Maritime Shipping and Ports Table of Contents Executive Summary 3 1. Introduction 7 1.1. 1.2. 1.3. 1.4. Background to the Project Context of the Diagnostic Study Objectives and Approach of the Module Structure of the Module 7 8 9 10 2. EU References and Guidelines 12 2.1. Policy Framework 12 2.1.1. 2.1.2. 2.1.3. Ports Maritime Shipping Maritime Safety & Global Navigation Satellite System (GNSS) 12 13 15 2.2. Legal Framework 16 2.2.1. 2.2.2. 2.2.3. 2.2.4. Ports Maritime Shipping Maritime Safety & Global Navigation Satellite System (GNSS) Maritime Security 16 18 24 34 3. Facts, Figures and Statistics about MEDA Maritime Transport 35 3.1. 3.2. General Maritime Traffic 35 35 3.2.1. 3.2.2. 3.2.3. 3.2.4. Total Volume and Modal Share Maritime Traffic per Country Maritime Traffic per Category Main Corridors 35 37 38 43 3.3. Maritime Shipping in the MEDA Region 43 3.3.1. 3.3.2. 3.3.3. Fleet and Fleet Condition Regular Maritime Lines in Western Mediterranean Regular Maritime Lines in Eastern Mediterranean 43 45 48 3.4. Ports 50 4. Maritime Policy in the MEDA Region 60 4.1. Competition and Liberalisation 60 4.1.1. 4.1.2. Maritime Shipping Ports 60 60 4.2. 4.3. 4.4. Short Sea Shipping Hub Development Maritime Safety 60 60 61 5. Maritime Shipping in the MEDA Region 63 5.1. General 63 1 Module 5 2 EuroMed Transport Project Main Contract Diagnostic Study 5.2. Legal Framework and Conventions 63 5.2.1. 5.2.2. Legal Framework Conventions 63 63 5.3. Operations 72 5.3.1. 5.3.2. 5.3.3. Overview Regional Cabotage and Short Sea Shipping Development Liner Conferences & Alliances 72 76 78 6. Port Authorities and Operations in the MEDA Region 79 6.1. Legal Framework and Conventions 79 6.1.1. 6.1.2. Legal Framework Conventions and Associations 79 84 6.2. Regional Comparison in Case of Regulation & Privatisation 84 6.2.1. 6.2.2. General Some Examples of Port Commercialisation 84 88 6.3. Main Bottlenecks and Issues 91 6.3.1. 6.3.2. On a Sub-Regional Level On a MEDA Regional Level 91 94 7. Maritime Safety / Security and Global Navigation Satellite System (GNSS) 97 7.1. 7.2. General Adhesion to International Conventions 97 97 7.2.1. 7.2.2. 7.2.3. Maritime Safety Marine Environment Protection Harmonisation and Implementation of Maritime conventions 97 98 99 7.3. 7.4. 7.5. 7.6. VTS-VTMIS Maritime Security Maritime Education & Training GNSS 101 102 102 104 8. Findings and Recommendations 105 8.1. 8.2. 8.3. 8.4. 8.5. General Improvement Measures Related to Maritime Transport Policy Improvement Measures Related to Maritime Shipping Improvement Measures Related to Ports Improvement Measures Related to Maritime Safety and Maritime Security 105 105 106 107 9. Abbreviations & Acronyms 110 10. References 113 108 10.1 Bibliography 10.2. Websites 113 116 Appendix 1: Synthesis of an integrated Maritime Action Plan 117 Maritime Shipping and Ports Executive Summary Project Background The Barcelona Process in 1995 marked the start of a new relationship between the European Union (EU-15) and its 12 Mediterranean Partners (Algeria, Cyprus, Egypt, Israel, Jordan, Lebanon, Malta, Morocco, Palestinian Authority, Syria, Tunisia and Turkey). Amongst its objectives, this partnership intends to create a Euro-Mediterranean Free Trade Area between the EU and its Mediterranean Partners, and between these partners themselves, and to enhance overall prosperity and safety in the region. For the success of this Free Trade Area, a sustainable and efficient multi-modal transport system is vital. For this purpose, the European Commission launched the EuroMed Transport Project, which aims at: • Integration of transport policies and regulations, and harmonisation of transport institutional structures across the MEDA region (this is envisaged to be achieved through a Main Contract that started in the beginning of 2003). • Integration of regional transport networks and physical infrastructure (this is envisaged to be achieved through the Infrastructure Contract that started in July 2003). Module Context and Objectives Within the context of the Main Contract, several outputs are planned among which is a Diagnostic Study that provides an overall comprehensive assessment of the status of the transport system in the MEDA region. The Diagnostic Study is laid out in two parts, namely Part I that covers Regional Issues and Part II that covers Country Issues. This present document falls within the umbrella of Part I of the Diagnostic Study. It is referenced as Module 5 ‘Maritime Shipping and Ports; a key sector to foster intra-regional trade relations’ is devoted to the diagnostic of the maritime transport sector in the MEDA countries. It has the following objectives: • First, to provide a description of the current situation of the maritime transport sector in the MEDA region, and to highlight existing problems and deficiencies. • Second, to define remedial measures that will have a tangible and positive impact on eliminating the identified deficiencies, consequently stimulating the growth of the maritime and shipping industry in the MEDA region. EU Policy and Regulatory Frameworks in Relation to Maritime Transport Even though maritime transport faces some difficulties in the EU, it remains strong, particularly after the EU enlargement and the growth of SSS (Short Sea Shipping) routes. Presently, ships carry 90% of all trade between the EU and third countries and the maritime transport sector employs around 2.5 million people in the EU. The 2001 White Paper focuses, in particular, on the development of SSS, sea-motorways and inter-modality. The implementation of a genuine European maritime traffic management system, the enhancement of maritime safety and the development of a global navigation safety system are also underlined, as well as port reform and modernisation. The EU legal framework enforces this policy through a global set of directives, decisions and regulations dealing with ports (with an accent on inter-port and intra-port competition, service quality and financing), maritime shipping (with an accent on liberalisation and SSS development) and maritime safety (through the setting-up of the European Maritime Safety Agency (EMSA), the development of Vessel Traffic Surveillance / Vessel Traffic Management and Information Services Systems (VTS/VTMIS), and the development of the European Global Navigation Satellite System –Galileo- implementation). It is clear that the EU policy and regulatory frameworks relating to maritime transport and ports can provide a good reference and a set of best practices for the MEDA Partners in this domain. General Facts about the MEDA Maritime Transport Sector The MEDA maritime transport sector is characterised by the following key indicators (based on 2001-2002 data): • Most of the trade of the Southern Mediterranean countries is sea borne with a stable modal share (in volume) over 75%, the lion’s share of which is with the EU. 3 EuroMed Transport Project Main Contract Diagnostic Study Module 5 • • • • • The maritime traffic per country reflects tremendous differences from 132.3 million tonnes in Turkey (demographic impact and long coastlines) to 6 million tonnes in Lebanon (only one major port and small population) through 100 million tonnes in Algeria (oil and oil derivatives). There exist 25 major maritime corridors in the region, each carrying over 2 million tonnes/year, mostly for oil and oil derivatives transport. Moreover, maritime lines are operated on a regular basis from each major MEDA port. In the MEDA region, 57 ports have a traffic exceeding 1 million tonnes/year mostly specialised in liquid bulk, with a total traffic just over 10% of Rotterdam Port. The port equipment (technical equipment, land connections, Information and Communication Technology, etc) are different among countries and among ports of the same country. The traffic per category also shows differences across the region. Some countries have a significant part of maritime traffic for Containers and Ro-Ro traffic (Israel 30%), others for liquid bulk (Algeria 83%), and others for dry bulk (Jordan 62%). The high share of bulk, in general, explains the low containerisation potential and, partly, the low containerisation rate. However, this rate is growing, despite a high percentage of empty units. The sea passenger traffic remains low with just a few regular ferry routes. Meanwhile, a growing market exists for cruises. MEDA Maritime Transport Policy An analysis of the present situation of the maritime transport policy in the various MEDA countries was carried out. The results of the analysis illustrated that apart from a few coordinating bodies, such as the UAPNA (‘Union des Administrations Portuaires du Nord de l’Afrique’ ) or the APU (Arab Port Union), no common maritime policy / practices presently exist for ports or shipping in the MEDA region: • From the competition and liberalisation points of view, in some countries, the State dominates to a large extent ports and maritime fleets, with a low degree of competition, whereas in some others, opportunities for BOT in ports already exist 4 • and the involvement in private shipping takes place in an open market. Short see shipping is important for Malta, Cyprus and partly Turkey while it appears to be less important elsewhere. Some countries/ports develop a hub approach, whereas some do not, for various reasons. Nevertheless, two major common concerns seem to be shared across the region: • Port Reform represents a common objective, and all countries seem to have an intent to increase port competition, improve port services and reduce costs. • All countries seem very serious to rise with the issue of maritime and port safety/security to EU and international standards. Examples in this domain include the formation of the Mediterranean MoU and the Rempec, as well as the common acceptance of the ISPS code (although the code application level differs among MEDA countries). Based on the above, it is clear that there is a need to develop a harmonised and common maritime/port policy to be shared by the various MEDA Partners. The EU can be of tremendous assistance in this respect. MEDA Maritime Shipping The analysis of the status of maritime shipping in the MEDA region revealed the following key facts: • The shipping market has been opened up in virtually most MEDA countries where the private sector is allowed to engage in maritime shipping operations. • However, it seems that, in general, the current regulatory frameworks governing maritime shipping do not provide the necessary support for the participation of the private sector (with few exceptions such as Cyprus, Malta and Egypt). Specifically, a local shareholding majority is generally required for the creation of a private maritime company, and regulatory or fiscal incentives that can enhance the livelihood of private companies while at the same time ensuring fair competition are often insufficient (i.e. lack of competitive ship registration costs, corporate tax levels, annual tonnage taxes, etc). In addition, it Maritime Shipping and Ports appears that several countries still exhibit practices which negatively impact the openness and fairness of competition, by providing state aids and special treatment for their national carriers, thereby further reducing the competitive edge of the private companies. As a combination of the above factors, private shipping companies are facing strong competition from foreign carriers and their activities are endangered, not to mention that their vessel fleets are in a poor condition and have a high age in almost all MEDA countries. It is extremely essential to turn this situation around. This will require MEDA governments to adjust their regulatory frameworks with the purpose of enhancing the well-being of private shipping companies while at the same time maintaining a fair state of play in the market. The EU regulatory framework can be very helpful in this regard. MEDA Ports With respect to the institutional structure of ports, this differs considerably in the MEDA region as follows: • In some countries (Morocco, Tunisia, Cyprus and Malta), the management structure is centralised and a single authority is mandated at the national level to manage all major publicly owned ports in the country. It should be noted that for Cyprus and Malta, this cannot be viewed as a problem given the proximity between ports in each country. • In other countries (Egypt, Israel, Syria, Lebanon and Jordan), decentralisation has been achieved to a large extent, or will be achieved in the near future, where the management of almost each port is undertaken by an independent authority with a high degree of freedom and autonomy. • In other countries, decentralisation has been only partially accomplished. For example, in Turkey, the management of the major publicly owned ports is divided between two authorities, and in Algeria, the management of the port system is carried out by three regional port authorities. Concerning port services (pilotage, towage, cargo handling, container handling, etc.), the level of market liberalisation varies significantly between MEDA countries: • • • These activities seem currently rather protected in several countries (Syria, Jordan, Israel and Algeria) and are reserved to a large extent for the public sector. Many of these countries are nevertheless taking steps to change this situation in the future. In other countries (Tunisia, Morocco and Turkey), the opening up of these services is at a moderate stage, as the public sector is heavily involved in providing port operations and services, but considerable participation of the private sector can be noticed as well. Other countries (Egypt, Cyprus, Lebanon and Malta) are more advanced in this domain as the most significant share of port services, if not all, is undertaken by the private sector subject to an authorisation and license from the port authority. Optimising the functioning of ports represents a major necessity and a crucial issue for all MEDA countries. Based on the EU and international experiences in this domain, there are three main approaches in which this could be accomplished, namely the decentralisation of port management, the commercialisation of ports and the introduction of private management in ports. In selecting the optimal approach (or approaches) to be adopted, MEDA countries need to take into consideration the specificities of their ports (ownership, management, function, size, physical set-up, geographic location, etc.): • Decentralisation of port management includes firstly, separating the task of port regulation from the task of port management, and secondly, delegating the management of the ports to local autonomous authorities which are not obstructed by government intervention. This would ensure that port authorities become in direct contact with their customers and more aware of their needs, thereby making customer-based decisions that enhance the viability and well-being of these ports. As illustrated above, MEDA countries are at different levels of development in this domain as such need to exert different efforts to reach the desired result. Specifically, the countries which have a centralised port management structure (fully or partially) are encouraged to give priority to decentralising management of their major ports, and then move on to the other ports. The countries which have already 5 EuroMed Transport Project Main Contract Diagnostic Study Module 5 • • decentralised management need to focus on further enhancing the existing freedom, functioning and performance of the local port authorities to the maximum possible extent. The commercialisation of ports includes injecting momentum into the competitive spirit of the port by allowing/increasing the participation of the private sector in the provision of port services and operations. The main benefits that would be gained from such participation include better quality of service, reduced prices, better labour relations and a potential source to finance capital investments in the future. In deciding on the priority services in which the involvement of the private sector should be allowed (or further enhanced if such involvement already exists), MEDA countries would need to take into account the existing level of efficiency in providing port services, with the services demonstrating the lowest levels of efficiency being accorded the highest priority. Concerning the introduction of private management in ports, this includes seeking an advanced and sophisticated degree of private sector involvement in ports, with even a transfer of accountability from the public sector to the private sector. Although there are several international models to reach this objective, MED countries are encouraged to seek the Landlord Model as the primary consideration or option, given that it is widely common at the international level and has made huge successes. The above process is clearly a very complex and intricate one. However, the EU can be a strong partner for the MEDA countries in making the required reforms. Maritime Safety / Security in the MEDA Region The analysis of maritime safety and security in the MEDA region revealed the following key facts: • All MEDA countries are members of the International Maritime Organisation (IMO) and have adopted the basic IMO conventions. However, several other conventions that have a bearing on safety, security and/or protection of the 6 • • environment have not been adopted by many MEDA countries (e.g. CSC Convention 1972, SAR Convention 1979, Inmarsat Convention 1976, Intervention Convention 1969, etc.). MEDA countries are encouraged to join these conventions as soon as possible. The implementation of the already signed IMO conventions (e.g. SOLAS, MARPOL, ISPS, etc) is still not optimised in the region thereby posing potential threats to the regional maritime safety and security and environment. There are two basic reasons for this. Firstly, many of the MEDA maritime administrations still lack qualified inspection staff, know-how and funds to optimally perform their duties in relation to flag state implementation (FSI) and port state control (PSC). Second, the design and approach of existing regional initiatives pertaining to PSC (e.g. Mediterranean Memorandum of Understating on Port State Control, Med MoU) do not sufficiently stand up to international best practices in this domain, in particular the Paris MoU. The combination of these factors has resulted in high numbers of MEDA ships being deemed as deficient and/or detained in EU ports, with most MEDA countries ranking on the black-list of the Paris MoU. It is clear that MEDA countries need to further strengthen the capacities and resources of their maritime administrations, and to approximate Med MoU with the Paris MoU. Most MEDA countries have indeed installed a VTS, but mainly at their major ports. All MEDA countries are encouraged to extend the VTS systems they have in their major ports to the other remaining ports so that to provide comprehensive coverage of their entire national coastlines, and to upgrade to a VTMIS in a parallel manner. The EU can be of great support to MEDA countries in pursuing the above objectives. It would also be important for MEDA partners to start gradually approximating their transport legislation with the European regulations governing maritime safety, security and environment protection, given the extensive maritime trade between the two regions and the significant benefits that such an approximation would yield. Maritime Shipping and Ports 1. Introduction 1.1. Background to the Project Following 20 years of intensive bilateral trade and development cooperation between the European Union (EU) and countries in the southern Mediterranean (Algeria, Cyprus, Egypt, Israel, Jordan, Lebanon, Malta, Morocco, the Palestinian Authority, Syria, Tunisia and Turkey), the Foreign Ministers of the then 15 EU Member States and these 12 Mediterranean countries met in Barcelona in November 1995 to mark the start of a new partnership relation covering bilateral and multilateral or regional cooperation, called the ‘Barcelona Process’ or, more generally, the Euro-Mediterranean Partnership. Amongst its objectives, this Partnership intends to create an area of shared prosperity and safety through the progressive establishment of a EuroMediterranean Free Trade Area between the EU and the Mediterranean Partners and among these countries themselves, accompanied by substantial EU financial support for economic transition in the Partner Countries and for the social and economic consequences of this reform process (economic and financial partnership). Together with the four EFTA (European Free Trade Area) Member States and the countries foreseen to join the EU in coming years, the Euro-Mediterranean Free Trade Area is set to include some 40 states and over 800 million consumers making it one of the world’s most important trade entities. It has to be noted here that since 2004, the Euro-Mediterranean partnership has gained additional momentum through the inclusion of the Mediterranean Partners in the European Neighbourhood Policy (ENP) through bilateral action plans. This will reinforce and build on the cooperation that has been developed over the last 10 years. A sustainable and efficient intermodal transport system is vital for the success of the EuroMediterranean Free Trade Area, as well as for an increased integration of the economies of the Mediterranean Partner Countries. This was recognised by the 1995 Barcelona Declaration which stresses ‘the importance of developing and improving infrastructures, through the establishment of an efficient transport system …’ and goes on to state that ‘efficient interoperable transport links between the EU and its Mediterranean Partners and among the Partners themselves, as well as free access to the market for services in international maritime transport, are essential to the development of trade patterns and the smooth operation of the EuroMediterranean Partnership’. The creation of such a transport system requires regional coordination within and between the different modes of transport (land, sea and air transport), for both passengers and freight, thereby ensuring that interoperability, multimodality and intermodality of the regional transport system as a whole is achieved, between the various MEDA countries on the one hand, and between these countries and the EU on the other hand. This can only be accomplished by taking into consideration all essential transport policy elements and objectives, by tackling all aspects of transport including the simplification of procedures, harmonisation of rules in terms of environment policy, customs procedures, etc. and by physically integrating transport infrastructure networks. Since the 1995 Barcelona Conference, a broad consensus has developed on the issue of transport-sector reform, which should form an integral part of economic adjustment at the national level as well as being the focus of intergovernmental cooperation at the regional level. These main objectives were confirmed in the so-called Lisbon Declaration in January 1997, which led to the creation of the Euro-Med Transport Forum. To support the objective of achieving sustainable and integrated multimodal transport networks at the regional level, and to promote cooperation with the countries of the southern Mediterranean, the European Commission approved within the framework of the MEDA Programme, in November 2001, the EuroMediterranean Regional Transport Project (the ‘EuroMed Transport Project’). The overall objectives of this project are to: • Contribute to overall economic and social development of the Mediterranean Partners (MEDA countries) through increased and more sustainable transport flows, increased trade competitiveness and more balanced exchanges. 7 EuroMed Transport Project Main Contract Diagnostic Study Module 5 • • Improve the quality, safety and efficiency of both the goods and passenger transport systems in the region, and improving the functioning of the transport sector as a whole. Support the development of integrated multimodal transport networks and infrastructure, leading to improved transport flows, better connections and reductions in bottlenecks. More specifically, the project aims to contribute to the development of the Euro-Mediterranean Free Trade Area and to promote economic integration among the Mediterranean Partner through providing assistance to these countries in the following: • Improving the functioning and the efficiency of the Mediterranean transport system by giving support to institutional and market reforms, promoting the harmonisation of operational norms and regulations and encouraging the coordination of transport policies. • Developing and modernising the regional transport infrastructure network and ensuring its interconnection to the TransEuropean Networks. • By facilitating the mobilisation of resources for investment in commonly agreed priority infrastructure schemes. The EuroMed Transport Project is implemented through two parallel contracts, namely: • The Main Contract. • The Infrastructure Network Contract. The Main Contract (started at the beginning of 2003) – under which this present Diagnostic Study Module is produced – strives to accomplish the objectives mentioned above, through assisting MEDA countries with the preparation and implementation (at the regional level) of commonly agreed policy and institutional measures for improving the quality of the transport services provided and increasing the efficiency of the transport system in the region. The contract for regional infrastructure network activities (Infrastructure Network Contract, started in July 2003) aims at: • Recommending measures for addressing the problems and bottlenecks of the transport 8 • • sector in the MEDA region, in terms of both institutional set-ups and physical infrastructure, while taking into consideration security, safety and environmental aspects. Creating an operational concept for the Mediterranean transport infrastructure network through the elaboration of a strategy for its sound development. Improving the capacity of administrations to prepare and implement infrastructure projects and manage infrastructure facilities. Each of the above contracts is managed by a separate consortium and a different project team. Nevertheless, close liaison and extensive coordination is maintained between the two contracts at all times due to the strong interface and interaction that exist between them. 1.2. Context of the Diagnostic Study The Main Contract is a key component of the EuroMed Transport Project. Under this Contract, six main outputs will be produced: • Diagnostic Study: This includes an assessment of the existing situation of the various transport sub-sectors in the MEDA region with a primary focus on the institutional, policy and regulatory dimensions; an analysis of the main problems and bottlenecks, and corresponding recommendations for improving the overall efficiency and quality of transport systems and services. • Regional Transport Action Plan (RTAP): This is based on the results of the Diagnostic Study and includes the preparation of a complete and consistent list of priority measures and projects (tackling not only institutional, policy and regulatory dimensions, but the infrastructure dimensions as well) aimed at improving the safety, efficiency, cost-effectiveness and environmental-friendliness of the MEDA transport system. It also includes defining the policy, technical, and financial frameworks that are necessary for implementation. The RTAP will be defined in close coordination with the Infrastructure Contract. • Studies: This includes undertaking various additional studies and surveys on transport Maritime Shipping and Ports • • • themes (to support the RTAP) at regional, sub-regional and national levels, which require further investigation. Policy dialogue: This includes establishing an ongoing and effective dialogue process among the Euro-Mediterranean Partners on transport policy measures and related themes. Training: This includes organising a series of training programmes and seminars for transport decision-makers and senior officials in central governments, transport authorities and the relevant private sector groups in MEDA countries. Information and dissemination: This includes maintaining adequate communication links between all project participants and beneficiaries and ensuring the wide availability and visibility of project results. The Diagnostic Study (Output 1) is divided into two parts as explained below. Part I of the Diagnostic Study is entitled Regional Issues. It includes an analysis, from a regional perspective, of the key transport subsectors and themes across the different MEDA countries. It is composed of ten modules as follows: • Module 1: General Overview of the Diagnostic Study. • Module 2: MEDA Economy, Trade and Transportation. • Module 3: (Sub) Regional Integration towards a Liberalised Transport Market. • Module 4: Cross-Border and Cross-Sector Transport Issues. • Module 5: Maritime Shipping and Ports. • Module 6: Aviation Policy and Airport Reform. • Module 7: South-South and Hinterland Relations. • Module 8: Operational Concept for the Mediterranean Transport Infrastructure Network. It must be noted that this module has been provided by the Infrastructure Contract. • Module 9: From Diagnostic to Action Plan. • Module 10: Resources for Policy Makers. Part II of the Diagnostic Study, Country Issues, discusses the status and describes the characteristics of the transport system (by theme and mode) in each MEDA country. It is composed of twelve modules as follows: • Module 1: Algeria. • Module 2: Cyprus. • Module 3: Egypt. • Module 4: Israel. • Module 5: Jordan. • Module 6: Lebanon. • Module 7: Malta. • Module 8: Morocco. • Module 9: Palestinian Authority. • Module 10: Syria. • Module 11: Tunisia. • Module 12: Turkey. It should be noted that both parts of the Diagnostic Study are complementary to each other. In particular, the regional analyses and comparisons made under Part I are based upon and supported by the country-specific information provided under Part II. 1.3. Objectives and Approach of the Module This present document falls within the umbrella of Part I of the Diagnostic Study (Regional Issue). It is referenced as ‘Module 5: Maritime Shipping and Ports’. The main objectives of this module are twofold: • First, to provide a description of the current situation of the maritime transport sector in the MEDA region, and to highlight existing problems and deficiencies. • Second, to define remedial measures that will have a tangible and positive impact on eliminating the identified deficiencies, consequently stimulating the growth of the maritime and shipping industry in the MEDA region. In order to realise the above objectives, the following step-by-step approach was adopted: • First, the main data and information related to the maritime transport sector in the MEDA region was collected and compiled. The information was gathered from recognised international sources, recent regional statistics, interviews with the various involved stakeholders, and from other reliable sources. Attention was given to providing comprehensive coverage of all involved players and of all relevant themes and topics. 9 EuroMed Transport Project Main Contract Diagnostic Study Module 5 • • • Second, a thorough analysis of the collected data was performed, and a realistic profile of the current status of the maritime transport sector in the MEDA region was derived including an exact identification of all associated strengths, weaknesses, opportunities, threats, bottlenecks and constraints. Third, a literature review of the EU transport policies and regulations was conducted (White Paper and ‘acquis communautaire’) to illustrate the optimal trends and the best practices in the maritime transport sector. Fourth, based on the results of the data analysis and the literature review, improvement measures were established to eliminate the identified bottlenecks and constraints, and promote the development of the maritime industry in the MEDA region. It must be emphasised here that within the framework of the EuroMed Transport Project, extensive and up-to-date data was collected from the national transport administrations in charge of the various transport sub-sectors in the different MEDA countries. However, the lack of completeness, consistency and compatibility in this recent data prevented using the new statistics coming from national sources for analysis purposes. Instead, in most cases, less recent data dating mainly from the year 20012002, but with a more solid and consistent statistical base was used (sources of information include Eurostat, Medstat, WB, UN, etc.). In this context, it has to be stressed that this data serves merely for illustrative purposes, and that its use is confined to identifying general trends, highlighting global problems and conclusions, and identifying general solutions and directions. The region is experiencing rapid developments, and although changes are bound to have occurred in the last two years, the 2001/2002 statistics included in this Diagnostic Study are still quite useful to support the analysis of problems identified in this document, and the fact that 2003/2004 data is not provided is not significant, as this does not affect the general conclusions reached or the overall directions that are established. It must also be noted that since the report has been compiled prior to the latest EU enlargement (May 2004), then all available quantitative data relating to the European Union refers to the EU-15, and Cyprus and Malta (now 10 members of EU–25) are included in the MEDA12 region and not in the EU. Finally, it must be noted that sometimes when converting from USD values to EURO values, some inconsistencies at a minor scale could have occurred across the various tables included in this module. 1.4. Structure of the Module Besides this Introductory Chapter, this Module is set out in nine further Chapters as follows: • Chapter 2: EU References and Guidelines; this includes a discussion of the various European primary and secondary legislation (i.e. policies and regulations) related to maritime transport to illustrate the best practices in this domain. • Chapter 3: Facts, Figures and Statistics about MEDA Maritime Transport Sector; this includes a presentation and discussion of the main attributes of maritime passenger flows and maritime freight movements in the region. • Chapter 4: Transport Policy in the MEDA Region; this provides a discussion of the status of the maritime transport policies in the Mediterranean countries and a description of the outlooks. It also provides an analysis of ongoing improvement initiatives in this domain, and presents the main associated issues and the key findings. • Chapter 5: Maritime Shipping in the MEDA Region; this presents the main attributes and characteristics of the various shipping companies present in the region. It also discusses the structure and operation of these maritime carriers, analyses selected case studies, and highlights the main associated issues and key findings. • Chapter 6: Port authorities and operators in MEDA Region; this presents the main attributes and characteristics of the various port authorities and operators in the Mediterranean countries. It also discusses their role and structure, analyses selected case studies, and highlights the main associated issues and key findings. • Chapter 7: Maritime safety and Global Navigation Satellite System (GNSS); this provides the status of maritime safety conventions in the MEDA region, the status of relevant technology applications, and their implementation levels. It also discusses Maritime Shipping and Ports • • • the problems and difficulties encountered, as well as progress made so far. Chapter 8: Findings, Recommendations and Potential Actions; this provides an aggregation of all main issues and key findings that were highlighted throughout the Module, and proposes recommendations, actions and measures that are needed to improve and upgrade the maritime transport sector in MEDA region. Chapter 9: Abbreviations and acronyms; this presents the abbreviations and technical definitions that were used throughout the report. Chapter 10: References; this presents a selection of some major references that were used during the report elaboration and can be used to complete the appraisal and understanding of maritime transport in the MEDA region. 11 EuroMed Transport Project Main Contract Diagnostic Study Module 5 2. EU References and Guidelines 2.1. Policy Framework In the European Union, Water Transport was in many respects the least considered among the different forms of transport. More specifically: • The European maritime fleet has shrunk in recent years because of competition from flags of convenience (shipping companies registered in countries where safety standards and crew qualifications are lower than in the EU-15). • Since the beginning of the 1980s, the EU-15 has lost 40% of its seamen and, by 2006, the Union will be about 36 000 sailors short. • The sector shows great diversity between regions in terms of structure, operation, organisation and legal framework. Meanwhile, for historical, geographical and economical (globalisation) reasons, the EU is still heavily dependent on maritime transport: • With the arrival of 10 new members, maritime companies belonging to European Union nationals control one third of the total world merchant shipping fleet, and about 40% of EU trade is carried on vessels controlled by EU interests. • 45% of goods transported within the EU-25 travel by ship over short-sea shipping (SSS) routes, with a growing market share. As for road and air, the EU-25 has opened up national shipping markets to competition from vessels of other Member States. • Ships carry 90% of all trade between the EU-25 and third countries. • Each year, approximately two billion tonnes of goods and over 200 million passengers pass through EU-15 ports. • The maritime transport sector - including shipbuilding, ports, fishing and related industries and services - employs around 2.5 million people in the European Union. Moreover, it shall be underlined that the inland waterway network is still under-used, despite the fact that it is safe and reliable as well as energyefficient. Increased use of short-sea shipping routes and inland waterways could provide part of the answer to road congestion1. Within the framework of the 2001 White Paper on European Transport Policy for 2010, European Maritime Transport Policy focuses on the following main strategic issues: • SSS and inland waterway transport are recognised as the two modes that could provide a means of coping with the congestion of certain road infrastructure and the lack of railway infrastructure. • Development of Sea-Motorways within the framework of the master plan for the transEuropean Network is expected and planned to be the way to revive SSS (see Marco Polo support programme). • Tougher rules on Maritime Safety are envisaged. • Development of a genuine European maritime traffic management system is required. • A tonnage-based taxation system is proposed in order to promote flagging back to EU registers. • Turning inter-modality into reality is required through technical harmonisation and interoperability between systems (particularly for containers). • Building of the Trans-European Transport Network (TEN). • Includes the establishment of specific 'motorways of the sea'. • Transport by sea and transport by inland waterway are considered as a key part of inter-modality. 2.1.1. Ports The European Port Policy became officially public in 1997 by the Green Paper on Seaports & Maritime Infrastructure (COM (1997) 678 final of 10 December 1997) initiating a formal dialogue between interested parties on: • Efficiency of ports and maritime infrastructure. • The application of competition rules. • Integration of ports into the multi-modal trans European transport network. At the same time, the following were recognised: 1 Cf. European Commission, Europe at a crossroads - The need for sustainable transport, Manuscript finalised in June 2003. 