What changed

Follow up to the European Parliament non-legislative resolution on Building a comprehensive European port strategy

PA_NonLeg

Rapporteur: Tom BERENDSEN (EPP / NL)

SUGGESTIONS

Reference numbers: 2023/2059 (INI) / A9-0443/2023 / P9_TA(2024)0025

The Committee on International Trade calls on the Committee on Transport and Tourism, as the committee responsible, to incorporate the following suggestions into its draft recommendation:

Date of adoption of the resolution: 17 January 2024

A. whereas European ports are a key artery for EU and global trade, with 74 % of goods entering or leaving the EU by sea; whereas, in addition to their strategic function, ports are taking on an increasingly important role as the anchor of social and economic growth of European regions as well as in the supply, production, provision and storage of energy, and the greening of transport and industry;

Competent Parliamentary Committee: Transport and Tourism Committee (TRAN)

B. whereas ports are not only the final destinations of trade flows, but also nodes in international value and supply chain networks and regional trade flows, alongside rail-, road-, and air-transport links, which deserve equal attention in terms of security, resilience and competitiveness;

Brief analysis/ assessment of the resolution and requests made in it:

1. Emphasises the role of European ports as critical infrastructure in EU efforts to boost supply chain resilience, especially in key areas linked to the green and digital transformations and in boosting energy security; stresses that during the pandemic ports played a crucial role in ensuring the continuity of emergency supply chains;

The European Parliament’s report on building a comprehensive European port strategy covers a large number of issues related to ports under 4 headings (foreign influence, paragraphs 1-16; security, paragraphs 17-26; role of ports in the energy transition, paragraphs 27-33; and competitiveness of ports and companies, paragraphs 34-50).

2. Highlights that in the new geopolitical context, in the wake of Russia’s war of aggression against Ukraine, ports play an essential role in keeping trade routes and supply chains operational and in setting up new alternative routes, including humanitarian and solidarity lanes, while building resilience through diversification; further underlines that European ports are pivotal in safeguarding energy supplies and in reducing energy dependency from Russia and will remain instrumental in repowering Europe in the short term, by fostering the development of alternative routes for the provision of gas and increasing gas storage; in parallel, stresses that ports will play an important role in the greening of transport, industry and energy;

In these areas, it notably calls on:

3. Acknowledges that Member States bordering Russia are facing new types of logistical challenges, and since well-functioning ports are key to overcoming these challenges, the EU should pay special attention to the ports in these Member States;

the Commission to take additional initiatives to reduce foreign influence and limit third country investments in EU ports;

4. Highlights that while ports represent a key engine for growth, these can also be a strategic source of vulnerability that needs prioritised attention at EU level;

the Commission and the Member States to address the need to prevent and reduce the risks of espionage and sabotage in ports and other critical infrastructure, including risks linked to digitalisation and cybersecurity;

5. Notes that European ports have an impact on the regional economy and society, and are exposed to a high security risk, stresses that European ports should be particularly protected as critical facilities for Member States;

the Commission and the Member States to address the increasing need for investments in ports and terminals and their infrastructure in view of their role in their energy transition and the need to support modal shift, as well as the need for training, education and good social conditions for the workforce;

6. Believes that the development of European ports is necessary in order to uphold the EU’s aim of working towards international, rule-based trade that benefits growth and wealth globally;

the Commission to give priority to strengthening the competitiveness of European ports and companies and eliminate price competition (“underpricing”), to monitor that European legislation does not lead to carbon and business leakage to ports outside the EU, to ensure standardised custom controls, to ensure fair competition and reciprocity vis-à-vis operators from third countries such as China, including through the EU Global Gateway initiative, to improve the capacity and resilience of hinterland connections, including to climate change, to define an ambitious industrial strategy for maritime manufacturing, such as shipbuilding, to stimulate innovation and digitalisation in ports, and to allocate increased funding for ports for them to remain competitive;

7. Highlights that an open, fair, sustainable and assertive EU trade policy, coupled with ambitious and balanced trade agreements, is key to the competitiveness and resilience of European ports and for Europe’s growth, jobs and social prosperity; stresses that Europe’s long-term competitiveness is dependent on a global, rules-based level playing field;

the Commission to present a comprehensive European Port Strategy addressing the aforementioned issues by the end of 2024.

8. Recognises that Europe’s maritime manufacturing capabilities are essential to the EU’s maritime strategic autonomy, innovation and sustainable growth as well as to the EU’s ambitions to lead the twin green and digital transitions; believes that the EU Regulation on Foreign Subsidies and autonomous tools are essential to preserve and foster the European maritime industrial base;

Response to the requests and overview of the action taken, or intended to be taken, by the Commission:

9. Recalls that the EU needs to strike a balance between attracting foreign investments and defending its critical infrastructure, including the integrity of its ports;

The Commission fully agrees on the need to support and improve the competitiveness, resilience, and twin green and digital transitions of EU ports, and of the whole EU transport sector. This will allow the sector to grow in a way that is a sustainable, both in social and environmental terms. These priorities are fully in line with the Commission’s objectives of sustainable and Smart Mobility Strategy from 2020, which lays the ground for the future strategic development of the entire European transport system, including ports.

