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Facolt di economia e commercio

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Title: Facolt di economia e commercio


1
European Port Policy Port competition Financing
and charging for port infrastructure Port
services
Relatore Giovanni Vezzoso Università di Genova 6
maggio 2004
2
SPEECH BREAK DOWN
Basic information on the process of European
integration The diversity of European
Ports The various steps towards an European
Port Policy Controversial topics and conclusions
3
BASIC INFORMATION ON EU
1995 15 member States ( A, FIN. S) 1997
Amsterdam Treaty 2001 Euro (except UK and
DK) 2001 Nice Treaty 2003 (July 10th) Proposal
of European Constitution 2004 (May) 25 member
States (CZ, EST, CY., LV, LT, H, M, PL, SLO, SK)
1951 ECCS 1957 Treaty of Rome (F, D, I, Nl, B,
L) 1973 Nine member States ( UK, IRL,
DK) Direct election to the European
Parliament 1980 Ten member States (GR) 1982 12
member states ( E, P) 1993 Maastricht Treaty
4
BASIC INFORMATION ON EU
The third pillars of the Europa Union
European Community Cooperation in the field of
foreign and security policy Cooperation in the
field of justice and home affairs The general
guidelines of the political cooperation are
developed by the European Council which bring
together the Heads of State or of Government of
the Member States and the President of the
Commission.
5
BASIC INFORMATION ON EU
THE INSTITUTIONAL SET UP OF EC
COURT OF JUSTICE
COMMISSION
COUNCIL OF MINISTERS
PARLIAMENT
NATIONAL GOVERNMENTS
PEOPLE
6
BASIC INFORMATION ON EU
The provisions of EC
The Council and the Commission shall
make Regulations, that have general
application they are directly applicable Direc
tives, that shall be binding, being reserved to
the national authorities the choice of form and
methods for their implementation Decisions,
that shall be binding in its entirety upon those
to whom it is addressed.
7
THE DIVERSITY OF EUROPEAN PORTS
The double soul of ports Public soul, as they
are infrastructure of general interest and
perform functions that provide services which
have a collective character Commercial soul,
cargo handling and all related activities which
should be carried out in the perspective of an
economic return. According the cultural and
juridical traditions of the different countries,
the two perspective reached a diversified
balance. Hence the wide variety of the
institutional set up of the European ports and of
the related Port Management Philosophy.
8
THE DIVERSITY OF EUROPEAN PORTS
Inadequacy of a classification based on strictly
juridical features, as well as the current
distinction among Land Port Tool
Port Operating Port Attention must be focused
on the different management philosophy, that is
the dividing line between public and private
sector and the roles assigned respectively to the
Port Authorities and to the private enterprises.
9
THE DIVERSITY OF EUROPEAN PORTS
Three basic models of port management
Comprehensive Port Authority Landlord
Port Authority Company Port
10
THE DIVERSITY OF EUROPEAN PORTS
Three basic models of port management
The Comprehensive Port authority All port
activities are considered collective
interest Strict control over various services
and activities carried out in the
port Extensive responsibility of Port
Authority This public oriented model seems to be
dying out
11
THE DIVERSITY OF EUROPEAN PORTS
Three basic models of port management
The Landlord Port Authority The management body
of port is concentrated on territorial
development and planning Traffic management
regarded as entrepreneurial activity to be
freely carried out by private undertakings This
model, characteristic of the chief Northern
European Ports, is spreading to the Mediterranean
ports. A new trend towards ever integration of
ports into the logistical system is under way?
12
THE DIVERSITY OF EUROPEAN PORTS
Three basic models of port management
The company port The management of port and
port services is entrusted to a
private company. This company owns the port
and its infrastructure and has the full
responsibility for investments in port
infrastructure This model is characteristic of
the privatised British ports
13
STEPS TOWARD A COMMON PORT POLICY
The Treaty of Rome stated the objective of
establishing a Common Transport Policy (art. 3)
but left quite vague the form of this policy
(art. 70 80). Seaports were not considered.
Art. 80 provided that The council may, acting
unanimously, decide whether, to what extent, and
by what procedure, appropriate provisions may be
laid down for sea and air transport. Until the
1980s the Commission adopted the view that there
are not reasons justifying the development of
specific policy regarding seaports.
14
TOWARDS A COMMON PORT POLICY
1985 the Commission acknowledges the importance
of ports as vital link between seaside and
landside transport modes - Directive on
Transparency is extended to ports (further
modification in 1990) 1993 Study MARCONSULT for
the European Parliament on Seaport Policy 1996
the Decision 1692 on the TEN-T recognises the
importance of sea ports, but doesnt specify the
criterion for inclusion of seaports in the TEN
outlines 1997 Green paper on ports and maritime
infrastructure 1998 White paper on fair payment
for infrastructure use 2001 De Palacio paper on
reinforcing quality service in sea port
amendment of Decision 1996/1692 Proposal of
Directive on Market Access to Port Services 2003
the European Parliament dismisses the Directive
above.
15
TOWARDS A COMMON PORT POLICY
The role of the judiciary Even in absence of a
specific legislation, the general principle of
the Treaty have to be applied. Therefore,
various cases where subjected of judgments by
Court of Justice or of decision by the
Commission The undertaken judgements and
decisions are relevant for the construction of an
European Port Policy. The question arises if they
can be sufficient to regulate the whole subject.
16
TOWARDS A COMMON PORT POLICY
1993 The proposals to the European Parliament
Guidelines and actions referred to Basic
Principle A
Guidelines and actions referred to Basic
Principle B
ACTIONS
Transparency of accounting, costs and prices
Development and Rationalization of infra-
superstructure
Control of subsidization towards seaports
GUIDELINES
Introduction of market principies into port
capacity planning
Infrastructural investments based on market
principies
Orienting investments in a non compulsory way
Defining an infra- and superstructure policy
Availability and modernization of Ports capacity
BASIC PRINCIPLES
Integration in the common transport policy
Free and fair competition
Applying the rules on free and fair competition
Adopting a systematic approach towards seaports
Establishing uniform standards for environmetal
protection
Criteria for charging the cost of infrastructure
Social acceptance
Protecting the environment
Promoting a better balance between North and South
Improving safety
Reviewing and uniforming port safety rules
Promoting mediterranean transhipment
Managing employment problems
Planning professional qualification and mobility
incentives
Developing the connections with the overall
transport network
Supporting technological innovations in seaports
Guidelines and actions referred to Basic
Principle C
Guidelines and actions referred to Basic
Principle D
17
TOWARDS A COMMON PORT POLICY
Financing and charging port infrastructure - The
proposals of Green Paper (as well of the White
Paper) the investments in port infrastructure
are to be demand driven pay user principle
transport user should pay the cost of
infrastructure exploited the marginal social
cost should constitute the criterion for
charging the cost of infrastructure
18
TOWARDS A COMMON PORT POLICY
The inadequacy of Green and White Paper proposals
on port infrastructure financing comes on various
factors the various types of port works
involve different responsibilities and justify
differences in the charges appertaining to their
realisation implications on port
infrastructure financing of the different set up
of EU ports cannot be neglected not always port
infrastructure investments will be sufficiently
attractive to draw private financing Therefore
the general concept that investments must be
demand driven, as well as the user pay principle,
cannot be accepted on absolute terms
19
TOWARDS A COMMON PORT POLICY