12 Maritime Shipping and Ports • • • • The importance of Port Sector. The high diversity of Ports between EU regions. The increased competition between and within Ports. The need of a Community framework to ensure free and fair competition. The major issues raised were: • The importance of Short-Sea-Shipping. • The strategic role of Ports as crucial connecting points within the multi-modal trans-European transport networks. • The need for a flexible pricing and financing framework in all forms of transport and particularly in ports with emphasis on: - Effective and fair application of State aid. - Charges linked to costs. - Pricing policy based on marginal social costs of infrastructure. • A regulatory framework ensuring systematic and effective liberalisation of port services a so-called 'level playing field'. 2.1.2. Maritime Shipping Sea transport is of strategic importance for the European Union due to its significant contribution to employment, security of supply, economic independence, and the spin-off effects concerning its ancillary industries (shipbuilding, port activities etc). Approximately one-third of trade within the EU and 90% of trade between Member States and non-EU countries is carried by sea. The Community’s Common Policy in the field of maritime transport started in 1974, based on Article 84 (2) of the EC Treaty. The first steps were taken in response to a 1974 Court ruling (case 167/73) stating that the general rules in the Treaty also apply to sea transport. In May 1979, the Council adopted Regulation 954/79 to make the ratification of the United Nations Convention on a Code of Conduct for liner conferences of April 1974 by Member States compatible with EC law and with the commercial principles applied by the OECD countries. Since the late 1970s, the Community fleet has been in the midst of a serious crisis. The size of the EC-registered fleet in worldwide shipping has decreased from 32% of world tonnage in 1970 to 14% in 1995. Over-capacity in the world market has worsened the conditions of competition of EC shipping lines as compared to those from countries with lower costs: open register flags (flags of convenience), flags from developing countries, and flags from former State-trading countries. The EU must also contend with the protectionist policies of certain non-EU countries and the unfair practices (e.g. tariff dumping) by a number of shipping lines. The first major step to establish European shipping policy on the economic side was taken in 1986 with a package of measures covering market liberalisation and competition policy. However, by the early 1990s the decline in Europe's 'traditional' shipping registers, seafaring employment and maritime-related industries was sufficiently advanced to call for a reappraisal of the Community's maritime strategy. The European Commission's response to the decline of European shipping in the face of international structural changes in the industry was set out in a major paper entitled ‘Towards a New Maritime Policy’ and published in March 1996. Within the overarching economic aim of making the Community ‘fit for global competition’, the revised policy objective was ‘to ensure freedom of access to shipping markets across the world for safe and environmentally friendly ships, preferably registered in EC Member States with Community nationals employed on board’. Accordingly, a two-fold strategy was proposed: ensuring safety and fair competition in international open markets, and devising a Community framework for enhancing shipping competitiveness. The competitiveness framework encompassed policy on training and employment to develop and safeguard maritime expertise, research and development, and State aids. SAFEMED PROJECT EuroMed cooperation on maritime safety and prevention of pollution from ships is about to start formally (around early 2005) through the SAFEMED project (launched on November 2000), aiming strategically at: • Sustainable improvement in the protection of Mediterranean waters against the risk of accidents at sea and marine pollution. 13 EuroMed Transport Project Main Contract Diagnostic Study Module 5 • To further reduce the capacity gap between the international regulatory framework and the EU legislative framework in order to ensure a coherent, effective and uniform implementation of the international rules for maritime safety and the prevention of pollution from ships in both the Mediterranean area and Europe. In more detail, main components of SAFEMED project focus on: • Ensuring effective flag State implementation and monitoring of classification societies (i.e. assessing flag State compliance, ad hoc training programme addressing the main flag State obligations and involving a basic number of staff of each Mediterranean country, developing an ad hoc framework for an adequate monitoring of the classification societies). • Ensuring the safety of navigation through traffic monitoring. Associated actions potentially would include: - Promoting the development of a Mediterranean Sea traffic monitoring system compatible with EU system. Mediterranean Partners should be made fully aware of the potentials of the EU system and of the on-going initiatives to set up/implement specific aspects of this system. The development of an ad hoc infrastructure should be promoted through SAFEMED. - Investigating how and under which circumstances all Mediterranean Partners could be associated /involved in the SafeSeaNet project and which adaptations of the system would be required to fully respond to the specific needs of the Mediterranean partners. - Developing a regional VTMIS cooperation framework and coordinating traffic related actions within the IMO etc… • Assisting implementation of a better protection of the Mediterranean environment. Associated actions potentially would include: - Evaluating for each country, the needs related to the implementation of dangerous goods standards as well as the situation regarding risk analysis in order to assist in the preparation of emergency plans and to provide administrative and technical advice to the participating countries on the measures they must take to comply with the 14 • • • • • • • SOLAS requirements and the IMDG Code both as a flag State and a port State. Based upon this assessment, and on the basis of the specific training needs of each country, regional training courses could be organised. - Identifying the impediments, if any, of the contracting parties to implement effectively the Barcelona commitments, and setting up ad hoc seminars. Assisting human capital on a permanent basis, to maintain and improve the maritime safety culture by upgrading the qualification of the personnel of maritime administrations and monitoring the implementation of the ISM Code. Initiating a state of play of the implementation of IMO maritime security rules in the entire Mediterranean, together, if necessary, with identification of a set of priority actions to be undertaken to ensure the full implementation of the security rules in the Mediterranean area. Special attention is to be given to the following elements: Cooperation with the European Maritime Safety Agency (EMSA). Specifically, the SAFEMED project is assigned the task of investigating how and under which conditions Med Partners membership or cooperation with EMSA could be materialised. The need to establish a realistic calendar taking into account of the priorities dictated under international legislation. Establishing of a non-bureaucratic monitoring system for all the project components and allowing necessary updates. Accompanying measures (required investments for VTS, SAR, combating pollution etc) in cooperation with the European Investment Bank (EIB). PSC related issues and in particular, the relation with the Mediterranean MOU on port State control has intentionally been left out of the project. The difficulties encountered by the Mediterranean partners to implement within this MOU an efficient PSC strategy and the consequences of a possible membership of the Paris MoU for 2 main partners (Cyprus and Malta) deserve an urgent consideration and will therefore be addressed under the on-going EuroMed Transport Project. Maritime Shipping and Ports 2.1.3. Maritime Safety & Global Navigation Satellite System (GNSS) 2.1.3.1. Maritime Safety The EU legislation on maritime safety is mainly built on IMO Resolutions, and could be considered as the outcome of the occurrence of several accidents. The first set of actions (19871992) was in response to accidents such as the sinking of the oil tanker ‘Amoco Cadiz’ off the coast of Brittany on 16 March 1978, the capsizing of the ‘Herald of Free Enterprise’ off the port of Zeebrugge in Belgium on 6 March 1987, the ‘Exxon Valdez’ that ran aground in March 1989 off the coast of Alaska. The EU responded with several EU Resolutions regarding the control and reduction of pollution caused by accidents at sea, the pilotage of vessels by deepsea pilots in the North Sea and English Channel, the transfer of ships from one register to another within the Community, the coverage of European waters with the terrestrial Loran-C radio navigation system etc. The accidents of the oil tankers 'Aegean Sea' which broke up near Spain on 3 December 1992 and 'Brear' which grounded off the Shetland Island on 5 January 1993) prompted the Commission in 1993 to adopt its first communication dealing with maritime safety 'A Common Policy on Safe Seas' (COM (93) 66 final, 24 February 1993), with a detailed action programme and a common maritime safety policy aiming at the implementation of existing global International rules and their uniform enforcement by the port States and the development of navigational aids and traffic surveillance infrastructures. 2.1.3.2. Global Navigation Safety System The European Councils at Cologne, Feira, Nice, Stockholm, Laeken and Barcelona all emphasised the strategic importance of this programme. Galileo will provide considerable advantages in many sectors of the economy. In road and rail transport, for example, it will make it possible to predict and manage journey times, or, thanks to automated vehicle guidance systems, help reduce traffic jams and cut the number of road accidents. However, although transport by road, rail, air and sea is the example most frequently quoted, satellite radio navigation is also increasingly of benefit to fisheries and agriculture, oil prospecting, defence and civil protection activities, building and public works, etc. In the field of telecommunications, allied with other new technologies such as GSM or UMTS, Galileo is expected to increase the potential to provide positioning information as well as to provide combined services of a very high level. Furthermore, GNSS technology is regarded as a main vector for the development and safety of the Mediterranean region. The 5th EuroMediterranean Conference of Ministers for Foreign Affairs, held in Valencia in April 2002, adopted an action plan stressing, among others, the need to boost cooperation on satellite navigation by means of considering its concrete introduction for the benefit of different application sectors. This is also in accordance with the European GNSS strategy. The latter foresees the early introduction of GNSS services by 2004 when the European Geostationary Navigation Overlay Service (EGNOS) becomes operational, while Europe’s final objective in satellite navigation will be achieved after 2008 once all Galileo services are available. EuroMed GNSS Project In that context, the European Commission (DG Energy and Transport and the EuropeAid Cooperation Office) will launch the EuroMediterranean Satellite Navigation (GNSS) Project. This project, which will be implemented within a 3 -year period, will set up training and demonstration activities for the benefit of the Mediterranean partners. The project is also associated with the setting up of a cooperation office, which shall bring longer-term benefits to the region. The project is expected to: • Set priorities for regional added value service development based on Galileo and stemming from EGNOS by identifying the most important target market segments. • Carry out a GNSS education and awareness programme. • Define an operational validation plan taking into consideration the existing sub-regional initiatives. • Define the concept of service provision and associated institutional issues. 15 EuroMed Transport Project Main Contract Diagnostic Study Module 5 • • • • Perform EGNOS/Galileo trials and pilot projects taking into consideration the existing sub-regional initiatives. Implement the necessary infrastructure required for the success of the project. Identify funding requirements. Identify national partners for Galileo among the Mediterranean partners. Work is to be organised in the following four main tasks: • GNSS Regional Plan. • Training and Awareness. • GNSS Services Demonstration. • GNSS Signal in Space Provision. The 1st Euro-Mediterranean Global Satellite Navigation Systems (GNSS) Seminar It was organised by the European Commission and was held in Cairo on 16-17 February 2003. This was the first of a series of actions planned to strengthen the Euro-Mediterranean partnership and its regional transport policy through GNSS. The seminar successfully increased the awareness of decision makers, service providers and product manufacturers of the potential of Galileo and EGNOS for the Mediterranean region. It provided the opportunity to identify key priorities and common interests in the GNSS sector for the MEDA partners and initiated contacts at institutional and industrial levels. 16 mining, and trade, including the various applications already in use, such as: • The MIDAN flight test campaign, which was held over Cairo airport in October 2002 bringing together civil aviation authorities from Egypt, Saudi Arabia, Bahrain, and ENAV, the Italian Air Traffic Service Provider. This was supported by the European Commission and the European Space Agency and demonstrated Europe's Satellite Navigation capabilities offering unprecedented performance. • The impact of EGNOS and Galileo on navigation in the Egyptian local waters especially the Gulf of Suez, Gulf of Aqaba and the Red Sea. Differential GNSS services to cover the South Mediterranean maritime territories. GNSS service needs in agriculture, forestry and fisheries in Tunisia, Morocco and Algeria. • The AMED project to develop an airborne simulation platform for the location of fishing vessels and oil spills throughout the region. • Status and trends in surveying and mapping. • Joint plans for the EGNOS service Extension to the Western Mediterranean area involving Algeria, Morocco, Spain, France, and Portugal. Source:http://europa.eu.int/comm/dgs/energy_transport/Galil eo/international/meda_sem1_en.htm 2.2. Legal Framework 2.2.1. Ports This was the first of a series of actions on satellite navigation by the European Commission in cooperation with its MEDA partners. A project to launch demonstration and training activities in the region is being established and discussions are on going to establish a cooperation office as the focal point for satellite navigation activities in the area. Several Mediterranean countries have submitted bids to host this centre. In February 2001, the Ports Package on 'Reinforcing Quality Service in Sea Ports: A Key for European Transport'’ was announced in the form of a Directive Proposal (COM (2001) 35 final of 13 December 2001), which, in November 2003, marginally failed to pass through European Parliament reflecting severe opposition from port unions on port services liberalisation. The seminar, attended by 200 officials and business executives from both the EU and the MEDA partners, discussed the wide-ranging potential of satellite navigation to address the needs of the Mediterranean countries. The discussion focussed on the benefits to transport safety, agriculture, fisheries, water management, Key objectives of the Ports Package were established as: • Higher efficiency of ports services in the form of improved quality at flexible and competitive price levels. • Increased role of private sector in ports. • Fair competition between ports. Maritime Shipping and Ports • • • Inclusion of seaports in the Trans-European Transport Network (TEN-T). Systematic regulation of market access to port services allowing for local, regional or national specificities (particularly regarding safety and the environment). Setting guidelines on port ‘State aids’ for port infrastructures and port charges requirement for Service Providers and Managing Bodies to have separate accounts for each port service provided (‘transparency’). Particularly concerning the market access, the Directive Proposal focuses on: • Ensuring that providers of port services have equal access to the market through: - Transparent and common selection criteria / procedures. - Appeal procedures. - Limited Period of services provision. - Exclusion of port managing body from the selection procedure when itself is a service provider. • Including self-handling to the proposed framework. • Allowing limited exceptions for two providers, only for safety /environmental reasons and in cases of space / capacity constraints. Port infrastructure quality services in ports The objective is to reinforce Quality Services in sea ports, and specifically: • Inclusion of seaports in the Trans-European Transport Network (TEN-T). • Systematic regulation of market access to port services allowing for local, regional or national specificities. • Setting guidelines on port ‘State aids’ for port infrastructures and port charges requirement for Service Providers and Managing Bodies to have separate accounts for each port service provided (transparency and fair competition between ports). Public financing that deals with competition between ports and contains guidance on how State aid should be applied in the port sector. Accordingly, ports in the Member States should operate commercially: they must generate their funds and ensure proper information on the financing of infrastructure projects. To this end, the • • • commission defined a so-called transparency directive, which requires that the financial relations between public authorities and private undertakings must become transparent. Higher efficiency of port services in the form of improved quality at flexible and competitive price levels. Increased role of the private sector in ports; Fair competition between ports. The relevant act is a Communication from the Commission to the Council and to the European Parliament of 13 February 2001: ‘Reinforcing Quality Services in Sea Ports: a Key for European Transport’ in the form of the Directive proposal (COM (2001) 35 final of 13 December 2001) referred to above. In this Directive, the following three key issues are specifically considered: Integration of seaports in the transEuropean transport network The Decision No 1692/96/EC of the European Parliament and of the Council of 23 July 1996 on Community guidelines for the development of the trans-European transport network (TEN-T) (Official Journal L 228, 09 September1996) provides a framework for establishing an integral and multi-modal infrastructure network. Seaports play a significant role within such a network. The Commission proposed the identification of about 300 seaports, using objective criteria, for inclusion in the outline plans. Systematic approach to regulate access to the market of port services ‘Port services’ are services of a commercial nature that are provided, for payment, to port users. Such port services (cargo handling, towage, mooring, pilotage and passenger services) are essential for the functioning of ports and represent a major part of the total costs of port calls for ships and of cargo transported through ports. All Member States have opted for the progressive opening up of this sector to competition. The Commission still believes that the need to establish a Community legal framework for access to the provision of port services by creating a level playing field within 17 EuroMed Transport Project Main Contract Diagnostic Study Module 5 and between ports (intra-port and inter-port competition) remains a strong necessity. The Directive Proposal COM (2004) 654 final (13 October 2004) on market access to port services focuses on: • Ensuring that criteria for granting authorisations should be objective, transparent, non-discriminatory, relevant and proportional, and should be made public. • Including self-handling to the proposed framework. Self-handling for cargo & passengers operations may be provided using the land-based personnel of the self-handler. • Allowing the highest possible number of service providers and also limited exceptions for two providers, only for safety / environmental reasons and in cases of space / capacity constraints. However, such exceptions must not become a pretext for reducing or excluding competition. • Imposing mandatory authorisations for service providers. • Transparent accounting for the managing body of the port. The above proposed framework is to be applied to seaports on the territory of a Member State, which are open to commercial traffic with a minimal annual volume of activity of 1.5 million tonnes of freight or 200 000 passengers. Public financing of seaports and port infrastructures. A key issue, from the competition point of view, is the division of the financial flows between: • The public authorities. • The port operators. • The users of port services. The following points should be considered: • Public investment in ports represents between 5 and 10% of total Community investments in transport infrastructure. • Public financing operations are not sufficiently transparent, in particular because three accounting systems are used in port management and none is likely to provide clear and transparent information on public money flows in ports or on the use of funds by the port management body. • Charging and cost recovery systems vary greatly. 18 • Previously, the construction of ports and port services were expected to be paid for by the taxpayer, whereas a trend has developed towards greater private participation in their financing: some ports are even operating on an entirely commercial basis. The port services market is developing and the possibilities of gaining access to it are increasing, although the procedural rules, which would ensure fair and open selection procedures are still unclear and unsatisfactory. 2.2.2. Maritime Shipping In 1985, the Commission proposed a series of measures. The Council adopted four of these measures in December 1986, which are important landmarks in the development of the Common Maritime Transport Policy: • Α Regulation for application of the principle of freedom of maritime services provision between Member States and third countries (Reg. 4055/86). • A Regulation laying down detailed rules for the application of Articles 85 and 86 of the Treaty to maritime transport (Reg. 4056/86). • A Regulation enabling the Community to respond to the unfair pricing practices pursued by certain shipping lines outside the Community (Reg. 4057/86). • A Regulation allowing coordinated action by the Community should a third country restrict access to traffic by Community shipping lines (Reg. 4058/96). The 1989 'Positive Measures' In August 1989, the Commission sent the Council a package of key measures to improve the operating conditions and competitiveness of Community shipping. These centred on two ideas: • Establishment of a Community register ('EUROS') alongside the national registers. The Commission’s proposal has finally not been found opportune by the Council and has been withdrawn. • Implementing measures to make Community vessels more competitive. These measures include the tightening up of port inspections to ensure compliance with safety, environmental protection and labour standards, proposals for a block exemption for consortium, subject to conditions and Maritime Shipping and Ports obligations to be defined in a Regulation and measures to improve crew training. In parallel, the Commission adopted Guidelines on State aid to the shipping sector to ensure greater consistency and transparency in this area. Competition rules In February 1992, the Council adopted Regulation (EC) No 479/92 on the application of Article 85(3) of the Treaty to consortium. In April 1995, the Commission adopted Regulation (EC) No 870/95 on the application of Art. 85 (3) of the Treaty to certain categories of agreements, decisions and concerted practices between liner shipping companies (consortium) pursuant to Council Regulation 479/92. In April 1992, the Commission adopted its first Decision on abuse of dominant positions in the maritime transport sector. Decision 92/262/EC imposed fines on certain shipping lines for forming a traffic-sharing cartel between France and 11 West African States. The Commission took a similar position imposing fines on four shipping lines operating between Europe and Northern Zaire in December 1992. By Decision of October 1994 (TAA) under Article 85 of the Treaty, the Commission outlawed the capacity management, multi-modal fixing rate and two-tier rate structure of this agreement. By Decision of December 1994 (FEFC), the Commission reiterated that multimodal price fixing by conferences is not covered by the block exemption under Regulation 4056/86. However, in June 2004, EC Competition Directorate's website indicates that Brussels is about to abolish the liner conference system (a liner conference exists when two or more shipping lines operating a service in common between designated locations, agree on a set of freight rates for shippers and consequently, all lines charge the same), as most shippers see conferences as price-fixing cartels. The EC ‘discussion paper’ states that the conditions for a bloc exemption for the liner conferences would appear to be ‘no longer fulfilled’, further adding that there is ‘no conclusive economic evidence that the assumptions on which the exemptions were made in 1986 are in the present market circumstances still justified’. Maritime safety In general, the Community has built its maritime safety policy on the basis of the IMO Conventions and rules. A number of stricter EU measures have nevertheless been found necessary in the aftermath of dramatic shipping accidents such as those involving the Amoco Cadiz, the Exxon Valdez, the Herald of Free Enterprise or, more recently, the Estonia. In 1993, the Commission submitted to the Council a Communication on a common policy on safe seas, setting out a maritime safety strategy, which the latter approved. In application of this strategy, the Council adopted in 1994 a Directive on the minimum level of training of seafarers, a Directive on ship inspection and surveys, and a Regulation on tonnage measurement of ballast spaces in segregated ballast oil tankers. A Directive on Port State Control was adopted in June 1995, while in December 1995; the Council adopted a Regulation on the safety management of Ro-Ro passenger ferries. In the years that followed the Commission and the Council adopted a significant number of legislative measures concerning maritime safety. More recently, in 1998, new or amended legislation was adopted regarding safety rules and standards for passenger ships, port state control, levels of training of seafarers, classification societies, and registration of persons sailing on board passenger ships within the EU. Maritime cabotage – market liberalisation In December 1992, the Council adopted Regulation 3577/92 on maritime cabotage. This allows for free cabotage trade as from January 1993 for Community ship-owners, who have their ships registered in, and flying the flag of a Member State, provided the vessels comply with all the conditions for carrying out cabotage in that Member State. Maritime cabotage was liberalised on 1 January 1993 except for France, Italy, Portugal and Spain (Mainland-island and inter-island cabotage was liberalised in 1999) and of Greece (scheduled passenger and lighter services and 19 EuroMed Transport Project Main Contract Diagnostic Study Module 5 services involving vessels of less than 650 gross tonnage were liberalised in 1 January 2004). Two reports on the application of this Regulation by the Commission show that the economic effects of liberalisation have been insignificant so far. However, as liberalisation progresses, there will be more scope for improving efficiency. The proposal for a Directive on regular passenger services between Member States defines a minimum level of labour standards at EC level, which shall apply for third country nationals, employed in all such services. • • • Maritime State Aid Given the continuing decline of EC fleets and increasing divergence between Member States’ policy responses to decreasing competitiveness, the Commission presented a new maritime strategy in March 1996. As a follow-up to this document, it adopted revised Guidelines on State aid to shipping in July 1997, with the aim of increasing transparency of State aid whilst safeguarding EC employment, preserving maritime expertise and improving safety. It is also accepted that operating aid should be exceptional, temporary and digressive. However, shipping State aid was considered within an international environment that presents EU fleet with severe structural competitive disadvantages, unlikely to be overcome in the short term. Furthermore, EU proposals for world maritime liberalisation brought for discussions under WTO were not accepted for negotiations. The Guidelines specify the types of aid that can generally be approved by the Commission (notification and examination by EU) and those that cannot. The Member States have been granted a transitional period of 18 months to adapt their aid schemes to the new guidelines. The following types of State aid were considered: • Fiscal treatment of ship-owning companies: It includes measures to improve the fiscal climate such as accelerated depreciation on ships investment, the right to reserve profits on a ship sale for a number of years on taxfree basis, provided that they are reinvested in new ships etc. Such measures are allowed on a restricted basis under conditions (full application of safety and ILO standards, provision of 20 • • • regular reports demonstrating the effect of the measure etc). Labour related costs: Measures reducing labour costs such as reduced rates of contributions for the social protection of EU seafarers employed on member states flag vessels, reduced rates of income tax for EU seafarers on board member states flag vessels. Crew relief: Crew relief aims at reducing costs of employing EU seafarers, especially those on ships operating in distant waters. Investment aid: Investment aid is allowed only in cases of structural reform leading to reductions in overall fleet capacity. It includes also cases in line with safe seas policy to improve community-registered ships to standards that exceed the mandatory safety and environmental standards. Training support schemes: Not considered to be State aid because of their general nature. Restructuring aid (including privatisation): although the guidelines on restructuring and rescuing firms in difficulty apply to transport only to the extent that the specific nature of the sector is taken into account, the Commission will apply those guidelines in considering restructuring aid for maritime companies. Public service obligations and contracts: Subsidisation can, in principle, be accepted for public service obligations (PSO). A PSO is defined as any obligation imposed upon a carrier to ensure the provision of a service satisfying fixed standards (of continuity, regularity, capacity and pricing), which the carrier would not assume if it were solely considering its economic interest. PSOs may be imposed for scheduled services to ports serving peripheral regions of the Community or thinly served routes considered vital for the economic development of these regions, in cases where the operation of market forces would not ensure a sufficient service level. The Commission's practice in assessing contracts relating to PSO is generally to consider that reimbursement of operating losses incurred as a direct result of fulfilling certain public service obligations is not State aid within the meaning of Maritime Shipping and Ports Article 92 (1) of the Treaty. Notification is not, therefore, required under Article 93 (3), provided that the following criteria are met: • For public service contracts to be consistent with the common market and not to constitute State aid, the Commission expects public tenders to be made, as the development and implementation of schemes must be transparent and allow for the development of competition. • Adequate publicity must be given to the call for tender and all requirements concerning the level and frequency of the service, capacity, prices and standards required, etc., must be specified in a clear and transparent manner to ensure that all Community carriers with the right of access to the route (according to Community law) have had an equal chance to bid. • The Member State can then award a contract to the successful bidder (except in exceptional and duly justified cases, to the bidder requiring the lowest financial compensation) and reimburse the extra costs incurred by the operator because of providing the service. This should be directly related to the calculated deficit made by the operator in providing the service. It should be accounted for separately for each such service so that it can be verified that there is no overcompensation or cross-subsidy and that the scheme cannot be used to support inefficient management and operating methods. If a grant is made by the Member State on this basis and it is limited to reimbursement of extra costs incurred (together with a reasonable return on capital employed), the scheme will not be considered to constitute State aid. The duration of public service contracts should be limited to a reasonable period (normally in the order of five years), since contracts for significantly longer periods could entail the danger of creating a (private) monopoly. After expiration of the contract period, such contracts should be subject to re-tendering in accordance with the procedure described above. Short sea shipping Short-sea-shipping is defined by the Commission as ‘the movement of passengers and cargo by sea within Europe, both inside and outside the EU, as well as to and from all ports in the Mediterranean, the Baltic and the Black Sea’. The communication ‘the development of short sea shipping in Europe: a dynamic alternative in a sustainable transport chain’ (COM (1999) 317 final) sets Europe’s priorities and approaches in order to increase the use of this mode and establish sea transport as a viable alternative to road transport. The role of SSS in the overall European transport system was also emphasised in the Commission's White Paper on European Transport Policy for 2010. The objective is to provide incentives for short-distance transport by sea, as this mode of transport consumes less energy and constitutes a non-polluting alternative to road transport. The relevant act is Council Resolution of 11 March 1996 (Official Journal C 099, 02 April 1996), which urges the Commission and the Member States to take any action that is needed in order to achieve balanced growth by this form of transport and to incorporate it into the intermodal transport chain. A number of recommendations to the Member States, the regional and local authorities and to the maritime industries are formulated aiming to enhance competitiveness in this sector. The resolution stresses the need (a) to improve the quality and efficiency of coastal shipping, the infrastructure and port capacity and (b) to prepare coastal shipping for future enlargement. This communication concerns transport by sea along the coasts of the EU and specifically: • Between the continental ports and islands of the EU. • Purely internal transport (cabotage). • Cross-frontier transport either within the EU or between the EU and its adjacent regions. This resolution was followed: • In May 1997, by a progress report (SEC (97) 877) from the Commission. At the Transport Council meeting on 18 June 1997, the Commission was asked to present twoyearly progress reports containing an assessment of the results of the measures taken to promote short-distance transport by sea. • In June 1999, by a Commission communication (COM (1999) 317 final) on a second two-yearly progress report which: − Reviewed the possibilities offered by short-distance transport by sea in the framework of sustainable, safe mobility. 21 EuroMed Transport Project Main Contract Diagnostic Study Module 5 − − Analysed the incorporation of this mode into Community logistic and inter-modal transport chains, its image and the barriers to its development. Defined the measures which the Commission recommends to take into account (e. g. certain voluntary actions to achieve greater uniformity in documents and administrative procedures applicable to short-distance transport by sea in the various Member States, promotion of SSS by ports as part of their commercial strategy). • • In February 2000, by the Council Resolution of 14 February 2000 on the promotion of short sea shipping (Official Journal C 056, 29 February 2000). In April 2003, by the Commission communication (COM (2003) 155 final) on a Programme for the Promotion of Short Sea Shipping within EU. This particular programme contains a set of 14 legislative, technical and operational actions (see table below), with a 2003-2010 timetable for each action, which are aimed at developing Short Sea Shipping (SSS) at the EU national, regional and industry levels. Table 1: EU Programme for the promotion of Short Sea Shipping Category Description Implementation of the Directive on certain reporting formalities for ships arriving in and/or departing from ports of the Member States. Legislative Actions Implementation of the Marco Polo programme Standardisation and harmonisation of inter-modal loading units Development of 'Motorways of the Sea’ Improvement of the environmental performance of SSS Technical Actions Guide to Customs Procedures for SSS Identification and elimination of obstacles to make SSS more successful Computerisation of, EU Customs Procedures (‘eCustoms’) 22 Content This directive requires Member States to accept the standard IMO (International Maritime Organisation)-FAL forms, from which it is possible to obtain the relevant arrival/departure information for a ship: the multitude of different national forms is replaced by one common set of forms. The Directive will take effect at the latest in 2003. The relevant act is the Directive 2002/6/EC of the European Parliament and of the Council of 18/2/2002 on reporting formalities for ships arriving in and/or departing from ports of the Member States of the Community (Text with EEA relevance) (Official Journal L 067, 09/03/ 2002). Objective: to shift 12 billion tonne-kilometres a year of road freight to SSS, rail and inland waterways (average annual budget of EUR 18.75 million). The multitude of different configurations of inter-modal loading units creates delays when moving from one mode to another. The Commission has presented a proposal for a Directive (COM (2003) 155 final) that could enable SSS to acquire a larger market share. Such ‘Motorways’ should make it possible to bypass land bottlenecks in Europe by offering efficient, regular and frequent services that can compete with road (transit time and price). Maritime transport is generally more environment-friendly and modal shift to SSS could contribute to fulfilling the objectives of the Kyoto Protocol. The Commission has published a Guide to Customs Procedures for SSS that has a dual purpose: first, to explain the Customs rules, indicating opportunities for using simplified procedures (the basis for the second objective) and, second, to identify specific needs for further simplification. The Commission has been making a list of the factors hampering the development of SSS (old-fashioned image, complex administrative procedures, lack of efficiency at ports, inconsistency in the application of rules and procedures among Member States, not integrated into the intermodal logistics chain). Objectives: to speed up and simplify the procedures involved in declaring cargo through implementing the New Computerised Transit System (NCTS), required by the Single Administrative Document (SAD) procedure, in some 3 000 Customs offices in 22 countries. Maritime Shipping and Ports Category Description Research and Technological Development One-Stop Administrative Shops Operational Actions Content Objectives: to improve the quality, safety, security and environmental performance of maritime transport. A Thematic Network for SSS has been established within the framework of the 6 Framework Programme, to carry out research directly related to SSS. Objectives: to simplify the formalities relating to the arrival, departure and clearance of ships by limiting the number of administrative authorities boarding and checking every ship (or at least co-ordinating their activities), and secondly, to offer port users a single contact point or helpdesk for administrative formalities. Ensuring the vital role of SSS Focal Points It is necessary to ensure continuous cooperation between the Focal Points and the Commission by organising regular meetings and to ensure a continuous flow of information via the internet-based tool 'CIRCA' (Communication and Information Resource Centre Administrator). Maintaining the efficient operation and guidance of Short Sea Promotion Centres Centres driven by business interests offering a practical tool to promote SSS at national level. The national centres are presently being integrated into the European Short Sea Network (ESN) that provides a common tool for the promotion of SSS in Europe. Objectives: to exchange information and best practices and to provide practical advice covering the various stages of a short-sea journey. Promoting the image of SSS as a successful transport alternative SSS needs to acquire a more modern, dynamic image by highlighting its current potential, i.e. its speed, reliability, flexibility, regularity and high degree of cargo safety. Collection of statistical information Objective: to collect information on SSS from the European Sea Ports Organisation (ESPO) until the Directive on maritime statistics provides sufficient information to enable comparisons to be made. The relevant acts are: - The Commission Decision 98/385/EC of 13/05/1998 on rules for implementing Council Directive 95/64/EC on statistical returns in respect of carriage of goods and passengers by sea (notified under document No C (1998) 1275) (Text with EEA relevance) (Official Journal L 174, 18/6/1998) amended by the 2000/363/EC Commission Decision of 28/4/2000 (notified under document No C (2000) 1134) (Text with EEA relevance) (Official Journal L 132, 05 /06/ 2000). - The Commission Decision 2001/423/EC of 22/05/2001 on arrangements for publication or dissemination of the statistical data collected pursuant to Council Directive 95/64/EC on statistical returns in respect of carriage of goods and passengers by sea (Text with EEA relevance) (notified under document No C (2001)1456) (Official Journal L 151, 07 /06/2001). Source: EuroMed Transport Project (Main Contract)-Synthesis from EU Trnasport Legislation 23 Module 5 Furthermore, in the informal EU Transport Council meeting held in Gijón on 31 May and 1 June 2002, it was stated that there is a political desire to cooperate in the creation of Motorways of the Sea in the framework of the transEuropean transport network, as well as at regional and cross-border level, by connecting the corridors and shorelines of the Member States and their immediate neighbours / Mediterranean partners (Naples Transport Informal Council on 4-5 July 2003). To this end, the Ministers stressed the need for the intermodality of short-sea shipping, in particular the interconnection and interoperability of the maritime and inland transport networks (including roads, railways and inland waterways). 