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European Ports Policy

On 23 May 2013, the European Commission published the long-awaited Ports Package III. This follows two previous attempts by the Commission to liberalise port services that were both rejected by the European Parliament due to immense political pressure against the package, in particular by the Unions and various European coastal regions. This package includes a communiqué, "Ports: an engine for growth," and a proposal for a regulation on "Establishing a framework on market access to ports services and financial transparency of ports".

Significantly, this package does not include provisions on the adequacy of port reception facilities and does not provide the freedom to provide port services as far as cargo handling and passenger services are concerned. Port reception facilities will therefore still be addressed in a review of the PRF Directive in 2013/2014.

The communiqué and accompanying regulations set out eight key actions, aimed at promoting the efficiency of ports, which can be grouped into the following categories:
- Better access to funding through the efficient use of EU funding instruments;
- Trans European Transport Networks (TEN-T);
- Connecting Europe Facility (CEF), and
- Structural and Cohesion Funds.

In the context of the general modernisation of State aid rules, the Commission will clarify the rules applicable to port infrastructure financing by the end of 2013.

Liberalisation of port services:

- The freedom to provide services will be applicable to port services, defined as bunkering, cargo handling, dredging, mooring, port reception facilities, pilotage and towage;
- Chapter II of the regulation, concerning market access, will not apply to cargo handling and passenger services. This will be covered by the incoming Directive on the award of concession contracts (which will apply horizontally to all sectors and is due for adoption this year);
- The regulation establishes minimum requirements for the provision of port services and a procedure to ensure compliance with these standards;
- A liberalisation derogation is provided by allowing ports to limit the number of service providers if there is a "scarcity or reserved use of land", or if the port fulfils a public service obligation. In cases such as these, the port may be permitted to provide port services or delegate this task to a body under its direct control;
- Financial transparency and autonomy: The Commission introduces strict transparency requirements for the designation of port services and port infrastructure charges. This includes the possibility to allocate charges which encourage environmentally-friendly operations;
- Consultation of port users: Ports shall ensure the consultation of port users in a committee of representatives. In addition, it shall regularly consult stakeholders concerning efficient operations of the port. Member States shall administer independent supervision of port authorities to ensure appropriate application of their regulation. Port operators may be penalised in case of non-compliance;
- Workers and social dialogue: The Commission wants to promote social dialogue by providing administrative support to a port sector - Social Dialogue Committee, which will be created following a demand by the social partners of the port sector. Health, safety and training will be addressed by a concerted action project under the EU's 7th Research Framework Programme

The file will now enter the Ordinary Legislative Procedure which involves the European Parliament and the Council. While the provision of cargo handling and passenger services has been deferred to the negotiations surrounding the Directive on award of concession contracts, a lively debate may still be expected.

It is uncertain whether the file will be adopted during the current term of the European Parliament ending in spring 2014.