10. Notes that the operation and further development of Europe’s ports is a complex issue that requires an appropriate approach across a number of functional dimensions, not just strictly in terms of infrastructure or superstructure, but above all in terms of trade relations, security and IT systems;

The revision of the TEN-T Regulation will provide the strategic framework for the European transport network, including for ports. The revised regulation will give increased importance to maritime transport and ports by creating a European Maritime Space as the maritime dimension of the TEN-T. Ports’ increasing role in the energy transition is also reflected through the addition of several ports to the TEN-T network. The resilience and flexibility of the network approach enshrined in the TEN-T has been demonstrated in the context of important disruptions and challenges due to crisis situations such as the COVID-19 pandemic and the Russian war of aggression on Ukraine. During this time, the whole European transport system, including European ports and their hinterland connections, has been at the core of the Commission’s efforts to keep supply chains working.

11. Emphasises that a consistent European port strategy is essential to ensure fair competition; encourages increased cooperation between European ports and the elimination of harmful practices such as underpricing;

The European economy benefits from investments in ports, including investments from third countries, which facilitates international trade and helps creating jobs and growth. European companies are, for example, among world leaders in maritime transport and logistics. However, the EU needs to ensure that investments from third countries do not lead to strategic dependencies, and do not pose risks to European security and public order. These aspects are at the core of the Economic Security Strategy and the various horizontal instruments put in place at EU level in recent years to ensure the security of critical economic assets, including transport infrastructure and ports. Examples of these instruments include the Foreign Direct Investment Screening Regulation, the Foreign Subsidies Regulation, the Critical Entities Resilience Directive and the Network and Information Security (NIS2) Directive, covering notably cybersecurity aspects. The revision of the TEN-T also includes a provision on protecting the trans-European transport network against risks to security or public order. The regulation defines that Member States shall make all possible efforts to ensure that the TEN-T is protected against risks to security or public order, by assessing those potential risks arising from participations of or contributions by an undertaking of a third country in a project of common interest. Recently, with the Economic Security Package, the Commission presented a proposal to strengthen the Foreign Direct Investments (FDI) Screening Regulation and notably make it mandatory for the Member States to implement a screening mechanism. It is of utmost importance that these instruments are fully implemented.

12. Expresses its concern about potential unfair competition from non-EU ports as these are exempted from the application of the Emissions Trading System in European maritime transport;

Foreign Influence

13. Notes that the implementation of recent or pending EU legislation, including in the field of trade, requires effective enforcement by the EU and its Member States, as well as sustained investments and training for port operators and authorities, including as regards obligations stemming from the Fit for 55 package, or in enabling EU ports to play a role in the green transition, meeting the demand in key areas such as hydrogen imports; recalls the importance of a global level playing field in this key area;

As regards foreign influence in EU ports (paragraphs 2, 3, 6, 7, 8, 9, 12, 13 and 20), the Commission is of the opinion that continued and uninterrupted transport services are of key strategic importance for the whole EU. Transport nodes, such as ports in particular, as transport and logistics hubs, linking all the relevant modes, are key for the internal and international connectivity of the EU.

14. Stresses the need to ensure sufficient resources for border and customs control authorities so that they can better enforce EU legislation;

While the EU remains open to foreign investment, this openness needs to be safeguarded by appropriate controls to ensure that these investments do not pose a risk to security or public order in the EU. In 2019, the EU established a framework for foreign direct investments screening. It provides for a cooperation mechanism between the Commission and the Member States to identify, assess and mitigate potential risks to security or public order constituted by an FDI. The risk assessment may take into consideration the potential effects of the FDI on critical infrastructure in the EU, including ports, and whether the government of a third country controls the foreign investor directly or indirectly.

15. Recalls that by 2030, the EU aims to import 10 million tonnes of green hydrogen and to achieve this goal, a comprehensive strategy on importation, coordination, and infrastructure development is essential to the European Port Strategy and should be established promptly; notes that with the European Green Deal and updated energy strategies, European ports are evolving into pivotal energy hubs, this emerging role must be recognised and appropriately emphasised in future financing strategies and infrastructure developments;

On 24 January 2024 the Commission presented a legislative proposal for the revision of the FDI screening Regulation. The proposal aims to address existing shortcomings and improves the efficiency of the system by: 1) ensuring that all the Member States have a screening mechanism in place, with better harmonised national rules; 2) identifying minimum sectoral scope where all the Member States must screen foreign investments (including parts and participants of the trans-European transport network); and 3) extending EU screening to investments by EU investors that are ultimately controlled by individuals or businesses from a non-EU country.

16. Further highlights the need for EU programmes to support ports as hubs in line with the Connecting Europe Facility, advancing the digital and green transitions in areas such as electrification, 5/6G investments and hydrogen;

The proposed revision of the FDI screening Regulation improves the information available to the Commission and the screening authorities of Member States about foreign investments affecting EU critical infrastructure, such as the trans-European transport network, which includes ports of strategic importance for the security and public order of the EU as well as for military mobility, and critical technologies, which may include intellectual property (paragraph 20). Furthermore, the proposed revision aims to improve the transparency of investment screening at national level by requiring all the Member States to publish an annual report with aggregate and anonymised data on the investments screened, including the outcome of screening decisions, nationalities, or country of establishment, of parties to the investments notified to the screening authority, and the economic sectors in which those transactions took place.

17. Emphasises that in certain cases foreign trade and investment can cause security vulnerabilities, in particular in the case of foreign ownership, control or access to EU critical infrastructure, including European ports; notes, in this regard the special nature of some ports, which not only provide logistical infrastructure but also contribute to the European defence system; calls for increased vigilance and more coordination at EU level, including as regards the facilitation of information sharing and relevant security guidelines for national and private operators; encourages the national authorities of EU Member States to give high priority to the protection of critical infrastructure;

In addition, the proposal introduces the possibility for the Commission to issue a duly motivated opinion addressed to all the Member States if it considers that several foreign investments or other similar investments if they were to be made, taken together, and having regard to their characteristics, could affect the security or public order of the Union.

