A welcomed commitment to competitiveness

European ports hold the pivotal responsibility of driving economic growth while mitigating risks in an increasingly interconnected world. Thus, understanding the dynamics of change and proactively responding to emerging trends are integral components of the enduring resilience of port operators.
European seaports which ensure Europe’s seaborne foreign trade are currently undergoing drastic transformation processes. Developments like digitalisation, energy transition, safety and security obligations require tremendous efforts from all industries located in ports.
These efforts contribute to the well-being of European citizens and to Europe as an international place for business and employment. However, to safeguard the competitiveness, resilience and the sustainability of their operations, Europe’s port operators need policies that strengthen their position, allow them to compete internationally, facilitate the necessary transformation processes and enable them to reach EU Climate targets.
It is reassuring to read in Ms von der Leyen’s political guidelines for the next Commission, as well as in the general EU-level political discourse, that the focus on sustainability is shifting away from adopting new legislation towards implementation. This needed pause is important for many industries as new legislation will have considerable impact on many industries among which those situated in EU ports.
FEPORT also welcomes Ms von der Leyen’s statement regarding the necessity to “put forward a new European action plan against drug trafficking, working with partners to close routes and business models”. Building on the work that is already initiated by the private and public stakeholders’ that are members of the European Ports Alliance is certainly the good way forward.
But as rightly mentioned by the President of the EU Commission, there is a need to support a wider EU Port Strategy focusing on competitiveness and economic independence. To remain competitive, EU ports must adapt and invest among others in energy transition and digitalisation. The needs are enormous (€80 billion for the next 10 years, up to 2034, according to the European Seaport Organization) in a context where European ports are in competition with other industries and with other ports in the world to attract investments.
Therefore, while the strategic nature of European ports as critical infrastructure is recognised, it is important that this specific status does not entail a lack of stability of the legal framework, among others regarding foreign investments.
In an era marked by unpredictable geopolitical landscapes, climate-related disruptions, shifts in trade patterns and fast technological advancements, the resilience of port operators becomes paramount in sustaining the dual use of ports i.e. efficient civil and military operations. It is crucial to secure sustainable EU financial support to the EU port sector which considers the evolution of the dual role of ports when it comes to the investment in infrastructure. We also need anticipation and closer cooperation between civil and military stakeholders to learn from each other and better identify the risks. The EU should not adopt a defensive stance but incorporate resilience into all its policies and planning. The development of guidance on which resilience measures, for instance for transport systems, should be applied when and how must become a priority as it is the best way to remain resilient and competitive.
With respect to competitiveness, FEPORT believes that in the absence of a close monitoring of the impact of EU legislation and meaningful measures of support in favour of EU industries, many companies will lose points of competitiveness vis-à-vis their non-EU counterparts.
In the port sector, private port companies and terminals located in the EU will compete with operators performing operations in non-EU ports which are not concerned by pieces of legislation such as the EU Emissions Trading System (ETS) for Maritime. The impact of this Directive on European ports has not been sufficiently assessed and will unfortunately lead to business leakage to the detriment of EU-based private port companies and terminals. The EU should intensify its diplomatic efforts to obtain the adoption of a global scheme comparable to ETS for maritime at the International Maritime Organisation (IMO). Should this not be possible in the short term, it is crucial that the EU envisages the adjustment of its legislation that harms competitiveness and exposes EU ports to the detrimental effects of carbon leakage both on businesses and employment. The competitiveness of European port stakeholders cannot be put at risk because some shipping lines reorganise their rotations to avoid calling EU ports and paying ETS allowances.
EU competitiveness can also be in danger in the absence of a real level playing field within the internal market. State Aid schemes that grant a competitive advantage to some actors and not to others while both operate in the same market should be prohibited.
Global seaborne trade is of crucial importance to the EU and its Member States. Current EU regulations have not been sufficient to address the battle for global dominance between China and the USA/EU of seaborne trade. This is particularly also true regarding the use of state-of the-art digital tools having anti-competitive features in the maritime sector. There is a serious legal vacuum. In the coming years, EU competition law and trade policy should absolutely keep up with market and technology developments as well as with geopolitical shifts affecting trade and foreign investment policies.
Source: Feport