2.2.3. Maritime Safety & Global Navigation Satellite System (GNSS) 2.2.3.1. Maritime Safety Recent developments in the maritime field are especially fast. Adoption in Malta on 25 January 2002 and the coming into force on 17 March 2004 of the ‘Protocol concerning cooperation and preventing pollution from ships and, in cases of emergency, in combating pollution of the Mediterranean sea by oil, hazardous and noxious substances (H.N.S.)’ as well as jobs driven under the aegis of Rempec signify rapid changes in the corresponding regulatory framework. Maritime safety for vessels carrying dangerous or polluting goods Regarding the carrying of dangerous or polluting goods, the Commission has set a number of rules and obligations for vessels, irrespective of their flag, through Directive 2002/59/EC that focuses on standard information to the authorities by the shipper and ship operators on the nature of the cargo carried. The objective is to avoid conditions likely to cause accidents during the transport of dangerous or polluting goods and to reduce the resulting damage whenever such accidents occur. The notification of dangerous or polluting goods carried on-board has to obey a clearly defined framework. 24 EuroMed Transport Project Main Contract Diagnostic Study The operator, agent or master of a ship, irrespective of its size, carrying dangerous or polluting goods and leaving a port of a Member State must, at the latest at the moment of departure, notify certain compulsory information indicated to the competent authority designated by that Member State. This information includes: General information: • Ship identification (name, call sign, IMO identification number or MMSI number. • Port of destination. • For a ship leaving a port in a Member State: estimated time of departure from the port of departure or pilot station, as required by the competent authority, and estimated time of arrival at the port of destination. • For a ship coming from a port located outside the Community and bound for a port in a Member State: estimated time of arrival at the port of destination or pilot station, as required by the competent authority. • Total number of persons on board. Cargo information: • The correct technical names of the dangerous or polluting goods, the United Nations (UN) numbers where they exist, the IMO hazard classes in accordance with the IMDG, IBC and IGC Codes and, where appropriate, the class of the ship as defined by the INF Code, the quantities of such goods and their location on board and, if they are being carried in cargo transport units other than tanks, the identification number thereof. • Confirmation that a list or manifest or appropriate loading plan giving details of the dangerous or polluting goods carried and of their location on the ship is on board. • Address from which detailed information on the cargo may be obtained. Furthermore, Directive 2002/59/EC, introduces the following obligations: • The operator of a vessel leaving a port in a Member State must notify before vessel departure all information needed to the competent authority of that Member State. • The operator of a vessel coming from a port located outside the Community and bound for a port located in the Community must, as Maritime Shipping and Ports • a condition for the entry into that port, notify on departure from the loading port, all information needed to the competent authority of the Member State in which the first port of destination is located. Vessels entering or leaving a port located in a Member State must make use of the service provided by the local vessel traffic service (VTS), wherever this is available, or otherwise make use of pilots. In case of an accident: • The competent authority of the Member State concerned must be informed immediately of any incident or circumstance at sea which poses a threat to its coastline or related interest. The competent authority of the Member State concerned must broadcast within the relevant areas any incident and information with regard to any vessel, which poses a threat to other ships. • Notification must comply with IMO Resolution a 648 (16) and must be made at least in all circumstances set out in that Resolution. The issue of places of refuge for ships in distress is also touched upon. Member States are obliged to draw up plans to accommodate, in the waters under their jurisdiction, ships in distress. These plans where necessary, must contain arrangements for the provision of adequate means and facilities for assistance, salvage and pollution response. Finally, the Directive extends ships' reporting obligations by requiring: • The use of computerised exchange of data and of systems for the automatic identification of ships (AIS). • Closer cooperation between Member States. Maritime safety standards for pollution prevention and shipboard living and working conditions The objective is to establish the legal framework needed for the implementation of international safety rules by all vessels that are visiting European ports through the introduction of a harmonised port State control system, with a view to reducing the number of substandard vessels operating in Community waters and, with the aid of these preventive measures, enhancing safety at sea and protection of the marine environment. The relevant act is the Council Directive 95/21/EC of 19 June 1995 concerning the enforcement, in respect of shipping using Community ports and sailing in the waters under the jurisdiction of the Member States, of international standards for ship safety, pollution prevention and shipboard living and working conditions (port State control) (Official Journal L 157, 07 July 1995) amended by the Council Directive 98/25/EC of 27 April 1998 (Official Journal L 133, 07 May 1998), the Commission Directive 98/42/EC of 19 June 1998 (Text with EEA relevance) (Official Journal L 184, 27 June 1998), the Commission Directive 1999/97/EC of 13 December 1999 (Text with EEA relevance) (Official Journal L 331, 23 December 1999), the Directive 2001/106/EC of the European Parliament and of the Council of 19 December 2001 (Official Journal L 019, 22 January 2002) and the Directive 2002/84/EC of the European Parliament and of the Council of 5 November 2002 (Text with EEA relevance) (Official Journal L 324, 29 November 2002). This Directive applies to all merchant ships and crews using a seaport of a Member State. The Member States are obliged to establish and maintain national maritime administrations ('competent authorities') for the inspection of ships in their ports or in the waters under their jurisdiction. Each Member State is under an obligation to inspect at least 25% of the ships flying other countries' flags that enter its ports. Selection criteria are defined for deciding which vessels to inspect and no further inspections will be carried out on vessels that have been inspected within the previous six months. Enhanced controls must be carried out on: • Oil tankers within five years or less of the date of phasing out. • Bulk carriers older than 12 years. • Passenger ships. • Gas and chemical tankers over ten years old, counting from the date of construction shown on the ship's safety certificates. An obligation is placed on the Member States to ensure that any deficiencies revealed in the course of the inspection are rectified. Penalties may be imposed in the event of refusal to comply 25 EuroMed Transport Project Main Contract Diagnostic Study Module 5 with the competent authorities' requests (refusal of access to any port within the Community). Owners or operators of deficient vessels warranting detention are under an obligation to pay a fee covering the re-inspection costs. Maritime safety improvement for seaborne oil trade Following several disasters (Torrey Canyon 1967, Exxon Valdez 1989), a series of conventions were drawn up under the auspices of the International Maritime Organisation (IMO), amongst which the International Marpol Convention for the Prevention of Pollution from Ships adopted in 1973. This convention also seeks to bring about the gradual phasing-out of single hull oil tankers and their replacement by double hull tankers or tankers of equivalent design, in order to reduce considerably the risk of pollution, particularly in incidents involving slight collisions or grounding2. The Marpol Convention also provides for more rigorous checks on the state of ageing oil tankers. Progressively, the IMO directives have become more and more specific, and oil tanker hulls are now subjected to much more stringent inspections than initially. ERIKA I and ERIKA II packages It was not until the mid-1990s and the advent of qualified majority voting that the Council was able to adopt the first building blocks of a common maritime safety policy, including the organisation at Community level of stricter application of international conventions and the adoption of measures specifically of a Community nature in cases where the IMO standards were non-existent or inadequate. Following the accident of the 25-year-old singlehull oil tanker «Erika » on 12 December 1999, the Commission adopted a first series of proposals, known as the Erika I and Erika II packages. These packages aimed at: • Tightening of the existing legislation on port State control. • Monitoring of classification societies. • Speeding up of the phasing-out of single-hull oil tankers. 2 On 1 January 2000, double hull vessels accounted for about 20% of the world's oil tanker fleet. 26 • Improvement of shipping controls in European waters setting up at the same time the European Maritime Safety Agency. Furthermore, in response to the accident of the 26 years old single-hull tanker « Prestige » on 13 November 2002, the Commission adopted a Communication on improving safety at sea that included an indicative black list of vessels that would have been banned from European ports if the new Community maritime safety measures had been in force, in conjunction with the Community telemetric network for monitoring shipping, etc. For this purpose, of Directive 95/21/EC on port State control by Directive 2001/106/EC has been inacted. This Directive provides for inspections to be carried out on all vessels and includes specific requirements relating to the inspection of oil tankers. Despite the already existing Directive 95/21/EC, the wreck of the Erika focused attention on several shortcomings in the system of Port State Control, particularly regarding the inspection of vessels presenting a statistically higher level of risk because of their age or the polluting nature of their cargo. Accordingly, the Commission has proposed to amend Directive 95/21/EC as follows: • A ban on vessels more than 15 years old which have been detained more than twice during the previous two years and that appear on a 'black list' of flags (published every six-months) with a higher than average number of detentions. • Systematic inspection in port of vessels whose 'target factor' (age, flag, previous detentions…) is particularly high. • The current Directive's optional provisions concerning risk vessels become compulsory, with yearly mandatory expanded inspection upon entry into a Community port. Such measures are stepped up with regard to oil tankers, which will be subject to expanded inspection arrangements after the age of 15 years (previously 20 to 25). Moreover, inspectors will have to examine at least one of the ballast tanks to check for possible corrosion. • Inspectors will have extra information on the vessels they inspect (database EQUASIS on vessel condition) and their reports will Maritime Shipping and Ports • • • have to indicate which checks have been carried out, to prevent a new identical inspection. The flag State and the classification society will be informed of the results of inspections, which will enable them to intervene more rapidly in the event of a vessel's condition deterioration. The list of information to be published regarding inspections and detentions is extended, to include the name of the charterer for instance. The Member States will have to supply detailed information to the Commission for it to assess the work of the Directive and the compliance of the Member States with its provision. • • • These points were taken into account on 21 March 2000, in the proposal for a Directive of the European Parliament and of the Council amending Council Directive 95/21/EC [COM (2000) 142 final - Official Journal C 212E 25 July 2000] (Erika I package). This proposal forms part of a broader document on the safety of the sea-borne oil trade. • Amendment of Council Directive 94/57/EC of 22 November 1994 on common rules and standards for ship inspection and survey organisations and for the relevant activities of maritime administrations (Official Journal L 319, 12 December 1994) by Directive 2001/105/EC of the European Parliament and of the Council of 19 December 2001 (Text with EEA relevance) (Official Journal L 019, 22 January 2002), with a stricter monitoring of the 'classification societies' to which Member States delegate power to inspect the quality of ships. • Regulation (EC) No 2099/2002 of the European Parliament and of the Council of 5 November 2002 establishing a Committee on Safe Seas and the Prevention of Pollution from Ships (COSS) and amending the Regulations on maritime safety and the prevention of pollution from ships (Official Journal L 324, 29 November 2002), amended by the Commission Regulation (EC) No 415/2004 of 5 March 2004 (Text with EEA relevance) (Official Journal L 068, 06 March 2004). • The Directive 2000/59/EC of the European Parliament and of the Council of 27 November 2000 on port reception facilities for ship-generated waste and cargo residues Commission declaration (Official Journal L 332, 28 December 2000), amended by the Directive 2002/84/EC of the European Parliament and of the Council of 5 November 2002 (Text with EEA relevance) (Official Journal L 324, 29 November 2002). This Directive aims to ensure compliance with the Marpol provisions requiring ports to provide adequate reception facilities. This Directive reinforced the Marpol 73/78 Convention on the Prevention of Pollution from Ships. The Regulation (EC) No 417/2002 of the European Parliament and of the Council of 18 February 2002 on the accelerated phasing-in of double hull or equivalent design requirements for single hull oil tankers and repealing Council Regulation (EC) No 2978/94 (Official Journal L 064, 07 March 2002). The IMO Resolution A.747 (18) was made mandatory in the EU waters. Thus, tankers with segregated ballast tanks (SBT) and double hull oil tankers were promoted for use and the tonnage of the segregated ballast tanks is not included in the port and pilotage fees applied at EU ports. The Regulation (EC) No 1406/2002 of the European Parliament and of the Council of 27 June 2002 establishing a European Maritime Safety Agency (Text with EEA relevance) (Official Journal L 208, 05 August 2002) amended by the Regulation (EC) No 1644/2003 of the European Parliament and of the Council of 22 July 2003 (Official Journal L 245, 29 September 2003). Of the above maritime safety regulations, those proposed in the wake of the Erika shipping disaster and adopted on 19 December 2001, have been in force since 22 January 2002. Member States had until 22 July 2003 to apply them by adopting the requisite laws, regulations and administrative provisions, and are required to notify the Commission of the transposition of these acts into national law as soon as they enter into force. Only Denmark, France, Germany, Spain and the United Kingdom have complied. 27 Module 5 The Erika II package objective, as a supplementary to Erika I, is to bring about a lasting improvement in the protection of European waters against the risk of accidents at sea and marine pollution. The relevant acts are: • Communication from the Commission to the Council and the European Parliament of 6 December 2000 on a second set of Community measures on maritime safety following the sinking of the oil tanker Erika [COM (2000) 802 final - Not published in the Official Journal]. • Directive 2002/84/EC of the European Parliament and of the Council of 5 November 2002 amending various Directives on maritime safety and the prevention of pollution from ships (Text with EEA relevance) (Official Journal L 324, 29 November 2002).The purpose of the Directive is to improve the implementation of Community legislation on maritime safety, the protection of the marine environment, and living and working conditions on board the ships. The Directive is closely linked to Regulation (EC) No 2099/2002 of the European Parliament and of the Council of 5 November 2002 establishing a Committee on Safe Seas and the Prevention of Pollution from Ships (COSS) and amending the Regulations on maritime safety and the prevention of pollution from ships (Official Journal L 324, 29 November 2002) amended by the Commission Regulation (EC) No 415/2004 of 5 March 2004 (Text with EEA relevance) (Official Journal L 068, 06 March 2004). The two legislative acts have the same purpose: to establish a single committee on maritime safety and the prevention of pollution from ships, and to speed up and simplify the incorporation of international rules into Community legislation. Maritime safety rules and standards for all new and existing passenger vessels and high speed craft In the sector of passenger traffic, the objective was to enhance passenger safety on roll-on/rolloff ferries by improving their design and equipment, the quality of their crews and the responsibility of owners and operators of this type of ship. The sinking of the Ro-Ro passenger 28 EuroMed Transport Project Main Contract Diagnostic Study ferry ' Estonia ' on 28 September 1994 in the Baltic Sea, led to the adoption by the EU of a set of rules for the protection of passengers and crew sailing on ferries operating to and from European ports, as well as safety standards for passenger ships operating on domestic voyages within the Community. As a result, passenger vessels operators must comply with many safety requirements before they can operate. The main rules of the EU are set in a number of directives and regulations that include: • Council Resolution of 22 December 1994 on the safety of roll-on/roll-off passenger ferries (Official Journal C 379, 31 December 1994). • Council Regulation (EC) No 3051/95 of 8 December 1995 on the safety management of roll-on/roll-off passenger ferries (Ro-Ro ferries) (Official Journal L 320, 30 December 1995), amended by the Commission Regulation (EC) No 179/98 of 23 January 1998 (Official Journal L 019, 24 January 1998), the Commission Regulation (EC) No 1970/2002 of 4 November 2002 ferries (Ro-Ro ferries) (Text with EEA relevance) (Official Journal L 302, 06 November 2002) and the Regulation (EC) No 2099/2002 of the European Parliament and of the Council of 5 November 2002 (Official Journal L 324, 29 November 2002). This Directive implied the application of the International Safety Management code (ISM code adopted by IMO in 1993, aims to improve crew awareness and behaviour in the event of an emergency and lays down standards for the safe operation of ships) as of July 1996 by all companies operating regular Ro-Ro passenger ferry services in the European Union. • Council Directive 98/18/EC of 17 March 1998 on safety rules and standards for passenger ships (Official Journal L 144, 15 May 1998), amended by the Commission Directive 2002/25/EC of 5 March 2002 (Official Journal L 098, 15 April 2002), the Directive 2002/84/EC of the European Parliament and of the Council of 5 November 2002 (Text with EEA relevance) (Official Journal L 324, 29 November 2002), the Directive 2003/24/EC of the European Parliament and of the Council of 14 April 2003 (Official Journal L 123, 17 Maritime Shipping and Ports • • May 2003) and the Commission Directive 2003/75/EC of 29 July 2003 (Text with EEA relevance) (Official Journal L 190, 30 July 2003) harmonises safety standards for all new and existing passenger vessels and high speed craft when engaged on voyages between ports in the same Member State. This Directive incorporated the provisions of the 1974 SOLAS convention for the Safety of Life at Sea setting detailed technical requirements regarding the construction and stability of vessels, equipment for fire protection and life-saving. The purpose of this Directive is to tighten the safety rules and standards for passenger ships by establishing a uniform level of safety of life and property on new and existing passenger ships and high-speed passenger craft engaged on domestic voyages. At the same time, the Directive lays down procedures for international negotiation to harmonise the rules for passenger ships engaged on international voyages. Directive 2003/24/EC requires appropriate measures to be taken to enable persons with reduced mobility to have safe access to passenger ships and highspeed passenger craft engaged on domestic voyages in the Member States. Each Member State must compile and update a list of sea areas under its jurisdiction, delimiting the zones in which the classes of ships operate all year round and those in which their operation is limited to a specific period. Moreover, Member States may inspect, in their capacity as host States, ships and craft engaged on domestic voyages and may audit their documentation, in accordance with Council Directive 95/21/EC. Council Directive 96/98/EC of 20 December 1996 on marine equipment (Official Journal L 046, 17 February 1997) was developed to ensure the application of international testing standards and procedures for typeapproval of marine equipment. Council Directive 98/41/EC of 18 June 1998 on the registration of persons sailing on board passenger ships operating to or from ports of the Member States of the Community (Official Journal L 188, 02 July 1998), amended by the Directive 2002/84/EC of the European Parliament and of the Council of 5 November 2002 (Text with EEA relevance) (Official Journal • • • L 324, 29 November 2002). These Directives mandate that all persons on board passenger ships departing from a port located in a Member State must be counted prior to departure of the ship. The number of passengers must be communicated to the master of the ship and to the person designated by the company. Where a passenger ship departs from a port located in a Member State to undertake a voyage of more than 20 sea miles, certain passenger information (surname, first name, sex, age and special details) must be collected and communicated to the company's passenger registrar. Directive 2003/25/EC of the European Parliament and of the Council of 14 April 2003 on specific stability requirements for Ro-Ro passenger ships (Text with EEA relevance) (Official Journal L 123, 17 May 2003). Commission Decision 2004/71/EC of 4 September 2003 on essential requirements relating to marine radio communication equipment which is intended to be used on non-SOLAS vessels and to participate in the Global Maritime Distress and Safety System (GMDSS) (Text with EEA relevance) (notified under document No C (2003) 2912) (Official Journal L 016, 23 January 2004). Commission Decision 2000/638/EC of 22 September 2000 on the application of Article 3(3)(e) of Directive 1999/5/EC to marine radio communication equipment intended to be fitted to seagoing non-SOLAS vessels and which is intended to participate in the global maritime distress and safety system (GMDSS) and not covered by Council Directive 96/98/EC on marine equipment (notified under document No C (2000) 2719) (Text with EEA relevance) (Official Journal L 269, 21 October 2000). Maritime safety standards for fishing vessels The Council Directive 97/70/EC of 11 December 1997 sets up a harmonised safety regime for fishing vessels of 24 metres in length and over (Official Journal L 034, 09 February 1998) amended by the Commission Directive 1999/19/EC of 18 March 1999 (Text with EEA relevance) (Official Journal L 083, 27 March 1999), the Commission Directive 2002/35/EC of 29 EuroMed Transport Project Main Contract Diagnostic Study Module 5 25 April 2002 (Text with EEA relevance) (Official Journal L 112, 27 April 2002) and the Directive 2002/84/EC of the European Parliament and of the Council of 5 November 2002 (Text with EEA relevance) (Official Journal L 324, 29 November 2002). This directive sets common safety requirements for new and existing seagoing fishing vessels of 24 meters of length and over, irrespective of their flag and when operating in the internal or territorial waters of Member States or approaching a port in the Community. Maritime safety and seafarers Minimum training level of seafarers: The objective is to establish a minimum level of training for seafarers in the Community in order to improve the safety of maritime transport. The target is to incorporate into the European Legislation the IMO Standards of Training, Certification and Watchkeeping for Seafarers (STCW). The relevant acts are: • The Directive 2001/25/EC of the European Parliament and of the Council of 4 April 2001 on the minimum level of training of seafarers (Official Journal L 136, 18 May 2001) amended by the Directive 2002/84/EC of the European Parliament and of the Council of 5 November 2002 (Text with EEA relevance) (Official Journal L 324, 29 November 2002) and the Directive 2003/103/EC of the European Parliament and of the Council of 17 November 2003 (Text with EEA relevance) (Official Journal L 326, 13 December 2003). This Directive is aimed at ensuring that the International Maritime Organisation (IMO) Convention on Standards of Training, Certification and Watchkeeping of 1978 (STCW Convention), as revised, is implemented simultaneously and consistently in all Member States. According to the EU legislation, officers on board EU-flagged ships must have undergone specific training and hold a certificate recognised under the STCW Convention. Additionally, provisions for Port State Control inspections are included. • The Council Directive 89/48/EEC of 21 December 1988 on a general system for the recognition of higher-education diplomas awarded on completion of professional 30 • education and training of at least three years' duration (Official Journal L 019, 24 January 1989) and the Council Directive 92/51/EEC of 18 June 1992 on a second general system for the recognition of professional education and training (Official Journal L 209, 24 July 1992). The Council Directive 95/21/EC of 19 June 1995 concerning the enforcement, in respect of shipping using Community ports and sailing in the waters under the jurisdiction of the Member States, of international standards for ship safety, pollution prevention and shipboard living and working conditions (Port State Control) (Official Journal L 157, 07 July 1995). This Directive allows Member States to control crew’s members serving on any ship using their ports, irrespective of the flag, in order to verify that all seafarers who are required to be certified by the STCW Convention are so certified. This is necessary, in particular, when a ship is flying the flag of a country which has not ratified the STCW Convention, or has a master, officer (or rating) holding a certificate issued by a third country which has not ratified it. Organisation of seafarers' working time: The objective was to protect the health and safety of seafarers by laying down minimum requirements with regard to working time. Apart from the STCW convention, the EU has therefore taken into account ILOs (International Labour Organisation) No 180 on Seafarers' Hours of Work and the Manning of Ships (1996). The relevant act was the Council Directive 1999/63/EC of 21 June 1999 concerning the Agreement on the organisation of working time of seafarers concluded by the European Community Shipowners' Association (ECSA) and the Federation of Transport Workers' Unions in the European Union (FST) - Annex: European Agreement on the organisation of working time of seafarers (Official Journal L 167, 02 July 1999). This Directive was completed by the Directive 1999/95/EC of the European Parliament and of the Council of 13 December 1999 concerning the enforcement of provisions in respect of seafarers' hours of work on board ships calling at Community ports (Official Journal L 014, 20 January 2000). Maritime Shipping and Ports Maritime safety: committee on safe seas The objective is to improve the safety of ships, their crews and their passengers and to prevent marine pollution more effectively as well as to improve the implementation of the relevant Community legislation. The relevant act is the Regulation (EC) No 2099/2002 of the European Parliament and of the Council of 5 November 2002 establishing a Committee on Safe Seas and the Prevention of Pollution from Ships (COSS) and amending the Regulations on maritime safety and the prevention of pollution from ships (Official Journal L 324, 29 November 2002) amended by the Commission Regulation (EC) No 415/2004 of 5 March 2004 (Text with EEA relevance) (Official Journal L 068, 06 March 2004). This Regulation has two main objectives: • To simplify procedures by replacing the five previous various committees set up by the Community legislation on maritime safety and the prevention of pollution from ships with a single committee, the COSS. • To accelerate and simplify the incorporation of international rules into the Community legislation by allowing amendments to the international rules to apply directly or semiautomatically, based on the 87/373/EEC Council Decision of 13 July 1987 laying down the procedures for the exercise of implementing powers conferred on the Commission (Official Journal L 197, 18 July 1987). The new regulatory procedure is based on the Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission (Official Journal L 184, 17 July 1999). The Regulation also provides for amending various existing regulations in the field of maritime safety. Maritime safety: implementation of the European maritime safety agency (EMSA) The objective was to set up a European Maritime Safety Agency (EMSA), in order to ensure a high, uniform and effective level of maritime safety and prevention of pollution from ships within the Community. The relevant act is Regulation (EC) No 1406/2002 of the European Parliament and of the Council of 27 June 2002 establishing a European Maritime Safety Agency (Text with EEA relevance) (Official Journal L 208, 05 August 2002) amended by the Regulation (EC) No 1644/2003 of the European Parliament and of the Council of 22 July 2003 (Official Journal L 245, 29 September 2003) and the Regulation (EC) No 724/2004 of the European Parliament and of the Council of 31 March 2004 (Text with EEA relevance) (Official Journal L 129, 29 April 2004) in order to provide the Member States and the Commission with technical and scientific assistance to ensure the proper application of Community legislation in the field of maritime safety, monitor its implementation and evaluate its effectiveness. EMSA was assigned the following tasks: • To assist the Commission in producing and updating Community legislation in the field of maritime safety and the prevention of pollution from ships, with reference to the development of international legislation in that field. This is in addition to helping the commission in effectively implementing Community legislation on maritime safety. • To provide Member States with technical assistance in implementing Community legislation and to organise training activities in the fields which are the responsibility of the port State and the flag State. • To provide the Commission and the Member States with objective, reliable and comparable information and data on maritime safety, including information relating to ships that have been refused access to Community ports, and to assist the Member States in their activities to improve the identification and pursuit of ships making unlawful discharges. Information collected in the framework of the application of this Regulation is subject to Regulation (EC) No 45/2001 of the European Parliament and of the Council of 18 December 2000 on the protection of individuals with regard to the processing of personal data by the Community institutions and bodies and on the free movement of such data (Official Journal L 008, 12 January 2001). With regard to transparency, the Agency applies the principles of Regulation (EC) No 1049/2001 of the European Parliament and of the Council of 30 May 2001 regarding public access to European 31 EuroMed Transport Project Main Contract Diagnostic Study Module 5 • • Parliament, Council and Commission documents (Official Journal L 145, 31 May 2001). To carry out tasks relating to the surveillance of navigation and maritime traffic pursuant to Directive 2002/59/EC of the European Parliament and of the Council of 27 June 2002 establishing a Community vessel traffic monitoring and information system and repealing Council Directive 93/75/EEC (Official Journal L 208, 05 August 2002), in order to facilitate cooperation between the Member States and the Commission in this field. To develop, in cooperation with the Commission and the Member States, a common methodology for investigating maritime accidents and to analyse existing accident investigation reports. VTMIS & Traffic Management at Sea A major effort to improve the safety of navigation is the development of a European seatraffic monitoring system, as proposed in the Erika II package. Directive (2002/59/EC) brings in notification procedures in European waters, establishing a Community vessel traffic monitoring, control and information system. Ships in EU waters are required to fit automatic identification systems and voyage data recorders (black boxes) to facilitate accident investigation. Vessel traffic management and information services (VTMIS), supported by around EUR 10 million of EU funding, is progressively integrating coastal and port vessel traffic services, distress and safety communication systems and other automatic telecommunications applications. Currently, EU interests focus on the development of an EU wide vessel traffic management and information system network (see project 'Vessel Traffic Management and Information System NETwork'). Project objectives include the development of: • Methodology, guidelines and examples for the development of a VTMIS network in technical, institutional, administrative, financial and legal aspects based on the conditions within participating countries. 32 • • • • Specification of an appropriate architectural network of all relevant system levels; - tools for enhanced network operations allowing for interoperability of individual local solutions. Information exchange network to promote efficient and safe flow of traffic and intermodal transport services. Introduction of a marine pollution information system as part of a VTMIS information network. Means to monitor the development of the network, to evaluate systems and services and to steer further development of the network towards an EU wide vessel traffic management and information system. 