18. Believes that foreign investments in essential and critical infrastructure that might enable effective participation or control (direct or indirect) in the management of the port should be thoroughly scrutinised; underlines that foreign investments, from state backed companies or state subsidies in all forms that enable effective participation or direct or indirect control over the management of the port, should be avoided; considers that, in order to strengthen Europe’s resilience, competition on an equal footing must be ensured and that the level playing field and Europe’s competitiveness cannot be allowed to be undermined by distortionary foreign subsidies in European ports;

The proposed revision however maintains the key principles of the current system, which provide that the final decision is taken by the Member State where the investment takes place, and that the grounds for screening are limited to security and public order, which must be interpreted in line with EU law and the international commitments of the EU and its Member States.

19. Underlines that Chinese state-owned companies have sought to acquire majority or controlling stakes in a number of European ports, currently estimated to include total or partial control over 14 ports in the European Union and 10 % of European shipping activities; warns that this is not only done out of simple economic interests, but these investments are also part of the Chinese government’s so called ‘international ocean governance’, translated into policies such as the Belt and Road Initiative, which is a strategy aiming to gain influence over key European naval infrastructure and a distinct matter of economic security of considerable importance in the current context of geopolitical competition; is convinced that the EU-China bilateral trade and investment relationship is of strategic importance, bearing strategic challenges, and should be rules-based, with the multilateral trading system and the principle of reciprocity at its core, and with clear European control of its critical infrastructure; emphasises in this context the expectation that China would support ambitious WTO-reform; insists on more reciprocity and advocates strong EU actions against unfair Chinese regulations and practices;

The Commission agrees that the provisions of Article 47 of the revised TEN-T Regulation are a crucial element of the TEN-T policy, and an important complement to the provisions of the FDI Regulation (paragraph 9). In view of their accession process, enlargement countries must also transpose provisions of the FDI Regulation. This process is supporting the monitoring of involvement of third countries in ports in the context of enlargement policy. In addition, in Neighbourhood countries, the Commission via its delegations is already monitoring the involvement of third countries in key strategic ports.

20. Encourages the national port authorities, the Member States and the European Commission to develop an adequate format for strategic cooperation between European ports in order to minimise the risk of being played against each other by third actors;

With regard to paragraph 5, the revised TEN-T Regulation provides the strategic framework for the European transport network, including for ports. Ports can be linked by maritime connections within the European Maritime Space, which constitutes the maritime dimension of the TEN-T. However, any strategic cooperation between ports should not lead to anti-competitive agreements between ports and should be subject to compliance with competition rules (see also reply to paragraph 39).

21. Draws attention to the ban on cabotage for European vessels between Chinese ports and between US ports and calls for increased reciprocity and for the establishment of an EU-wide reciprocity review mechanism that would allow the EU to determine the level of openness of foreign markets to European shippers;

With regard to paragraph 10, Regulation (EU) 2022/2560 on foreign subsidies distorting the internal market (Foreign Subsidies Regulation) entered into force on 12 January 2023 and applies since 12 July 2023. In addition to ex-ante notification obligations for concentrations and public procurement procedures over certain thresholds, the Commission can for all other market situations start investigations on its own initiative (ex-officio) when it suspects that a foreign subsidy may be involved. The regulation applies equally to all sectors of the economy and all companies active in the EU. Nevertheless, it sets out the possibility for the Commission to conduct market investigations into specific sectors, such as ports.

22. Reiterates that the independence, competitiveness and security of European ports alongside other trade relevant critical infrastructure must be an integral part of the European economic security strategy, in line with the EU’s de-risking paradigm;

About paragraph 11, on 10 October 2023, the Commission has adopted the decision not to extend beyond April 2024 the Consortia Block Exemption Regulation, following an in-depth evaluation. More information is available at the following link: Maritime Transport (europa.eu). The Commission is closely monitoring the developments in the maritime logistics sector and is ready to intervene when necessary.

23. Stresses that a European Port Strategy must incorporate measures to prevent an oligopoly in liner shipping companies from dominating both on-shore and off-shore logistics and that for the sake of fair competition and a level playing field, the current preferential tax treatment for liner shipping companies must be terminated immediately; notes that this favourable treatment has endowed these companies with market power, enabling them to branch out into other segments of the logistics sector and that this disparity in competition and tax regulations allows dominant entities in container shipping to exert undue influence over port and hinterland logistics;

Regarding paragraph 14, the Port Services Regulation recognises the different port structures and port governance models in Member States and the important role of the managing body of the port, or the competent authority, for ensuring the provision of port services, including through concessions and lease contracts.

24. Highlights the strategic importance and the economic potential of the Arctic, and thus the EU’s need to enhance its understanding of the arctic maritime industry and attract new investments in the area;

With regard to paragraph 16 and investments in ports located in overseas territories and outermost regions, the Connecting Europe Facility (CEF) dedicates the majority of its funding to sustainable modes of transport, including to the development of maritime ports on the TEN-T. In the outermost regions, an increased CEF co-financing rate is applied: CEF may support up to 70% of the eligible costs of the works undertaken in outermost regions. The Cohesion Fund and the European Regional Development Fund can also support projects in ports located in overseas territories and outermost regions.

