SPAIN REPORT In spite of the generally adverse evolution of the world economy and of the international shipping markets, 2001 was in many aspects an excellent year for Spanish shipping companies. With GDP growing by 2.7%, national maritime trade increased by 3.3% and total cargo movement in Spanish ports reached 337 million tonnes. Although these figures are lower than the previous year, when port activity grew by 5.7%, they can be considered more than positive in view of the international market context. Transport of liquid (+0.8%) and dry (+1.0%) bulks experienced minor changes but general cargo increased by 8.0% and especially cargo containers (+10.6%), with a total of 7.5 million teu loaded or unloaded in Spanish ports. Transport demand in cabotage trades also increased significantly (+6.3%). Following the positive tendency observed in the previous years, the tonnage of the total merchant fleet controlled by Spanish shipping companies (irrespective of flag) increased during 2001 by 20.7% in GT and by 23.6% in DWT, the highest rate of increase registered since 1977. On 1 July 2002, Spanish shipping companies controlled 328 transport merchant ships, with 3.44 million GT. This fleet included 203 ships, with 1.88 million GT registered in Spain. Therefore 55% of the total tonnage controlled by Spanish companies is registered in Spain, currently one of the highest rates of national registration in the EU countries. There have also been several major institutional events for the maritime sector: • The introduction, from 1st January 2002, of a tonnage tax system, in rather similar terms to the one implemented in the UK (except for the training component); • On the basis of a joint proposal from the Shipowners' Association (ANAVE) and the main seafarers Union (UGT-MM), the Parliament passed a Law amending the national regulation on working time and rest periods onboard merchant ships registered in the Special Canary Islands Register, approaching it to the international requirements of ILO Conv. 180 and the relevant EU Directive ; • In February 2002, the Shortsea Promotion Centre - Spain was formally established and ANAVE's Director General, Mr Manuel Carlier, was elected President. June 2002 has finally seen the end of the long elaboration process of a new Law on the economic regime of Spanish State Ports that will also introduce all the liberalising principles contained in the draft EU Directive on port services. The new Law could arrive in the Parliament before the end of 2002. On the negative side, at the end of June 2002, and after a very long decision process, the Government revised the regulation establishing conditions for granting Pilot Exemption Certificates in a way that has not satisfied the sector's expectations. Although the process has been rather streamlined for ships calling very frequently (twice a week or more) in the same port, in the future, Captains of ships with less frequent calls will confront even more difficulties than before to get the PECs. In the first half of 2002, and under the Spanish Presidency of the EU, ANAVE celebrated its 50th Anniversary in a dinner attended by Commission VP Loyola de Palacio, the Spanish Transport Minister and delegates from all ECSA members, who celebrated its summer Board Meeting and General Assembly in Madrid.