PortEconomics is attending the second day of the #ESPO2018, the annual conference of the European Sea Ports Association (ESPO) and provides live coverage of all you want to know about the latest discussions of European port authorities.
* You might recap discussions of the first day of #ESPO2018 via The PortEconomics Diary: #ESPO2018 Day 1
Day 2
Erik DE NEEF, Chairman Koninklijke Roeiers Vereeniging Eendracht, opens discussions of the second Investing in efficient, sustainable and safe mooring operations:
“Safe mooring in every port. Mooring is underestimated, but it affects so many in the port. Specialisation is important, we need to invest in specialise mooring boats. We need to use standardised winch trucks.
Training is important, let mooring people have a proper education; in Holland there is a special program that needs four years. We also need to innovate; this profession needs to benefit by technological advances… We are proud serving the cruise industry.
Setting collaboration with other providers of nautical services – pilots, tugs, boatmen, linesmen – in collaboration with other port authorities saves time and improves the operation.“
ROUNDTABLE 1: PORTS AND THE MULTIMODAL AND CORRIDOR-BASED APPROACH
Paweł WOJCIECHOWSKI, TEN-T coordinator Rhine Alpine corridor: “Ports are important. Talking about investment needs, we need substantial amounts in order to be able to compete. The EC moves too fast comparing to the amounts available to it, national governments need to follow to facilitate shift to rail, and endorse cross-border corridors approach… We have to address externalities.”
Catherine TRAUTMANN, TEN-T coordinator North-Sea Baltic Corridor: “the most important change is not economic, there is a whole revolution and as nodes of the corridors ports are vital as aggregator of cross-corridors connections. Reducing emissions will help their integration… “Multi-modality” “intermodality’ are the core of European Commission for this year. But digitalisation is also high in the agenda, i.e. data exchange, safety of blockchains …Information and innovation to develop smart ports is important in order for ports and the users to be winners…..We work to see how we can facilitate trans-national borders…..Heading from a patchwork approach to a network approach, ports articulate intermodal nodes and corridor logic.“
Hervé MARTEL, CEO, Port of Le Havre: “We have to try harder to invest in infrastructure, as this is public policy , and also because it is a strategic aspect of commercial nature. Developing smart ports, using information systems, are also key concepts. We have to work to transform what is on paper to reality and have a pragmatic approach on how to develop corridors.”
Dirk STEFFES, Senior Vice-President Intermodal, DB Cargo AG: “We need to put everything together at an international scale, in order to make a better plan. The European commission needs to decide whether it really wants to advance modal shift; do they want shit towards railways and how can they facilitate this happen. Level playing-field and externalities are issues that need to be addressed. We need practical measures as we face unfair competition by the truth industry…If you really want to compete (as rail mode) with truckers we need to find practical solutions.”
Didier LEANDRI, Chairman, the French Association of Barge Owners: “we are in the year of multimodality. The policies of the EU institutions are directed towards multimodality. But we face the problem of congestion: it is important to direct our policies towards this direction.. We work within a long-term approach as regards infrastructure. We regret when delays happen. But the orientations of the TEN-T towards multimodality has to happen. The next step will be to work on the links between the corridors..We have to work to improve environmental standards.”
Keynote speech
Herald RUIJTERS, Director at the European Commission, DG MOVE, responsible for investments, innovative and sustainable transport, presents the new Connection Europe Facility
“In ports we have the real link between land and the sea. Ports are not something separate from the corridors; they are part of the corridors. If you see the forecast there is going to be a growth of transport in Europe. If we have to do well we should be able to get good out of ports first via inland waterways and then via rail, because these are the most environmentally friendly modes. Of course we need roads and we need to modernise them. But we cannot rely on them because of capacity and environmental issues. We need multimodality.
Investments take long, several projects are necessary, but you need time to realise. The ESPO study talks about 48 million of needed investments in ports. We need to find ways to use the available instruments the best way. CEF is the best instrument in place to facilitate multimodality; short-sea shiping and MoS do help. We need to step up the investments in ports considerably. Focusing these means to multimodal links and modal shifts.
We need to work together with ports. Important components of the budget are innovation, research, structural and regional funds.
The Commission has a total of instruments to be used. What is TEN-T targets is stability, and long-term vision. There is not going to be a gap, as there are alternatives.”
PortEconomics member Peter DE LANGEN presentation of the study on the infrastructure investment needs of European Ports
“The investment needs of EU ports are around 5 billion per year ; based on replies by ports carrying 60% of EU throughput.
Investments in basic port infrastructure continue to be the main investment category. Broad variety of types of port infrastructure including for instance energy-infrastructure.
Investments needs of EU ports are driven by external developments: trade volumes, scale increases, pollution mitigation, decarbonisation, and societal pressures.
Investments in port operation create economic value as well as societal value. 80% of projects creates value for current users; 50% of projects reduces the environmental footprint; smaller fractions of projects create value for nearby residents or residents of port cities.
Business case for the port managing body may be negative, while the value case for society is positive.
The funding challenge: the best method to bridge the funding gao ia an EU wide competitive funding mechanism for port managing bodies as this prevents major distortions of the playing field and places investment initiative as well as a healthy part of the risks with the port mnaging body.
The case for public funding of port infrastructures is reflected in the development of EU funding and financing instruments (CEF, EFSI, EIB).
between 2014-2017 ports applied for 2,5 billion and were granted 860 million (35%), that represents 4% of the EU funding over the same period.
The development of port managing bodies towards autonomous commercially operating and self-financing organizations, enables a greater use of blended financing instruments. This reduces the risks associated with providing grants alone, such as overly optimistic demand and impact forecasts.
Nevertheless, grants remain a key element in securing investments that creat value.
Clarity on the approach and methods of measuring EU added value is a step forward.