25. Calls for access to all EU ports to be refused for ships whose last or next port of call is in the Russian Federation, except in the case of necessary justified humanitarian reasons;

Security

26. Recalls that the regulation on the screening of foreign direct investments (FDI Screening Regulation) addresses risks to security and public order resulting from investments from non-EU countries, including those concerning European ports;

On paragraph 17, the Critical Entities Resilience (CER) Directive creates an overarching framework to enhance the resilience of critical entities that operate critical infrastructure, such as ports, against all hazards, whether natural or man-made, accidental or intentional (e.g. sabotage). Member States have the obligation to carry out risk assessments on their essential services and then identify their critical entities. Once identified as critical, such entities will have own obligations to take resilience-enhancing measures (e.g. ensure adequate physical protection of their premises and critical infrastructure, prevent incidents, respond to, resist and mitigate the consequences of incidents).

27. Looks forward to the upcoming review of the FDI Screening Regulation; encourages the Commission to present an ambitious legislative proposal adequately addressing all the loopholes that have emerged during the implementation of the FDI Screening Regulation, including with regard to critical European infrastructure; calls for a strengthened instrument, with increased consistency concerning the definitions, scope and procedural aspects of national screening mechanisms; encourages Member States that have not adopted national screening mechanisms to do so without delay; considers that assessments on the basis of the FDI Screening Regulation should take place within a reasonable timeframe and respect confidentiality during the screening process, in order to ensure legal certainty for potential investors and stakeholders and safeguard the attractiveness of Europe for new investments;

In addition, EU maritime transport security legislation provides for commercial port facilities and ships to put measures into place to protect themselves from intentional unlawful acts, mostly physical attacks, including sabotage. When assessing security risks from the perspective of the whole port area, Member States should consider whether some areas of the port are used for military functions.

28. Emphasises the considerable role that the Global Gateway could play in strengthening the network of European ports with third countries, facilitating trade and expanding investment opportunities, hence creating mutually beneficial partnerships and promoting sustainable value chains; recalls the role of economic diplomacy, including its parliamentary dimension, in promoting such European flagship initiatives and strengthening international partnerships for resilient, sustainable and diversified trade;

About paragraphs 18, 19, 21 and 23, Directive (EU) 2022/2555 (NIS 2 Directive) lays down measures that aim to achieve a high common level of cybersecurity across the EU, inter alia by laying down cybersecurity risk-management measures and reporting obligations for essential and important entities as well as for entities identified as critical entities under Directive (EU) 2022/2557 (CER Directive).

29. Stresses in this context that this strategy must also contribute to the strengthening of the partner countries, and in particular of their independence in terms of critical strategic infrastructure to prevent them falling under the control of foreign investors with ambiguous goals;

Work on critical Information and Communication Technology (ICT) supply chain security was recently launched in view of the implementation of Directive (EU) 2022/2555 (NIS2 Directive) which provides that the NIS Cooperation Group, in cooperation with the Commission and the European Union Agency for Cybersecurity (ENISA), may carry out coordinated security risk assessments to address key supply chain risks, taking into account technical, and where relevant, non-technical risk factors. Entities operating in critical sectors covered by this directive should take into account the results of those assessments and recommended measures, in any, in view of their compliance with the cybersecurity risk management measures under that directive.

30. Once again stresses the importance of ensuring the competitiveness of European ports, including the related technological innovations and skills for EU trade policy; argues that a comprehensive European Port Strategy must provide coherence, stability and predictability to a strategic area of growth, fostering the potential for development of European operators, shipbuilders and seafarers; is convinced that such a strategy would be in line with the Commission’s Communication on Economic Security, boosting the resilience of supply chains by increasing internal strength, alongside the supply and demand dimensions of value chains for such critical infrastructure;

In March 2023, the Commission finalised guidance on how to treat cybersecurity at the port facility and port level, and how it can complement measures put into place under the NIS and the NIS 2 Directives. ENISA has also published useful guidelines concerning cybersecurity in ports, while EMSA has published guidelines on cybersecurity for ships. All these actions are aimed at raising the cybersecurity level in the EU maritime sector, and complementing horizontal EU cybersecurity rules that are being put into place. The Commission is also working with the Member States and third countries, such as the USA, to update cybersecurity guidelines at the level of the International Maritime Organisation and look for further ways to increase the level of cybersecurity of international shipping. Risks along the supply chain are also flagged in several EU level risks assessments/reports/ conclusions, including Nevers call (telecoms), Cyber Posture (telecoms, energy) and the Economic Security Exercise assessments.

31. Underlines the importance of a healthy, competitive and diversified maritime and logistics environment for ports; points, however, to the increasing market power of a small number of stakeholders, in particular shipping lines, which risks affecting the level playing field and fair power balance between the different actors in the port ecosystem; as such, emphasises the importance of effective and timely dialogue between ports and other logistics stakeholders in order to ensure well-functioning supply chains and avoid stranded assets;

The Commission is aware of the evolution and promotion of non-EU State-owned-controlled data sharing platforms. While the re-using and sharing of data in logistics contributes to the visibility, efficiency, agility and resilience of European and global supply chains, the Commission prefers and promotes balanced and neutral solutions, in conformity with the principles of the European Strategy for data, and with specific rules provided through related legislation, such as European Data Governance Act. Accordingly, these solutions need to be built and operated in a trusted, safe and secure manner and have open governance structures in line with data sovereignty where the data owners are in control of their data and their re-use. The Commission is also in regular contact with relevant stakeholders to monitor and analyse the use of non-EU State-owned-controlled data sharing platforms by supply chain actors, including ports.

