Dimitrios Theologitis April 2014 European Commission DG MOVE Unit "Ports & Inland Navigation"

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1 Dimitrios Theologitis April 2014 European Commission DG MOVE Unit "Ports & Inland Navigation" Transport

2 A competitive and resourceefficient port system Preparing the European Transport Area for the future Dimitrios Theologitis Head of Unit European Mobility Network: Ports & Inland Navigation 04/11/2011

3 Summary 1. Ports in the EU transport system today 2. Prospects for European ports Scope for action at EU level - Single European Transport Area 3

4 1. Ports in the EU transport system today 4

5 Key figures (1).1 continent, 5 maritime façades, ± 1200 commercial ports.eu seaborne foreign trade : 1 118,2 billion (2009).Ports handle up to 90% of the EU external trade in tkm, 73% in tonnes:» Total EU exports by sea: 440 million (tonnes, 2010)» Total EU imports by sea: 1,180 million (tonnes, 2010).Ports enable 40% of EU internal market trade (intra-eu freight exchanges, in volume).container traffic at major EU ports: >50 million TEUs per year (and growing ) 5

6 Key figures (2). Merchant Ship calls in EU ports: > per year Passengers in EU ports: > per year. Number of enterprises in EU ports: >9 000 (maritime + non maritime,. logistics, steel, marine equipment, petrochemical, cars, etc.) Jobs, direct + indirect for the EU economy: ± Contribution GNP of Member States: between 1% 3,3 %.Industrial Clusters around ports + multiplicative effects in other economic sectors to be added 6

7 2. Prospects for European ports

8 Shifts in global economy:» Globalisation 3.0 : new role for emerging economies» Cargo shipments via European ports to increase» Growing demand for EU products in emerging markets» Maritime transport key for competitiveness of EU industry» Foreign investors will want more presence in EU ports 8

9 Shifts in EU economy:» Industrial production in Europe set to change, shift to services and high added-value products» Strengthening of the internal market: exchanges» Public funding constrains (= prioritisation!)» Necessity to attract private investors» A Single Transport Area favouring the competitive advantage of ports 9

10 Transformation of shipping logistics:» Ultra-large ships for inter-continental trades» Bigger and more sophisticated ships for intra-eu exchanges» Consolidation of Mega-ports and reinforcement of maritime connections within the EU, hub-and-spoke systems» Information technologies and smarter IT apps linking carriers, ports, shippers and customers 10

11 New Environmental and Energy requirements» Environmental issues to become both a constraint and a (strong) competitive advantage» Market preference for «greener» logistics also for «greener, environmental friendly port operations»» Energy efficiency a necessity (for shipping and ports): new infrastructures, adaptation to new technologies 11

12 What do ports represent for the EU? Ports are key for implementing a Single European Transport Area» Key entry and exit points of the TEN-T - By 2030, all ports included in the TEN-T core and comprehensive networks have to be able to cope with the expected growth in demand and contribute to the sustainable development of the EU Transport System as a whole» All ports North and South, East and West are needed for fostering the benefits of the Internal Market as facilitators of the intra-eu exchanges» However, while some European ports are at the forefront of changes in global logistics, there are important gaps in European port system as a whole 12

13 Growth prospects? In a conservative scenario, overall volumes handled in EU27 ports could reach 5.3 billion tonnes before This means that ports have to be able to handle 1.6 billion tonnes more than today (Optimar Study IHS Fairplay, 2010) Container throughput is growing fastest. Coal throughput will also grow considerably until In addition, LNG, mineral oil products, biomass and steel are growth markets. Crude oil and iron ore remain stable at their best (Port Vision 2030 Port of Rotterdam, 2011) 13

14 Why is this an EU issue?» Lack of clear rules and transparency governing market access to port services and concessions at EU level» Unsatisfactory legal framework in relation to social protection of workers (training, health and safety, stability of workforce)» Absence of minimum quality requirements for port service providers, difficulty to monitor and measure performance of port services» Need for a level playing field and stability for investors and operators enabling the expansion of the port sector 14

15 3. Scope for action at EU level 15

16 A three pillar approach Five years after the 2007 Communication COM(2007) October on Port Policy Action at three different levels could be envisaged to efficiently tackle the issues identified in the port sector : I. Adequate connectivity and operations of ports in the TEN-T II. Simplification and reduction of administrative burden in ports III. Transparency and Market access to ports 16