Difficulties in applying the criterion of
marginal cost to the port sector   This
criterion may be appropriate only for the work
subject to the payment of a toll to be exacted
individually for the various users, not for the
large works which serve the port community as a
whole   For the works allocated to a given
terminal operator, distinction must be made
between the cost of the infrastructure use
and the cost of the service actually
performed   The criterion is intrinsically
connected with the use of a cost benefit
analysis, that raises particular difficulties in
port sector
20
TOWARDS A COMMON PORT POLICY
  • A turning point The Commission communication of
    13 February 2001 Reinforcing quality services in
    Sea Ports a Key for European Transport (De
    Palacio Packet)
  • Basic principles
  • Integration of sea ports in the trans-European
    Transport Network (amendment to Decision
    1692/96)
  • Public financing of sea ports and port
    infrastructures (new directive on transparency
    of financial accounts)
  • Free access to the market of port services
    (Proposal of Directive)

21
TOWARDS A COMMON PORT POLICY PORT SERVICES and
PORT LABOR
Recall of the present situation in EU Pilotage
is generally carried out under exclusive right.
The existing differences regard the cases of
exemption Mooring generally entrusted to
co-operative organisations which benefit of
exclusive rights The service is generally
mandatory self handling rarely
admitted Towage diversified situation as far as
the competition among various organisations is
concerned The service is generally
optional Port Labor except UK, port workers
enrolled in special registers held a monopoly on
port operations, but with different balance
between the right of organised workers and the
needs of port undertakings.
22
TOWARDS A COMMON PORT POLICY
The main issues of the directive on competition
within ports free access to the port services
market limitations admitted only through a fair
and open selection at least two operators for
each cargo handling category self handling
generally admittedThe directive didnt issue
guidelines on port state aid for the construction
of port infrastructures. According the Commission
it was better to carry out case-by-case
examinations where the facts and specificities of
each case alone determine the outcome.
23
TOWARDS A COMMON PORT POLICY
The conciliation procedure and the failure of the
Directive proposal During the long approval
procedure these issues were considerably
sweetened. Nevertheless, the European Parliament
rejected the Directive after the conciliation
procedure.
24
CONTROVERSIAL QUESTION
Further relevant issues that need to be
deepened Criteria and methods of allocating
port areas Involvement of the Port Authorities
in traffic management The dividing line between
public and private sector Competition among
ports and competition among enterprises Assessme
nt of the measures that distort
competition Identifying the relevant
market Enforcing the subsidiarity and
proportionality principles.
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