2.2.3.2. Global Navigation Satellite System (GNSS) In the White Paper on European Transport Policy adopted by EU in September 2001, it is accepted that the introduction of satellite based navigation services is quickly becoming an essential part of our daily life, providing benefits on a wide scale when applied in sectors such as transport, energy, natural resources management, farming, mining, cartography, civil protection and fisheries. EUGNSS The EUGNSS programme (Galileo) comprises the following phases: • Definition of the system. • Development of the system. • Deployment and commercial operation. Definition of the system (finalised): During the definition phase, the Commission and the European Space Agency (ESA) have mobilised a very large part of the European space industry as well as a large number of potential service providers with a view to defining the basic elements of this project. A number of projects and comprehensive studies have contributed to this phase: • GALA for the overall architecture definition. • GEMINUS to support the Galileo service definition. • INTEG for EGNOS (European Geostationary Overlay Service) integration into Galileo. • SAGA to support the Galileo Standardisation process. Maritime Shipping and Ports • • • GalileoSat for the space segment architecture definition. GUST related to Galileo receivers prespecification and certification. SARGAL related to potential SAR (Search and Rescue) applications of Galileo. Based on the outcome of the definition Phase, the Galileo Mission High Level Definition document (HLD) has been produced and consolidated through a consultation process, involving Member States, users and potential private investors. It presents a picture of the main characteristics and performance of the Galileo Mission. It will be used as a framework for the Galileo programme and forms the basis for the Mission Requirements Document and the System Requirements Document. Two major activities have consolidated the definition of the Galileo system: • Phase B2 of the GalileoSat study led by ESA focussed on the consolidation of mission and system requirements, system architecture and finalisation of phase B activities leading to the Preliminary System Design Review (PSDR). • The Community-funded Galilei project defined the overall service and user approach for Galileo, complementing the studies performed by ESA in the frame of the Galileo definition phase, in particular on the following topics: - Architecture of Galileo Local Components and customisation for some key applications. - Interoperability between Galileo and other systems (GNSS, GSM/UMTS, etc.). - Coordination and protection of frequencies used by Galileo. - Standardisation and certification aspects. Market observatory of applications using Galileo. - Definition of the legal, regulatory and institutional framework of Galileo. Development of the system: The development and validation phase (2002 – 2005) covers the detailed definition and subsequent manufacture of the various system components: satellites, ground components, user receivers. This validation will require putting into orbit prototype satellites from 2005 and the creation of a minimal terrestrial infrastructure. It will allow the necessary adjustments to be made to the ground sector with a view to its global deployment and the launching, if necessary, of operational prototypes manufactured in parallel. During this phase, it will also be possible to develop the receivers and local elements and to verify the frequency allocation conditions imposed by the International Telecommunication Union. The development phase is managed by the Galileo Joint Undertaking. Deployment and commercial operation: The constellation deployment phase will consist in gradually putting all the operational satellites into orbit as of 2006 and in ensuring the full deployment of the ground infrastructure to be able to offer an operational service from 2008 onwards. Deployment and commercial operation of Galileo will be entrusted to a private concession holder. The sea and waterways are the most widely used mode for transporting goods worldwide. A wide variety of vessels moves around the world each day. The efficiency, safety and optimisation of marine transportation are key issues. Galileo will be a fundamental tool for bringing innovation and progress in navigation and many other marine activities such as fishing, oceanography and oil and gas exploitation. Satellite navigation benefits all maritime applications, including leisure boats, commercial vessels, unregulated and SOLAS regulated ships. Each application will take advantage of the new characteristics offered by Galileo: increased accuracy and integrity, certified services and high availability. Therefore, by integrating Galileo with other technologies, the maritime community is expected to benefit from: • A reliable, safe, and accurate tool for maritime navigation in any phase. • Accurate information for Safety-of-Life. 33 EuroMed Transport Project Main Contract Diagnostic Study Module 5 • • Increased performance GPS/Galileo receivers. Improved SAR services. 2.2.4. with integrated Maritime Security EU legislation on maritime security came relatively late with the EC Regulation 725/2004 incorporating • A new Chapter of SOLAS on maritime security (Chapter XI-2). • A totally new international Code on ship and port facility security (ISPS). Such legislations go even further than IMO, to areas not covered by SOLAS, including: • Extension by 1 July 2005 of the IMO requirements to Class A passenger ships engaged on domestic voyages, primarily those ships that travel more than 20 nautical miles from the coast and to the port facilities serving them. • Making a number of paragraphs of ISPS Part B mandatory. • Requiring all ships to provide pre-arrival security information. • Commission inspections are to start from 1 January 2005 on ships, companies & port facilities and EU Member States, as they are considered essential to ensure compliance by Member States. The responsibilities of ships and ports focus on: • Ensuring security standards are maintained. • Reaction to changes in Security Level. • Declarations of Security. • Training, drills and exercises. The Directive Proposal COM (2004) 76 final on enhancing port security (10 February 2004) introduced: • Port security assessments, plans and officers. • Port security authorities and committees. • Three (3) security levels. • Commission inspections. EU is still in the process of developing maritime security policy by listening closely to stakeholders’ views. New issues are considered such as minimum standards for assessments / plans / training and security organizations and upgrading port security plans in order to ensure that security controls are carried out on cars and 34 goods vehicles before loading onto Ro-Ro ferries. Next steps focus on: • Producing a proposal on intermodal security (expected in early 2005). • Covering supply chain including land side deliveries to ports. Maritime Shipping and Ports 3. Facts, Figures and Statistics about MEDA Maritime Transport 3.1. General further and detailed information, the interested reader can easily refer to the internet website established specifically for this purpose at the following address (in addition to the various website addresses listed in Module 10): www.euromedtransport.org The aim of this Chapter is to present the most important data that is pertinent to the maritime transport sector in the MEDA region. This information has been obtained from the following sources: • Major international maritime organisations (e.g. IMO, IAPH). • Previous but recent studies (whether at the international, regional or national levels). • Ongoing collaborative efforts and cooperation programmes within the context of the Euro-Mediterranean partnership. • Recent statistics, covering both the regional and country levels. • Interviews with the various stakeholders involved. • The ongoing Infrastructure Contract within the umbrella of the EuroMed Transport Project. • Other reliable sources. Under the Main Contract Project, an extensive database has been prepared covering all aspects of the transport sector in the MEDA region, including the maritime sector. Clearly, however, it is neither practical nor beneficial to present all data related to maritime transport under this Module. Rather, it would be preferable to present the main information that is required to allow the construction of an accurate profile for the MEDA maritime transport sector. For any Specifically, the data presented in this Chapter includes the following: • Major maritime traffic in MEDA region and between MEDA region and EU. • Major shipping companies operating in MEDA region. • Main ports in MEDA region. 3.2. Maritime Traffic 3.2.1. Total Volume and Modal Share The majority of trade in the Southern Mediterranean is sea borne, especially in the Maghreb where this mode accounts for up to 95% of the total. Maritime transport is undoubtedly essential to ensure good connections between Mediterranean countries among each other and between the new single market and the maritime network, especially worldwide container transport/shipping. The speed, cost effectiveness, reliability and diversity of maritime transport services is therefore critical for the promotion of exports, the attraction of foreign direct investment (FDI), the integration of these countries in the global economy, and the ultimate success of the Euro-Mediterranean freetrade area. However, despite recent progress, the efficiency of maritime transport chains in the Southern Mediterranean remains low by international standards. Table 2: EU External trade with the MEDA region by mode of transport Mode of transport Sea Rail Road Air Inland waterways Others Unknown TOTAL million tonnes 1990 106 2 5 1 3 18 1 135 1994 118 1 6 <1 2 23 2 153 1998 133 1 6 <1 1 31 2 175 million EUR 2001 144 4 6 <1 1 30 3 188 1990 31 1 13 9 1 4 1 60 1994 39 1 17 13 1 4 1 74 1998 2001 57 77 1 1 26 29 18 23 <1 <1 7 10 2 4 110 145 EUR / tonne 2001 536 401 4 477 61 646 293 324 1 367 770 Source: Eurostat Comext Database - EEC special trade domain 3 (Note: before 1995, Austria, Finland and Sweden are not included 3 Cf. Eurostat, Le transport dans la région Euro-Méditerranéenne, 2003 edition, p. 15 35 EuroMed Transport Project Main Contract Diagnostic Study Module 5 Figure 1: EU external trade with MEDA countries by mode of transport (% by volume, 2001) Figure 2: EU external trade with MEDA countries by mode of transport (% by value, 2001) Others 6,7% Unknown 1,7% Inland waterways 0,4% Others 16,0% Unknown 3,0% Inland waterways 0,2% Air 0,2% Air 16,1% Road 3,4% Rail 2,0% Sea 53,1% Sea 76,4% Road 19,9% Rail 1,0% 36 Source: Eurostat Source: Eurostat The position of maritime transport in crossborder trade of MEDA countries is predominant and stable (relative to other modes of trade). Particularly regarding Euro-Mediterranean trade, in EU 2001 external trade with the MEDA region, the maritime mode was used for the transport of 143 833 thousand tonnes (76.4% of the total) worth EUR 77 billion (53.1% of the total). In volume, there exist significant growth prospects of intra-Mediterranean transport (95% of MEDA countries’ external trade with EU, and of this 80% through maritime transport). Maritime transport in the period of 1997-2001 has shown an average annual growth rate of 1.9% with greater contributions from Malta (8.8%) and Egypt (6.3%). Figure 3: Trend of EU-MEDA trade volume by sea, air, rail and road (tonnes, 1990-2001) Figure 4: Trend of EU-MEDA trade value by sea, air, rail & road (million EUR, 1990-2001) Source: Eurostat Source: Eurostat Maritime Shipping and Ports 3.2.2. Maritime Traffic per Country The national maritime traffic is summarised in Table 3: In terms of total maritime traffic turnover per country during 2001, data indicates the following order: Turkey (132.3 million), Algeria (99.6 million), Egypt (59.1 million) and Morocco (57.5 million). There is an imbalance between in-bound and outbound maritime traffic in Algerian, Syrian and Jordanian ports (predominantly export ports), whereas the rest are predominantly import ports. Apart from Turkey, national maritime traffic (cabotage) is very low, closer to non-existence. Table 3: Maritime Transport in the MEDA countries Country Algeria Cyprus Egypt 4 Israel Jordan Lebanon Malta Morocco5 Syria Tunisia Turkey 6 TOTAL Source: Eurostat Gross weight of goods (million tonnes) Loaded / unloaded average annual growth (%) 1994 1997 2001 1994 - 2001 1997 - 2001 82 90 100 4.2 2.8 2.7 7 8 7 0.3 -0.1 -1.8 40 46 59 0.4 5.8 6.3 35 39 43 0.4 3.1 2.7 11 12 13 1.5 3.0 1.5 6 6 6 0.1 0.2 -1.0 5 3 5 0.1 -1.2 8.8 40 48 58 0.8 5.2 4.6 24 27 28 2.0 2.0 0.4 23 25 27 0.7 2.5 2.3 98 138 132 0.6 4.4 -1.1 370 442 477 0.9 3.7 1.9 Figure 5: Share of the MEDA countries in maritime transport, 2001 Cyprus 1,5% Algeria 20,9% Turkey 27,7% Egypt 12,4% Tunisia 5,7% Syria 5,8% Malta 1,0% Israel 9,0% Morocco 12,0% Jordan 2,7% Lebanon 1,3% Source: Eurostat 4 Covers only major ports. Tare weight of containers and Ro-Ro units included for some Moroccan ports. 6 Includes estimate for the port of Baniyas 2001. 5 37 EuroMed Transport Project Main Contract Diagnostic Study Module 5 Table 4: Maritime flows between some MEDA countries and areas of the world ('000' tonnes, 2001) Relation country National traffic EU Europe (except EU) Africa America Near and Middle East Asian Republics for the ex-USSR Indian sub-continent Far-East Australasia Not classified TOTAL Algeria 3 359 56 739 8 464 1 177 26 649 301 Jordan Lebanon Tunisia 3 2 285 1 343 561 610 604 1 451 1 143 1 156 1 680 780 1 849 9 790 4 447 2 046 2 691 991 0 105 2 092 422 266 99 574 3 495 2 810 75 454 13 044 0 28 0 738 6 172 Turkey 23 849 26 671 24 942 25 767 9 686 10 918 1 480 287 302 52 4 868 27 323 612 1 894 1 995 4 504 132 318 Source: Eurostat The maritime transport of the Mediterranean countries is located along the international trade axis Middle East - Red Sea - Mediterranean Atlantic Ocean and as a result, is affected by changes in international trade such as the shifting of trade towards Middle East, the containerisation and the development of ships' technology. Maghreb countries (Tunisia, Morocco and Algeria) are mainly functioning on a South North Sea transport basis developing commercial relations mainly with European countries (principally Italy, Spain, France). On one hand, Morocco lacks commercial ports with hub potential in the Mediterranean Sea7. On the other hand, Tunisian and Algerian ports are facing problems of saturation since they are tightly restricted from the urban environment that deters expansion and further development. Furthermore, ports in these countries are facing cases of limited and inefficient infrastructure and equipment. Egypt holds an important geopolitical position in the international trade because of the Suez Canal connecting the Mediterranean, the Red Sea and Indian Ocean. In addition, Egypt holds a strategic position in the South-South Mediterranean trade (main trade route from Suez to Gibraltar). Egypt's ports in the Mediterranean Sea function as container hub 7 However, this situation will change, since Morocco is constructing a strategical harbour in deep water on the Mediterranean shore, the Tanger-Med port, which will be operational in 2007. 38 ports serving East Mediterranean countries. Syria on the other hand, functions mainly as a gateway to the countries of the Middle East (especially Iran and Iraq) via the terrestrial transport network. Cyprus and Malta, with limited internal markets, possess a strategic position for the international trade and maritime transport within the Mediterranean. The Maltese port of Marsaxlokk already operates as transhipment hub of maritime traffic between Maghreb and South EU countries. Limassol in Cyprus lost its old importance for traffic in the East Mediterranean Sea due to the Turkish embargo. Turkey is mainly functioning in the East Mediterranean South EU transport corridor (especially Ro-Ro connection with North Italy). Concerning passenger traffic activities, Maghreb countries face increased passenger demand, especially during the summer peak seasons, due to a) the increased tourist flows and b) the flow of immigrants. Malta, Cyprus, Egypt and in a lesser extent Turkey, Syria, and Lebanon accommodate significant cruiser-passenger traffic from South Europe (mainly Italy, Spain, France, and Greece). 3.2.3. Maritime Traffic per Category Freight (general) The breakdown of 2001 maritime traffic with respect to cargo type is summarised in Table 5: Maritime Shipping and Ports There is a high share of bulk, resulting in a low containerisation potential: • Algeria: 83% share liquid bulk (oil and oil derivatives) concentrated in the three ports of Bethioua, Skikda and Arzew. • Syria: 70.3% share liquid bulk (oil and oil derivatives) concentrated in the port of Baniyas. • Turkey: 38% share liquid bulk and 25% share of dry bulk (mainly iron core, cement, solid mineral fuels). • Jordan: 63% total share mostly from bulk minerals. • Morocco: 54% total share mostly from bulk minerals. • Egypt: 41% total share. The fastest growing sector of maritime transport is the shipment of containers, both globally and within the region. The global capacity of world container fleet tripled during the past decade and total container traffic handled by all Mediterranean ports grew by an average of 13% per year during the same period. Container traffic tends to be highly concentrated in a few ports (in each case to 1-2 key country ports) and so far, the Maghreb and Mashrek countries have managed to capture very little of the regional market. Bulk Cargo Unitised Cargo & containerisation Containerisation measured, as share of non-bulk cargo, when compared with EU-15 average is quite low, as illustrated in Figure 7: Table 5: Main freight categories handled in MEDA ports (million tonnes, 2001) Country Liquid bulk Dry Bulk Containers Ro-Ro Other general cargo Not classified 6.9 TOTAL Algeria 82.3 8.2 2.1 Cyprus 3.2 1.6 1.5 Egypt 7.3 22.4 Israel 9.2 17.1 13.1 Jordan 0.4 8.1 0.2 Lebanon 1.4 0.3 1.8 Morocco 16.2 30.8 3.6 3.0 3.8 57.5 Tunisia 12.1 9.9 1.7 0.9 2.6 27.3 Turkey 50.7 33.0 11.7 5.0 32.4 0.2 99.6 0.6 2.0 7.0 16.1 8.9 54.8 3.6 0.2 43.0 4.0 0.1 13.0 2.0 0.7 6.2 4.5 132.3 Source: Eurostat 39 EuroMed Transport Project Main Contract Diagnostic Study Module 5 Figure 6: Breakdown of maritime traffic by cargo type, 2001 100% 80% 60% 40% 20% 0% Cyprus Algeria Egypt Liquid bulk Israel Dry Bulk Jordan Containers Lebanon Ro-ro Other general cargo Morocco Tunisia Turkey Not classified Source: Eurostat Figure 7: Containerisation as share of non-bulk freight (2001) JO 9,1% 23,6% DZ 26,5% TR 47,3% LB 49,7% TN 63,6% MA 76,1% CY 77,8% UE-15 78,4% IL 0,0% Source: Eurostat 40 10,0% 20,0% 30,0% 40,0% 50,0% 60,0% 70,0% 80,0% 90,0% Maritime Shipping and Ports On the contrary, in Malta, the Marsaxlokk port serves as a transhipment hub with high container and Ro-Ro traffic. Photo 1: Growing container traffic at Rades port in Tunisia lines, due to its longer distance and middle position for connections with West African countries. This is illustrated in Table 6. Ro-Ro regular connection lines to Morocco are mainly coming from Algeciras, while Marseilles is dominating connections to Algeria and Tunisia. This is illustrated in Table 7. Table 6: Frequency of regular container lines connections (calls per month) PORT % of calls for container lines 48% 35% 29% No of calls Casablanca Algiers Tunis 176 160 166 Source: Euromed Transport Project (Main Contract) Ro-Ro to Morocco Ro-Ro to Algeria Ro-Ro to Tunisia Cadiz Algeciras Barcelona Genoa Marseilles Table 7: Frequency of regular Ro-Ro lines connections (calls per month) Port In the specific case of the Maghreb countries, the low containerisation can be attributed to the following factors: • Cargo flow imbalance between South and North. Relatively low South – North traffic causes high percentage of empty units, high unit costs and subsequently low profitability prospects and investment attractiveness. • Relatively low unit value of exchanged cargo. • Lack of suitable port infrastructure and equipment in Maghreb with respect to handling and storage (in Algeria, 70% of containers are operated through the Algiers port, in Morocco 85% through the Casablanca port 8, in Tunisia 95% through the Rades port). • Short distance between European and African shores and relatively large number of transport correspondents favour the development of Ro-Ro traffic. • The export structure (textile, agricultural products) may imply 'tense flows' and, therefore, favour Ro-Ro. 12 0 0 420 54 71 14 7 0 0 60 24 4 0 0 Source: Euromed Transport Project (Main Contract) Photo 2: Example of Ro-Ro transport in the MEDA region, Morocco Source: EuroMed Transport Project (Main Contract) Meanwhile, for some forms of unitised freight the percentage is higher: for instance, there is high truck traffic between Gibraltar Straits (in the Ro-Ro lines connecting Algeciras and Cadiz with Tangiers, Casablanca and Ceuta). Source: EuroMed Transport Project (Main Contract) The Ro-Ro vessel fleet is quite important in the Western Mediterranean (truck traffic between Europe and Maghreb), from Turkey. There is a high percentage of empty units in several countries (41% in Jordan, 47% Empty units Casablanca port is the most important port with respect to connections with regular container 8 However, this situation is to change within the next years, with the planned opening of new container terminals (Tangiers-Med, Mohammedia,…). 41 EuroMed Transport Project Main Contract Diagnostic Study Module 5 in Beirut, 46% in Algeria) with the exception of Turkey, affecting adversely unit transport costs. - The number of sea passengers is summarised in Table 8: - Passengers & Cruises The main facts related to passenger traffic are as follows: • Sea-passenger traffic was limited to 9.5 million passengers in 2001 (compared to 335 million in EU during 2000 and 102.5 million of airport traffic in 2001) with limited growth rates. • Few regular ferry routes concentrated mainly in: - Morocco: 2.9 million passengers mainly emigrants (Tangiers connections with Southern Europe). Egypt: 2.7 million passengers (mainly around Suez and the Red Sea). Turkey: 1.3 million passengers. Moreover, there is a growing interest for cruises within the region as North Americana and European demand is expected to exceed 12 million passengers by the end of 2010. The Mediterranean is a strategic destination for cruises, specifically for Cyprus, Malta and Tangiers that currently enjoy high cruiser traffic and at the same time high growth potential. Table 8: Number of passengers at MEDA ports (in '000') Country 1994 1995 Algeria Cyprus Egypt Israel Jordan Lebanon Malta Morocco 279 1 826 121 1 364 25 229 1 565 1 833 75 1 175 21 Syria Tunisia Turkey TOTAL 9 288 1 802 7 508 13 281 1 848 5 246 1996 1997 422 670 1 965 73 1 107 21 219 1 621 391 523 2 232 74 829 12 291 1 688 8 089 1998 1999 2000 2001 189 1 889 456 492 2 217 64 718 23 270 2 229 528 561 2 568 93 676 35 200 2 489 587 605 2 931 158 611 46 217 2 668 614 435 2 700 150 653 40 182 2 930 21 318 2 017 8 483 19 316 1 716 8 520 29 380 1 034 8 593 31 414 1 243 9 511 449 1 252 9 405 Source: Eurostat Table 9: Cruise passengers in some major Mediterranean ports Port Limassol (Cyprus) Sharm El Sheikh (Egypt) Haifa (Israel) Casablanca (Morocco) Tangiers (Morocco) Tunis La Goulette (Tunisia) Valetta (Malta) Year 1997 2000 1997 2000 1997 2000 1997 2000 1997 2000 1997 2000 1997 2000 Source: Eurostat (data from MEDCRUISE Association) 42 Cruise Paxs (average in / out) 257 181 298 517 271 500 267 500 30 903 49 148 12 875 14 459 747 260 808 620 2 572 3 091 Cruise pax (transit) 91 714 197 419 193 294 152 053 68 575 86 698 43 969 116 690 130 304 170 000 124 898 165 996 Cruise calls 858 1 138 435 461 314 177 195 199 226 Maritime Shipping and Ports 3.2.4. Main Corridors Main Euro-Mediterranean maritime corridors include Egypt - Italy, Egypt - Netherlands, Algeria - France. The Mediterranean is already an established maritime corridor and 'transit area' between Asia – Europe and Asia – N. America. On these corridors, regular maritime lines are in general of high importance to commercial trade. This becomes even more pronounced particularly in the Western Mediterranean region, where the South – North trade interrelationship is significantly higher. Moreover, the big shipping companies already present in the Europe - Americas - Asia routes are increasingly active in the intra-Med routes through high competition. 3.3. Maritime Shipping in the MEDA Region Maritime Shipping companies operate on regular routes in both the Western and Eastern Mediterranean with a fleet usually in poor condition. 3.3.1. Fleet and Fleet Condition The maritime fleet is described in the following table. Table 10: Euro-Mediterranean maritime corridors with at least 2 million tonnes of goods (2000) Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MED country Egypt Egypt Algeria Egypt Algeria Algeria Syria Turkey Egypt Turkey Algeria Syria Morocco Algeria Egypt Morocco Tunisia Malta Turkey Algeria Egypt Israel Algeria Tunisia Egypt EU-15 country Italy Netherlands France France Italy Spain Italy Italy Greece Greece Belgium France France Netherlands Spain Spain Italy Italy Spain Germany Portugal Italy United Kingdom France United Kingdom '000' tonnes 25 086 22 616 18 155 15 200 12 374 9 827 9 701 9 662 9 221 7 286 6 609 5 294 5 208 4 773 4 637 4 500 4 164 3 778 3 441 3 285 3 276 3 202 2 514 2 451 2 406 Source: Eurostat (italics = estimations) 43 EuroMed Transport Project Main Contract Diagnostic Study Module 5 Table 11: MEDA maritime fleet (2001) 14 197 Cyprus 1 066 22 016 374 20 653 Egypt 159 1 194 696 7 513 Israel 18 752 873 41 826 Jordan 9 78 814 8 757 Lebanon 49 198 602 4 052 Morocco 49 317 835 1 176 9 403 276 18 4 Average age (years) 4 9 1 22 VHR Other 28 145 13 1 109 29 62 16 MR 5 64 14 13 4 18 MR 41 18 2 1 1 4 13 24 VHR 2 6 487 1 6 15 9 2 8 8 20 HR 25 102 401 21 345 468 251 46 74 13 4 210 35 75 16 MR - - - - - - - - - - - 122 446 981 3 663 1 1 5 23 VHR Tunisia 11 124 733 10 394 Turkey 508 4 666 895 9 186 Syria - 12 101 2 1 5 1 Palestinian Authority 5 White 23 Malta Source: CIA and MoU Paris 9 Paris MoU results, 2002 - 2 1 4 111 229 46 34 VHR - 3 1 - - - 20 MR 9 6 36 26 15 23 VHR MR = Black, medium risk, HR = Black, high risk, VHR = black, very high risk 44 10 Ro-Ro SSS / Passenger 6 Container 16 Petroleum Tanker 837 676 Port State Control results 9 Liquefied gas 59 Chemical Tanker Algeria Cargo Bulk Average GRT per ship Total GRT Total (ships over 1 000 GRT) Country National fleet Maritime Shipping and Ports The present Maritime Shipping fleet has the following characteristics: • Two countries (Malta and Cyprus) represent the majority of the regional fleet. These countries, now members of the EU, are traditional flag-carriers. • The fleet of some countries is modern, if the structure is considered (i.e. only container carriers for Israel), whereas it remains more traditional (bulk, cargo) in some cases. This is confirmed by the average GRT per ship, ranging from approx 3 000 to approx 40 000 GRT. • The average age of the fleet is in correlation with the Port State Control results: the MEDA fleet, even for the new members of the EU, is usually considered as presenting risks, which can be very high in the case of some countries. 3.3.2. Regular Maritime Lines in Western Mediterranean According to CETMO data (for year 2000) concerning regular maritime lines in the Western Mediterranean region, the following are derived: • On average, 971 monthly connections are realised between North - South ports, 50% of which in Gibraltar Straits (between Algeciras/Cadiz and Tangiers). • Marseilles attracts at least 30% and Barcelona 15% of all regular lines calls on the European side. • Casablanca, Algiers and Tunis are by far the principal connecting ports per country. Regular maritime lines from Tunis and Casablanca ports to main European ports in 2003 are presented below: Table 12: Regular maritime lines from Tunis to main European ports (2003)10 Origin Tunis Tunis Destination Marseilles Genoa Tunis Barcelona Tunis North Europe Ship-owners /Ship-Agents Departures per week Service Cotunav 3 Ro-Ro Sudcargos LD Cetam 3 Ro-Ro CMA-CGM 1 Containers Cotunav 3 Ro-Ro Messina 1 Ro-Ro Sea Malta/ Genmar 1 Ro-Ro Cotunav 1 Ro-Ro Tarros Line 1 Containers Hamburg Sud 1 Containers Source: Consortium of COWI, ATKINS, BCEOM, GOPA, TYPSA 10 Etude comparative des coûts de transport maritimes – la situation concurrentielle de la Tunisie, EU PROGRAMME MEDA / FIPA Tunisie / Ministère du Développement et de la Coopération Internationale, February 2004 45 EuroMed Transport Project Main Contract Diagnostic Study Module 5 Table 13: Regular maritime lines from Casablanca to European ports (2003) Origin Destination Departures per week 1 Ro-Ro IMTC Sudcargos 1 Ro-Ro Flota Suardiaz 1 Ro-Ro 1 Ro-Ro 3 Containers Service Casablanca Tangiers Marseilles Casablanca Zeebrugge Flushing Bremerhaven Southampton Vigo Casablanca Barcelona Casablanca Valencia Barcelona Livorno Genoa La Spezia Fos Pool: Comanav IMTC Navimed Casablanca Valencia Barcelona Exmaris 1 Casablanca Casablanca Valencia Barcelona Marseilles Contenemar 2 Containers Casablanca Le Havre Antwerp Casablanca Alliance 4 Containers Casablanca Rouen Dunkerque Rotterdam Hamburg Bremen Felixstowe CMA-CGM 4 Containers Casablanca Lisbon Leixoes Antwerp Rotterdam Felixstowe HMS 2 Containers Agadir Casablanca Tangiers Antwerp Rotterdam Felixstowe KNSM / DEXTRAMAR 1/2 Containers Casablanca Cadiz COMANAV / IMTC 3 Ro-Ro Casablanca Bilbao Gijon Vigo Las Palmas CONTENEMAR 1 Containers Casablanca Rouen Dunkerque Rotterdam Felixtowe Hamburg Casablanca Alliance Source: EuroMed Transport Project (Main Contract) 46 Ship-owner/ Operator Pool: Comanav Containers Maritime Shipping and Ports Regarding Algeria, regular lines connect the country with Marseilles, Rouen, Antwerp, Hamburg, Bremen, Alicante, Barcelona, Algeciras, Valencia (freight transhipment from Asia), Malta (freight transhipment from Asia), Genoa / La Spezia. There is a fair number of European and African shipping companies providing regular lines between South and North shores in Western Mediterranean. Most of them in 2000 were operating according to the pattern of the following table: Table 14: Shipping companies providing regular connections between South – North coasts (except those exclusively operating between Gibraltar Straits) Company Country of origin No of regular lines No of monthly connections CALTRAM Algeria - Libya 4 12 CMA CGM France 5 20 CNAN Algeria 8 33 COMANAV Morocco 10 99 * COTINSA Spain 6 18 COTUNAV Tunisia 7 42 ENTMV Algeria 6 32 GRIMALDI Italy 4 18 IMTC Morocco 7 115 *(2) MAERSK SEA-LAND Denmark 4 18 MSC Switzerland 6 23 *(3) SUDCARGOS France - Morocco 5 28 TARROS Italy 3 11 No of connections passing through Gibraltar Straits: (1) 60; (2) 90; (3) 4. Source: EuroMed Transport Project (Main Contract) Lines operated by local African shipping lines in Maghreb (Caltram, CNAN, Comanav, Cotunav, ENTMV) in general do not call to more than one European port, following patterns of strong national bilateral relations. However, lines operated by European shipping companies (Grimaldi, CMA-CGM, MSC etc), usually call to multiple North Mediterranean intermediate ports on their way to a final Maghreb port (even though in few cases it is planned to call at various African ports before reaching the final destination). This proves that, in reality, it is not feasible for a shipping company of Maghreb ownership to obtain the necessary authorisations (from Maghreb countries) in order to run a regular line through various Maghreb ports to South European ports. Obviously, the above hindrances give rise to differential competitiveness, profitability and viability of shipping lines and subsequently they need to be eliminated. Shipping line alliances are important in contributing to increased connection frequencies, regularity, transparency, cost competitiveness and customer quality in total. Few examples of such alliances in maritime transport of Western Mediterranean are provided below: • Sudcargos Company is the product of alliance between SNMC and Delmas, both of French interests, exploiting cargo transport to and from Maghreb, based on the port of Marseilles. • Sudcargos and Marfret (Marseilles-Fret), specialising in cargo transport to Algeria and Tunisia, proposed to run a regular RoRo common line from Genoa and Marseilles. • Contenemar and CTE (two Spanish companies) have agreed to run a common connection from Barcelona and Valencia to Casablanca. • Comanav, IMTC and Sudcargos have agreed to regroup their connections from Marseilles to Morocco between themselves by setting up the MED LINE Service. 47 EuroMed Transport Project Main Contract Diagnostic Study Module 5 3.3.3. Regular Maritime Lines in Eastern Mediterranean These lines are listed in the following table: Table 15: Regular maritime lines from Istanbul to European ports (2003) Origin 48 Destination Ship-owner / agent Frequency Service Istanbul Trieste UNO Ro-Ro 9 Ro Ro Istanbul Antwerp Gotheborg Hapag Lloyd 1 Direct Container Istanbul Le Havre Antwerp Hamburg MSC 1 Direct Container Istanbul Genoa Marseilles Barcelona Antwerp Turkon 0.66 Direct Container Istanbul Beirut Port Said Antwerp K Une 1 Direct Container Istanbul Izmir Piraeus Salerno Antwerp Contaz 0.66 Direct Container Istanbul Piraeus Tarento Lisbon Antwerp Evergreen/Lloyd Triestino 1 Direct Container Istanbul Izmir Tunis Antwerp Hamburg Sud/Ellerman /Armada 1 Direct Container Istanbul Israel Egypt Greece Antwerp Borchard 1 Transbo Istanbul Malta Antwerp CMA 1 Transbo Malte Istanbul Gioia Tauro Antwerp Maersk 1 Transbo Tauro Istanbul Izmir Valencia Barcelona Hapag Lloyd 1 Container Direct Istanbul Izmir Valencia Barcelona Fos MSC 1 Container Direct Istanbul Valencia Barcelona Fos Arkas 1 Container Direct Istanbul Genoa Marseilles Barcelona Antwerp Turkon 0.66 Container Direct Istanbul Cagliari Emes (Arkas Group) 1 Container Direct Gioia Maritime Shipping and Ports Origin Izmir Destination Ship-owner / agent Frequency Service Valencia Barcelona Istanbul Piraeus Genoa Marseilles Barcelona Borchard 1 Container Direct Istanbul Gioia Tauro Barcelona Maersk 1 Transbo Tauro Istanbul Piraeus Genoa Marseilles Barcelona Borchard 1 Container Direct Istanbul Genoa Marseilles Barcelona Antwerp Turkon 0.66 Container Direct Istanbul Gioia Tauro Genoa Maersk 1 Tranship Tauro Istanbul Piraeus Genoa Marseilles Barcelona Borchard 1 Container Direct Istanbul Genoa Marseilles Barcelona Antwerp Turkon 0.66 Container Direct Istanbul Malta Marseilles CMA 1 Tranship Malte Istanbul Izmir Marseilles/Fos Barcelona Valencia MSC 1 Container Direct Istanbul Gioia Tauro Marseilles/Fos Maersk 1 Tranship Tauro Istanbul Piraeus Koper Trieste, Ravenna MSC 1 Container Direct Istanbul Gioia Tauro Trieste Maersk 1 Tranship Tauro Gioia Gioia Gioia Gioia Source: EuroMed Transport Project (Main Contract) Moreover: • Beirut is served by the following regular connection frequencies: - Barcelona: 9 regular voyages per month. - Marseilles: 11 regular voyages per month. - Gioia-Tauro: 14 regular voyages per month. - • • Alexandria: 20 regular voyages per month. Tartous is served by the following regular connection frequencies: - Constantza (Romania). - Odessa (Ukraine). - Damietta (Egypt). Egyptian ports (Alexandria, Damietta and Port Said) have major maritime connections with the European ports shown in table 16: 49 EuroMed Transport Project Main Contract Diagnostic Study Module 5 Table 16: Maritime connections of the Egyptian ports of Alexandria, Damietta and Port Said with European ports Origin Destination Agent Frequency Service Alexandria Marseilles Messina 1 dep / week Ro-Ro Alexandria Genoa Direct Grimaldi 1 dep / week Ro-Ro Alexandria Marseilles CMA-CGM 1 dep / week Container Port Said Marseilles JCMA-CGM 1 dep / week Container Port Said Marseilles Evergreen 1 dep / week Container Alexandria Genoa Evergreen 1 dep / week Container Alexandria Trieste MSC 1 dep / week Container Damietta Genoa JNOR 1 dep / week Container Alexandria Barcelona NOR 1 dep / week Container Alexandria Barcelona Sarfies 1 dep / week Container Alexandria Barcelona Medex 1 dep / week Container Alexandria Barcelona MSC 1 dep / week Container Alexandria Barcelona P&O 1 dep / week Container Alexandria Barcelona NOR 1 dep / week Container Alexandria Antwerp Maersk 1 dep / week Container Alexandria Antwerp MSC 1 dep / week Container Port Said Rotterdam Evergreen 1 dep / week Container Source EuroMed Transport Project (Main Contract) 3.4. Ports Ports generally represent a crucial link in the transport chain, with immense repercussions to efficiency and effectiveness in terms of cost, time and safety. New trends and developments in the international and Mediterranean port environment focus on higher competition (particularly on the routes served by the major companies), high pressure on reliability and security, stricter environmental and spatial planning regulations. Port customers are changing radically becoming global stevedores, large shipping alliances looking for economies of scale. Within the MEDA region during 2001, 57 ports were identified with over 1 million tonnes throughput per year. 50 The table below presents a size comparison between the 15 larger MEDA, EU and CEC (Central European) seaports. In addition, Figure 8 illustrates the key ports in the MEDA region. Moreover, the basic charachteries of these ports are listed in Table 18 Finally, the port activity is summarised in the Table 19, where the strong (+) and weak (-) points are underlined: Maritime Shipping and Ports Table 17: Top-15 ports in terms of the gross weight of goods in the MEDA, EU and CEC countries (2001) ‘000’ tonnes UE-15 Ports ‘000’ tonnes CEC Ports ‘000’ tonnes No MEDA Ports 1 Bethioua / DZ 34 919 Rotterdam / NL 296 620 Ventspils / LV 37 937 2 Izmit /TR 34 621 Antwerp / B 114 777 Tallinn / EE 32 063 3 Alexandria / EG 28 404 Marseilles / F 89 518 Constantza / RO 25 119 4 Skikda / DZ 23 988 Hamburg / D 82 948 Klaipeda . LT 20 953 5 Aliaga / TR 21 330 Le Havre / FR 65 356 Gdansk / PL 16 971 6 Casablanca / MA 20 161 Grimsby / UK 54 831 Riga / LV 14 820 7 Istanbul / TR 17 469 Tees / UK 50 842 Burgas / BG 12 481 8 Banias / SY 16 865 London / UK 50 654 Szczecin / PL 9 988 9 Haifa / IL 16 719 Amsterdam / NL 48 073 Koper / SL 9 110 10 Ashdod / IL 13 574 Trieste / IT 44 712 Swinoujscie / PL 8 798 11 Mersin / TR 13 246 Genova IT 43 134 Gdynia / PL 8 348 12 Arzew / DZ 13 147 Dunkerque /FR 41 909 Varna / BG 7 711 13 Aqaba / JO 13 043 Forth / UK 41 607 Liepaya / LV 3 261 14 Damietta / EG 13 004 Wilhelmshaven / D 40 850 Vene - Balti / EE 2 852 15 Mohammedia / MA 11 142 Bremen / D 40 066 Parnu / EE 1 912 Average 19 442 Average 73 726 Average 14 155 Source: EuroMed Transport Project (Main Contract)-Synthesis from various international sources 51 52 Source: EuroMed Transport Project (Main Contract) Figure 8: Map of major MEDA ports Module 5 EuroMed Transport Project Main Contract Diagnostic Study Maritime Shipping and Ports Table 18: Port technical and capacity characteristics in main MEDA ports Major ports Egypt: Alexandria, Dekheila, Damietta, Port-Said, Suez Israel: Ashdod, Ashqelon, Eilat, Hadera, Haifa, Tel Aviv – Yafo Jordan: Aqaba Lebanon: Beirut, Tripoli, Saida, Tyr Palestinian Authority: Availability of gantry cranes Connection with other modes IT & EDI VTS / VTMIS Yes IT and EDI state of the art technology is disseminated in main ports, shortly to be operational. Port of Alexandria and Port of Barcelona, in a Hinterland connections of main joint project (Alex Portic Project), have developed eseaports need improvement commerce application for port (Main seaport restructuring policy lines include development services. This application is to be disseminated to the other of Egyptian ports into integrated inter-modal transport main Egyptian ports. Main seaport restructuring policy nodes). lines include a comprehensive use of Information Technology in port management, customer service and port business development. VTS systems in major ports. VTS under modernisation in Damietta. Yes Ports and rail are under the same State authority. Moreover, IT and EDI state of the art in the national maritime shipping all ports. company is totally made of container-carriers. Major ports are equipped. Yes Yes in Beirut Port connection with road, rail and air transport is available. Inter-modality is facing severe problems as (a) Lack of necessary legal framework (b) No current Port / Rail connections (c) Port / Road connections with upgrade needs (in Beirut soon to be significantly improved) (d) Inter-modal facilities such as terminals, warehouses, logistics parks are limited or nonexistent. Absence of MIS and EDI technology use. IT use for Port Operations is considered of high priority for upgrading port operations efficiency, with respect to both port MIS and EDI. A VTS system for Red Sea is being developed. IT and EDI The installation of a VTS in Beirut port has just finished. no port presently 53 EuroMed Transport Project Main Contract Diagnostic Study Module 5 Major ports Availability of gantry cranes Syria: Tartous, Lattakia No Algeria: Algiers, Oran, Annaba, Bejaia, Arzew – Bethioua, Skikda, Mostaganem, Djen-Djen No Connection with other modes Efficient connection of both ports with roads / rail. However, Multi-modality is facing severe problems due to lack of (a) Necessary legal framework (b) Inter-modal facilities such as terminals, warehouses, logistics parks (limited or non-existent). Severe problems for multimodal transport mainly due to (a) inefficient land transport modes – high cost (b) absence of forwarders (c) time wasting procedures (customs etc) (d) Inefficient connections of Algiers port with rail and road networks ; rail access cannot be used during the day for safety reasons (since it crosses the main city road artery which is given the priority). This creates overflow of road traffic (CMA uses 100 container tracks per day from port bound to their own dry port). Morocco: Exists, for instance for the Casablanca Phosphate transit between rail Mohammedia Yes in and sea. All ports are served by Jorf-Lasfar Casablanca road and rail and the new Tangiers Tangiers ports include a rail Nador connection. Agadir Tunisia: La Goulette, Rades, Bizerte, Sfax Cyprus: Limassol, Larnaca 54 IT & EDI VTS / VTMIS Very limited use of Information Technology in port management, customer service and port business development. No Information Technology in Algiers Port has just started. No VTS installed in Casablanca and recently in Tangiers. Need of extension to cover whole Speeding up of the Port coastline with Reform process will put the upgrade to a emphasis on the introduction of VTMIS system. IT and EDI