17 I. The TEN-T Policy Review. Documents adopted on 19 October 2011» Proposal for a regulation of the European Parliament and of the Council on Union guidelines for the development of the trans- European transport network» Connecting Europe Facility 17

18 Seaports & IWW Europe 27

19 Connecting Europe Facility. Covers Transport, Energy and Telecom networks. 50bn between Of which 32bn for transport. List of indicative projects 28

20 II. Administrative Facilitation. Common European Market Space without Barriers. Ongoing activity since 2009 Actions in» Customs simplification for intra-eu traffic» Phytosanitary and veterinary controls» Electronic transmission of documents 29

21 Electronic transmission of documents Reporting formalities directive (2010/65/EU). e-maritime Blue Belt» Tracking and tracing of vessels to make sure they are in intra-eu transport. Blue Lanes» Administrative procedures in ports to facilitate Blue Belt ships 30

22 III. Transparency and Market Access. Principles» Transparency» Non-discrimination» Proportionality of obligations to operators» Market prices» Fair charging for services 31

23 Transparency. State aid. Separation of accounts between public authority and commercial activities. Principles of port charging 32

24 Concessions. The Commission horizontal initiative to cover» Principles» Transparency of public tendering» Deadlines» Selection process.is not expected to cover sectoral issues, here:» Duration» Investment during concession period» Prolongation» Transfer of assets» Workforce issues 33

25 Port services Technical-Nautical services Pilotage Mooring Towage Dredging Environmental services, e.g. waste treatment Passenger services 34

26 Port labour. Need for a strong and highly specialised labour force to tackle the expected growth and change of job profiles. Need to attract young professionals Opening of the market?. Detailed training and qualification profiles (ILO standards) Health and safety considerations. Social standards! 35

27 A consultation process Full impact assessment: studies, research, evidence gathering Bilateral discussions with each Transport / National Port Authority in the Member States Dialogue with main European organisations (workers, port authorities, operators, providers and users of port services) A conference on the future of EU ports (2012): presentation of conclusions and way forward Not possible to prejudge the outcome at this stage, either as to the extent or as the form of any proposals (2013) 36

28 In any case, the generic Treaty rules and general EU legislation apply to ports. Competition rules (anti-trust, state aid), Public Procurement rules, Social Legislation, Health and safety requirements fully apply to ports. 37

29 Thank you for your attention DG MOVE.B.3 Ports and Inland Navigation (2011) 38

30 Transparency and Regulated Market Access (1) Transparency: State-Aid Guidelines (DG COMP) Accounting Principles of port charging Concessions (DG MARKT December 2011) Horizontal issues (scope, ) Sector-specific (duration, renewal, investments, incumbents, transfer of assets and personnel)

31 Transparency and Regulated Market Access (2) Port Services Pilotage Towage Mooring Dredging Icebreaking Environmental and Waste Services Passenger services

32 Transparency and Regulated Market Access (3) Principles (4+1) +1: Safety & Security Training & Qualification Public Service Market Access Pricing Cost Efficiency Concertation! Proportional Non-discriminatory

33 Transparency and Regulated Market Access (4) Port Labour Open access to the profession Training and qualifications Issues Need for a strong and highly specialised labour force to tackle the expected growth and change of job profiles Need to attract young professionals Opening of the market Detailed training and qualification profiles (ILO standards) Safety considerations Social standards avoiding social dumping Social dialogue Dialogue between employers and employees

34 Dimitrios Theologitis April 2014 European Commission DG MOVE Unit "Ports & Inland Navigation"

35 Ports Policy Review Why now? Part of the EU growth strategy and the Structural Reforms that the EU is promoting Need to improve performance of ports recognized in the "Single Market Act II" endorsed by Head of States and of Government (European Council) Adoption of TEN-T/CEF Regulations and the Concession Directive Transport

36 Broad policy context EU growth strategy and "Single Market Act II" Adoption of the TEN-T/CEF Regulations Adoption of the Concession Directive Transport

37 Transport

38 Transport

39 Transport

40 August 2013 "The world s biggest container ship Mærsk Mc- Kinney Møller (18,000 TEU capacity) entered the Baltic Sea on its maiden voyage" Transport

