» NEWSLETTER 02-1 PROPOSED DIRECTIVE ON MARKET ACCESS TO PORT SERVICES Following the vote in the European Parliament in November 2001 on the proposed Directive on the liberalisation of port services, the Commission has issued on 19 February a revised version of the proposed Directive taking into account some of the suggestions brought forward by the Parliament. ECSA appreciates that all port services have been included in the revised version. This is essential in order to further improve the quality and efficiency of port services and of maritime transport in the overall supply chain. In this context ECSA has addressed jointly with CLECAT, ECSASBA, ESC and UNICE the Spanish Presidency and European Transport Ministers supporting the proposed Directive. This is fully in line with the decisions taken at the Lisbon Summit in 2000 to speed up the liberalisation in areas such as gas, electricity, postal services and Transport in order to further improve the competitive position of the European economy worldwide. ECSA is pleased that the liberalisation of port services was also referred to at the Barcelona Summit on 15/16 March as a priority action point. The Council Transport Working Group has meanwhile given a first reading to the proposed Directive with some questions and suggestions. A more substantial discussion will take place in a second set of meetings after Easter on the basis of a working document produced by the Spanish Presidency. ECSA has reiterated some suggestions made previously, such as the creation of an Advisory Committee and the consultation of Users Committees. As far as pilotage is concerned a joint approach with INTERTANKO was developed, fully recognising the importance of safety requirements of pilotage but at the same time strongly advocating a full inclusion of pilotage services in the Directive. Indeed, the safety argument should not be abused to maintain harmful monopoly practices and inefficient services. In this respect it is considered important that a proper risk assessment takes place when determining the use and the tasks of pilotage services. More efficiency in pilotage services will improve safety in ports as well as in waterways, giving access to ports, and enhance the use of pilotage services. In order to facilitate the application of the Directive on pilotage the establishment of a proper framework is suggested. This should include monitoring and controlling pilotage services through a National Authority, facilitating of granting PECs (Pilotage Exemption Certificates), a proper role for User Committees and, if necessary, the Advisory Committee in the process. ECSA looks forward to constructive discussions with the EU Institutions and the industry parties involved in the further process on the proposed Directive. MARCO POLO PROGRAMME The Commission adopted beginning February a draft Regulation setting up a € 115 million five year programme (2003-2007) aiming at shifting the expected increase of road transport from congested roads to short sea shipping, rail and inland waterway services and to turn the notion of intermodality into a real alternative to road-only transport. The Marco polo programme will replace PACT as from 2003. Funding for three different actions is proposed: modal shift actions (start up aid), catalyst actions (tackling structural market barriers and common learning actions (sharing know how in an increasingly complex transport and logistics industry). Pending the introduction in 2003, Pilot Actions are proposed for 2002 (replacing PACT) with a budget of € 2 million. These pilot actions should be of the catalyst type. Having been actively involved in the promotion of short sea transport since 1992 ECSA appreciates initiatives that support this aim. However, ECSA also stressed the complex nature of such a programme and advocated transparency and sufficient communication on the projects involved in order to avoid a distortion of competition with existing services. SHORT SEA TRANSPORT The promotion of short sea transport is continuing at a strong pace. At the SITL exhibition in Paris beginning of March the European Short Sea Network (ESN) was introduced to the trade/transport logistic sector. ESN is a co-operation between 11 national and regional short sea promotion centres with as aim to promote short sea transport in the broadest sense of the word on a European level. Apart from exchanging information and experience the ESN will in the short term build an internet site and develop a European data base on sailing possibilities for short sea liner and bulk shipping on a European wide basis. The members of ESN are the Promotion Centres of Denmark, Finland, Flanders, France, Germany, Greece, Ireland, Italy, Portugal, Sweden, and The Netherlands with Poland as an associate member. Meanwhile, the Commission has approved a French aid system to cover over the first three years, up to 30 %, of operating costs of new short sea services. Procedures have been established to avoid a distortion of competition with existing services. CONSEQUENCES OF 11 SEPTEMBER The European shipping industry has closely followed the developments since 11 September. The insurance world was approached jointly by ECSA/ESC with a strong plea not misuse the 11 September events to unduly increase premia in order to cover losses of other sectors. It was also stressed that care should be taken with the list of excluded countries since the list has a clear influence on the market and should therefore be adjusted by removing countries without clear risks/incidents. Discussions took place with the Commission services during which ECSA passed on the ICS “Guidance for shipowners, ship operators and masters on the protection of ships from terrorism and sabotage.” It was also stressed that in view of the international character of shipping, the