32. Emphasises the importance of viewing Ukrainian ports and terminals as an integral part of the European port and trade system even today; applauds the support that European operators of these ports have given their local staff since the onset of the war; recognises the severe financial challenges these operators currently face due to Russia’s unlawful war in Ukraine; believes that these ports and terminals can – and should – play a pivotal role in the country’s reconstruction;

With regard to paragraphs 24 and 25, the European Ports alliance is a flagship initiative of the EU Roadmap to fight drug trafficking and organised crime, for which the Commission will work together with relevant stakeholders, including law enforcement, customs, port authorities and sectorial organisations representing the logistical chain, to ensure that the ports in the EU are resilient to the escalating threat posed by criminal networks trafficking drugs. The Commission also adopted a proposal for Council Recommendations to follow up on the main findings of the Schengen Thematic Evaluation on drug trafficking into the EU, which has identified several best practices to address the security and the resilience of Ports.

33. In that context, underlines the importance of strengthening the role of European ports in facilitating the transit of grain originating from Ukraine in order to disencumber mainland routes, thus contributing to getting Ukrainian grain to third countries that need it;

The Reform of the EU Customs Union proposed by the Commission in May last year, will strengthen the capabilities of customs in supervising the flow of goods entering and leaving the EU. As regards VAT fraud, with its VAT in the Digital Age proposal adopted on 8 December 2022, the Commission notably proposed a new system introducing real-time digital reporting for VAT purposes based on e-invoicing that will give Member States valuable information they need to step up the fight against VAT fraud, especially carousel fraud. The move to e-invoicing will help reduce VAT fraud by up to EUR 11 billion a year.

34. Highlights the importance of safeguarding the competitiveness of Europe’s ports and ensuring a robust assessment of legislative measures that may lead to business leakage and loss of competitiveness to the advantage of ports outside the EU; believes that Europe’s ports need to be further empowered, including at EU level, allowing them to play their critical and essential role as gateways to trade and partners in the energy transition;

With regard to paragraph 26 and the resilience of ports to climate and environmental change, in line with the revised TEN-T Regulation, the Commission launched a study aimed to identify major climate resilience risks on the trans-European transport network (TEN-T), relevant adaptation measures to address them and their respective costs, and the investments needed to implement the identified measures. The study will support the Commission in the analysis of the investment needs in view of making the TEN-T network climate resilient. The analysis encompasses all transport modes, and it will include an assessment of climate risks for European ports and related transport infrastructure on the TEN-T network (including e.g. rising sea levels, flooding, extreme heat).

35. Highlights the important toolbox of autonomous legislative instruments at the disposal of the EU and its Member States to ensure the integrity of its ports;

Role of ports in the energy transition

36. Considers that a well-functioning customs union is fundamental to the EU’s competitiveness, sustainability and resilience; believes that a reformed and strengthened customs union with a common customs code will preserve the integrity of the single market, helping to maintain EU competitiveness in the twin green and digital transitions and avoid unfair competition between European ports;

With regard to paragraph 28, the EU Hydrogen strategy adopted in 2020 set the development of renewable hydrogen as priority for the EU. In the REPowerEU Plan, the EU expressed an aspiration and a guide for its policy development and its aim to reduce its dependence on Russian fossil fuels as quickly as possible.

37. Stresses that differences in customs procedure policies at the EU’s points of entry into the customs union often distort trade flows and put at risk the integrity of the European single market;

With regard to paragraph 29, the Commission fully recognizes the importance of ports in the energy transition. Therefore, the Commission is addressing the role of ports and their challenges related to both their own environmental footprint and their ability to help decarbonise industrial activities and maritime transport. These challenges are the focus of pilot project called Port Electricity Commercial Model, to be finalised in the first half of 2024. The pilot project is a study carried out on the request of the European Parliament.

38. Recalls the importance of having in place harmonised customs controls in all European ports to avoid different application of sanitary or due diligence standards; insists that the Commission ensure that custom controls throughout the EU follow the same standards, by means of a direct unified customs control mechanism, in coordination with Member States and in full compliance with the principle of subsidiarity.

Within the North Seas Energy Cooperation (NSEC) framework, the Commission has been taking part in a project that is mapping, categorising and prioritising port infrastructure needs relating to offshore wind developments.

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

The revised Renewable Energy Directive imposes new obligations on the Member States to identify areas where the deployment of renewable energy projects can be under faster and simpler permitting rules (renewables acceleration areas - RAAs). Transport areas and their surroundings, including ports, could be identified as RAAs by the Member States.

The rapporteur has received input from the following entities or persons in the preparation of the opinion, until the adoption thereof in committee:

With regard to paragraph 30, the trans-European energy network (TEN-E) Regulation, in force since June 2022, was revised to bring it in line with the priorities of the European Green Deal, and to bring greater synergies with other sectoral instruments such as the trans-European transport network (TEN-T) Regulation to drive decarbonisation by fostering a more cross-sectoral approach.

Entity and/or person

Given the expected significant increase in power demand from the transport sector, the TEN-E Regulation broadened and simplified the selection criteria for smart grid technologies to enable further synergies with the TEN-T Regulation. Hydrogen infrastructure, introduced in the scope of the revised TEN-E Regulation for the first time, allows for the selection of any equipment or installation allowing for hydrogen or hydrogen-derived fuels use in the transport sector within the TEN-T core network.