41 Ports Policy Review A mix of non-legislative and legislative measures A Policy Communication, explaining the overall strategy proposed by the Commission and the non-legislative measures A legislative proposal for establishing a framework covering TEN-T ports and a small number of essential issues Transport

42 The Communication: main actions Integrate ports in the TEN-T corridors through CEF: developing ports, hinterland connections and Motorways of the Sea Modernise state aid rules Simplify formalities for intra-eu shipping ("Blue Belt") Promote an EU social dialogue between port employees and employers Transport

43 The Communication: but also Raise the environmental profile of ports Encourage innovation in ports: develop a research agenda in Horizon 2020 Monitor progress: FP7 Portopia project Modernise port services Attract investment Proposed Regulation Transport

44 Long consultation process - Discussion started in Two specific surveys in Hearing in January Regular dialogue with the sector - Annual discussions with the port Directors Transport

45 The proposed Regulation Modernise port services Legal certainty Attract investment Level playing field Transport

46 The proposed Regulation Key measures: Clearer and easier access to the market Financial transparency and autonomy of ports General provisions "Customer friendly" orientation Transport

47 Scope All 329 TEN-T ports Core Comprehensive 8 port services covered Bunkering Cargo handling Dredging Mooring Passenger services Port reception facilities Pilotage Towage Transport

48 A) Market Access (I) "Toolbox approach": 1) Freedom to provide service 2) Minimum requirements 3) Public service obligations 4) Limitation of the number of providers 5) Internal operator Transport

49 A) Market Access (II) important changes from the 2001 and 2004 "Port Packages": Not a unique model Cargo handling and passenger services not covered Self-handling left to subsidiarity Port labour regimes not addressed Transport

50 B) Financial transparency and autonomy in the use of public funds 1) Transparency requirements 2) Separation of accounts (and compensation for public service obligations) 3) Transparent and non-discriminatory port service charges when exclusive rights 4) Autonomy of port managing bodies to set port infrastructure charges 5) Obligation to inform users about tariffs of port infrastructure charges Transport

51 C) General provisions 1) Consultation of the users paying port charges 2) Consultation of other port stakeholders 3) Independent authority handling complaints to be designated (can be an existing body) 4) Cross-border exchange of information between independent supervisory bodies when needed Transport

52 Why a regulation and not a directive or recommendations? 1) Non-binding measures have not worked 2) A regulation provides higher legal certainty for all port stakeholders 3) A regulation provides a level playing field, avoiding differences of interpretation 4) No transposition and notification to the Commission needed Transport

53 The regulation respects diversity it is not a "one size fits all" approach The proposal is compatible with different models of ports governance and of organisation of public services in ports The chapter on market access provides a toolbox in which Member States and Port Authorities can choose according to particular local needs Transport

54 Expected results (The Commission-speak ) Large benefits: 10 billion in savings /more business in ports until 2030, increased port investments, facilitate short-sea shipping, reduce congestion and create jobs Support at EU level to a long-term growing economic sector, by a comprehensive set of actions from TEN-T to the Social Dialogue A fair level playing field, providing legal certainty and contributing to optimal allocation of public resources in ports. Transport

55 COM is ready to consider the concerns of all interested parties, but Need to act today to ensure the sustainable growth of the port sector tomorrow! Need to ensure that all TEN-T ports work efficiently for achieving a truly EU network making full use of short sea shipping and maritime logistics! Ports to become catalysts of economic growth in all European regions Transport

56 Denmark s position No major incompatibilities with new DK ports law Market access well-defined Transparency already established Administrative burden for small ports? Accounting Consultation Transport

57 Where are we now? (1) The European Parliament Designated rapporteur Amendments (540 = ) Compromise amendments (40) Then No vote (TRAN nor Plenary) Pause for elections Letter to Council and Commission Promise to continue! Transport

58 Where are we now? (2) The Council (GR Presidency) Discussed Impact Assessment in Shipping Working Party (Nov 2013) Discusses Articles in SWP (2014) Progress Report in 5 June Council Continuation in Italian Presidency Then LV, LU, NL Transport

59 Where are we now? (3) New Commission Will pursue probably! Informal discussions with EP Council Differences between Institutions manageable 1 st reading agreement? Early 2015 conclusion? Transport

60 Thank you for your attention! Transport