in the Port Sector Networking with VTMISs of Spain, Portugal and Algeria would be desirable. Yes Severe problems for multimodal transport (and consequently low transport cost competitiveness) in Tunisia mainly due to (a) Inefficient land transport modes with high cost (b) Lack of forwarders (c) Time wasting procedures (customs etc). VTS in the entry of Tunis port since Speeding up of the Port 2002. Other Reform process will put the emphasis on the introduction of future VTS IT and EDI in the Port Sector. systems are planned for other ports. Yes in Limassol No rail connections of ports due to absence of railway network, but efficient road connections currently in the process of further improvement. Moreover, airports are at close distance. IT and EDI applications are in use at a well-developed level. Meanwhile the IT department is understaffed (currently 4 people planned to increase to 12). Computer applications include CyPOS, an integrated VTS installed (12 miles range) currently upgraded to VTMIS. Maritime Shipping and Ports Major ports Availability of gantry cranes Connection with other modes IT & EDI VTS / VTMIS port community information system, however there is a need for upgrading and integrating CyPos, the system of the container terminal operator. Malta: Valetta, Marsaxlokk State of the art handling equipment, in Marsaxlokk As in Cyprus. Specific development of Mediterranean transhipment from the Marsaxlokk port. In general, efficient road and railway connections with TCDD Turkey: ports. Important growth of Mersin, Izmit combined transportation with Yes in the Haydarpasa, major ports Ro-Ro / rail between Turkey and Iskenderun, Central Europe (IstanbulSamsun Trieste-Munich) – 84 985 semitrailer units in 2003. State of the art IT / EDI systems (upgraded Navis Sparcs and Navis Express Systems). VTS, which could be extended to VTMIS (feasibility study under progress). IT and EDI applications use is currently absent from the major TCDD commercial ports (effort financed by EIB is not implemented). A VTMIS covers Bosphorus and Marmara region through 7 radar stations. Source: EuroMed Transport Project (Main Contract) Table 19: Port activity in main MEDA ports Port Total TEUs handling handled volume (TEUs / (millions year) tonnes/year) + - Strategic geograpghic positioning of Egyptian ports for regional and world trade.Significant role of maritime transport and ports in Egyptian economy (99% of imports and exports are seaborn) and the growth of maritime transport of home and international traffic quite high. Major Commercial seaports (AlexandriaDekheila, Damietta, Port Said, East Port Said, Port Of Suez) share almost the same hinterland and could complete on an almost equal basis for transhipment traffic. Despite the fact that Port tariffs are centrally controlled by government, Port costs for a 20’ container unit in Alexandria port average to EUR 70. For ordinary cargo, port transit delay averages to 15 days in Alexandria Significant role of maritime transport and ports in Israel economy as Israel is landlocked. Geopolitical constraints Egypt Alexandria 32 852 Dekheila 576 972 Damietta 13 692 699 758 Port Said 7 480 561 894 Suez 6 180 74 476 Haifa 16 700 572 000 Ashdod 13 600 380 000 1 700 18 000 Israel Eilat 55 EuroMed Transport Project Main Contract Diagnostic Study Module 5 Port Total TEUs handling handled volume (TEUs / (millions year) tonnes/year) + - Jordan Aqaba 14 158 277 307 Jordan is a crucial link for the regional transport / economic integration (mainly as transit area) in Mashrek region due to geographical (multi border) and political (political influence in neighbouring Arab countries) reasons. Aqaba port is the unique country seaport possessing strategic importance in Jordanian Transport (unique sea access). Recent ESCWA study fully justifies the scope for creation of a Common Transport Area between Jordan, Syria and Lebanon. Lebanon Beirut Tripoli 5 600 0 620 Strategic geographic positioning of Lebanon with respect to maritime transport (as transit area). Significant 300 000 infrastructure development within the country during past decade (after the years of war) with strong and successful private sector participationOpen economy characteristics Recent ESCWA study fully justifies the scope for creation of a Common Transport Area between Jordan, Syria and Lebanon. - A consortium between the British company MDHC & the American IMA has won the bid to operate the new container terminal at the Port of Beirut as from the 15/12/2004. The Beirut Port Authority will be the owner of land, infrastructure and equipment. Protectionism from Syria and Jordan currently limit the regional role of Beirut Port within the national boundaries. Palestinian Authority Syria 56 Tartous 8 475 40 000 Lattakia 4 548 300 000 Recent ESCWA study, fully justifies the scope for creation of a Common Transport Area between Jordan, Syria and Lebanon. Main ports facing severe problems of inefficiency (lack of modern equipment, overstaffing, lack of training) and under-capacity. Maritime Shipping and Ports Port Total TEUs handling handled volume (TEUs / (millions year) tonnes/year) + - Algiers port is the main mixed commercial port with a significant inertia on behalf of users to use other ports. Low productivity performance (average waiting time before berthing approx 3 days) related mainly to: • Lack of modern handling equiment (e.g. gantry cranes for containers). • Lack of specialised and trained staff. • Tariff levels, not associated to the port services quality and arbitrary determined by government. • Preferential treatment to the national shipping company CNAN. • Security problems (1% - 2% of containers broken / stolen in Algiers port) without legal liability accepted by the ports. • Lack of orientation to customer needs. • overstaffing (currently 3 000 employees). Strategic positioning of Moroccan ports for maritime transport (proximity to Gibraltar straights). Low port competitiveness caused mainly in the area of cargo handling (handling fragmentation as on-board handling by private stevedores, ground handling by ODEP). Costs for a 20’ container unit in Casablanca port average EUR 370. For ordinary cargo, port transit delay averages to 9-days. Port tariffs not associated to costs and port services quality EU financially supports Tunisia (EUR 20 million) to implement a port modernisation Action Plan. Port services quality leading to a medium relative port competitiveness: port costs for a 20’ container unit in Rades port average to EUR 210 For ordinary cargo, port transit delay averages to 9-days. Port tariffs (particularly in Rades port) not associated to costs. Algeria Algiers 9 732 249 327 Oran 3 886 46 372 Annaba 4 532 5 387 Bejaia 11 643 16 034 Arzew Bethioua 48 972 0 Skikda 26 585 32 941 Mostaganem 1 080 1 725 Djen-Djen 1 753 287 Morocco Casablanca Mohammedia Jorf-Lasfar 21 305 9 533 10 329 Tangiers 3 228 Nador 2 102 Agadir 2 330 Tunisia La Goulette 0 975 Rades 3 624 Bizerte 5 308 Sfax 5 062 281 500 57 EuroMed Transport Project Main Contract Diagnostic Study Module 5 Port Total TEUs handling handled volume (TEUs / (millions year) tonnes/year) + - Strategic position and competitive advantage mainly for cruisers. Fragmentation of operations into different interest groups in the reason for cost inefficiency in operations and management (ship on-board operations by stevedores, cranes and crane drivers by Cyprus Ports Authority, ground handling operations and equipment by porters.) The number of gantries per quay is limited to 2 and ground-handling equipment is inadequate (in numbers and technology.) Inadequate facilities of Limassol port concerning the cruise passenger business (poor quality passenger terminal at arms distance from the container and general cargo terminals;) a further expansion of Limassol port is possible and this will lead to rationalization and consolidation of port operations (concentration passenger activities in one area and concentration of container activities in another.) Tariff levels are not linked to port services quality and customers' satisfaction level. In general, embargo from Turkey significantly limits Cyprus' maritime potential. Cyprus Limassol Larnaca 3 222 0,418 233 400 490 Malta Valetta Marsaxlokk 58 Strategic position in combination with small country size provide interesting cases for port use rationalisation and 2 032 benchmarking (e.g. Marsaxlokk container terminal, rationalisation between Valletta and Marsaxlokk ports). Current emphasis in cruiser liners and containers transhipment. The Government of Malta has on 5/10/2004 granted a 30year concession to the CMACGM Group to operate and 16 000 1 300 000 develop Malta Freeport. As a result of the agreement, the Maltese Government has sold all its shares in Malta Freeport Terminals Limited and entered into an agreement to lease the port Maritime Shipping and Ports Port Total TEUs handling handled volume (TEUs / (millions year) tonnes/year) + - facilities and to grant a licence for the operation of the Port. For the duration of the agreement, the Government remains the owner of the site of the Port facilities. Successful efforts in establishing Malta as a regional Mediterranean Hub mainly for cruises and container transhipment. Turkey Mersin 13 763 290 354 Izmir 9 653 491 377 Haydarpasa 5 114 Iskenderun 1 602 Samsun 2 611 224 544 Strategic position of Turkey for maritime transport (extensive hinterlands, high trade traffic, proximity to Middle East, control of maritime routes to/from Black Sea). High port tariffs, centrally and uniformly determined, irrespective of quality and customer satisfaction, leading to a low relative port competitiveness (port costs for a 20’ container unit in Haydarpasa port average to EUR 330). Major commercial TCDD ports are characterised by low capacity (insufficiency of port equipment and infrastructure) and services efficiency – Relatively low port transit delays despite the fact that handling, pilotage and towage exercised by TCDD (implying – serious under investment in ports due to crosssubsidisation of railways from ports) as well as lack of computerisation in port and yard management create often delays in tracing cargo (sometimes cargo is lost). Source: EuroMed Transport Project (Main Contract) 59 EuroMed Transport Project Main Contract Diagnostic Study Module 5 4. Maritime Policy in the MEDA Region Some major elements of the Maritime Policy in the MEDA region can be highlighted in the following sections. 4.1. Competition and Liberalisation 4.1.1. Maritime Shipping At an international level, maritime shipping companies usually work in a context of concurrence whereas in the majority of MEDA countries national shipping companies are usually considered as undertaking a strategic activity. Apart from ZIM (privatised) in Israel, no company of the Southern / Eastern shore of the Mediterranean is among the biggest shipping companies in the world. The fact that the majority of national shipping companies are considered a strategic asset implies specific constraints involving difficulties to operate in a competitive market. The eastern Mediterranean routes represent a market, which is quite open, apart from a few exceptions. For instance, 30 shipping companies are serving Alexandria, 3 companies representing more than 30% of the total traffic. On the contrary, the Western Mediterranean is less opened to competition, with fewer operators on the routes serving the region. A maritime policy favouring (or not) competition has an impact on the transport cost (and the competitive position of a country): the average cost for a container between Marseilles and Damietta is EUR 250, but EUR 500 between Marseilles and Casablanca. 4.1.2. Ports In the majority of MEDA countries, the public sector is in charge of all three functions (authority, property, operator) with some local differences (independent port bodies in Algeria or national port offices in Cyprus, Morocco, Tunisia). In some cases, port management is carried out by the railway company (as in Turkey or in Israel, where privatisation is in progress). However, Port Reform can be considered as a common objective. Concession projects exist in 60 Egypt, Morocco, Lebanon, Jordan, and Tunisia (under PPP). In some cases, privatisation is considered for existing installations (Lebanon). Meanwhile, it shall be underlined that, despite the fact that many port BOT projects are being negotiated, they are not always successful, in some cases this being due to bureaucratic constraints associated with lack of will from the public authorities, which consider such an opportunity as a loss of power. 4.2. Short Sea Shipping Short Sea Shipping SSS in the Maritime Policy of the MEDA countries does not have the same context as in the EU. In the EU, SSS is essentially considered as a way to allow modal shift from road to a more environmentally friendly transport mode. This is facilitated by a geography that allows SSS development (no internal borders, big industrial centres, high traffic flows, sufficient distance, competitive sea-routes avoiding detours). In the Southern shore of the Mediterranean, the only SSS policy which really exists is included in the general maritime shipping policy, due to the fact that an important part of the traffic flows are 'night-crossing' between the two shores with the same constraints. Elements that can allow significant modal shift from road to sea in the EU do not exist in the MEDA countries (apart from Malta, Cyprus and partly Turkey): borders still exist, industrial centres do not specifically have an international activity, traffic flows – when they are sufficient- are on a short distance and all land-transport distances are not really over sea distances. 4.3. Hub Development The globalisation of production created a need for ‘world transport services’, which increased the general supply and also gave an impulse to the development of ‘mega-carriers’. The strategy of the major shipping companies is to stop only in major ports, from which they organise feeder services (CMA/CGM in Marsaxlokk, Malta, for instance, as a breaking up port for containers). Hubs such as Algeciras or Gioia Tauro developed in the Northern Mediterranean. In the MEDA countries (apart from Cyprus and Malta, and specifically Marsaxlokk), Damietta is the sole Maritime Shipping and Ports between the two shores. Behind such high costs a lack of equipment is detected, as well as rapidly congested infrastructure, high salaries with a low productivity (under normal working conditions, 25 containers/hour can be handled, against 17.5 in the Western Mediterranean and 12.5 in the Eastern Mediterranean). Probably, to reduce the port of call cost, a port service reorganisation and the opening to private operators (national or international) can be a relevant solution. major container hub presently existing. Tangiers is considered eventually to benefit from the Algeciras dynamics. Photo 3: Example of hub ports in the MEDA region: (the Marsaxlokk port in Malta) It is necessary to underline the fact that the hub potential in the Mediterranean is not without limit as some major hub ports already occupy the market and are engaged in fierce competition. Source: EuroMed Transport Project (Main Contract) Hubs are usually involved in true competition. Marsaxlokk does not have any hinterland (compared with Valencia and Marseilles) and it is difficult to determine the impact of any change in the Malta Maritime Authority (MMA) and its financial resources: presently, a part of the Maltese port revenues are coming from the Malta shipping register. The Maltese authorities could, under pressure from the EU in order not to be 'black-listed' in the Paris MoU, eliminate substandard shipping, which could lead to fewer revenues from the register and a port of call fare increase. More generally, the lack of a hub approach in the MEDA maritime policy is related to two major factors: • A 'national' maritime policy (the opportunity to serve other neighbouring ports from the national port is not yet considered) and a lack of 'regional' orientation (shuttle services coming from regional hubs are considered as competing with the national port). This is strengthened by the fact that borders still represent real constraints. • The fact that hub implementation implies true competition among ports. Presently, port real costs (for a port of call) are difficult to estimate as a great opacity remains: public fares are negotiated and, in some cases, do not cover all costs. However, the port of call costs in the MEDA region are globally quite high and even, in some cases, higher than the port of call costs in Europe and higher than the transport cost 4.4. Maritime Safety Cooperation between EU Member States and MEDA partners is obviously of high importance for maritime safety within the Mediterranean. In order to enhance the effectiveness of individual States in carrying out Port State Control, inspections of ships under international maritime conventions including the Marpol Convention, various regional Memoranda of Understanding have been agreed by the States concerned to enhance their regional cooperation on this issue. The Paris MoU11 was adopted in 1982 to strengthen cooperation on Port State Control primarily between European States and, in the mid-1990s, a MoU12 for the Mediterranean region was adopted with its headquarters in Alexandria and a decision that a ship inspection database should be established in Morocco. The EU Directive 95/21/EC1, in line with the Paris MoU, sets out an inspection level of 25% of ships calling at European ports. It also foresees a specific targeting system, including 11 12 The Paris MoU on Port State Control is a system of harmonised inspection procedures designed to target substandard ships with the main objective being their eventual elimination. The current Member States of the Paris MoU region are Belgium, Canada, Croatia, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Russian Federation, Slovenia, Spain, Sweden, United Kingdom The Mediterranean MoU was signed in 1997 by all the Mediterranean Partners. Its secretariat is based at Casablanca. The accession of Malta and Cyprus to the EU will provide a strong link between the Mediterranean MoU and the Paris Memorandum with the prospect of a safer and cleaner Mediterranean. 61 Module 5 the possibility to ban some ships from the EU ports. The Mediterranean MoU sets out an inspection level of 15% inspections, but this target is not yet achieved and a different detention policy is followed. In that respect, there is a high scope for improved cooperation between the Mediterranean MoU and the Paris MoU for better coordination and information exchange. Rempec13, a UN organisation to promote regional cooperation within the Mediterranean against marine pollution, is already mandated to facilitate this cooperation. 13 Regional Marine Pollution Emergency Response Centre for the Mediterranean Sea, based in Malta. . 62 EuroMed Transport Project Main Contract Diagnostic Study Maritime Shipping and Ports 5. Maritime Shipping in the MEDA Region 5.1. General Shipping was the first global industry and its future is tightly attached to its global nature concerning future shipping developments. If MEDA countries are to support effectively the growth prospects and at the same time be in alignment with EU maritime policy (EU'acquis'), they should focus mainly on the following key directions: • Effective liberalisation of the shipping market allowing introduction of healthy competition and subsequent attraction of private investment. In that respect, the issues of capital importance include free market access and minimisation of State aid, the phasing out of monopoly on cabotage, more clear and effective positioning with regard to conferences and shipping line agreements. These issues have proved difficult and controversial to tackle on a universal basis (see ineffective round of negotiations for maritime trade liberalisation under General Agreement on Trade in Services), and naturally, they are not easier to handle in the Mediterranean region. • Promotion when possible of short-seashipping, which is considered a key issue in the EU, revolutionising transport patterns with respect to traffic, infrastructure requirements and above all administrative procedures. It must be understood, nevertheless, that the reasons leading to SSS success in the EU (lack of borders, short distance by sea,…) do not always exist in the MEDA countries. • Attraction of competent seafarers and promotion of their quality level through education and training. • Fight against substandard shipping with respect to safety at sea (maritime safety and security) and protection of marine environment, through adoption / ratification and implementation of international conventions. Effective Flag and Port State Control enforcement mechanisms are a key issue for implementation. • Upgrade of port infrastructure / interconnections and promotion of competition in port services. 5.2. Legal Framework and Conventions 5.2.1. Legal Framework A summary of the legal framework is presented in Table 20. This table indicates that the main problems which hinder MEDA maritime shipping are: • Competition barriers to foreign investors in setting up and operating local shipping companies (minimum percentage of local shares required, taxing practices, etc.). • Unfair competition from public shipping companies - state aid in the form of investment subsidies, subsidised tariffs, preferential treatment, etc. • Cabotage market competition. • Liner conferences and shipping line agreements. 5.2.2. Conventions The convention framework is as illustrated in Table 21: Besides the core IMO conventions, the major conventions which MEDA countries has focused on are the following: • Convention on Facilitation of International Maritime Traffic (FAL), 1965. • International Convention on Tonnage Measurement of Ships (TONNAGE), 1969. • Athens Convention relating to the Carriage of Passengers and their Luggage by Sea (PAL), 1974. • Convention on Limitation of Liability for Maritime Claims (LLMC), 1976. In general, MEDA countries signed all basic conventions. Yet not all have abided by a rapid implementation. Moreover, bilateral cargo sharing agreements were signed by MEDA countries (Maghreb and Mashrek), as illustrated in Table 22: 63 EuroMed Transport Project Main Contract Diagnostic Study Module 5 Table 20: Institutional framework in the MEDA countries Country Algeria Cyprus 64 Flag State Established Marine Authority Competition in shipping One ship registry Flag state control enforced Law No 98-05 of 1998 Introduces competition and de-monopolisation in maritime transport – Slow adaptation process to open market in the absence of liberalisation and regulatory framework. Large state-Owned Shipping Sector (CNAN for freight, HYPROC for In the form of a directorate for merchant hydrocarbons, CALTRAM, marine in the Ministry of ENTMV for passengers, Transport (Directorate for ERENAV for ship repairs). Public / Private Association ports also available). Allowed In Maritime Law No 98-05 of 1998 Transport Introduces competition and de-monopolisation in Private participation in maritime transport shipping under Unsuitable / Vague legal development, lack of framework for transport incentives Inefficient public ports and agents and forwarders port administration – Port Reform under way but very slow - Port Reform is a central objective, setting up new port authorities Cabotage services reserved only for national carriers Measures favouring the use and state aid provided to national carriers One ship registry Flag state control enforced The department of merchant shipping is responsible for the development of maritime activities including registration of ships, administration of the merchant shipping laws, control of shipping and enforcement of international conventions, casualties investigation, labour disputes and training / certification of seafarers. Significant progress has been made recently (Preaccession period) on capacity building (Recruitment of specialised staff and training) through EU and Pre-accession funds Fully liberalised market. High competitiveness level within EU standards. Cyprus has developed to be one of the largest thirdparty ship-management centres with about 100 ship-management companies. Competitive incentives to promote shipping investment (Competitive ship registration costs and annual tonnage tax, low corporate tax level etc) Highly developed / competitive auxiliary services (agents, forwarders, insurances etc) Port services competitiveness need significant improvement. Shipping Industry Ownership & Control Large state-owned fleet – High government intervention Private shipping companies allowed – local shareholding majority required in private shipping companies. Complementary shipping services (Forwarders, Agents, Insurances etc) Moderately developed by the private sector. No incentives to promote shipping investment. Cyprus has today the 6th largest shipping fleet globally with 2031 vessels of 24.3 million GRT capacity. No state-owned vessels. Local shareholding majority not required for a new private maritime company. Total number of ships in Cyprus register at the end of 2002 was 2 153 compared To 2 509 In 1993. 481 general cargo ships, 437 yachts, 439 bulk carriers, 164 oil tankers, 124 fishing vessels, 180 container ships, 36 passenger ships and 292 other types (Tugboats, Refrigerated cargo, vehicle carriers etc). Maritime Shipping and Ports Country Egypt Israel Jordan Flag State One Ship Registry. Flag State Control enforced. Established Marine Authority Competition in shipping Shipping Industry Ownership & Control No Limited Competition level mainly due to (a) free cabotage services not applied (access restriction to shipping lines between local ports) (b) large Sateowned fleet and significant Government intervention (c) heavy State involvement in the absence of liberalisation and regulatory framework (d) Relatively limited private investment and lack of incentives (e) inefficient public ports with a high incident ratio Large State-owned fleet resulting in a significant Government intervention (1 national company, 2 shipping companies under Investment Law, 3 Joint- Ventures and 17 private companies). Complementary shipping services are relatively developed by the private sector. Local shareholding majority required when setting up a new private maritime company. No significant tax or other incentives to shipping companies. One Ship Registry. Flag State Control enforced. ZIM Israel Navigation Company was up recently a semi private shipping company, one of the largest container-shipping companies in the world and the flagship of Israeli shipping. ZIM is now owned by the Israel Corporation (IC's main shareholders are the Ofer Group and Bank Leumi) to the The Administration of extent of 97.5% and the Shipping and Ports exists, balance of the shares are held about to be upgraded to an independent authority Advancing in the process of by other small investors (the government recently sold to liberalization. (probably within 2004) IC its 48.6% share). assuming also the role of ZIM operates over 80 vessels the previous Ports of all types. Authority. In 2000 there were about 5 Israeli shipping companies. The authority of the Shipping and Ports Administration still has to approve the leasing of foreign vessels - derives from the Commodities and Services Supervision Ordinance (Supervision of Foreign Vessels) 5740-1980. One Ship Registry. Flag State Control enforced. Establishment of the Jordan Maritime Authority JMA (1/12/2002) as a regulatory body to control and develop Maritime Sector in Jordan and setting up an organisation structure and detailed job description for all officers Only 5 vessels are Stateowned which represent a limited government intervention. The private participation is considered as considerable in shipping . Port Competition is limited (only one port in Aqaba). Liberalisation of maritime State-Owned fleet (only 5 vessels) resulting in a limited government intervention – significant private shipping companies. State companies are – Syrian Jordanian Shipping Company (owns two vessels of 6 300 dwt each) – Arab Bridge Maritime Company (jointly 65 EuroMed Transport Project Main Contract Diagnostic Study Module 5 Country Flag State Established Marine Authority Competition in shipping services under progress, in within the Authority to conformity with the GATT perform the duties and responsibilities allocated requirements. to the Authority by its law particularly on FSI, PSC, Ships Registration, International Relations, following up International Maritime Conventions and Seafarers Affairs. Moreover, the Jordan Maritime Law (Shipping Act) has been updated to accommodate the updated IMO Instrument including matters falling under maritime Safety, Flag State implementation Maritime Security, ISM, STCW (Jordan joined the list of the Countries that give and complete effect to the STCW 78 as amended 95.), ISPS Codes ,marine environment, accident investigation and facilitation of maritime traffic. Lebanon 66 One Ship Registry. Flag State Control enforced. No Higher Competition in shipping is required through (a) Clearer legal and regulatory framework (b) Further stimulation of private investment – Incentives (c) Promotion of port efficiency (d) No measures favouring the use of national carriers State aid in the form of 50% reduction on port and harbour master dues, 25% reduction on piloting dues Shipping Industry Ownership & Control and equally owned by governments of Jordan, Egypt, and Iraq. It was granted an exclusive concession by the Governments of Jordan and Egypt to operate the AqabaNuweiba ferry service line for the transport of passengers, goods, and vehicles. The Company currently owns and operates 3 vessels. Complementary shipping services (Forwarders, Agents, Insurances, etc.) Moderately developed by the private sector. Local shareholding majority required in setting up a new private Maritime Company Limited Amount of tax or other incentives to shipping companies No state – owned fleet Complementary Shipping services are relatively developed by the private sector Local shareholding majority required in setting up a new private maritime company No significant tax or other incentives to shipping companies Maritime Shipping and Ports Established Marine Authority Competition in shipping Shipping Industry Ownership & Control Malta One ship registry Flag state control enforced Malta Maritime Authority (MMA) established in 1991 as an autonomous government agency to organise and supervise primary maritime services. Today its structure contains a shipping directorate, a port directorate and a Yachting Centres directorate. Main responsibilities concerning shipping focus to: regulate, control and administer merchant shipping and marine pollution, ship registration under Maltese flag, port and flag state control, employment / education and training of seafarers, technical performance regarding safety and pollution prevention, international relations and implementation of international conventions and agreements. Significant capacity building of MMA has been made from year 2000 (Pre-accession period) on recruitment of specialised staff and training through EU and Pre-accession funds High competitiveness level within EU standards Competitive incentives to promote shipping investment (Competitive ship registration costs and annual tonnage tax, low corporate tax level etc.) Highly developed / competitive auxiliary services (Agents, forwarders, insurances etc) Port services competitiveness need improvement State aid provided to ‘Gozo Channel Company LTD.’14 Domestic passenger – Car Carrier between Malta and Gozo Island. Malta has today the 5th largest shipping fleet globally with 3 365 vessels of 26.7 million GRT Capacity. 'Sea Malta' is a local shipping company established in 1973 with state majority interest 69% (31% Shared between CNAN, Lafigo and 13 local private agents) – Owns two (2) RO-RO vessels running regular lines (Weekly liner service to Geneva Marseilles, Tunis, Livorno, Salerno, 3 Weekly calls at Reggio-Calabria, 2 Weekly Calls at Catania) – Jointly with private interests its current activities extend to auxiliary services (such as freight forwarding, brokerage, agencing, port ground handling etc.) Morocco One ship registry Flag state control enforced New maritime code may introduce a new 'second register of In the form of a directorate for merchant marine in the Ministry of Equipment and Transport. New maritime code under way (Project led by the Directorate for Merchant Marine and supported by IMO) is to deal amongst others with shippers and shipping companies, National fleet shifts only 10-12% of total maritime traffic, concentrating mainly to phosphoric acid, cabotage, vegetables and car / passengers Relatively large state owned fleet (around 25 vessels representing) 50% of total national flag vessels number and 70% of Local shareholding Majority required for a new private maritime company. State-owned fleet (around 25 vessels) resulting in significant government intervention. Two state-owned companies highly inefficient and rapidly declining (Lost more than half of their capacity) – Comanav concentrating to regular lines Country Flag State 14 Gozo Channel offers a comprehensive Ro-Ro Passenger Service for foot passengers, car and car passengers as well as cargo vehicles, including hazardous cargo. 67 EuroMed Transport Project Main Contract Diagnostic Study Module 5 Country Flag State registration' to support competitiven ess of Moroccan fleet. Established Marine Authority seafarers, shipping insurances etc – other legal texts and regulations are also to be issued dealing with restructuring and protection of national fleet (second register of registration, reservation of non-regular container traffic for domestic carriers only). Competition in shipping national capacity Developed private participation in shipping – stop of state financial incentives / protection after 1984 have caused significant decline of national flag. National flag requirements create non-competitive operating costs (Thought to be around 25% higher than foreign competition). Local privates today are small in size (Usually do not own more than two vessels with the exception of IMTC) facing fierce competition by big foreigners – no financial support from state and banks Bulk shipping (Representing 85% of total shipping activity) was fully liberalised and as a result, it is currently dominated by foreigners High penetration of foreign carriers – they have recently started to set up local subsidiaries (MSC, CMA-CGM, Contenmar) pushing out gradually domestic carriers from regular container lines between Morocco and Mediterranean hubs. Meanwhile, the maritime activity of the national fleet keeps concentrated on the transport of containers with European destination. Good cooperation level (Alliances) of domestic and European carriers for passenger and RO-RO traffic (Short and long distance) – in long distances 3-4 participants – in short distances (Gibraltar straits). From 2001 there is an alliance of Shipping Industry Ownership & Control – Marphocean to bulk chemicals 15 Complementary shipping services (Forwarders, Agents, Insurances etc) moderately developed by the private sector. Lack of financial incentives after 1984 has caused significant decline– privates today usually do not awn more than two vessels. 15 Meanwhile, it has to be underlined that COMANAV launched in 2002 the first stages of a process of restructuring which is included within a levelling plan for the company, determined in 2000 and formalized in 2002 in a contract - programme stateCOMANAV for 2002-2005. 