IMO is the proper forum to enhance security. On security in ports, ECSA is in close contact with ESPO and attended the first meeting on port security with the Commission services. It was stressed that regional measures should be avoided and that the industry should not be asked to take over the tasks of the Authorities as experienced in the case of illegal immigrants. The Commission intends to issue a Communication on security measures in due course. SAFETY AND ENVIRONMENT Post Erika Measures The last few months has seen final adoption and publication in the Official Journal of the Erika I package of proposals relating to the accelerated phasing in of double hull tankers and the tightening up of the existing rules relating to port state control and classification societies. ECSA views the results positively in that they should make a significant contribution to maritime safety and the environment and are consistent with IMO, preserving the credibility of that organisation. Legislative progress also continues to be made on the Erika II proposals relating to the establishment of a European Maritime Safety Agency, to a Monitoring/Reporting system and to a proposal concerning compensation and liability in the event of oil spills (notably the establishment of a third tier of compensation). As regards both Monitoring/Reporting and the Agency, final adoption is anticipated at the June Transport Council. However, the location of the Agency appears to be becoming increasingly uncertain. ECSA is confident that the texts of the measures will be acceptable to the industry. Discussions on Compensation/Liability have, with industry support, moved to IMO and, as with the double hulls initiative, it is hoped that an international solution that is acceptable to Brussels will be found. As to the future, a number of proposals from the Commission are expected in the coming weeks. These relate to an extension of the 1995 Stockholm Agreement to southern Europe, amendments to Directive 98/18 on safety measures for passenger ships in domestic trades, a Regulation implementing the recent IMO TBT Convention and proposals to enhance the role of the EU in IMO. Maritime Air Emissions In January, the Commission held a consultation meeting with industry in the context of an anticipated Communication on maritime air emissions to be published later in the year. ECSA participated in the process and, jointly with ICS and BIMCO, subsequently submitted detailed views to both the Commission’s Transport and Environment Directorates. Reflecting the policy adopted by the Board in December last, the ECSA input recognised the increasing importance of the issue and the need for the industry to take a pro-active approach. Ratification of Marpol Annex VI on air pollution from ships, which notably designates two Sulphur Emission Control Areas where fuel burned by ships must be below 1.5% sulphur, is the key priority for the industry, and initiatives have been taken to encourage early ratification. Self-regulation by the industry itself is also considered vital and in that regard the ICS Code of Practice on the selection of low sulphur bunker fuel based on Annex VI is of particular relevance. The availability of low sulphur fuels is another central matter that needs to be addressed. ECSA has entered a dialogue with the oil industry in that context. This latter issue is relevant in relation to the practical problems in implementing Directive 99/32 on sulphur content in liquid fuels, difficulties that would have been avoided by imposing regulation at the point of delivery. Further discussions on amendments to the directive will take place in the coming months. It is anticipated that the constructive dialogue established between the industry and the Commission will continue. ENVIRONMENTAL LIABILITY On 23 January 2002, the European Commission issued a proposal for a Directive aiming to establish a Community framework for the prevention or restoration of environmental damage based on environmental liability. This proposal follows the White Paper on environmental liability of 2000 and outlines the Commission’s view, on how to implement the “polluter pays” principle. According to the proposed Directive, operators having caused or facing an imminent threat of environmental damage, meaning damage to biodiversity, water and land in the sense of Article 2 (18), will be liable to bear the prevention or restoration costs. Since the IMO has already developed relevant international conventions dealing with liability, compensation and limitation of liability arising from shipping incidents, ECSA, ICS, INTERTANKO AND ITOPF requested the European Commission to exclude shipping from the Directive. This was recognised by the European Commission through excluding from the proposed Directive (an imminent threat of) environmental damage arising from an incident regulated by the relevant international Conventions. The industry is currently examining the details of the proposal with a view to making an input in the debate. Further discussions on the proposed Directive will take place in the Environment Council and other EU Institutions. MARITIME EXTERNAL RELATIONS Tanzania With support and under some pressure of the World Bank and several donor countries the Tanzanian government introduced in 1999 a liberalisation programme, including the maritime transport sector. The programme has had clear positive effects on the efficiency in the ports and the agency sector. Very serious concern has been raised by a recently proposed “shipping agency act”, which would impose shareholding majority by Tanzanian nationals and put in doubt direct financial interests by foreign shipowners. Such measures risk to seriously harm the efficiency and cargo throughput as gained over past years, represent an outright capital loss for several EU