The European value creation is not depended on or related to ‘cross border infrastructure’. While cross-border criteria are relevant for links in the EU network, that applies much less to the nodes such as ports.
Ned to allow more flexibility to modify proposals after funding has been granted.”
Kurt BODEWIG, TEN-T coordinator Baltic-Adriatic corridor:“the question is where to find private money, we need new instruments. The blending call is positive. We are looking forward for the proposal for CEF 2; we need a line with the structural funds, as well as innovative government mechanisms. We also need a direct management, as well as clarification regarding the procedures, i.e. permitting and procurement needs streamline and simplification.”
Brian SIMPSON, TEN-T coordinator Motorways of the Sea: “I have a different number in mind, referring to the implementation, as we need to prioritize projects. Motorways of the Seas is the Cinderella of maritime projects. You need to meet EU criteria, not the EU meeting your criteria. Identify what is sustainable and then go for a specific thing.”
Eammon O’REILLY, CEO, Port of Dublin and Chairman, ESPO: “We need to understand the externalities. The industry does understand the difficulties that the Commission faces. The project might be captured by your vision. It is important to develop the right project. We want more money but we want to help to select the right projects,
A project might finish in 10 years or even in 20 years. You have to be ready to apply and that is why I feel that the most positive development is the blending of different instruments as it allows flexibility’.
Zeno D’AGOSTINO, President of the Italian Ports Association: “Italian ports have 16 major European projects, and work cross-border to realise them. The issue is that you do not have only european funds, there are other public funds coming from overseas, i.e. Chinese companies. When these funds arrive in Europe they are private funds, but they are in reality ‘public funds’ in another part of the world. Why don’ t we use public funds outside Europe as well? I don’t suggest to go to China, but we can invest in Middle East and Africa to facilitate trade. I have only good things to say about the way the Commission works, CEF planning is positive and we use it extensively in Italy.”
Ansis ZELTINŠ, CEO, Port of Riga: “There funding gaps because there are projects that are not commercially feasibly but they are useful from a society point of view. CEF is introducing some new thinking and this is the case of ‘military mobility’ and we need to see how to implement it.”
CLOSING ROUNDTABLE: HOW TO MAKE PORTS CHAMPION OF CHANGE?
On US imposed sanctions:
Allard CASTELEIN, CEO, Port of Rotterdam::”there are limits to what you can do against protectionist measures. There is an effect on trade, but protectionism also has an effect on economic parameters and growth. There is a multiplier effect.”
Tim POWER, Managing Director, Drewry: “ports can not make a lot as regards the sanctions imposed by th US government to third countries.
Wim VAN DE CAMP, MEP: “I fully agree with K. Fleckenstein, but I am more optimistic. The European Commissioned did a great job without success, but without success as the US President is unpredictable and there difference between the US President and his minister for international trade”.
Knut FLECKENSTEIN, MEP: “We have to continue our discussions with the US to find a solution rather than having countermeasures by the EC or member states. We need to find ways to return to the principles of WTO but I am pessimistic. The sanctions of the US to other countries”.
On the presence of China:
Jacques VANDERMEIREN, CEO, Port of Antwerp: “We do not have any problem with the investments made by Chinese interests; Zeebruge gave a terminal to COSCO, we did so with PSA from Singapore; we should not descriminate between countries”
Tim POWER, Managing Director, Drewry: “developing the landlord model where you concession the port means that the notion that Europe gives infrastructure to third countries is not true. So those who are involved cannot decide on their own; the exemption is Piraeus where the PA was sold to Chinese. There is some soft power going to Chines
Wim VAN DE CAMP, MEP: “I am not optimistic about the presence of the Chinese. We follow developments in 16 different countries and we see that they expand: for instance in Dubrovnick EU funds will be used to build a major bridge to be constructed by Chinese companies.
Knut FLECKENSTEIN, MEP: “We need to find ways that we address the problems together than unilaterally. But in principle I do not have to say anything against investments by Chinese, as long as we can go there as well. The problem is limited as long as the control of the infrastructure and the port remains public.”
About decarbonisation:
Allard CASTELEIN, CEO, Port of Rotterdam:“the important thing is how you see that: as an opportunity or as a threat. As a port you can take aways some of the concerns is to optimise the processes. Ports are huge complexes, others are bigger others smaller, so we need to share knowledge so as to be catalysts of change. We could work together with Antwerp for example.
If you would ask me how politicians can help sustainability: there is a cost for CO2, you cannot start with imposing a price, but you need to provide incentives to those companies that have the capacity to innovative. This way we will have many companies developing initiatives. So it is better to start ”
Jacques VANDERMEIREN, CEO, Port of Antwerp: “I think that we need to collaborate on how to address energy issues, i.e. in Antwerp and Rotterdam there are the same companies operating, i.e. Exxon and Mobile, thus it is worth talking how best to address the challenge. On the other hand, we are not the centre of the world, we need to talk with companies to see how to achieve this energy transition, and open the discussion with the community so as to be proactive within this transition.”
Wim VAN DE CAMP, MEP:“ESPO has to come forward with projects and research. There are instruments available, i.e. Horizon 2020, to make possible that ports take the lead. There are ports in Europe that care about the social dimension.
When we started the TEN-T it was about hard infrastructure, today they have expanded to include degitalisation, decarbonisation, sustainability. So politicians can help. But you need to also start working at home, at the member-states capitals to develop local initiatives’.
Knut FLECKENSTEIN, MEP: “There is political will for this changes we must be brave enough to say that this might cost more money. We can not define limits and then just tell to the industry that they have to do it.”.
With the Conference concluding, PortEconomics waives goodbye to all port authorities met during the last two days during #ESPO2018, renewing the appointment in future events.