68 Maritime Shipping and Ports Country Flag State Established Marine Authority Competition in shipping Shipping Industry Ownership & Control seven (7) carriers. After ratification of association agreement with EU (2001), new bilateral negotiations are to start aiming to maritime transport market & services liberalisation. Cabotage reserved for domestic carriers. Inefficient public ports (Casablanca Mainly) Syria Tunisia One Ship Registry. Flag State Control enforced. One ship registry Flag state control enforced. No In the form of a directorate general for merchant marine in the Ministry of Communication Technologies & Transport. Unsuitable / vague legal framework for transport agents and forwarders. State-Owned fleet resulting in significant government Quite limited competition intervention. limited private witnessed by: shipping. Free cabotage services not State companies are – Syrian applied (Access restriction Navigation Co (owns two to shipping lines between vessels of 3 300 dwt each) local ports) Syrian Jordanian Shipping Co State owned fleet & (owns two vessels of 6 300 significant government dwt each). intervention The fleet of Syria consists of Heavy state involvement in 367 vessels (Vessels under the absence of Syrian flag) - Total Capacity liberalisation and about 1 Million tonnes – Most regulatory framework of vessels are general cargo Quite limited private ships aged between 20 and 25 investment & lack of years. incentives There are no car passenger Inefficient public ports (All ferries among the vessels of public) the Syrian fleet. All cargo related to Complementary Shipping national enterprises is Services (Forwarders, Agents, handled through Insurances etc) Not developed SYRIAMAR (Under the by the private sector. Syrian Ministry of Local shareholding majority Transport) compulsory or a new private No State aid – However, maritime company. dues may be paid in local No significant tax or other currency incentives to Shipping Companies. National fleet participates only by 13% in total maritime traffic. Relatively large state owned fleet (Around 10 vessels) representing 37% of total national flag vessels number. Cabotage reserved for domestic carriers. Inefficient public ports. There are eight (8) national shipping carriers in total – one (1) state-owned (CTN including SONATRA) owning 10 vessels and possessing 52% of international traffic From/To Tunisia – Seven (7) Private (TSTC, HMT, Cogemar, GMT, GM, Petronav & Tunisia SEA WAYS) Owning around 17 vessels. Regular lines are run by CTN & foreign carriers – no domestic private carriers 69 EuroMed Transport Project Main Contract Diagnostic Study Module 5 Country Flag State Established Marine Authority Competition in shipping Shipping Industry Ownership & Control participation. Local shareholding majority required for a new private maritime company. Turkey 70 Turkey posses a Two-register systems: The National Ship Register for vessels owned by Turkish citizens and companies which capital must be in majority owned by Turkish nationals. In addition, the general manager of the company should be Turkish. Furthermore , company shares should be registered on the related persons possession. The Internationa l Ship Registry for ships and yachts owned by Turkish and foreign persons resident in Turkey and companies incorporated pursuant to Turkish legislation. They enjoy Maritime activities are administered mainly by the under-secretariat for maritime affaire, directly attached to the Prime Ministry. Main objectives of the under-secretariat for maritime affairs as a main Authority in the field of maritime issues at the national and the international level, is to determine and coordinate the national maritime policy. It consists of two general directorates, thirteen departments and other related auxiliary units. The legal basis for maritime activities in Turkey is the Turkish code of commerce of 1959. The revision studies of the Turkish code of commerce have been launched under the coordination of the Ministry of justice by considering the related laws of the member states of the EU. Turkey’s merchant fleet had a capacity (1 January 2003) of 5.7 million GRT with about Market access to coastal 1185 ships (in both registries) trade (Cabotage) is becoming the 20th rank in the reserved for Turkish world. Total capacity breakdown is 5% to public flagged vessels. and 95% to private sector. Embargo from Turkish ports for vessels serving the The majority of ship capacity Cyprus trade and Cyprus is bulk carriers (57%), oil flagged vessels. tankers (15.6%), dry cargo ships (14.5%), and other types (12.9%). Maritime Shipping and Ports Country Established Marine Authority Flag State Shipping Industry Ownership & Control Competition in shipping certain tax exemptions and are subject to annual tonnage tax Source: EuroMed Transport Project (Main Contract) X Cyprus X X X X Egypt X X X Israel X X X Jordan X X X Lebanon X X X X Malta X X X X X Morocco X X X X N/A N/A N/A N/A N/A Syria X X X X X Tunisia X X X X X Turkey X X X Palestinian Authority LLMC Protocoll96 X LLMC Convention 76 FACILITATION (FAL) Convention 65 X PAL Protocol 02 TONNAGE Convention 69 X PAL Protocol 90 IMO amendments 93 X PAL Protocol 76 IMO amendments 91 Algeria IMO STATUS 31/05/2003 PAL Convention 74 IMO Convention 48 Table 21: Conventions signed by MEDA countries X X X X X X N/A N/A N/A N/A X N/A N/A X N/A: Not Available Source: EuroMed Transport Project (Main Contract) 71 EuroMed Transport Project Main Contract Diagnostic Study Module 5 Table 22: List of bilateral cargo sharing agreements Country Bilateral Cargo Sharing Agreements Algeria With France, Italy, Germany, Turkey, Belgium, Jordan, Cyprus, Egypt, Syria, Tunisia, Libya. Signatory of the UN convention on the code of conduct for liner conferences. Egypt Signatory of the UN convention on the code of conduct for liner conferences. Jordan With all Arab countries + Turkey, Iran, Belgium, Greece, Pakistan, India, Bulgaria, Italy No signatory of the UN convention on the code of conduct for liner conferences. Lebanon With Turkey, Iran, Jordan, Egypt, Syria, Morocco, Bulgaria In the process of ratification with Sudan, Algeria, Yemen, Tunisia, Iraq, Cyprus, Gabon, India, Cuba, Slovenia, China, Greece, Malaysia. Signatory of the UN convention on the code of conduct for liner conferences. Morocco With Arab countries, EU (the association agreement led to structural adjustment programme support for Moroccan maritime transport), Belgium, Bahrain, Mauritania. Signatory of the UN convention on the code of conduct for liner conferences. Starting up a new regular maritime line between Mashrek and Maghreb Arab countries in the Mediterranean is currently under consideration. Syria 15 agreements on maritime commercial shipping with Lebanon, Egypt, Cyprus, Iran, Morocco, Sudan, Tunisia, Jordan, Algeria, Iraq, Greece, Pakistan, Yemen, Oman, Bahrain, Kuwait, China, Holland, France, Germany, Russia, Ukraine and Saudi Arabia. Also 3 twinning agreements of Lattakia Port with the ports of Marseilles, Izmir and Alexandria. signatory of the UN convention on the code of conduct for liner conferences Tunisia With Arab countries, EU (the association Agreement, Jordan, Egypt, Syria, Morocco, Lebanon, Algeria, Libya. Signature of the UN convention on the code of conduct for liner conferences. Starting up a new regular maritime line between Mashrek and Maghreb Arab countries in the Mediterranean is currently under consideration. Source: EuroMed Transport Project (Main Contract) 5.3. Operations 5.3.1. Overview The maritime shipping operation organisation is presented in the following table: 72 Maritime Shipping and Ports Table 23: Maritime Shipping operations in the MEDA countries Country Algeria State of national fleet Substandard Shipping Algerian flag vessels around 67 (21 cargos, 12 Ro-Ro, 6 cereals, 5 bulk, 5 Containers, 11 oil & LNG) High average level of ship age (Average higher than 22 years) – limited investment contributing to relatively low fleet renovation and low ship quality. Intention and strategic position to clean up and renovate national flag vessels. Lack of new investment and relatively low effectiveness of flag and port state control, contribute to substandard shipping. Enforcement mechanisms for flag state and port state control are in place. However, they need strong performance enhancement support on organisational, staffing and training level. According to Paris MoU, Algerian flagged ships in foreign ports had a 28.81% detention rate in 2002 (59 inspections, 55 with deficiencies, 17 with detention) – the country is black listed in the very high risk level. Inadequate education and training level for seafarers. Sufficient seafarers availability. Significant efforts have been taken during the past five years by adopting strictest EU legislation. Detention rate of the Cyprus fleet under the Paris MoU fell by 2002 to 7.43% (1 279 inspections, 784 with deficiencies, 95 with detention). – the country is black listed in the medium risk level Good education and training level. The Hanseatic Marine Training School is an independent training centre operating under the auspices of the Cyprus Department or Merchant Shipping in a campus style facility, based in Limassol. This centre is training seafarers from many nations to STCW standards Insufficient seafarers availability. Seafarers Availability & Training Cyprus The average age of the Cypriot fleet is 16 years. Egypt Lack of new investment and relatively low effectiveness of flag and port state control, contribute to substandard shipping. Average age level Flag state and port state enforcement mechanisms 18 years– lack of are significantly ineffective mainly due to investment organisational, staffing and training problems. contributing to According to Paris MoU, Egyptian Flagged ships in relatively low foreign ports had a 13.24% detention rate in 2002 ship quality. (68 inspections, 57 with deficiencies, 9 with detention) – the country is black listed in the medium risk level. The Arab academy for science & technology and maritime transport, ensures good standard of academic education and vocational training. Satisfactory level of seafarers availability and training. Israel No substandard shipping (13 inspection, 0 Modern deficiency, 0 detention) – Israel is the white list in container-carriers the Paris MoU. fleet (ZIM). Good education and training level. Sufficient seafarers availability. 73 EuroMed Transport Project Main Contract Diagnostic Study Module 5 Country Jordan State of national fleet High level of ship age (average 24 years), however there is an improvement on level of ship age for Jordanian fleet) – limited investment contributing to relatively low fleet renovation and low ship quality Substandard Shipping Enforcement mechanisms for flag state and port state control are in place. However, they need strong performance enhancement support on organisational, staffing and training level. The information is about the detention number not the classification on black list. According to Paris MoU, Jordanian flagged ships in foreign ports had a 33.33% detention rate in 2002 (3 inspections, 3 with deficiencies, 1 with detention) – due to the low number of inspected ships16, the country is not listed in the MoU Black – Grey – White list. Lack of new investment and relatively low effectiveness of flag and port state control, contribute to substandard shipping. Flag state and port state control enforcement mechanisms are significantly ineffective mainly due to organisational, staffing and training problems. According to Paris MOU, Lebanese flagged ships in foreign ports had a 26.98% detention rate in 2002 (63 inspections, 55 with deficiencies, 17 with detention) – the country is black listed in the very high risk level. Lebanon Seafarers Availability & Training Low education and training level for seafarers; however establishment of the Jordan Maritime Institute will allow to develop Maritime training and education in Jordan Sufficient seafarers availability. It has to be underlined that Jordan give and complete effect to the STCW 78 as amended 95. Low education and training level for seafarers. Insufficient level of seafarers availability. Malta Good education and training level – the maritime institute within the Maltese Significant efforts have been taken during the past college of arts, science & five years by transposing and adopting EU 'acquis' technology, provides all level education and training The average age (see maritime transport plan agreed with EU in 2001). for seafarers of the Maltese fleet is around 16 Detention rate under the Paris MoU fell by 2002 to IMO international maritime 7.39% (1 637 inspections, 1 043 with deficiencies, law institute established in years. 121 with detention) – the country is black listed in Malta since 1989 to provide specialised education / the medium risk level. training to shipping lawyers. Insufficient seafarers availability. Morocco Moroccan flag vessels around 49 (1 Cargo, 6 chemical tankers, 9 Passengers/SSS, 8 Ro-Ro /, 6 Cereals, 2 oil tankers, 15 Containers, 8 Reefers) High level of ship age (average 20 16 Lack of new investment and relatively low effectiveness of flag and port state control, contribute to substandard shipping. Enforcement mechanisms for flag state and port state control are in place. However, they need strong performance enhancement support on organisational, staffing and training level. According to Paris MoU, Moroccan flagged ships in foreign ports had a 14.52% detention rate in 2002 (62 inspections, 47 with deficiencies, 9 with detention) – the country is black listed in the highrisk level years)-limited investment. Good education and training level for Moroccan seafarers (ISEM ensures satisfactory education and training standards). Sufficient seafarers availability. The methodology for PSC evaluation requires at least 10 vessels to be inspected in the same Mou to determine the position on the list. 74 Maritime Shipping and Ports Country State of national fleet Substandard Shipping Seafarers Availability & Training years)– limited investment contributing to fleet degradation and low ship quality. Syria Lack of new investment and relatively low effectiveness of flag and port state control, High level of ship contribute to substandard shipping. age average 23 Flag state and port state control enforcement years – lack of mechanisms are currently significantly ineffective investment mainly due to organisational, staffing and training contributing to problems. relatively low According to Paris MoU, Syrian flagged ships in fleet renovation foreign ports had a 19.82% detention rate in 2002 and low ship (111 inspections, 95 with deficiencies, 22 with quality detention) – the country is black listed in the very high risk level. Low education and training level for seafarers. Insufficient level of seafarers availability. Tunisia Tunisian flag vessels around 27 High level of ship age (average 20 years) – limited investment contributing to relatively low fleet renovation and low ship quality Lack of new investment and relatively low effectiveness of flag and port state control, contribute to substandard shipping. Enforcement mechanisms for flag state and port state control are in place. However, they need strong performance enhancement support on organisational staffing and training level. According to Paris MoU, Tunisian flagged ships in foreign ports had a 35.71% detention rate in 2002 (14 inspections, 10 with deficiencies, 5 with detention) – the country is black listed in the medium risk level Low education and training level for seafarers. Sufficient seafarers availability. The average age of the Turkish fleet is around 23.2 years. Poor performance of Turkey with respect to maritime safety and sea pollution prevention. According to Paris MoU, Turkish flagged ships in foreign ports had a 18.78% detention rate in 2002 (852 inspections, 675 with deficiencies, 160 with detention) – the country is black listed in the very high risk level – shortage of institutional capacity and relevant administration for flag and port state control. EU financed twinning project under way (from 2002) to improve the legal alignment of the Turkish legislation with the EU 'acquis' in the field of maritime safety and sea pollution prevention; also to upgrade the administrative capacity of the relevant administrations to better implement the legislation in the field of maritime safety and sea pollution prevention. A national programme for the adoption of the 'acquis' (NPAA) has been adopted by Turkey in 2001. Turkey Source: EuroMed Transport Project (Main Contract) Paris MoU 2002 Report pp 26-28 75 Module 5 5.3.2. Regional Cabotage and Short Sea Shipping Development According to the Communication (COM (2003) 376 final) on the development of a EuroMediterranean transport network, SSS is particularly important in the Mediterranean given the distances involved and that, in some cases, alternative land links are non-existent. The Mediterranean Partners operate at least 58 major ports, which handle more than a million tonnes of goods per year. Current Development & Problems Regarding SSS development, the Ministers have stressed the need for the inter-modality of shortsea shipping, in particular the interconnection and interoperability of the maritime and inland transport networks (including roads, railways and inland waterways). SSS in MEDA partners is quite limited for many reasons, most of which exist in EU countries. Both in Maghreb and Mashrek regions the following are noted (with minimal exceptions): • Intra-regional trade is minimal due to trade barriers and political disputes. • Domestic maritime traffic in MEDA countries is negligible (even in Turkey with over 8 000 km of coastline, the usage of sea for domestic transport is less than 5% since legislation banned domestic traffic from international ports) and exclusively reserved for domestic flagged vessels (except for Malta and Cyprus). • Application of the rules and procedures greatly differs among countries. • Port activities are highly inefficient due to inadequate and inefficient port infrastructure and hinterland interconnection at a national and regional level, while inefficient and non-competitive port services are common. • Customs and documentation procedures in most of the countries are highly inefficient even for intra-national trade (see Tunisian example). Measures have been taken for computerisation but are currently inadequate. • Inter-modal loading standardisation is absent. It shall be underlined –as previously said- that, even if presently under-developed, SSS probably 76 EuroMed Transport Project Main Contract Diagnostic Study does not have the same potential in the Mediterranean South shore as it has in the EU. This is due to many reasons; including the existence of borders (which do not exist in Europe) or geography, (the coast is linear from Tangiers to Port Said whereas in the EU the sea is unavoidable – or highly competitive - through the Baltic or the Channels or even between Italy and Spain). Nevertheless, large European shipping companies have already shown interest in incorporating a fair number of MEDA ports in their new Short-Sea Shipping lines. Recent examples showing that initiatives from the EU contribute to SSS development prospects in the South Mediterranean coast include: • New service linking Spain, Italy, Malta and Tunisia: Grimaldi Naples has started a new short sea service linking Valencia, Salerno, La Valletta and Tunis. Grimaldi has deployed a Ro-Pax with a capacity for 172 trailers and 80 reefer plugs. • New service linking Spain to Algeria: Sloman Neptun has included the port of Cartagena in its service linking North European and UK ports to Oran and Argel (Algeria). The sail from Cartagena to Oran will take place every 12 days. • Expanded service linking Germany, Netherlands, Spain, Portugal and Morocco: Recently, OPDR commissioned the ‘OPDR Cadiz’. Together with the two sister ships ‘Focs Tenerife’ and ‘OPDR Las Palmas’, these vessels are employed on the container liner routes from Rotterdam/Hamburg to the Iberian Peninsula, Morocco, Canary Islands and Madeira. The new ships with a capacity of 698 TEU replace three ships of 450 TEU. • More capacity for an Intra-Med service: With four ships, PONL operates its IMS route, connecting with niche destinations in the Eastern Mediterranean from Cagliari and Damietta. The capacity of those ships has been increased from 600 to 1 000 TEU. • Increased capacity for a Mashrek-Maghreb service: CMA CGM is adding a third ship to its new Maghreb-Maghreb Service, increasing its frequency to weekly and adding two new ports of call: Barcelona and Genoa. • New service linking Europe to Algiers: Private Algerian operator Alconship initiated a multipurpose service between Maritime Shipping and Ports Marseilles and Djen-Djen, a congestion-free port in the North of Algiers. New service linking Spain and the Maghreb: CMA CGM has started a new line linking the Spanish East coast to the Maghreb. Five 560 TEU containerships are servicing the following ports: Barcelona, Marseilles, Genes, Mersin, Lattakia, Beirut, Alexandria, Tripoli, El Koms, Tunis, Skikda and Algiers (October 2003). • Case study ‘Door-to-Door Transport via Ro-Ro Lines between Turkey and Italy’ The concept of inter-modal transport service between Turkey and Italy was developed in 1992 (because of internal conflicts in the former Yugoslavia), to provide Turkish transport operators with an alternative route. Such an inter-modal service requires the cooperation of the following actors: (17) • Road Transport Operators. Turkish tractor units are lodged in the Port of Trieste as per a bilateral agreement between Turkey and Italy. The transport of semi-trailer units is carried out only via Ro-Ro vessels. The semitrailers are then coupled with tractor units located in Trieste and carry goods to various destinations in Italy. • Service Providers that include: - Ro-Ro Operators (3 Ro-Ro Operators + 13 Vessels, 560 000 vehicles carried during 19932003). - Tugmaster Operators: They are located in the Ports of Trieste and Istanbul, embarking /disembarking semi-trailer units to /from the RoRo vessels onto the TIR parking terminals. - Airline Operator: The vessels utilised in the existing Ro-Ro lines are non Ro-Pax type (=unaccompanied transport). They only provide 12 cabins for drivers of refrigerated vehicles. All other drivers are carried by means of air transport to Ljubljana and backwards (in 2003, 37 500 drivers were carried from Istanbul to Ljubljana and backwards). - Bus Operator: Once the drivers land at Ljubljana Airport, they are carried to the Port of Trieste by busses and backwards. - Rolling Railways: Serves the Turkish transport industry since 1993, on both land. 17 Cumhur Atilgan, Ro-Ro Lines between Turkey and Italy, (Atelier: 'Les conditions pour assurer un transport Multimodal efficace en Méditerranée'), REG-MED thematic network, CETMO, Casablanca, 4-5 March 2004 - Ro-Ro agencies and Forwarding agencies: They have the responsibility of preparing the ship manifest, the documentation for port authorities, the payment of various port changes /fees, the facilitation of vessels mobility. The Forwarding agencies are responsible to introduce the customs documents of the trucks to customs authorities and facilitating the clearance of customs formalities. The concept proved to be quite successful: through the years, traffic grew impressively, from 12 500 vehicles carried by Ro-Ro vessels through parts of Turkey to Trieste in 1993, to 85 000 vehicles carried in 2003. Furthermore, the Arab Federation of Chamber of Shipping during its latest meeting in Damascus in early March 2004, highlighted the importance of the Pan Arab Shipping Market approach, recommending a liner service to link Syria, Lebanon and Egypt serving both Cargo and Passengers. development in Proposed actions SSS MEDA countries will be a slow process depending on the maturity / progress achieved in each country regarding transport market reform and investment. Action should be based on the 14 action lines proposed in the Commission Communication (COM (2003) 155 final) of the Programme for the Promotion of Short-Sea Shipping within EU. Emphasis should be given to: • Design and finance of crucial port infrastructure within the framework of a Euro-Mediterranean transport network (Van Miert Group report), based on an extended version of Motorways of the Seas in the Mediterranean, including links of Malta, Cyprus, Southern and eastern shores to the rest of EU (one Motorway of the sea linking Northern Greece to south-eastern Turkey and the Middle East). • Simplification adjustment (minimise number of needed documents) and standardisation of customs procedures suited for SSS Computerisation of procedures and all related information. Close cooperation between ports on a regional level is crucial in this respect. • Full adoption of the IMO FAL for standardisation of ship reporting formalities in ports. 77 EuroMed Transport Project Main Contract Diagnostic Study Module 5 • • • Encourage companies in Mediterranean Partner Countries to participate in pilot projects under the Marco Polo Programme. Promotion of SSS concept to potential players in both sides of Mediterranean along the known lines of: - Nominating focal points (national representatives in each country assigned with the task to promote SSS at national level). - Setting up SSS promotion centres. - Extending the role of the European Short-Sea Network (ESN) to cover the whole Mediterranean region. Setting up one-stop shops offering the customers a single contact point that takes responsibility for the whole inter-modal chain offering door-to-door solutions (integration of Short Sea Shipping into logistics chains). 5.3.3. Liner Conferences & Alliances Liner conferences and alliances are forms of cartel preventing competition from nonparticipants through exclusivity arrangements with port operators, price fixing and predatory pricing, capacity restrictions etc. Although EU until recently was exempting such agreements from anticompetitive behaviour, this exemption will probably be abolished in the mid-term. Liner conferences and alliances are not abundant in MEDA countries. Very few cases are mentioned such as: • • 78 IEMCO Italy/East Mediterranean Conference (from Italian ports to Cyprus, Egypt, Greece, Lebanon, Syria, Turkey and vice versa); Member Companies: - Egyptian Navigation Company, Alexandria Egypt. - Grandi Traghetti-Gilnavi Società di Navigazione S.r.l., Genoa. - Ignazio Messina & C. S.p.a., Genoa. - Niver Lines Shipping Co. S.A., Glyfada Athens GR. - Sarlis Container Services S.A., Piraeus GR. - Tarros International S.p.a., La Spezia. C.I.MA.T. - Conference Italia/Malta-Tunisia (from Italian ports to Malta and Tunisia and vice versa); Member Companies: - • • Grandi Navi Veloci S.p.a., Genoa. Grandi Traghetti-Gilnavi Società di Navigazione S.r.l., Genoa. - Ignazio Messina & C. S.p.a., Genova. - Sea Malta Company Ltd., La Valletta Malta. - Sloman Neptun Schiffharts AG. , Bremen. - Sud Line S.r.l., Genoa. - Tarros International S.p.a., La Spezia. I.M.A.C. - IntraMed / Algeria Conference (from Mediterranean ports to Algeria and vice versa);Member Companies: - Grandi Traghetti-Gilnavi Società di Navigazione S.r.l., Genoa. - Ignazio Messina & C. S.p.a., Genoa. - Tarros International S.p.a., La Spezia. MED PAC conference Mediterranean North Pacific Coast Freight Conference (from the ports of the Mediterranean, the Black Sea, the Atlantic coast of Spain, Portugal and Morocco to the ports of the Pacific coast of the United States, Canada, Hawaii and vice versa); Member companies: - D’ Amico, Rome / Italia, Genoa and Med Pacific Express. - Zim Israel Navigation, Haifa. It is clear therefore that in MEDA countries, liner conferences are rare and more pronounced in the West Mediterranean. Photo 4: Haifa Port, Israel Source: EuroMed Transport Project (Main Contract) Maritime Shipping and Ports 6. Port Authorities and Operations in the MEDA Region 6.1. Legal Framework and Conventions 6.1.1. Legal Framework The legal framework is summarised in the following table: Table 24: Port legal framework Country Restructuring framework Maritime Authority and Port Operator Algeria Law No 98-05 (New Maritime Code) introduces (a) Regional Port Authorities: East, Central, West as EPIC type enterprises (b) Differentiation of Public Service functions from commercial functions (c) Possibility for introduction of competition (at a later stage) (d) Port security and safety (e) Environmental protection (f) Concessions and commercial services in Regional Port Authorities under Law No maritime transport 98-05. Up till now, minimal implementation of the above Law 98-05, mainly due to (a) absence of a detailed and fully coordinated Action Plan (b) high social costs involved (c) government inertia (d) preference to the specialisation of ports and small scale concession for specific users or activities. No Master Plan for port development. Cyprus Management / operation of Limassol and Larnaca ports in the hands of Cyprus Port Authority (CPA), which is a public autonomous organisation (but Government controls over CPA operations as CPA Harmonisation of maritime legislation with EU'acquis'. Unclear strategy and policies concerning budget is approved by national Parliament). future of Ports. For example, (a) discussions on This Authority is precluded by law from any landlord model adoption but no official position control on stevedoring operations, which are stated (b) Government intentions for a modern cruiser governed, by separate law (Port Labour Law under the jurisdiction on Ministry of terminal in Larnaca are not fully shared by local cruising industry (c) strategic development plans for Labour and Social Insurance.) Limassol and Larnaca ports still unclear. The installation at industrial port of Vassiliko, oil terminal of Larnaka, Dhekelia, Moni and Vassiliko, were created by private/public sector companies, which operate them as well. 79 EuroMed Transport Project Main Contract Diagnostic Study Module 5 Country 80 Restructuring framework Maritime Authority and Port Operator Egypt Port services gradually liberalised but are still lacking clear regulatory strategy / framework (despite the fact that a specific PPP legislation was passed in 1998) as the government is involved at the same time with regulatory and commercial functions. Port operators can be public or private. Strong Government commitment in modernisation Ain Soukhna, a State owned port is run by and radical increase of seaports efficiency to world private operator. standard levels, through the adoption of the 20012017 port restructuring master plan in order to create a system of integrated and specialised port terminals, partly owned but fully run by qualified private operators, capable and willing to invest in port superstructure and equipment. Israel Government intends to replace the Ports Authority. On 22/08/1999, it decided to reorganize the ports as three operational profit centres and another profitbaring centre for infrastructure. At the same time, it demanded the port tariffs to reflect operational costs. On 12/08/1998, the government decided to advise the Ports Authority to allow Israel Docks to make commercial use of existing infrastructures in the area of the docks. With the aim of improving service to customers and building an efficient model of direct service, the ports are planned to receive complete independence in management and operations, in the framework of independent governmental companies. A separate governmental company shall replace the Ports Authority in the management, planning and development of the ports starting from the 31/12/2003. Regulatory functions will remain in the hands of the Transportation Ministry Jordan The maritime Authority is the Jordan Maritime Authority (JMA), recently established (2002) to regulate maritime sector. It is expected to take over gradually the role of regulating Aqaba port activities with emphasis on privatisation of various Port Sector (and maritime sector in general) in transition period as institutional restructuring (roles port services and regulation of maritime sector in general (ports, shipping, maritime redistribution, regulation etc) is well under way by: safety). (a) Establishment of Jordanian Maritime Authority (b) Amendment of law No 42 (c) Enactment of a new Aqaba Port Corporation of ASEZA (Free zone) is currently running the Aqaba port – Maritime Law. Strong restructuring need to promote privatisation opportunities - Aqaba Development Company to be created taking responsibility for project development and privatisation. There is a Ports Authority running centrally Israeli ports. Absence of autonomous port authorities and private operators. Following the creation of the independent port authorities, which will give the ports economic and commercial autonomy, the long term plan is to gradually privatize the ports services completely and eventually transfer ownership of operations and assets to private companies. Maritime Shipping and Ports Country Lebanon Restructuring framework Port Sector in early stage of a transition period, but there is a strong need for Port Reform imposed by current mix-up and inefficient distribution of authorities & powers between Beirut Port Authority (GERB), Port Board of Directors (for other ports), Ministry of Public Works and Transport (MPWT), Maritime Transport Department (MTD) in the Ministry of Transport, and Ministry of Finance (MoF). Enactment of the new Transport Policy Bill expected to initiate the much desired Port Reform Process. Harmonisation of maritime legislation with EU- Malta 'acquis'. No general privatisation law – each privatisation dealt on a case by case basis. Maritime Authority and Port Operator Public or Private. New container terminal of 700 000 TEUs capacity is fully equipped and ready to be operated by an independent private operator as a tool port (tender is already out, on a 'tool' model basis (handling equipment already bought by the Port Authority). Malta Maritime Authority (MMA) regarding ports, is in the process of gradually transforming itself to a port activities regulator. Two main State owned ports (Valletta and Malta Freeport in Marsaxlokk Bay). Maltese ports are in principal controlled (managed and developed) by the Ports Directorate in the MMA with the exception of the Marsaxlokk Container port. Government already initiated the process for privatising operations and management of Malta Freeport, by selling up to 100% of share capital of Malta Freeport Terminal Ltd which is the current operator of the Marsaxlokk Container Port Private independent oil terminal in Marsaxlokk Bay under the name Oil Tanking Malta Ltd. Morocco New Port Law about to be adopted introducing institutional and organisational port reform based on: (a) Reorganisation of roles and authorities between ODEP and the Ministry of Equipment & Transport (separation between land ownership / planning, regulation and commercial operation functions) (b) Designing the new institutional and legal framework (c) Introducing and promoting competition in port services (d) A well thought implementation plan (e) Severe port labour rigidities within the framework of Port Reform (f) Institute for port training is available providing quality continuous training at all levels. L’ Office d’Exploitation des Ports (ODEP) – a public entity - manages ports and monopolises ground handling. Since 1984, ODEP managed successfully the first development stage of major Moroccan ports activities (investment and operations), but there is a confusion of line of authority / responsibilities and power struggle between ODEP and Direction des Ports of the Ministry (DPDPM). Syria Government accepted need for Port Reform to (a) significant modernisation and extension of existing infrastructure and handling equipment in order to upgrade and increase efficiency (plan to increase port handling capacity from 17 million tonnes / year today to 40 million tonnes / year by 2020) (b) and boost tourism. State-owned port managed companies. Conversion to independent port authorities on an incorporation basis under consideration. 81 EuroMed Transport Project Main Contract Diagnostic Study Module 5 Country Restructuring framework Turkey Existing legal framework for privatisation of ports and port concession No regulating authority and dispersion of authorities and responsibilities concerning Turkish ports: • Under Secretariat for Maritime Affairs (directly under the Prime Minister) in charge of (a) Port safety and security (b) Harbour master services (c) Licensing and supervision of public & private port operators. • Under Secretariat of State Planning Organisation (directly under the Prime Minister) controls. investment planning finally approved by Parliament. • Wide variety of port owners / operators: (a) 7 TCDD run ports (the only railway connected ports) (b) approx35 ports run by private industrial (c) approx. 30 ports run by local authorities. Absence of autonomous port authorities for the state-owned ports. Tunisia Law 99-25 (new Code for Commercial Ports – 03/1999) already enacted, introduces to the Port Sector the notions of: - Concessions - Temporary occupation Thus permitting PPP. Ambitious port modernisation plan is embodied in the 10 National Development Plan 2002-2006, concerning port infrastructure investment, organisational reform and promotion of PPP. From 1998 onwards, port ownership / management / exploitation in the hands of the ‘Office de la Marine Marchande ET des Ports’ (O.M.M.P.), which is a public company. OMMP manages ports in association with (a) The National Council of Ports (set up in 1999) (b) The Committee of port community (set up in 1999) (c) The Port Security Committee (set up in 1999). Reform process will put the emphasis on setting up independent port authorities. Source: EuroMed Transport Project (Main Contract) 82 Maritime Authority and Port Operator Maritime Shipping and Ports The regional diversity shall be underlined: • The restructuring framework is at different stages, as port reform is 'accepted' in some countries (Syria) whereas it is already benefiting from a legal framework elsewhere (Jordan for instance). Moreover, Cyprus and Malta are already applying the EU framework. • The difference between maritime authority and port operator is sometimes clearly established as in the case of Malta (with the MMA) or Jordan (with the Jordan Maritime Authority, JMA18). In other cases, as in 18 Jordan Maritime Authority (JMA) was established on 1 December 2002 as a governmental body by the Temporary Law No 47 for the Year 2002. JMA enjoys financial and administrative autonomy. It has the power of management with authority to regulate, control and develop the Maritime Transport Sector in Jordan. The core of the work is very technical and based on international conventions, standards and regulations which require highly qualified personnel in all areas of maritime activities, including experts on maritime safety engineers, Surveyors, master mariners and maritime transport economics and maritime lawyers. The Authority aims to achieve the following objectives: a) Regulate, supervise and develop the maritime sector including all transportation modes, stationary and moving equipment, labour force, transport auxiliaries and associated services, and provide guidance according to the Kingdom's economic and social plans in conformity with the provisions of ASEZA Law in force. b) Enhance the private sector's role in contribution to improve and develop the maritime sector. c) Encourage competition and prevent monopoly in the sector. d) Contribute in marine environment protection and boost maritime safety standards. The JMA is performing the related following functions: a) Licensing of all maritime activities. b) Registration of ships under the Jordanian flag. c) Issuing of statutory certificates for Jordanian ships. d) Issuing of documents and certificates for seafarers in the maritime sector including certificates of competency. e) Conducting inspections and surveys on ships and marine equipment in Aqaba Port area and within the Jordanian territorial waters according to related national laws and international conventions. f) Controlling pilotage, tugboat activities and coastal navigation in the Jordanian territorial waters. g) Following up of search, rescue and salvage operations within and outside Jordanian territorial waters. h) Investigating maritime accidents within the Jordanian territorial waters and on Jordanian ships wherever they may be. i) Recommending to the Ministry of Transport to ratify bilateral, regional and international maritime conventions and follow-up their implementation. j) Representing the Kingdom at international and regional maritime commissions, organizations, associations, unions, committees, and follow-up their activities. k) Cooperation and coordination with national, regional and international parties related to the Authority functions. Cyprus, maritime authority and port operator are under the same body (CPA, Cyprus Port Authority). Port Reform Opportunities in the MEDA Region The following objectives can be considered: • Improve Port Infrastructure by: - Attracting private investment. - Promoting PPP in ports (management contracts, concessions, BOT etc). - Disseminating EU experience. • Encourage Private Sector Participation in the provision of port services and where specific infrastructure / superstructure is required (e.g. containers handling) ensuring at the same time a 'Level Playing Field' with clear rules and procedures. • Market access to be allowed only in cases where the increased number of port services providers doesn’t create problems for safety and environment. • Encourage competition within and among ports, taking care at the same time to set guidelines on port ‘State aid’ and prevent cases of private monopolies (regulation). • Improve port efficiency by: - Introducing, supporting and effectively regulating competition and market access to port services (except cases where safety and environmental reasons do not permit. - Minimising disruption from administration and customs procedures effectively integrating these needs to core port operations. - Linking port charges to relative costs. - Exploiting fully IT in port operation and management. - Training of ports personnel. • Promote development and competition of Value Added Port Services (logistics) within or by the ports, transforming ports into distribution centres (thus achieving increased containerisation rates and transhipment facilitation). • Adoption of provisions associated with ISPS Code, IMO Maritime Safety (Paris MoU) and Environment Protection (SOLAS). l) Conducting studies, gathering data and information relevant to the sector, and classify, analyze, issue bulletins, periodicals and reports of the sector's activity. 83 Module 5 6.1.2. Conventions and Associations MEDA countries are members of two majors associations: • UAPNA, The North Africa Port Management Association (or Union des Administrations Portuaires du Nord de l’Afrique) was established under the auspices of the Economic Commission for Africa. The UAPNA members are Algeria, Morocco, Tunisia, Libya, Egypt plus Mauritania and Sudan. • The Arab Association of Maritime and Port Authorities is a member of the Arab League. It is located in Damascus. All MEDA countries, apart from Malta, Cyprus, Turkey and Israel are member of this Association. Moreover, twinning of main Maghreb ports with European Mediterranean ports such as Marseilles, Genoa and Barcelona must be underlined. 6.2. Regional Comparison in Case of Regulation & Privatisation 6.2.1. General The impact of globalisation has been similar in the MEDA region to that in other parts of the world, with increased privatisation, competition or deregulation. However, Port Reform is taking place in all MEDA countries at a different pace and in various ways as shown in the following table: 84 EuroMed Transport Project Main Contract Diagnostic Study Maritime Shipping and Ports Table 25: Regional comparison of MEDA Port system in terms of regulation & privatisation Country Port operating model Private Sector Participation Adoption of landlord port management model (if the size of port traffic permits) is considered. Low PPP in the economy and limited open market culture. No private ports but expressed government will for PPP in the Ports Sector (Bejaia port, currently used as model of port development with PPP) as well as strong private interest for ports investment /services. Ground handling in the ports of Algiers and Oran (to a lesser extent) is the only current Private Sector presence in Algerian ports (small-sized fork-lift operators) The Cyprus Ports Authority is the all encompassing authority for all port activities except stevedoring. Extensive current private sector participation in port operations, but limited investment participation and CPA is the major investor in ports. No general privatisation law – each privatisation dealt on a case-by-case basis - BOT experience present. Main port investments under consideration are (a) new passenger / cruiser terminal in Larnaca Port, to be financed by BOT method – express of interest stage already completed (b) new passenger terminal in Limassol Port- to be financed by CPA funds (c) conversion of Old Limassol Port into Marina, no decision on financing. Egypt Can be public or private. In Damietta and Alexandria, private stevedoring companies recently started (with problems) to compete with a State owned one, which controls 50% of the existing quays. Pilotage with private enterprises under multiyear contracts and licenses. Main seaport restructuring policy lines include a landlord model, with State owned infrastructure and privately owned superstructure. PPP for ports in the form of both ownership and operation. The strong private interest due to high business importance of Egyptian ports (strategic positioning for world maritime routes). Several BOTs already in position (Ain Shoukhna and East Port Said new Container Terminals are already concessioned to private port operators). Jordan - Stevedoring, Aqaba Port corporation. - New Improvement on land transport. - Private sector is granted 2 years management contract for container terminal. Aqaba development company (ADC) will be landlord port. The container terminal is managed by private sector. Aqaba development company (ADC) is responsible for the conclusion of several agreements with the private sector to operate port terminals. Algeria Cyprus Port ground handling Operator Partly privatised Pilotage, towage, mooring, rescue, cranes at quay, safe keeping of cargo performed directly by CPA. The private sector handles cargo on ship and shore, and all other services, including in several cases some of the previously mentioned. 