UK operators criticise bid to open up ports

Date: 28/09/00

THE UK's largest ports are urging the Commission to scale back plans to introduce competition in a number of different shipping services.

Transport chief Loyola de Palacio is working on a proposal which would open up access to the market for cargo handling, storage and other port services in an effort to make the sector more efficient and transparent.

Commission officials argue that while the quality of service is improving and prices are gradually decreasing, some port operators enjoy an unfair advantage over competitors.

"Establishing clear rules is in the ports' interest. The rules must ensure that any conditions for service providers...are clear, non-discriminatory, proportional and relevant," said the Spanish Commissioner in a recent speech in which she promised to deliver her reform plan before the end of this year.

The proposal is expected to cover port operators' public service obligations and the licensing of private firms which are seeking a stronger foothold in a market previously run by governments.

But De Palacio has already run into opposition from the UK, where ports are for the most part privatised and operators have had to raise funds for new cargo facilities and other services on the capital markets.

"Private ports have had to finance investments in building up their cargo facilities," said John Dempster, director of the UK Major Ports Group. "They are concerned that they will be forced to hand over facilities to newcomers, which they fear would be unfair and unreasonable for shareholders."

Europe's shipowners disagree, and claim the port operators' fears are unfounded. Alfons Guinier, secretary-general of the European Community Ship-owners Association, said the Commission's proposals would "improve the competitive system of shipping and ports in the overall supply chain".

The UK's largest ports are urging the Commission to scale back plans to introduce competition in a number of different shipping services. Transport chief Loyola de Palacio is working on a proposal which would open up access to the market for cargo handling, storage and other port services in an effort to make the sector more efficient and transparent.