The ‘port managing body (PMB)’ plays a central role in the development of the port. Public funding for investment projects of the port managing bodies is common in the EU and most other countries.
PortEconomics member Peter de Langen adds to the body of knowledge on port investments and financing challenges with an analysis of data from two surveys that were carried in 2018 and 2023.
This analysis yields the following conclusions. First, the PMBs in the EU have shifted their investments, in response to changing investment drivers. The increasing relevance of the transition to a net-zero economy leads to a shift towards investments in projects that reduce environmental effects and/or allow private investments in new green activities such as the production of zero-emission fuels. Second, financial bottlenecks are the most important bottlenecks for the execution of the projects of PMBs. Third, the PMBs have high aspirations with regard to public funding, both on the EU and national level. Fourth, there is a difference between two types of PMBs: state-owned commercial port development companies and the public sector embedded port authorities; the latter execute less projects without public funding and are more oriented on national public funding than on EU funding. Finally, the societal value creation of the investments of PMBs is used to justify public funding aspirations. The PMBs indicate that the majority of their investments create societal value, often by enabling emission reductions and by reduced local negative externalities.
Peter’s portstudy has been published in the European Transport Studies journal and can be freely downloaded here.
