1. European Seaport Policy
Patrick Verhoeven
Port Integration Conference
Hanse Office Brussels – 24 April 2012

2. Summary
1. Evolution of EU ports policy
2. Transport Policy White Paper 2011
3. Essential questions ports policy review
4. Way forward

3. 1. Evolution of EU ports policy
Signing of the Treaty establishing the European Economic Community
Rome, 25 March 1957

4. 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

5. A sometimes bumpy road ...
Dockers unions demonstrate in Brussels and Strasbourg against EU
plans to open market access to port services (2003-2006)

7. 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

8. 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

9. EC Ports Policy Communication 2007
EU Transport Commissioner Jacques Barrot opens the consultation
on a new European ports policy at the annual conference of ESPO -
Stockholm, 2 June 2006

10. Implementation
Chapter Concrete proposals Realisation
a) Performance of ports Review TEN-T (hinterland connections proposals issued
and connections hinterland ports) 2011
b) Capacity development Guidelines application EU environment published 2011
without harming the legislation on port development
environment
c) Modernisation - Maritime Transport Space without Barriers pilot 2011
- performance indicators project 2011
d) Level playing field - guidelines State aid studies
- concessions horizontal
proposal 2011
e) Structured dialogue - ‘Open Ports Day’ (European Maritime Day) annual
between cities and ports - support R&D projects ongoing
f) Work in ports Social dialogue at EU level request in 2011

11. 2. White Paper on Transport 2011

12. 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

15. 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

16. 3. Essential questions for the
ports policy review
a) Concessions
b) Public financing and State aid
c) Technical-nautical services
d) Port labour

17. 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)

18. European port authorities using public selection
procedures to contract out port land
28%
32% Always
Only for plots of land that are of
strategic interest
Subject to other conditions
Never
19%
21%
Source: ESPO ‘Fact-Finding Report’ on Port Governance (2011)

19. 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

20. Access channels (dredging)
Lighthouses, buoys, etc.
Radar and other electronic aids to shipping
Exterior breakwaters
Sea locks giving access to port area
Land reclamation for port works
Docks, quays, jetties, including back-up land
Warehouses, sheds, …
Other buildings
Fixed cranes
Port authority
Mobile cranes
Government
Other cargo-handling equipment
Private operator
Railway infrastructure inside port area
Other
Road infrastructure inside port area
Combination
Tunnels and bridges inside port area Not applicable
Canals and navigable waterways inside port area
Locks other than sea locks
Pipelines inside port area
Railway infrastructure outside port area
Road infrastructure outside port area
Tunnels and bridges outside port area
Canals and navigable waterways outside port area
Locks other than sea locks outside port area
Pipelines outside port area
Source: ESPO ‘Fact-Finding Report’ on Port Governance (2011) 30%
0% 10% 20% 40% 50% 60% 70% 80% 90% 100%

21. Accounting practices European port authorities
Port authority maintains separate accounts
Port authority accounts are kept to international
accounting standards
Port authority accounts are audited by an
external auditor
Yes
Port authority publishes annual accounts No
Port authority has internal analytical accounting
process
Port authority has to provide for depreciation
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%
Source;: ESPO ‘Fact-Finding Report’ on Port Governance (2011)

22. 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

23. 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

24. 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’)

25. 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