85 EuroMed Transport Project Main Contract Diagnostic Study Module 5 Country Lebanon Malta Morocco Syria 86 Port ground handling Operator Private Sector Participation already present in Beirut Port on a private monopoly basis for pilotage, towage and mooring services. There is a competitive environment for the provision of stevedoring services. Pilotage privatised two years ago but towage still in hands of MMA. Private cargo handling operator (Cargo Handling Company Limited) was granted a contract from MMA. L’ Office d’Exploitation des Ports (ODEP) – a public entity manages ports and monopolises ground handling. Private participation is currently limited mainly to (a) on-board cargo handling (Casablanca, Tangiers, and Agadir) – ground handling monopolised by ODEP (b) Pilotage and towage in Casablanca Port (c) Private tractors handling semitrailers. Port operating model Private Sector Participation Study by BCEOM proposed application of the 'landlord’ model for Beirut and Tripoli ports. PPP in Lebanon port sector, as in other transport sectors, shows a fast but not correctly regulated development, resulting in private monopolies and an unsuccessful BOT attempt for the new Beirut container terminal, mainly due to unsuitable legal framework). Marsaxlokk Container Port is currently owned by Malta Freeport Corporation Ltd (landlord) and run by Malta Freeport Terminal Ltd (operator) which is about to be privatised – adoption of a landlord model. The Valletta International Sea Terminal (VISET Malta plc) – private consortium - has been granted an operational license and conceded a 65-year BOT lease, for the construction and operation of Malta's new cruise liner and ferry passenger terminal (capacity to handle 2 000 passengers per hour). The project, called the Valletta Waterfront, will include a large waterfront development with shopping and leisure complex. Adoption of landlord port management model (if the size of port traffic permits) is considered. No private ports but expressed government will for PPP in the Ports Sector - Terminal concession for Jorf Lasfar coal port terminal - Concessions intended mainly for the five terminals of the new TangiersMediterranean port (intended to be a transhipment hub) - special law for the creation of 'Agence Spéciale de Tangier Med' which allows this entity to prepare the international tender for manager, operator and developer of the terminal facilities and the free zone - in view of the new Port Law (expected in 2004) several port infrastructure facilities and/or services are to be considered for privatisation in Casablanca and Mohammedia ports. The applicability of landlord model (tool model seems at first rather suitable) under consideration. State dominated economy with limited open market culture leading to no current private sector participation in ports. Meanwhile, a recent decree allows private sector participation in transport sector. PPP envisaged in the BOT form for a Free Trade Zone South of Tartous and a new container terminal (early planning stage). Maritime Shipping and Ports Country Tunisia Port ground handling Operator Limited participation of private sector in Tunisian ports – only for cargo handling in secondary ports. In the major port of La Goulette Rades, cargo handling monopolised by a public company, STAM. Plans to privatise STAM. Port operating model Private Sector Participation Adoption of landlord port management model (if the size of port traffic permits) is considered. No private ports but strong government will for PPP in the Ports Sector. Government plans to step up PPP in the transport sector Speeding up of the Port Reform process will put the emphasis on PPP planned for the new container terminal in Port Rades and for the cruiser ship terminal at La Goulette. Turkey Central Privatisation Authority Unit manages all privatisation projects in Turkey but no concrete Port Privatisation Action Plan for implementation was acted and just a few private ports / terminals are privatised, although significant potential exists: - The 11 ports run by the Turkish Maritime Authority (TDI), over the past 10 years have been transferred to the private sector – In most cases not satisfactory results (Antalya port back to public sector), setting a negative example for privatisation. - The major commercial Turkish ports (the ones belonging to Turkish railways TCDD) is desirable by the Government, but obstructed by TCDD (using port profits to cross subsidise railway activities but also considering ports as multimodal hub). Source: EuroMed Transport Project (Main Contract) Commercial activities with PPP are an important issue in all ports, progressing slowly but steadily. However, there are varying degrees of private sector maturity and open market culture: • Syria and Algeria: very low. • Jordan, Egypt, Turkey: low. • Morocco, Tunisia, Lebanon: developed. • Cyprus, Malta: well advanced. 87 EuroMed Transport Project Main Contract Diagnostic Study Module 5 6.2.2. Some Examples of Port Commercialisation Port-Louis (Mauritius) A new law entered into force on 1st August 1998 transforming the Mauritius Marine Authority (MMA) Into the Mauritius Port Authority (MPA). MPA became a landlord port authority and the Cargo Handling Corporation Ltd. (CHCL) is the only operator in Port Louis. CHCL is a public corporation under private law. Established in October 1983; the State holds 60% of its capital and MPA 40%. In January 1999, MPA granted a concession for the Mauritius Container Terminal to CHCL for a period of five years and sold it the equipment in May 1999. MPA introduced new revised tariffs in January 2000 and a human resources Development plan in October 2001. At the present time, the Government is in negotiations with international Private operators for the transfer of the share held by MPA. Ghana The Ghana Ports and Harbours Authority (GPHA) launched the first phase of its privatisation Programme in September 2001 with the transfer of part of the cargo handling services to private companies, based on a concession. The second phase will last from July to December 2002 and GPHA will have the status of a landlord port and regulatory authority and will ensure the collection of the payments made by the concessionaires. At the end of this phase, the port of Tema will be completely privatised. South Africa The reforms of March 2001 have led to the split into two bodies of the State company PORTNET, with the establishment of the National Port Authority, responsible for regulatory activities, and South African Port Operations (SAPO) in charge of operations. The two are independent. This separation is the first stage prior to the granting of concessions, for port operations to private companies in the seven South African ports. A new law is being finalised in which the Port Authority will be a 'landlord authority'. At the present time, SAPO manages all the 88 container terminals, 77% of the miscellaneous merchandise terminals and 35% of the bulk terminals. Private operators under leasing contracts operate the rest19. Baltic Port During the 1990s, Estonia, Latvia and Lithuania fully privatised stevedoring services. Estonia’s major port, Tallinn, became a joint stock company in 1996. In Lithuania the main port of Klaipeda was transformed into a landlord port and most commercial activities were privatised. Greek Port Reform Case Law 2932/2001 in June 2001, introduced port reform in Greece converting major Greek ports into independent authorities under the form of limited companies. Two major Greek ports, Piraeus & Thessalonica, were floated in the Athens Stock Exchange and the next ten major ones (ports of Alexandroupolis, Kavala, Volos, Corfu, Igoumenitsa, Lavrion, Elefsis, Rafina, Heraklion, Patras) were corporatised. Managing boards were appointed and significant investments were undertaken, co-financed by EU structural funds. Currently, they are financially autonomous (with the exception of infrastructure finance) with port-tariffs set uniformly for all ports by the Ministry of Merchant Marine. Full liberalisation of port services and the maritime transport market is obstructed severely by the large number of Greek islands (public service obligation). Port Reform in India-Jawaharlal Nehru Port Trust (JNPT) Mumbai JNPT presents a recent successful example of port reform with the goal of creating an excellent port in India. Indeed, it clearly enjoyed an edge over other Indian ports with respect to both infrastructure and performance even in the pre-reforms period. However, it suffered from some of the inherent drawbacks ailing the Indian port sector that prevented it from achieving world standards in port efficiency. As the most modern among Indian ports, and the one with the 19 Source: United Nations, Conference on Trade and Development, African ports: reform and the role of the private sector, Report by the secretariat of UNCTAD, March 2003. Maritime Shipping and Ports least labour problems, JNPT was the natural choice as a test case in privatization of port operations. The reform process was well designed and optimally sequenced with active participation of a wide range of actors. The reform has been a reasonable success. With the creation of a new private terminal and the follow-up measures undertaken thereafter, JNPT has demonstrated its capability to enhance efficiency of the public terminal through the introduction of intra-port competition and it has succeeded in earning the distinction of being the world’s 29 largest container port. Port reforms in India involved four sets of key issues. There were policy issues pertaining to private sector participation (PSP), corporatisation, competition and connectivity. There were also organizational issues concerning labour, equipment and management (coordination). Capacity issues of port reforms were related to capacity augmentation, creation of new facilities in existing ports, creation of new ports and feasibility of hub ports. Finally, there were regulatory issues, which included safety and conservancy,, environmental, and economic regulations, namely tariffs and entry. Consequently, the 1996 policy guidelines specified the following four areas for privatization: Leasing out existing assets and construction of new assets: Major ports were permitted to lease out their existing assets to private entities. Permission was also granted for entering into contractual arrangements with private developers for construction/creation of new assets like container terminals, cargo berths, warehousing, storage facilities, tank farms, crane equipment, captive power plants, drydocking and ship repair facilities. captive facilities (including oil jetties, platforms etc.) to port-based industries. As a first attempt to establish a regulator for the port sector, a Tariff Authority for Major Ports (TAMP) was set up in 1997 for regulating tariffs in major ports. The TAMP fixes tariff ceilings for services rendered by major ports. The major ports are free to fix tariffs on various services at any level, which is less than the notified tariff ceilings prescribed by the TAMP. It is mentionable in this context that TAMP’s mandate is limited to only notification of the tariff bands. It doesn’t have any quasi-judicial authority like regulators in other infrastructure sectors (e.g. Telecom Regulatory Authority of India (TRAI), the Central Electricity Regulatory Commission (CERC) etc.) In 2001, India’s first corporate port was set up at Ennore near Chennai. The government has decided to progressively corporatise all the existing major ports for ensuring their functioning on commercial principles. In this regard, it has introduced the Major Port Trust Act Amendment Bill, 2001 in the Parliament. The JNPT is slated to be corporatised next, as proposed in the Union Budget for 2001-02. However, the process of corporatisation is yet to begin due to the delay in the passage of the legislation introduced in the Parliament. The expansion of the JNPCT is well on the way considering now the construction of a 4 terminal on a BOT basis, increasing the depth of the approach channel to 12.8 m draft. Pilotage: The need for privatization will be assessed by the port trusts based on existing floating crafts /pilots and the period of contract will also be determined by them. Morocco Port Reform Owing to the important share of trade flows which are carried by maritime means (over 95%), the ports sector has always been an essential component in the country’s foreign trade, which explains the importance given by the Moroccan government to the development, diversification and extension of ports over the last 30 years. Important investments have been granted to the ports sector; these were accompanied by the introduction of reforms and in-depth changes in the organisation of ports in order to improve the sector’s efficiency and to respond to growth in foreign trade and ever increasing requirements linked to port activities. Captive facilities for port-based industries: Major ports were allowed to lease out 100% The ports sector has undergone important structural changes, one the most striking being Leasing of equipment and floating crafts: Permission was granted to major ports to lease out modern equipment and floating crafts to the private sector. 89 Module 5 the establishment of the Port Management Office (Office d’Exploitation des Ports, ODEP) in 1984. Nevertheless, after nearly two decades, the ports sector reform of 1984 has reached its limits and has become unadapted to new competitiveness requirements linked to commitments in favour of market opening towards the private sector and the reinforcement of competition. Therefore, in order to anticipate future developments in the ports sector, on the one hand and to adapt port activities to new economic and political settings on the other, the MOT has undertaken a critical appraisal of the current situation of the sector. Based on the strengths, malfunctions and expectations revealed by this evaluation, a new strategic vision was defined, leading to a global and in-depth reform of the sector. The main objectives of this port reform policy are: • To raise the level of competitiveness of Moroccan ports to international standards. • To clarify the roles and prerogatives of stakeholders through the separation of state authority functions, port authority functions and commercial functions. • To introduce competition between ports and within individual ports to end the of facto monopoly exercised by ODEP and the oligopoly exerted by stevedoring companies. • To back the integrated nature of handling activities to end the separation of legal liability, improve the efficiency and productivity of ship loading and unloading operations and reduce port transit costs through better management of the transport chain. • To encourage private sector participation in the financing of port infrastructures and equipments in the framework of concession procedures. Regarding the separation between functions: In order to clarify the roles and missions of different stakeholders, to look for the best synergies between them and give the future entities the necessary flexibility for efficient management, the reform of the ports sector is based on the separation of the three main port functions: 90 EuroMed Transport Project Main Contract Diagnostic Study The state authority function, assigned to the state at national level, is the remit of a strong, coherent and homogeneous central government administration for all ports and harbours. The government’s duties in this respect are focused on: • Defining and implementing sector-related policy. • Defining the regulatory framework. • planning and carrying out of new port infrastructure. • Management and protection of the public maritime domain and coastlines. The port authority function is assigned to the National Ports Agency, which is responsible for control and regulation. These duties include: • Ensuring the development, maintenance and modernisation of ports to deal with vessels and goods transiting through the ports in the best conditions in terms of costs, delays and safety. • Overseeing the optimal use of port facilities by improving port competitiveness, simplifying procedures and upgrading organisational and working methods. • Guaranteeing the respect of free competition in the management of port activities. • Establishing a list of activities to run and the number of authorisations and concessions to grant in each port and to prepare and implement the selection and allocation procedures for these authorisations and concessions and ensure the monitoring of compliance of these and of their corresponding terms of reference. • Controlling the enforcement of provisions included in the law and its various implementation acts. • Overseeing compliance with legal obligations regarding safety rules, operational and management principles. • Managing the port (port policing; granting of concessions and authorisations, etc.). The commercial functions will be delegated, in the framework of competition, to the port operating company and to private or public undertakings acting as operators or service suppliers, on the basis of concession or authorisation procedures and of terms of reference established by the National Ports Agency. These functions mainly concern the operation of various ports services, such as: Maritime Shipping and Ports • • • Port handling activities and collective use port activities such as pilotage, towage, boatage, warehousing and storage. Management of port terminal and port facilities (quays, dock level surfaces, warehouses or other port installations). All other ancillary port services for goods ships or passenger ships. Regarding competition: The possibilities examined for introducing competition, done by par traffic category among and within individual ports, enabled to identify which ports can sustain, at present, more than one operator, and to determine the amendments needed and actions to undertake to extend this competition within and amongst ports. During the next three years the plan for the introduction of competition among ports and within individual ports will cover the following: • The ports of Jorf Lasfar and Mohammedia through the concessioning of a petrol quay for refined products at Jorf. • The port of Casablanca through the concessioning of the Tarik container terminal, the Ro-Ro terminal and a break bulk terminal. • The port of Nador through the concessioning of the Ro-Ro terminal. • The ports of Casablanca et Mohammedia through the concessioning of the future container terminal at Mohammedia. Competition has already been partially introduced through the authorisation given to an international private operator to build and operate a grain silo at the port of Casablanca and a second one at the port of Jorf Lasfar. There will therefore will be genuine competition within the cereals market segment at the port of Casablanca and between this port and the port of Jorf Lasfar. Regarding the integration of handling activities: The new port sector reform policy emphasised the need to adopt the principle of integration for ports handling activities. This is an essential condition for improving the competitiveness of Moroccan ports. The integration of handling will result in: • Elimination of the severance of responsibility between vessel/ground. • • • • • Better management of the handling chain by optimising human resources and technical means. Productivity gains. Reduced vessel dwell time. Decreases in port transit costs. Introduction of new handling technologies. Photo 5: Planned PPP for Casablanca port within the framework of Port Reform in Morocco Source: EuroMed Transport Project (Main Contract) 6.3. Main Bottlenecks and Issues Despite recent progress, the efficiency of maritime transport chains in the Southern Mediterranean remains low by international standards. Ports, which are the key inter-modal nodes and entry points for trade into most Mediterranean Partners (MPs), are among the weakest links presenting in their majority a major bottleneck. Thus, port reform remains an issue of high importance and priority. 6.3.1. On a Sub-Regional Level The Ports sector in the Mashrek region presents the following main constraints: With the exception of Egypt and Israel, insufficient and inefficient port infrastructure and equipment. Overlapping hinterlands in several cases (e.g. Beirut / Tartous / Lattakia, Damietta / Port Said / El Shoukna). Lack and distortion of competition between ports (no 'level playing field') due to numerous reasons: - Cross border barriers caused by political factors (e.g. Israel with neighbouring countries) or protectionism (e.g. the Syrian case not allowing exports / imports from non-Syrian ports). Mashrek • • • 91 EuroMed Transport Project Main Contract Diagnostic Study Module 5 - • • • • 92 Inefficient hinterland connections infrastructure (e.g. Beirut and Tripoli port connections). Government intervention (State aid, uniform port tariffs amongst country ports irrespective of production costs and national / international competition). - Iraqi War. - Inadequate legislation in order to promote the modern role of ports as logistics services integrators (although progress is on the way). - Limited size of private sector and private transport services integrators (forwarders). - Low containerisation rates. All governments share the need for Port Reform taking steps towards the following directions: - Promotion of PPP in port operations to increase port efficiency and to cut down government spending on port investment. - Adoption of the landlord port management model (if the size of port traffic permits). However, PPP and port services liberalisation / deregulation has progressed at different levels within the region: - Egypt is quite advanced in that respect and is still progressing (many BOTs under implementation). - Lebanon is suffering delays due to fast steps taken without waiting for all necessary parameters to mature (e.g. regulatory framework, labour relations). - Syria is just starting with a long way to go. With respect to maritime safety / security and environmental protection issues, although steps have been taken for adoption and ratification of the relevant international conventions, there is a strong need to support full harmonisation as well as technical assistance (including training) for implementation. Limited level of IT / EDI technology and expertise (with the exception of Israeli and major Egyptian ports which provide a best practice benchmark). Usually, severe overstaffing and lack of labour training and specialisation. • Port tariffs are not linked to costs and marginal social costs. Despite the fact that ports are strategically positioned with respect to international maritime routes and transhipment (mainly Moroccan ports), the ports sector in the Maghreb region presents the following main constraints: • Overlapping hinterlands in some port cases (e.g. Annaba / Tunis), but no real competition due to the border constraint. • Lack and distortion of competition between ports (no 'level playing field') due to many factors: - Cross border barriers due to political reasons (e.g. Algeria / Morocco). - Inefficient hinterland land-side connections (e.g. Algiers port connections). - Government intervention (uniform port tariffs imposed amongst country ports, irrespective of production costs and national / international competition). - Inadequate legislation in order to promote the modern role of ports as logistics services integrators, although progress is on the way (e.g. Tan-Med port Free Trade Zone, new Free Trade Zones in Tunisia). - Limited size of private sector and private transport services integrators (forwarders). • All governments share the need for Port Reform taking steps towards the following directions: - Promotion of PPP in port operations to increase port efficiency and to cut down government spending on port investment. - Adoption of the landlord port management model (if the size of port traffic permits). However, the following are also noted: - Limited BOT port concessions experience (about to start only in Morocco – Tunisia). - Market access to port services quite limited in all three countries – real liberalisation calls for a clear government strategy and adequate regulatory framework in position prior to potential privatisation steps. Maghreb Maritime Shipping and Ports - - Variable level of maturity for implementation of Port Reform in each country: (a) Tunisia, with a well developed private sector shows high commitment and maturity (labour reform already in place), lagging back with respect to its institutional and regulatory framework (b) Morocco is currently working on a new legal, institutional and regulatory framework. Labour reform issues present a serious challenge (c) In Algeria, the new legal framework already established is difficult to be implemented due to lack of government commitment / experience, limited private sector and open market culture, overstaffing problems. 6: Problematic port hinterland Photo connections at the port of Algiers in Algeria due to its proximity to the city centre Source: EuroMed Transport Project (Main Contract) • • • • • With respect to maritime safety / security and environmental protection issues, although steps have been taken for adoption and ratification of the relevant international conventions, there is a strong need (emphasis on Algeria with the three big hydrocarbon export ports and relatively recent security incidents) to support full harmonisation and technical assistance (including training) for implementation. Limited level of IT / EDI technology and expertise. Severe overstaffing. Lack of labour training and specialisation (mainly in Tunisian and Algerian ports). Port tariffs are not linked to costs and marginal social costs. Cyprus-MaltaTurkey • • Two major positive points must be underlined: Ports are strategically positioned with respect to international maritime routes and transhipment (Cyprus, Malta and Bosporus Turkish ports). With respect to maritime safety / security and environmental protection issues, major steps have been taken by all countries, as Malta and Cyprus are already EU members and Turkey a candidate. Meanwhile, the ports sector in the CMT region presents the following main constraints: • Port infrastructure and equipment vary between each country and within each country. • Overlapping hinterlands exist essentially in Turkey. • There is not a significant distortion of competition between ports (the 'level playing field') as the regional background is not homogeneous. Meanwhile, the following points must be underlined: - From the hub point of view, there is a specific cross border barrier due to political reasons between Cyprus and Turkey. Inefficient hinterland connections infrastructure exist (Turkey). - Government intervention (State aid, uniform port tariffs amongst country ports irrespective of production costs and national / international competition). - Inadequate legislation in order to promote the modern role of ports as logistics services integrators in Turkey, although progress is on the way. - Sometimes (Turkey) private transport services integrators (forwarders) are not as powerful as needed. • All governments share the need for Port Reform taking steps towards the following directions: - Promotion of PPP in port operations to increase port efficiency and to cut down government spending on port investment. Adoption of the landlord port management model (if the size of port traffic permits). However, PPP and port services liberalisation / deregulation has progressed at different levels within the 93 EuroMed Transport Project Main Contract Diagnostic Study Module 5 • • • region (a) Malta is quite advanced in that respect (case of the Malta Freeport) (b) On the contrary, many ports in Turkey are still indirectly Stateowned (case of TCDD owned ports). At the same time, it shall be underlined that the possibility for a transport company (TCDD) to manage both ports and railway could represent a true opportunity to develop inter-modal transport. The use of IT / EDI technology and expertise differs between Malta-Cyprus and Turkey, but also differences are noted among the Turkish ports. In Turkey (and Cyprus, to a lesser extent) overstaffing is recorded. Apart from Malta, port tariffs are not linked to costs and marginal social costs. 6.3.2. On a MEDA Regional Level Maritime traffic concentrates systematically in a limited number of major ports in each country mainly due to scarcity of funding to finance supplementary port investment. However, there are cases like Algeria where port traffic (bulk and unitised) prefers the port of Algiers although other less congested port alternatives are available with equally good hinterland connection. Although easier administration procedures are thought to be the main reason, the case needs a thorough investigation. Domestic maritime traffic is negligible occasionally due to legal hurdles (see the case of Turkey where local freight could not pass through the so-called international ports), whereas intra-regional traffic is limited. Low containerisation and high percentage of empty units is observed, due to trade imbalances (between exports and imports) contributing to relatively high and non-competitive maritime transport unit costs. Despite a recent development, transhipment remains limited (except in the cases of Malta and Egypt) since European Mediterranean ports are attracting the largest share and few ports probably have presently a transhipment hub potential. Turkey, Algeria and Egypt are the main origins and destinations of maritime transport freight traffic amongst MEDA countries. 94 The size of sea-passenger traffic is small with limited growth rates. Few regular ferry routes are concentrated mainly in Morocco, Egypt and Turkey. Considerable potential for cruiser traffic growth is currently concentrated in Cyprus, Malta and Tangiers. Regarding competition, borders closed to trade or political barriers (e.g. Algeria / Morocco, Turkey / Cyprus, Syria / Lebanon) prevent port competition and subsequent motives for efficiency. MEDA ports in their vast majority are: • Publicly owned and strongly protected public monopolies, isolated from any kind of real competition, with uniform port tariffs set by the government, preferential treatment, government subsidies,… Even if the liberalisation of port services has already started (for instance in Egypt) there is usually an absence of legal and regulatory framework concerning Private Sector Participation in the ports sector, which discourages access to the market. Some countries are ready to introduce / adopt the relevant legislation (Morocco, Tunisia, and Lebanon) but there are considerable delays and implementation difficulties. Although port concessions have been granted (Egypt, Morocco 20), these port terminals have been treated legally as exceptional cases (no legislation to cover all cases uniformly). This results frequently in the absence of a real level playing field. • Inefficient and overstaffed (the exception of Tunisia shall be underlined). This is going to present a serious but unavoidable challenge to all governments wishing to implement an effective Port Reform. Port labour rationalisation plans must be designed and negotiated with high priority. • Lacking of: - Modern infrastructure and handling equipment. - Any form of PPP. - Competent management skills. - Accountability. - Operational independence. 20 In Morocco, cereal terminals in Casablanca and Jorf Lasfar where given, under BOT, to the private sector. This is also the framework that is considered for the concession tendering under progress for some naval yards. Maritime Shipping and Ports - • • IT and EDI technology, infrastructure and expertise. - Specialised / trained personnel on modern port operations / equipment. - Development of integrated logistics services within and/or close to ports. Ineffective liaising with public administration (mainly customs authorities21.) Inefficient port handling services, even in cases with PPP (broken down into inefficient and badly coordinated chapters, high costs, lack of modern equipment and sufficient investment, port tariffs not associated to costs) – typical examples may be found in Tunisia, Cyprus and Morocco22. Although all governments are keen on port reform, its implementation in most cases is considered quite difficult due to lack of: • Expertise as well as a suitable legal, institutional and regulatory framework. • Open market culture and experience. • An active business oriented private sector. • Will to face political costs. • Trained human resources to support reform changes. Most countries have in principle accepted the landlord port model (where applicable) and the idea of allowing PPP in the port sector. However, PPP in ports just started to take off in the form of terminal concessions in Egypt (East Port Said, El Shokna) and Morocco (Jorf Lasfar coal terminal, Tang-Med). Furthermore, in few cases political instability and lack of stable legal environment do not favour the attraction of foreign private funds. 21 However, the context is evolving. In Morocco, a very advanced modernization of the customs has been under progress since 2000, with a new code and an entirely automatic system for the processing of simplified declarations (the computerized system BADR which allows a customs clearance in less than one hour) 22 Meanwhile, ODEP adopted a strategy of port offer levelling for unitized traffic: - Installation capacity increase for the unitized traffic transit (purchase of 2 40 tonnes cranes and 6 dock forklifts, delivered in 2001) and building of the 220 m extension of the container terminal, which will be equipped with 3 new cranes and with 7 new dock forklifts for 'on park' management. - Organisation Measures defined as part of an urgent plan matched by objectives of productivity (20 movement / crane / hour). - Tariff measures, following the price fixation of the tariff of aconage for containers. Port and general marine environment protection awareness is growing (see Mediterranean MoU or Rempec involvement) but enforcement mechanisms are usually (at least partly) ineffective due to lack of financing and know how. This is becoming a serious situation day by day at a time when international environmental protection risks and standards are becoming higher due to • Increased maritime traffic in the Mediterranean region. • High hydrocarbon fuel traffic in the Mediterranean region (particularly through Algeria and Bosporus). Photo 7: Example of hydrocarbon & oil maritime traffic in the MEDA region: Haydarpasa Port, Morocco Source: EuroMed Transport Project (Main Contract) Mediterranean Ports are faced with high security risks, due to recent growth of terrorism and illegal immigration globally and within the Mediterranean basin. ISPS Code application levels differ among MEDA countries (with the exception of Cyprus and Malta), although there is common acceptance of its provisions and necessity. Most of the ports are in a quest for expertise and necessary funds. 95 Module 5 Figure 9: Main port issues in MEDA countries Source: EuroMed Transport Project (Main Contract) 96 EuroMed Transport Project Main Contract Diagnostic Study Maritime Shipping and Ports 7. 7.1. agreements and conventions regarding Maritime Safety. Maritime Safety / Security and Global Navigation Satellite System (GNSS) General Maritime Safety is a hot global issue nowadays and is even more crucial for a closed and ecologically fragile sea like the Mediterranean. Considering Euro-Mediterranean maritime transport flows today and their future growth prospects, the EU has developed (under the auspices of IMO) a quite strict and elaborate regulating framework. The objective was to improve on-board safety and environmental protection through strict enforcement of international standards within the Mediterranean by assisting MEDA partners to the effective enforcement of all international The effort is multidimensional, starting from full adoption / ratification of international agreements and conventions, up to effective implementation (by setting up coordination and control of suitable enforcement mechanisms). 7.2. Adhesion to International Conventions The following paragraphs present the status of conventions for MEDA countries in July 2003. 7.2.1. Maritime Safety The major maritime safety conventions applied by the MEDA countries are the following: X X X X X X X X X X X X X X X X X X X X X Morocco X X Syria X X Tunisia X X Turkey X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X SUA Protocol 88 Malta X X SUA Convention 88 X X X X INMARSAT amendments 98 Lebanon X X INMARSAT amendments 94 X X X INMARSAT OA 76 Jordan X X INMARSAT Convention 76 X X X X STP Protocol 73 X X X STP Agreement 71 Israel X SAR Convention 79 X X STCW-F Convention 95 X X STCW Convention 78 Egypt X SFV Protocol 93 X X CSC amendments 93 X X CSC Convention 72 Cyprus COLREG Convention 72 X LOAD LINES Protocol 88 X LOAD LINES Convention 66 SOLAS Protocol 78 Algeria IMO STATUS 31/05/2003 SOLAS Protocol 88 SOLAS Convention 74 Table 26: Maritime Safety Conventions signed by MEDA countries X Source: IMO 97 EuroMed Transport Project Main Contract Diagnostic Study Module 5 The relevant conventions are the following ones: • International Convention for the Safety of Life at Sea (SOLAS), 1974. • International Convention on Load Lines (LL), 1966. • Special Trade Passenger Ships Agreement (STP), 1971. • Protocol on Space Requirements for Special Trade Passenger Ships, 1973. • Convention on the International Regulations for Preventing Collisions at Sea (COLREG), 1972. • International Convention for Safe Containers (CSC), 1972. • Convention on the International Maritime Satellite Organisation (INMARSAT), 1976. • The Torremolinos International Convention for the Safety of Fishing Vessels (SFV), 1977. • • • • International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (STCW), 1978. International Convention on Standards of Training, Certification and Watchkeeping for Fishing Vessel Personnel (STCW-F), 1995. International Convention on Maritime Search and Rescue (SAR), 1979. Convention for the Suppression of Unlawful Acts against the Safety of Maritime Navigation (SUA), 1988. 