The European Sea Ports Organisation

The revision of the TEN-T Regulation calls on the Commission and the Member States to promote projects of common interest which aim in particular to enhance the decarbonisation of all transport modes where possible through synergies with the TEN-E. Such infrastructure may include grid access, pipelines and other facilities necessary for the energy supply. Moreover, also in terms of funding priorities, more coordination and alignment should be envisaged.

Federation of European Private Port Operators

With regard to paragraph 31, the Directive 2019/883 on port reception facilities already obliges ships to deliver their oily wastes to adequate waste reception facilities in accordance with the rules of the International Convention for the Prevention of Pollution from Ships (MARPOL). The protection of ports and shipping channels from oil slick will in the future be strengthened by the revised Directive on Environmental Crime, and also by the amendment of the Ship Source Pollution Directive.

The list above is drawn up under the exclusive responsibility of the rapporteur.

The European Circular Economy Stakeholder Platform already features good practices in ports and guidance is provided by stakeholders. Important ports in Europe such as Antwerp have notably outlined circular economy strategies to reduce the environmental impact of their activities.

INFORMATION ON ADOPTION IN COMMITTEE ASKED FOR OPINION

With respect to paragraphs 32 and 46 and modal shift, the European Green Deal calls for a 90% reduction in greenhouse gas emissions from transport, for the Union to become a climate-neutral economy by 2050. The Sustainable and Smart Mobility Strategy clearly outlines how the European transport system aims to achieve this. It envisages that rail freight traffic should increase its market share by 50% by 2030 and double by 2050; transport by inland waterways and short sea shipping should increase its market share by 25% by 2030 and by 50% by 2050. The realization of the trans-European transport network will create the enabling conditions in terms of infrastructure basis allowing to make transport more sustainable, affordable and inclusive, to make sustainable alternatives widely available in a multimodal transport system and to put in place the right incentives to drive the transition. The proposal for a revised TEN-T Regulation, acknowledges that short sea shipping can make a substantial contribution to the decarbonisation of transport by carrying more freight and passengers on sea. The newly created overarching concept of the European Maritime Space will be promoted by creating or upgrading short-sea shipping routes and by developing maritime ports and their hinterland connections to provide an efficient and sustainable integration with other modes of transport.

Date adopted

The revised TEN-T Regulation sets out several transport infrastructure requirements for the core and comprehensive TEN-T maritime ports. These include among others an obligation to ensure that maritime ports with a total annual cargo volume of more than two million tons are connected with the rail and road infrastructure and, where possible, inland waterways; any maritime port that serves freight traffic offers at least one multimodal freight terminal which is open to all operators and users in a non-discriminatory way and which applies transparent and non-discriminatory charges; sea canals, port fairways and estuaries which connect two seas, or which provide access from the sea to maritime ports meet minimum standards of the good navigation status; and maritime ports connected to inland waterways are equipped with handling capacity for inland waterway vessels. All those requirements, if timely implemented, should greatly facilitate a modal shift and enhance hinterland connections.

28.11.2023

As regards paragraph 33, employers and workers in the maritime sector are subject to the existing large body of EU Directives setting minimum requirements in the field of safety and health at work: the Framework Directive 89/391 requires the employer to evaluate all risks and to put in place appropriate preventive and protective measures, as well as adequate safety and health training. While some directives specifically concern the maritime sector, such as the Medical Treatment on Board Vessels Directive 92/29 and the Fishing Vessels Directive 93/103, others may also apply, such as for example the Manual Handling of Loads Directive 90/269, the Work Equipment Directive 2009/104, the Personal Protective Equipment Directive 89/656, the Vibrations Directive 2002/44 and the Noise Directive 2003/10. These contain additional specific provisions for the protection of workers.

Result of final vote

As recently reiterated in the tripartite Declaration signed at the Val Duchesse Social Partners Summit on 31 January 2024, the Commission is committed to promoting and strengthening social dialogue. In January 2023, the Commission presented a new social dialogue initiative consisting of a Communication and a proposal for a Council Recommendation which was adopted in June 2023 by Council. The Commission also continues to support the EU sectoral social partners in the ports sector by organising the meetings of their Sectoral Social Dialogue Committee.

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With support of the Commission, stakeholders in the shipbuilding and maritime technology industry have established a large-scale partnership under the Pact for Skills (Mobility–Transport (europa.eu)). The European social partners for this sector, notably SEA Europe and industriAll, are members of this partnership. It aims, among other objectives, at monitoring skill supply/ demand and anticipating skill needs, including for the green and digital transition.

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The Commission shares the opinion that transport workers should be central to the digital and green transition and that the pro-active upskilling and reskilling are key elements to respond to the changing skills requirements triggered by the digitalisation and decarbonisation of ports and the maritime sector. The European Skills Agenda sets ambitious, quantitative objectives for upskilling and reskilling to be achieved as a response to the changing nature of jobs in the transport sector with the support of EU funds (e.g. the European Social Fund+, the Just Transition Fund and the Recovery and Resilience Facility). As part of the European Year of Skills, the Commission adopted the Recommendation on means to address the impact of automation and digitalisation on the transport workforce focused on addressing the challenges and taking advantages of the opportunities related to raising awareness, upskilling and reskilling, improving working conditions, managing change, and funding.

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On making the industry more attractive to women, the Commission has been actively addressing the issue by engaging with port and maritime industry stakeholders through networks (the Women in Transport – EU Platform for Change and the Network of Diversity Ambassadors in Transport), supporting the organisation of events promoting best practices in the sector (Honours for Diversity and Inclusion in Maritime) and publishing studies (Study on good staff scheduling and rostering practices in transport and the Business case to increase female employment in transport).

