Europe’s Ports Call for a Robust and Dedicated EU Transport Budget to Strengthen the Continent’s Competitiveness
29 October 2024
The European Sea Ports Organisation (ESPO) expresses significant concern regarding the European Commission’s strategic plans for the future EU budget. As the Commission lays the groundwork for a comprehensive overhaul of the EU budget, a substantial portion of transport funding would be consolidated into a single funding scheme for each Member State. This shift would restrict direct EU oversight of transport funding to only large-scale, cross-border projects, such as the ambitious Rail Baltica, the transformative Fehmarnbelt tunnel, and the critical Lyon-Turin rail connection.
The ports of Europe are urging the Commission to not only maintain but also enhance the dedicated European transport infrastructure funding mechanism, known as the Connecting Europe Facility (CEF). This instrument must be refined to better address the specific needs of ports and their stakeholders. It represents the most effective means to ensure the establishment of a fully integrated and state-of-the-art European Transport Network, which is vital for facilitating the internal market across the continent. A robust transport network is essential not only for economic vitality but also for bolstering Europe’s resilience and improving its military readiness.
The Commission’s intention to align transport and port investments with national single plans contradicts the necessity for unified assessment and enhanced European planning, as highlighted in the Draghi report. While ESPO recognizes the requirement for these national plans to adhere to stringent criteria and align with EU priorities, this approach undermines the essential European coordination of infrastructure projects and risks compromising the competitive balance among Member States.
The position held by ports in Europe emphasizes that transport investment initiatives should fundamentally be evaluated based on their alignment with the objectives set out in Europe’s TEN-T policy. Furthermore, projects must be prioritized based on their capacity to deliver significant EU added value. Ports, while not always classified as strictly ‘cross-border’ entities, wield immense cross-border influence. They often serve as the initial point for cross-border intermodal operations and cater to cross-border maritime transport streams, in addition to servicing local markets and a plethora of hinterland connections that cross national borders. While the cross-border dimension is undoubtedly vital, it should not be viewed as the sole measure of EU added value. The transport sector functions as a cohesive network; a deficiency or subpar transport infrastructure in any locality adversely affects the entire system, thus jeopardizing the proper functioning of Europe’s economy and society. Conversely, a well-functioning port enhances connectivity, yielding benefits that extend well beyond national boundaries. As previously asserted by the Commission in 2003, transport connections are the arteries of Europe’s internal market. If they under-perform, so does the rest of the economy. If they are efficient, all other sectors benefit. Therefore, it’s crucial that transport policy and funding reflect a European perspective.
A dedicated and enhanced EU transport infrastructure instrument, equipped with a sufficient and specifically allocated budget for ports, is vital for the future of Europe’s port sector. A total of 327 European ports are vital elements of the continent’s infrastructure strategy. The responsibilities and significance of these ports are growing rapidly. Beyond just being gateways for trade, maritime ports are critical in energy supply, positioning them as key partners in the ongoing energy transition, essential for securing Europe’s energy supply. Ports are integral to both sea and land transportation, acting as crucial hubs for energy distribution to various transport modalities. The decarbonization of the maritime industry depends heavily on significant investments in low-carbon fuel availability in ports throughout Europe. Acting as industrial clusters, ports are indispensable for maintaining the supply chains necessary to advance net-zero and clean industries within Europe. In addition to all these roles, ports are increasingly significant in ensuring Europe’s military readiness. As mission-driven entities, Europe’s ports are committed to doing everything necessary to foster a strong and resilient Union. However, this multifaceted role necessitates escalating investment needs, estimated at 80 billion EUR over the next decade, as indicated by ESPO’s latest investment report (excluding maintenance and purely private investments). Many of these investments provide substantial societal benefits but often yield low, slow, or risky returns, thus threatening the successful execution of these projects.
To maximize effectiveness, the forthcoming EU transport infrastructure instrument should:
– Receive a significantly stronger, dedicated budget specifically for ports;
– Ensure that a substantial portion of the budget supports essential port projects that are critical from a societal perspective, facilitating ports in delivering a green, digital, secure, and competitive Europe;
– Confirm that the strict cross-border criterion is not an absolute requirement for funding eligibility;
– Enhance transparency concerning project selection and clarify the role of Member States in this process;
– Organize funding calls by transport modes rather than overarching topics to improve clarity and mitigate overlapping scopes;
– Reduce complexity and the administrative burden associated with application procedures.
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