Competition measures anger southern ports

Date: 09/04/1998

By Chris Johnstone

TRANSPORT Commissioner Neil Kinnock's plans to subject Europe's ports to closer competition scrutiny are opening up a north-south rift within the sector.

Kinnock's Green Paper calls for port charges to be related to costs, subsidies to be properly scrutinised for the first time and services to be opened up to competition. It also argues that all new port projects should be made to pay their way.

"The current diverse arrangements for port financing and charging involve a number of distortions to competition," states the document.

These suggestions have, however, raised suspicions in large southern ports such as Marseilles, Genoa and Barcelona that their northern rivals are trying to dictate the European Commission's agenda.

Europe's southern ports have been struggling to maintain their volume of business over recent years, while cargo traffic in the main northern ports has surged. The southerners fear that any Commission proposals which follow the Green Paper will consolidate the advantages enjoyed by their more modern rivals such as Rotterdam, Antwerp and Hamburg.

In response, the southern ports have joined forces to attack what, according to the president of the port of Marseilles Henry Roux-Alezais, appears to be a selective use of "Anglo-Saxon" competition principles.

The French association of autonomous ports (UPACCIM) admits that the Green Paper contains many positive ideas but claims its proposals smack of an over-hasty analysis and ideological approach. It adds that stricter Commission rules could work in favour of already developed ports and against regional harbours.

The European Sea Ports Organisation ESPO, representing Europe's biggest ports, has welcomed Kinnock's initiative but is concerned about opening the door to over-regulation.

Until now, local, regional and national governments have been given an almost free hand to spend money on new port infrastructure and charge what they liked for its use and for related services.

However, a rising number of complaints from shipping lines about 'sweetheart' deals between rival companies and ports, and protests from ports themselves about subsidies to others, have forced the Commission to take a hard look at the sector. The new, tougher approach was demonstrated this week by a decision to launch an investigation into suspected French government aid to Brittany Ferries.

The probe will examine whether cuts in port charges were structured in such a way as to favour the struggling ferry company.