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The Council Recommendation on ensuring a fair transition to climate neutrality (2022/C 243/04) provides concrete guidance for Member States to address the employment and social aspects of climate, energy and environmental policies, in particular in the most affected sectors, such as transport.

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Competitiveness of EU ports and companies

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The competitiveness of the whole EU transport system, including ports, is at the core of the Sustainable and Smart Mobility Strategy.

Members present for the final vote

With regard to paragraphs 35 and 36, the possible circumvention of obligations under the emission trading system (ETS) was carefully looked at in the impact assessment that accompanied the ETS proposal in 2021 and thoroughly discussed with the European Parliament and the Council. A similar approach was taken also during the development of the Fuel EU Maritime Regulation. As a result, the ETS Directive and the Fuel EU Maritime Regulation include several measures to mitigate the possible risk of circumvention, including a measure to address the risk of relocation of transhipment activities, which consists in disregarding stops by container ships in certain neighbouring container transhipment ports where the risk is the highest.

Barry Andrews, Anna-Michelle Asimakopoulou, Tiziana Beghin, Geert Bourgeois, Saskia Bricmont, Daniel Caspary, Paolo De Castro, Markéta Gregorová, Heidi Hautala, Danuta Maria Hübner, Karin Karlsbro, Martine Kemp, Miapetra Kumpula-Natri, Bernd Lange, Margarida Marques, Gabriel Mato, Sara Matthieu, Emmanuel Maurel, Carles Puigdemont i Casamajó, Samira Rafaela, Catharina Rinzema, Inma Rodríguez-Piñero, Helmut Scholz, Joachim Schuster, Mihai Tudose, Kathleen Van Brempt, Marie-Pierre Vedrenne, Jörgen Warborn, Iuliu Winkler, Jan Zahradil, Juan Ignacio Zoido Álvarez

In addition, in accordance with the reporting and review clause of the ETS Directive and the Fuel EU Maritime Regulation, the Commission is already engaged in closely monitoring possible evasive behaviour, and impacts regarding, inter alia, possible transport cost increases, market distortions and changes in port traffic, such as port evasion and shifts of transhipment hubs, the overall competitiveness of the maritime sector in the Member States, and in particular impacts on those shipping services that constitute essential services of territorial continuity. It will report biennially to the European Parliament and to the Council on the implementation of the ETS in respect of maritime transport and of the Fuel EU Maritime Regulation. Where appropriate, the Commission may propose measures to ensure the effective implementation of the ETS and of the Fuel EU Maritime Regulation.

Substitutes present for the final vote

It is important to recall that the green transition offers opportunities to decarbonise the maritime sector and increase its competitiveness and climate resilience. The shipping sector, including EU ports, can benefit from ETS auctioning revenues to Member States or from the Innovation Fund. 20 million ETS allowances (i.e., about EUR 1.6 billion with a price of EUR 80 per allowance) should be deployed up to 2030 via the Innovation Fund to support the decarbonisation of the maritime sector, notably through dedicated topics in future calls for proposals.

Michiel Hoogeveen, Javier Moreno Sánchez, Ralf Seekatz

As regards paragraphs 4 and 37 on the investment needs in ports, the Commission launched a study to identify the investment needs of the TEN-T network, including the maritime ports, and the quantification of investments. It is important to ensure sufficient investments to complete the TEN-T, as the non-completion of the TEN-T hampers the creation of an efficient, well-functioning transport network and could also lead to the loss of economic benefits, including jobs that are associated with the completion of TEN-T. This study should contribute to an informed discussion on the forthcoming new financial perspective post-2027 and in addition on the possibility of involving private capital to finalise the TEN-T network.

FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION

With regard to paragraph 38, the Commission agrees that excessive administrative burdens should be avoided and will take due account of this aspect when assessing whether additional initiatives would be necessary to complement the implementation of current measures and instruments.

Key to symbols:

With regard to paragraph 39, the call for increased cooperation between European ports and the elimination of harmful practices such as “underpricing” is problematic as it refers to commercial decisions by ports (pricing in particular) which should be taken independently under competition law. Indeed, Article 101 of the Treaty on the Functioning of the European Union prohibits anti-competitive agreements between undertakings. Cooperation between ports to e.g. eliminate "underpricing" (meaning to avoid competition on prices) risks encouraging/ facilitating cartels or other anti-competitive practices between ports. Each undertaking, ports included, has to independently determine its behaviour on the market.

In this context, the Port Services Regulation (Regulation (EU) 2017/352) sets common rules on the financial transparency of ports, including provisions on port service charges and port infrastructure charges.

With regard to paragraphs 40, 41 and 42, the Customs reform proposed by the Commission in 2023 envisages to strengthen the cooperation between customs and other authorities for a better enforcement of prohibitions and restrictions. The key function of the new EU Customs Authority will be to pool expertise and competences that are currently scattered across the EU, to steer, coordinate, and support national customs authorities in the EU. Risk management activities at EU level will allow more harmonized and effective targeting to tackle financial and non-financial risks. This will enable strengthened supply chain supervision, with customs authorities at EU and national level ‘acting as one’ when it comes to controlling the EU’s external border for goods. The EU Customs Data Hub will allow more efficient provision of data by private companies and better data sharing between customs authorities, and between customs and other national authorities.