and non-EU companies and create a serious negative climate on legal certainty for foreign investors in Tanzania. EU diplomatic representations and the World Bank have been duly informed and are trying to get the government to change their minds on these adverse developments. Bangladesh EU carriers are encountering increasing problems in Bangladesh. The ports are served by means of feedering via regional hub ports. Rather poorly performing national feeder operators are being given berthing priority, which together with the ports’ overstaffing, labour strikes, cumbersome working procedures, archaic work rules and management practices, result in serious delays and high costs to the foreign shipping lines and ultimately the external trade. Furthermore, the garments manufacturers are using their powerful lobby to push for government rate setting and controls. Other problems derive from for example the lack of a regulatory regime for the freight-forwarding sector, which often leaves the shipping line with the liability for forwarders’ non-performance. Shipowners, not even being allowed to form an association, find a deaf ear with the governmental authorities for consultation and resolving the problems. EU diplomatic representations, also being important donor to Bangladesh, have been alerted. EUROPEAN PARLIAMENT On the occasion of the two and a half year rotation of the Presidency in the European Parliament Pat Cox (IRL-ELDR) was elected as President until the end of the term of this Parliament. In the Committee on Regional Policy, Transport and Tourism (RETT) the following changes took place Chairman: Mr. Luciano CAVERI (Italy) – Liberal Vice-Chairmen: Mr. Rijk VAN DAM (Netherlands) – Europe of Democracies and Diversities Mr. Helmuth MARKOV (Germany) – European United Left/Nordic Green Left Mr. Gilles SAVARY (France) – Socialist Co-ordinators: Mr. Konstantinos HATZIDAKIS (Greece) – Christian Democrats Mr. Brian SIMPSON (UK) – Socialist Mr. Dirk STERCKX (Belgium) – Liberal Mr. Camilo NOGUEIRA ROMAN (Spain) – Greens/European Free Alliance Mr. Rijk VAN DAM (Netherlands) – Europe of Democracies and Diversities Mr. Erik MEIJER (Netherlands) – European United Left/Nordic Green Left ACCESSION NEGOTIATIONS Since March 1998, the EU has been negotiating with Bulgaria, the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Romania, Slovenia, Slovakia and Turkey to enlarge the EU from its current 15 to 28 Member States. Accession negotiations with candidate countries are based on criteria for membership, which relate to principles of liberty, democracy, stability of institutions and a functioning market economy. They also relate to the implementation of the ‘acquis communautaire’ (i.e. the entire set of existing rules and legislation adopted by the European Union). Since the acquis communautaire is not negotiable, accession negotiations only regard to those parts that the candidate countries will not be able to fully apply as of their accession. It is expected that accession negotiations will be finalised with the large majority of accession countries by the end of 2002, enabling them to join the EU in 2004 in order to participate at the European Parliament election of 2004. Only Bulgaria and Romania are expected to join later (probably in 2007). With Turkey, an “Accession Partnership” was adopted in March 2001, emphasising especially the political accession criteria of liberty, democracy, respect for human rights and the rule of law. As regards transport, the candidate countries face the challenge of taking over and implementing a very substantial body of transport law, which represents about 10% of the total EU acquis. The transport acquis is enclosed in Chapter 9, which is based on Articles 70-80 of the EC Treaty, consists mainly of secondary legislation. However, implementing the transport acquis does not only require adoption of legislation, but also of an adequate level of administrative capacity. There is an economic need to promote, develop and upgrade the transport infrastructure in candidate countries, also with financial assistance of the EU. On maritime transport a lot of progress has been made and negotiations have been concluded with a substantial number of accession countries. The application of the acquis will now be monitored. This is particularly the case for maritime safety issues notably Flag State Control and Port State Control for which the necessary resources will have to be available. ECSA is in the course of enhancing its co-operation with the Shipowners Associations of the countries concerned. EUROPEAN COUNCIL BARCELONA 15/16 MARCH The European Council met in Barcelona on 15/16 March for its second annual spring meeting on the economic, social and environmental situation in the Union. In the Presidency conclusions priority action points were brought forward. In the priority action points the European Council expressed the following views on issues directly related to maritime transport: • Welcomed the progress on GALILEO and asked the Council (Transport) at its meeting in March to take the necessary decisions regarding both the funding and the launching of this programme and the setting-up of the Joint Undertaking, in cooperation with the European Space Agency; • Called for the adoption by December 2002 of pending proposals on port services and public services contracts; • Requested the Council and the European Parliament to adopt, by December 2002, the revision of the Guidelines and the accompanying financial rules on Trans-European Transport Networks (TEN), including new priority projects identified by the Commission, with a view to improving transport conditions with a high level of safety throughout the European Union and to reducing bottlenecks in regions such as, among others, the Alps, and the Pyrenees and the Baltic Sea. March 2002