UK Port Operators Condemn 'One Size Fits All' Market Access Directive

by Robin Pilgrim, LawAndTax-News.com, London

14 December 2004

According to a report in the Telegraph on Monday, port operators in the United Kingdom have strongly condemned the EC's proposals relating to market access to port services, arguing that the planned directive fails to take into account differences between port ownership structures in the UK and continental Europe.

In the United Kingdom, rather than being owned by the state authorities as is the case elsewhere in Europe, the major ports are owned by private companies, which also provide associated services such as towage and cargo handling.

However, under the proposed directive, introduced for the second time by former Transport Commissioner Loyola de Palacio prior to her departure from the role earlier this year, the right to provide associated services within a port would be governed by a licensing system.

According to the Telegraph, licences will be granted for eight years where the operator makes no additional investment in the port, for 12 years where they are obliged to invest in movable assets such as loading equipment, and for 30 years where investment is made in immovable assets such as buildings.

Speaking to the newspaper, managing director of the Bristol Port Company, David Ord argued that:

"This proposal is simply bureaucratic. It will do nothing to improve the competitiveness of UK plc. In fact, it will make it worse."

He went on to clarify the implications of the planned directive for companies such as his, observing that:

"If I build a factory and I kit it and I employ the people who are working in it, are you telling me that it's fair that after 30 years someone else can come through and claim it?"

John Dempster, director of the UK Major Ports Group, which represents the big port companies meanwhile suggested to the Telegraph that:

"The problems the EC is trying to address are in the continental ports where it is alleged there are cosy cartels operating services. The trouble is it's 'one size fits all' and we are the innocent victims in the cross-fire."

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