Regulation 2022/2399 establishing the EU Single Window Environment for Customs provides a new legal framework to improve information sharing and digital cooperation between customs administrations and other government authorities in charge of enforcing non-customs formalities at the EU border in areas such as health and safety, environmental protection, food and product safety, agriculture. This allows economic operators to clear certain customs formalities more easily and contributes to homogeneous application of customs controls across the EU.

As regards paragraph 44 on maritime cabotage, Regulation 3577/92 applying the principle of freedom to provide services to maritime transport within Member States (maritime cabotage) provides the right to provide maritime cabotage services (i.e. the transport of goods or passengers within the same country) only to EU nationals or EU shipowners. The EU cabotage market is closed to any third country, including China. The only possibility for Chinese companies to provide such services is to incorporate in an EU company in accordance with EU law. China has a correspondent national law prohibiting foreign EU companies to provide cabotage services in China. Thus, it is not accurate that cabotage operations constitute a core element of the business model of Chinese shipping companies in EU.

At the same time, international maritime transport services between China and different EU Member States are allowed, according to the EU and China Maritime Transport Agreement (“MTA”) concluded in 2008. Cabotage operations are excluded from the scope of the agreement, in line with standard EU trade commitments in the sector. Restricting access to international maritime transport services within EU would not be possible without a change in horizontal trade policies and existing international commitments with third countries. Instead, the EU could strive for improving access of EU operators to the Chinese market by insisting on permitting EU companies to operate international relay in China. This could be done under the framework of MTA, during Annual Implementation Meetings. The EU’s ultimate goal is that, eventually, the Chinese market of international relay will be liberalised.

As regards paragraph 45, the Commission shares the view on the importance of the Global Gateway initiative to foster the role of ports worldwide in increasing the resilience of supply chains and decarbonising maritime transport and is working to extend the 2023 Global Green Shipping Corridor (GGSC) flagship initiative to this effect.

As regards the suggestion in paragraph 47 to establish an “atlas” of European ports, it should be noted that the TENtec database is a well-established and comprehensive tool containing a wealth of information on all transport modes on the TEN-T network. It is essential that the data and parameters available there are collected in a standardised, up-to-date and reliable manner. For this, the Commission services rely to a large extent on the cooperation with the Member States, Ports and Eurostat and other stakeholders who have or can collect the relevant information.

As regards paragraph 48, the Commission recognises the strategic importance of shipbuilding and its supply chain for the green and digital transition of the waterborne sector. The Commission is aware that the shipbuilding industry faces fierce international competition from countries like China and South Korea. In the context of the updated EU Industrial Strategy (2021), the Commission involved the shipbuilding industry and its supply chain in the co-creation of the “Transition Pathway for the Mobility industrial ecosystem”. The Commission has already taken several initiatives to strengthen the EU’s global maritime industry competitiveness and its global leadership in green shipping technologies (e.g. Pact for Skills in Shipbuilding, Innovation Fund, Zero Emission Waterborne Transport Partnership) and remains committed to tackling distortions at international and bilateral level.

On paragraph 49, the Commission has been very active in support of innovation and the digitalisation of ports. Several research and innovation projects have been funded under Horizon 2020 and Horizon Europe. The “Ports the future” Call delivered EU funding of over EUR 16 million to 4 projects until 2022 (COREALIS, PortForward, PIXEL, DocksTheFuture), while the “European Green Deal” Call is providing EUR 50 million for 2 landmark projects until 2026, on the greening and digitalisation of European ports (MAGPIE, PIONEERS). Additional EU budget will be made available as a result of the 2023-2024 Calls, for instance EUR 15 million from the Zero-Emission Waterborne Transport partnership, towards real-time digital solutions to optimise navigation and port calls. Further actions on innovation and port digitalisation could also be considered as part of the Horizon Europe Cluster 5 Work Programmes 2025-2027.

As regards paragraph 50 on funding for ports, this issue has been partially addressed in the Commission reply to paragraphs 4 and 37. In addition, CEF is one of the main instruments providing support to ports with the aim to enable ports to become greener and more sustainable, and thus, more competitive. For example, CEF is contributing to the deployment of the alternative fuel infrastructure in ports and to the development of the port infrastructure. CEF is also contributing to the enhancing the connectivity between the TEN-T ports under the Motorways of the Seas/ European Maritime Space. Since 2014 CEF has provided funding of around EUR 2.2 billion for maritime transport and ports. Other instruments available to Member States and maritime ports include financing from the EIB, the Alternative Fuel Infrastructure Facility or Regional and Cohesion funding. Public funding at the level of EU and the Member States will, however, not be sufficient to meet the important financial needs of the sector. This underlines the importance of ensuring a regulatory framework conducive to private investments in ports.

Conclusion

As demonstrated by the examples mentioned above, the European Union has already taken strong action during the current mandate to strengthen competitiveness, security, resilience and the control of foreign influence in the European economy, including in ports. Several initiatives are also existing or were launched, aiming to strengthen the position of European ports not only in terms of operations and competitiveness but also in the green transition, including as important hubs for production and import of clean energies, such as offshore wind and hydrogen. The Commission is committed to the full implementation of these initiatives and tools. The Commission remains open to considering options for further action, if these are balanced, respect competition rules as well as international obligations and agreements, and can bring a clear value-added to existing strategies and tools without adding excessive additional administrative burden. However, any such new initiatives would be for the next Commission to decide, and would require a thorough preparation, including stakeholders’ consultation and possible impact assessments.