7.2.2. Marine Environment Protection The major marine environment conventions applied by the MEDA countries are the following: 98 X X X X Malta X Morocco X Syria X Tunisia X Turkey X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X ANTI FOULING 2001 BUNKERS CONVENTION 2001 OPRC/HNS 2000 HNS Convention 96 X X X X X X X Lebanon OPRC Convention 90 X X X X Jordan Source: IMO X X SALVAGE Convention 89 X X X X NUCLEAR Convention 71 X X X FUND Protocol 92 Israel X X X FUND Protocol 76 X X FUND Convention 71 X X CLC Protocol 92 Egypt CLC Protocol 76 X CLC Convention 69 Cyprus INTERVENTION Protocol 73 X INTERVENTION Convention 69 X London Convention Protocol 96 Marpol 73/78 (Annex V) X London Convention 72 Marpol 73/78 (Annex IV) X Marpol Protocol 97 (Annex VI) Marpol 73/78 (Annex III) Algeria IMO STATUS 31/05/2003 Stockholm Agreement 96 Marpol 73/78 (Annex I/II) Table 27: Maritime Environment Conventions signed by MEDA countries Maritime Shipping and Ports The relevant conventions are the following ones: • International Convention for the Prevention of Pollution from Ships, 1973, as modified by the Protocol of 1978 relating thereto (Marpol 73/78). • International Convention Relating to Intervention on the High Seas in Cases of Oil Pollution Casualties (Intervention), 1969. • Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter (LDC), 1972. • International Convention on Oil Pollution Preparedness, Response and Cooperation (OPRC), 1990. • Protocol on Preparedness, Response and Cooperation to pollution Incidents by Hazardous and Noxious Substances, 2000 (HNS Protocol). • International Convention on the Control of Harmful Anti-fouling Systems on Ships (AFS), 2001. • International Convention for the Control and Management of Ships' Ballast Water and Sediments, 2004. • International Convention on Civil Liability for Oil Pollution Damage (CLC), 1969. • International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage (FUND), 1971. • Convention relating to Civil Liability in the Field of Maritime Carriage of Nuclear Material (NUCLEAR), 1971. • International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea (HNS), 1996. • International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001. • International Convention on Salvage (SALVAGE), 1989. As already noted for the IMO conventions, ratification is not a warranty for efficient implementation. This is the case for the port reception installations imposed by Marpol that should have been implemented a long time ago. However, a new MEDA programme, implemented by the Rempec, is set up to enhance progress demonstrating the lack of correct installations presently. Moreover, this programme is progressing slowly. On the contrary, Algeria, following the cooperation agreement of the three Maghreb countries (managed by the Rempec on EU funding) that deals with the fight against maritime pollution, is now implementing a legislation that should follow the EU record, in particular with 'préfets maritimes'. 7.2.3. Harmonisation and Implementation of Maritime conventions From the tables above, it is observed that the level of compliance / harmonisation varies significantly between countries. Most of the countries have adopted some basic Maritime Safety international agreements but there is a significant gap left yet to be covered. Only Cyprus and Malta have practically transposed the relevant EU legislation by 1 May 2004, as part of the accession process obligations. At the same time, Turkey has just started running an EU financed Twinning Project to harmonise Maritime Safety legislation and build up PSC & FSC capacity. However, all countries have expressed their strong interest and intention to improve their Maritime Safety record by adopting / harmonising their legislation to EU standards and by enforcing their implementation. Furthermore, they have expressed their need for support in the process. Since July 1997, the Mediterranean MoU on Port State Control has taken an important role in ensuring strict application of the international standards in maritime safety and marine environment protection for shipping within the territorial waters of signatory states (Algeria, Cyprus, Egypt, Israel, Malta, Morocco, Tunisia, Turkey, Palestinian Authority, Lebanon and Jordan). This was to be achieved starting with a target of annual total inspections corresponding to 15% of the estimated number of individual foreign merchant ships. However, currently the Mediterranean MoU effectiveness seems to be facing problems in meeting its objectives due to lack of the recourses (expertise and funds) needed to support the necessary mechanisms. As far as for the real level of Maritime Safety implementation, the Paris MoU Annual Report for 2002 on Port State Control in foreign ports has produced the following table, summing up deficiencies and detentions. 99 EuroMed Transport Project Main Contract Diagnostic Study Module 5 Table 28: Country Port State Control evaluation results by Paris MoU (2002) Flag State Detention % Detentions Deficiencies % Inspections with deficiencies Inspections Black – Grey – White List Algeria 28.81 17 93.22 55 59 Black-very High Risk Cyprus 7.43 95 61.30 784 1.279 Balck-Medium High Risk Egypt 13.24 9 83.82 57 Israel 0.00 0 0.00 0 Jordan 33.33 1 100.00 3 Lebanon 26.98 17 87.30 55 7.39 121 63.71 1.043 Morocco 14.52 9 75.81 47 Syria 19.82 22 85.59 95 111 Black-Very High Risk Tunisia 35.71 5 71.43 10 14 Black-Medium Risk Turkey 18.78 160 79.23 675 852 Black-Very High Risk 7.98 1 577 57.20 11.307 Malta World totals & averages 68 Black-Medium Risk 13 White 3 23 63 Black-Very High Risk 1.637 Black-Medium Risk 62 Black-High Risk 19.766 Source: Paris MoU 2002 Report, pp 26-28 23 100 Only 3 ships were inspected; therefore the list classification (which implies a minimum of 10 inspections) is unavailable. Maritime Shipping and Ports The results show a quite poor application level for MEDA countries stemming from poor harmonisation but mainly from poor enforcement. In fact, only Israel shows a clean record. Malta and Cyprus, although have produced recently a significant improvement falling below the total average detention level, are still black-listed needing more time to assimilate new legislation, restructuring and control procedures. Algeria, within the Mediterranean, shows a poor record (however, great parts of its sea-borne exports are carried out, essentially, under another flag). Very poor results were presented for the other MEDA countries, too. First, a serious lack in organisation, staff and expertise of the maritime control authorities was identified in most countries. • In Syria, the department of the Ministry of Transport in charge of issues concerning maritime safety rules and regulations consists of only 3 clerks of medium-level education. • In Lebanon, the problem was even more pronounced as a Maritime Authority is about to be formed. • In Jordan, the new Maritime Authority is just starting organisation and systematic action. This new authority is intended to act as a regulatory body to control and develop Maritime Sector in Jordan and to set up an organisation structure and detailed job description for all officers within the Authority to perform the duties and responsibilities allocated to the Authority by its law, particularly on FSI , PSC , Ships Registration , International Relations ,following up International Maritime Conventions and Seafarers Affairs, Morocco, Maritime Safety issues have been treated in the Equipment and Transport Ministry. A law project defining a new Maritime Code project is being considered (it represents an update of all regulations organising the maritime transport, in order for these regulations to respect all international standards). A fully organised and staffed PSC department is established Morocco shows a real commitment to be associated with the recent EU initiatives following the 'Prestige' disaster. • • In Tunisia, the PSC department in the Directorate General allows for 16 highqualified inspectors and was recently staffed by personnel trained in France and in Sweden (Malmö). However, there is still a lot to be done regarding the organisation, personnel, equipment and training for the Flag & Port State Control Authority. In Algeria, local authorities are working to improve maritime safety along the coast, and to actively cooperate with neighbouring countries on regional action; they have also called on the EU to support the training of maritime experts. ‘Algeria has always been in favour of a clean and prosperous Mediterranean, and today's decision to set up a joint expert group to devise a programme of cooperation in this area is of key importance in the Algeria-EU Association Agreement. Taking international air traffic control systems as a model, we could work together to introduce a similar system for maritime safety’ Abdelmalek Sellal, Algerian Transport Minister Cyprus and Malta have already fully transposed EU legislation and, through preaccession funds, they have fully organised and staffed Port State Control and Flag State Implementation mechanisms. • Turkey is facing severe problems but has currently started running an EU financed twinning project to harmonise legislation and built up PSC & FSC capacity. Although progress is slow, the process is on its way. A common problem in most countries, which is also true in some EU-15 countries, is that maritime safety and prevention of pollution by ships, and all actions linked with them, often calls for action by several different ministries; the latter are not always well coordinated and the definition of ‘who does what’ is not always sufficient. • 7.3. VTS-VTMIS A VTS (Vessel Traffic System) or a VTMIS (Vessel Traffic Monitoring and Information System) are no doubt important for the following reasons: • Facilitation of vessel traffic. • Decrement of marine accidents. • Improvement of offered search and rescue services, and. 101 EuroMed Transport Project Main Contract Diagnostic Study Module 5 • Protection of marine environment pollution and shore pollution. For a closed sea like Mediterranean, with thick traffic, very high oil sea-borne traffic, increased levels of illegal immigration and smuggling using obsolete ships, the application of vessel traffic monitoring is more than necessary. In the EU, it has to be underlined that the Directive (2002/59/EC) introduces notification procedures in European waters, establishing a Community vessel traffic monitoring, control and information system. Ships in EU waters are required to fit automatic identification systems and voyage data recorders to facilitate accident investigation. Furthermore, along the lines of the EU-wide vessel traffic monitoring and information system (see the project 'Vessel Traffic Management and Information System Network'), one can clearly understand the need for a Mediterranean VTMIS. In the MEDA Region, the current situation is as shown in Table 29. 7.4. Maritime Security As previously mentioned, Mediterranean Ports are faced with high security risks, due to recent growth of terrorism and illegal immigration globally and within the Mediterranean basin. ISPS Code application levels differ among MEDA countries (with the exception of Cyprus and Malta), although there is common acceptance of its provisions and necessity. Most of the ports are in a quest for expertise and necessary funds. Regarding on-board security, all MEDA countries are members of the IMO and therefore ISPS code on-board provisions are mandatory. However, as this concerns recent international developments, the implementation by ship owners (public or private) is not yet finalised. In both cases (on-board and port facilities security), support measures to assist on setting up effective enforcement mechanisms and provision of trainers/ training are strongly recommended. 102 7.5. Maritime Education & Training In the field of Seafarers training, the Convention of the IMO on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) prevails. It was incorporated into the EU legislation via the Council Directive 94/58/EC and revised in 1998 to include the 1995 revision of the STCW Convention and this led to the development of Council Directive 2001/25/EC. According to the EU legislation, officers on board EU-flagged ships must have undergone specific training and hold a certificate recognised under the STCW Convention. Additionally, provisions for Port State control inspections are included. All MEDA countries have ratified the STCW 1978 Convention, but not its amendments when revised in 1995. They should be strongly encouraged to ratify them. As to the level of maritime education, some MEDA countries have developed training and education centres. More specifically: • In Egypt, the Arab Academy for Science and Technology & Maritime Transport in Alexandria incorporating the College of Maritime Transport and Technology provides training to seamen of all levels (from sailors to masters) with state-of-the-art equipment and methods (including simulators). It operates and maintains a large number of teaching and training aids and facilities, among which is the new modern training ship AIDA IV - in addition to a considerable number of simulators, laboratories, floating units and technical marine centres such as Fire-fighting and Survival at Sea Centres, Marine Pollution Combating Centre, Tanker Operation Simulators, a planetarium, models, workshops and laboratories in seamanship, chat work, cargo handling, radar, navigational aids and other navigation-related training facilities. The Academy has an excellent reputation particularly in the Arab maritime world with well-developed regional activity. • In Jordan the Jordan Maritime Institute was established to develop Maritime training and education. Maritime Shipping and Ports Table 29: VTS / VTMIS equipment Country VTS / VTMIS equipment Comment Algeria Absence of VTS-VTMIS Cyprus A 12 mile range VTS is installed. System currently upgraded to VTMIS. Egypt VTS systems in major ports Israel Major ports are equipped Jordan A VTS system for the Red Sea is being developed Lebanon VTS equipment recently installed in Beirut port Malta The country is in the process of setting up a local Vessel Traffic System (VTS), by virtue of a twinning agreement between Malta and France, which is funded by EU Pre-Accession Funds. This project could be extended to VTMIS as Malta could be nominated as a regional VTMIS centre. The initial costs of the VTS / VTMIS system extension are estimated at around EUR 7 million, although the final figure will depend upon feasibility studies, which will be conducted shortly. Morocco A VTS is currently installed and operational in the port of Casablanca. A VTS, funded by the World Bank, is also installed in the port of Tangiers and it will be ready shortly. It will be integrated with VHF radio stations between the two ports in the near future. It is planned to develop and expand the existing system alongside the Atlantic Ocean coastline, integrating it with VHF radio stations. For the implementation of the above project, the government of Morocco is seeking technical assistance from EU. Syria Absence of VTS-VTMIS Tunisia Port Authorities already installed a VTS in the entry of Tunis port in 2002. Future plans include the installation of VTS in the ports of Bizerte and Sfax as well as the installation of VTS alongside the coast in order to control traffic and avoid sea accidents and control immigration traffic; Turkey The country has recently commissioned a first VTMIS to cover Bosporus and Marmara regions. The system is based on 7 radar stations, and is fully operational since 2003. VTS under modernisation in Damietta. The Strait of Istanbul connecting the Black Sea to the Aegean Sea is one of the major trade arteries in the World with an average of 132 transits a day, second to the Straits of Malacca. Source: EuroMed Transport Project (Main Contract) 103 Module 5 • • • • In Algeria, the 'Institut Supérieur Maritime de Bou-Ismail' (ISM) is in charge of seamen training (mainly of practical and technical character) and runs small postgraduate courses. Established in 1974, it presents a good regional activity co-operating closely with the Malmö Maritime University. In Morocco, the Higher Institute of Maritime Studies (ISEM) cooperates with European Universities and also with Japan. In Cyprus (Nicosia), there is the Higher Technological Institute for the training of marine engineer officers. Moreover, there is the Hanseatic Marine Training School for low level training in communications, safety issues etc. In Malta, education and training of seafarers as officers of the merchant navy is conducted in the Maritime Institute, a part of Malta College of Arts, Science and Technology. Additionally, in 1988, the International Maritime Law Institute was established by IMO for lawyers to specialise in Maritime Law. 7.6. GNSS GNSS, and specifically EGNOS and Galileo are widely accepted in the MEDA countries without exceptions, due to the advantages they can bring to maritime transport. Egypt has participated to phase A of the development of Galileo and it will probably participate to phase B also, but the Egyptian government has not yet reached a final decision. It welcomes a navigation system such as Galileo, oriented towards private initiative rather than the military-oriented GPS. Syria’s Civil Aviation is developing the infrastructure for the facilitation of the Galileo System. The Moroccan government remains keen to participate in the implementation phase of Galileo and further development of the necessary infrastructure. It has already installed a ground station for EGNOS and officially requested, in August 2004, to join the Galileo programme. Tunisia’s interest was confirmed with its candidature to host the future Galileo Cooperation Office. 104 EuroMed Transport Project Main Contract Diagnostic Study The EURO-MED GNSS project is highly needed to promote awareness and technology assimilation through its demonstration and training activities. Partnerships and networking will surely be a longer-range objective. Maritime Shipping and Ports 8. Findings and Recommendations 8.1. General The purpose of this Chapter is to provide a recapitulation of the main Improvement Measures that are needed for the advancement of the maritime transport sector in the MEDA region. It should be noted here that these measures are directed only towards the institutional and policy aspects (Scope of the Main Contract), as the infrastructure and physical aspects of the sector are tackled separately under the Infrastructure Contract. The Improvement Measures were derived based on a comprehensive analysis of the status of the maritime transport sector in the various Mediterranean countries (refer to Chapters 3 through 7). The Improvement Measures are presented separately for each of the following main topics: • Maritime Transport Policy. • Maritime Shipping. • Ports. • Maritime Safety. 8.2. Improvement Measures Related to Maritime Transport Policy Apart from a few coordinating bodies, such as the UAPNA, there is not really a common maritime policy in the MEDA region, for both port and shipping: In some countries, the State still owns ports and maritime fleet, whereas in some other, opportunities for BOT in ports and private shipping are already a reality. Meanwhile, the maritime transport safety topic represents an exception as it is seriously considered and shared by all countries, with a real will to be handled in relation with the EU. Based on the above, and on the general facts underlined, it is obvious that several improvement measures need to be taken at a national and/or regional level to develop the homogenisation of the maritime policy. In this respect, some improvement measures were put forward and conveyed to the EuroMed Transport Project (Main Contract) by the officials of the MEDA countries at the time of the country visits and regular NCT meetings. These measures are detailed in each relevant chapter (maritime shipping, ports, maritime safety). A specific improvement measure would be needed to assist some MEDA countries in the development of a more common maritime policy. Such a measure could be sponsored by the EU, and support to the development of an integrated policy framework could take place through training seminars and specific studies allowing the Ministries of Transport to develop their Strategic Transport Planning capacities. Figure 10: Maritime Transport integration Source: EuroMed Transport Project (Main Contract) 105 EuroMed Transport Project Main Contract Diagnostic Study Module 5 8.3. Improvement Measures Related to Maritime Shipping Maritime transport possesses a predominant position (relative to other modes of trade) in crossborder trade of MEDA countries with significant growth potential both in North-South and SouthSouth directions. A predominant position Transport flows between the two shores of the Mediterranean are very dense, and the EU is the main trade partner for a large number of MEDA countries, in particular the Maghreb. At the same time, maritime traffic is the predominant transport mode used (95% of MEDA countries’ external trade is exchanged with the EU and of this 80% through maritime transport). Growth prospects of the intra-Mediterranean trade are quite good, favoured by culture and recent political climate. Main market segments are general cargo (containerised & non-containerised), dry bulk, liquid bulk, passengers and cruiser traffic. In-bound / out-bound imbalances and low containerisation create non-competitive unit transport costs conditions. Egypt, Morocco, Malta and Turkey possess a strategic position for international maritime transport within Mediterranean. At the same time, Turkey is dominating maritime trade (132 million tonnes) but its main commercial ports are suffering severe inefficiencies and underinvestment, as controlled by Turkish Railways (TCDD). Malta is already an established transhipment hub (Marsaxlokk) with high growth potential. Algeria and Syria demonstrate high volume liquid bulk traffic (fuel) while Maghreb countries possess relatively high Ro-Ro traffic. Finally, Cyprus and Malta show (a) significant sea-cruiser passenger traffic with high growth potential, and (b) well-developed private sector and an open market. Competition in shipping may be significantly improved. Firstly, there is a strong need for competent maritime authorities with clear mandate, assigned to the task of planning, implementing and monitoring suitable legal and Competition 106 regulatory frameworks to promote and ensure fair competition. With the exception of Malta and Cyprus, maritime authorities, if present, were not as effective as they should be. Inefficient enforcement mechanisms for Flag State and Port State Control were sheltering substandard shipping that, apart from the extensive maritime safety and marine environment risks, is a main source of unfair competition. Restrictions to maritime market access are manifested by reserving cabotage traffic to national flag carriers, as well as by the presence of entry barriers to foreign investment in the form of local majority requirement, unilateral reservation of a high domestic traffic share for local carriers, and restrictions on the use of shipping agents. Large state-owned fleets were present in most of the countries witnessing extensive government involvement in the market with high possibility of unfair competition practices such as preferential treatment, state aid etc. However, their size is gradually diminishing. Competition is thought to be insignificantly affected by a limited number of liner conferences present in the Mediterranean Sea transport. Short Sea Shipping is quite limited mainly due to trade barriers, local legislation, absence of standardisation in port / customs administrative procedures and inter-modal loading, as well as inefficient port services. Short Sea Shipping Regional cooperation International and with respect to maritime regional cooperation transport (ports and shipping lines) seems to be strong due to the prevailing common Arab culture in both the east and west the Mediterranean basin. However, the effectiveness of this cooperation seems to be quite low since intra regional trade is minimal and maritime traffic is even lower. Success of recent efforts to establish regular lines between Maghreb and Mashrek countries remains to be seen. To support effective growth prospects and, at the same time, to be in alignment with the EU maritime policy, the majority of MEDA countries Maritime Shipping and Ports must consider several improvement measures. In this respect, some improvement measures were put forward and conveyed to the EuroMed Transport Project (Main Contract) by the officials of the MEDA countries at the time of the country visits and regular NCT meetings: • Promoting shipping market liberalisation focusing on a legislation against unfair competition practices (such as liner conferences, State aid to state-owned carriers etc), enhancing free cabotage, and removing entry barriers for foreign investment, through a specific study. • Setting up competent maritime authorities with a clear mandate, assigned to the task of planning, implementing and monitoring suitable maritime strategy with legal and regulatory framework to promote and ensure fair competition (including effective FSI and PSC mechanisms in order to extinguish substandard shipping), through a specific study. • Considering the opportunity of Ro-Ro development in some Mediterranean routes through a specific study. 8.4. • • • Improvement Measures Related to Ports Ports and their associated administration present a major bottleneck to maritime transport growth as they impede traffic flow with significant and unpredictable time delays. At the same time, port dues contribute to disproportionate increases to the total unit transport costs. Improved port passage facilitation through higher port efficiency and competitiveness is therefore a critical issue in boosting maritime transport and shipping. Important findings are as follows: • MEDA ports present a major and serious challenge in improving maritime transport efficiency and safety within the Mediterranean, between the EU and MEDA countries. • Port reform is strongly needed in almost every country, but it is more mature in Cyprus, Malta, Tunisia, Egypt, Morocco and Lebanon. Syria and Algeria should take slower and more coordinated steps allowing at the same time for the private sector to mature. It must be noticed that, due to variations between port reform parameters, • port reform plans need to be designed in a customised manner per country, taking each time into account the specific internal and external environment. The port reform issues are usually considered on a national (or just on a port) basis. A more regional approach could be interesting. PPP already exists. This Private Sector involvement is important where port traffic ensures profitability without allowing development of private monopolies. Market Access to private port services by providers already exists in the majority of MEDA countries but at a variable level. A development is desirable when not creating problems with respect to maritime safety and marine environment protection issues. At the same time, fair competition (a 'level playing field') – also developing at different stages - should extend to the above two very important parameters. Alignment with EU standards concerning maritime safety / security and environment protection is generally progressing for some MEDA countries, but regional differences exist. Training of personnel from each country on a regional or integrated MEDA level should be considered. In that respect, the role of relevant international institutions like Rempec for example should be explored. It shall be underlined that the adoption of the new protocol to the Barcelona Convention on emergency cases included the implementation of the OMI conventions. Rempec prepared a short-term programme project for bringing together the Paris MoU (and the 1995 EU Directive) and the Mediterranean MoU. Training of port technical and management personnel benefits from a correct infrastructure. It represents a sector of potential assistance on a regional basis (ILO standards etc). Based on the above, and on the general facts underlined, it is quite clear that the port sector modernisation represents a vital necessity for most MEDA countries. In this respect, the improvement measures listed below would be needed and could be sponsored and/or funded by the EU. It should be noted that these measures were put forward and conveyed to the EuroMed Transport Project (Main Contract) by the 107 EuroMed Transport Project Main Contract Diagnostic Study Module 5 officials of the MEDA countries at the time of the country visits and regular NCT meetings: • Promoting Port Reform, through training seminars and a specific study. • Providing integrated support on port reform issues on a regional basis, by setting up regional observatories (a general one for MEDA countries or one for the Mashrek and one for the Maghreb), through specific studies. • Improving port connections with hinterland and supporting the inter-modal role of ports. • Developing logistics platforms within and close to ports in all countries, through training seminars and specific studies. • Promoting PPP and gradual market access in all countries, through training seminars and a specific study. • Promoting competition in seaports within the Mediterranean by lifting cross-border trade barriers (through a training seminar and specific studies) and by liberalising port tariffs and rationalising port labour organisation in all countries (through a specific study). • Fighting inefficiency of administration procedures within ports (customs and immigration) by process rationalisation, effective computerisation (IT and EDI technology) and development of regional cooperation, through training seminars and specific studies, as well as technical assistance. 8.5. Improvement Measures Related to Maritime Safety and Maritime Security All MEDA countries are quite sensitive and aware of Safety into account Maritime Safety and Marine Environment Protection issues as these issues are considered of paramount importance for maritime transport in the Mediterranean, imposed by the following factors: • The Mediterranean is a closed sea. • Disproportionately high oil sea-borne traffic (Algeria, Bosphours straits). • High levels of immigration and international terrorism. However, there is a lot to be done about legislation harmonisation (alignment with EU 'acquis' and IMO standards) but mainly with the 108 enforcement agreements. of international conventions / Malta and Cyprus have already adopted EU 'acquis' in their legislation. Turkey is currently involved in an EU financed twinning project towards this objective. Other countries are also thinking seriously to take action. Regarding enforcement, Flag State and Port State Enforcement Control mechanisms are quite weak (mainly due to lack of assigned resources) and ineffective with the exception of Malta and Cyprus. All countries (with the exception of Israel) are black listed in the Paris MoU 2002 annual report with Algeria, Jordan, Lebanon, Syria and Turkey classified in the 'VERY HIGH RISK' category. The problem becomes complicated as these countries operate state-owned shipping fleets while public funds are very scarce (to flow to the national carriers) and at the same time there is also a strong will to make their state flag internationally more attractive (convenience flag). The above objectives are obviously contradictory and cannot be accommodated without detrimental effects to maritime safety and marine environment protection. There is a slow but gradual investment in Vessel Traffic Systems for most countries (except Algeria and Syria). However, these systems need to be extended to cover the whole national coastline. Furthermore, they need to be upgraded to Vessel Traffic Management Information Systems and additionally to be interlinked with neighbouring country systems in order to develop an effective Vessel Traffic Monitoring System for the whole Mediterranean. VTS GNSS is widely accepted in its general principles, without exceptions. However, if the objectives are partnerships and networking within MEDA region, there is a strong need to promote systematically awareness and technology assimilation through demonstration and training activities (MEDA GNSS project). GNSS Maritime Shipping and Ports In general, there is an abundance of seafarers. Education and training is feasible in various specialised institutes. However, significantly more resources must be spent to get access to specialised expertise and more frequent continuous training to all seafarers. Education and training on maritime safety Education and training with respect to Maritime Safety and Environment Protection at medium and low level is feasible in various specialised institutes. At high level there is significant need for know how (IMO, Rempec). Nevertheless, significantly more resources must be assigned in each country to achieve for all seafarers and administration systematic and frequent access to specialised and expert continuous training. Based on the above, and on the general facts underlined, maritime safety in the MEDA region is seriously taken into account, but this effort must be supported. In this respect, improvement measures would be needed to assist the MEDA countries that are ‘less advanced’ in the domain of maritime safety. Such measures could be sponsored and/or funded by the EU and would include the following. Again, it should be noted that these improvement measures were put forward and conveyed to the EuroMed Transport Project (Main Contract) by the officials of the MEDA countries at the time of the country visits and regular NCT meetings: • Implementing a detailed gap analysis (through a specific study) by country to identify the exact compliance level (signature, ratification, adoption and implementation) of the Maritime Safety and Environment framework and recommend a harmonisation action plan for international conventions and agreements that must be transposed and ratified. • Training of upper government maritime and port authorities on Maritime safety. • Promoting the setting up of a Mediterranean VTMIS cooperation framework along the lines of action sponsored by the SAFEMED project (preliminary studies, ad hoc training programme for managers and operators of the traffic monitoring centres, cooperation with EIB for hardware financing). • Systematically promoting awareness and technology assimilation through • demonstration and training activities (MEDA GNSS project). Education & Training on Maritime Security: in both cases, on-board and port facilities security, support measures to assist on setting up effective enforcement mechanisms and provision of trainers/ training are strongly recommended in order to: - Develop a clear understanding of the current EU legislative framework with respect to security risks treatment in ports and on board. Provide a systematic overview of actions, tools and current experience for implementing the international framework of maritime security (SOLAS Chapter XI/2 and the ISPS Code) with related case studies on ISPS Code implementation. - Prepare a critical group of executives per country in order to promote legislation harmonisation on maritime security issues with EU (legislation adoption and implementation). Moreover, the training of seafarers is of crucial importance to the implementation of Maritime Safety in every country. 109 EuroMed Transport Project Main Contract Diagnostic Study Module 5 9. Abbreviations & Acronyms Acronym Meaning International convention on the control of harmful anti-fouling systems on ships Automatic Identification of Ships Aqaba Port Corporation (Jordan) Arab Port Union Aqaba Free Zone (Jordan) French Consulting Group Built Operate Transfer Compagnie Algéro-Libyenne de Transport Maritime Central European Countries Transport Study Centre for Western Mediterranean Cargo's proportion of General Average Compagnie Générale Maritime Communication and Information Resource Centre Administrator International convention on civil liability for oil pollution damage Compagnie Maritime d’Affrètement Compagnie Nationale de Navigation (Algeria) Algerian Shipping Company Convention on the International Regulations for Preventing Collisions at Sea Compagnie Marocaine de Navigation See CTN Crude Oil Washing International Convention for Safe Containers Compagnie Tunisienne de Navigation European Community Shipowners’ Association Electronic Data Interchange European Economic Area European Geostationary Overlay Services European Investment bank European Maritime Safety Agency Ente Nazionale Di Assistenza Al Volo (Italian Company for Air Navigation Services) Acronym EQASIS IAPH ENTMV Entreprise Nationale de Transport Maritime des Voyageurs (Algeria) EPIC Etablissement Public Industriel et Commercial AFS AIS APC APU ASEZA BCEOM BOT CALTRAM CEC CETMO CGA CGM CIRCA CLC CMA CNAN COLREG COMANAV COTUNAV COW CSC CTN ECSA EDI EEA EGNOS EIB EMSA ENAV 110 EQUASIS ERIKA 1 & 2 ESA ESCWA Meaning Database on vessel condition Equasis is an information gathering organization developed by the European Commission and the French Maritime Administration to collect existing safety-related information on ships from both public and private sources for posting on the Internet Legislative measures by the EU to strengthen Port State Inspection European Space Agency United Nations Economic and Social Commission for Western Asia ESN European Short Sea Network ESPO European Sea Ports Organisation EU EUROS European Union European Community Register Facilitation of International Maritime Traffic Foreign Direct Investment Flag State Control Flag State Implementation Federation of Transport Worker's Unions in the European Union International convention on the establishment of an international fund for compensation for oil pollution damage A cluster of studies supporting Galileo design consolidation European Satelite Navigational Programme Beirut Port Authority FAL FDI FSC FSI FST FUND Galilei Galileo GERB GLONASS Global Orbiting Navigational Satellite System (Russia) GMDSS Global Maritime Distress and Safety System GMT GNSS GPS GRT GSM IBC Global Maritime Tunisia Global Navigation Satellite Systems Global Positioning System (U.S.) Gross Registered Tonnage Global System for Mobile Communication International association of Ports and Harbours International Code for the Construction and Equipment of Ships Carrying Dangerous Chemicals in Bulk Maritime Shipping and Ports Acronym IGC ILO IMDG IMO IMTC INF INMARSAT ISEM ISM ISPS IT JNPT LDC LL LLMC Maghreb region Marco Polo MARPOL Mashrek region MED MEDA MIDAN MIS MMA MMSI MoU MSC MTD NCT NCT2 NUCLEAR ODEP OECD Meaning International Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk International Labour Organisation International Maritime Dangerous Goods code International Maritime Organisation International Maritime Transport Corp. (Morocco) International Code for the Safe Carriage of Packaged Irradiated Nuclear Fuel, Plutonium and High-Level Radioactive Wastes on Board Ships International Maritime Satellite Organisation Institut Supérieur d’Etudes Maritimes (Morocco) International Standard Maritime International Ship and Port Facility Security Code Information Technology Jawaharlal Nehru Port Trust Convention on the prevention of marine pollution by dumping of wastes and other matter International convention on Load Lines Convention on Limitation of Liability for Maritime Claims Tunisia, Morocco & Algeria Acronym PAX Meaning See IMO Office de la Marine Marchande et des Ports (Tunisia) International convention on oil pollution preparedness, response and cooperation Convention relating to the carriage of passengers and their luggage by Sea Passenger PPP Public Private Partnership PSC Port State Control Preliminary System Design Review Public Service Obligations Centre Régional Méditerranéen de lutte contre la pollution marine Regional Marine Pollution Emergency Response Centre for the Mediterranean Sea Roll On-Roll Off Regional Transport Action Plan EuroMed cooperation on maritime safety & pollution from ships Licensed Port Handlers Association (Cyprus) South African Port Operations Search And Rescue Segregated Ballast Tank The Torremolinos international convention for the safety of fishing vessels The International Convention for the Safety Of Life At Sea (1974) Short Sea Shipping Standards of Training, Certification and Watchkeeping for Seafarers Special Trade Passenger Ships Agreement Convention for the suppression of unlawful acts against the safety of maritime navigation OMI OMMP OPRC PAL PSDR PSO Rempec Ro-Ro RTAP SAFEMED SALA SAPO SAR SBT SFV SOLAS International Convention for the Prevention of Pollution from Ships Egypt, Israel, Jordan, Lebanon, Syria, Palestinian Authority Mediterranean Mediterranean Countries Middle East Air Navigation Management Information System Malta Maritime Authority Maritime Mobile Service Identity Memorandum of Understanding Maritime Safety Committee Maritime Transport Department National Counterpart Team Second National Counterpart Teams' Meeting –March 2004 Convention relating to civil liability in the field of maritime carriage of nuclear material Office D’Exploitation des Ports (Morocco) Organization for the Economic Cooperation and Development SSS STCW STP SUA TAMP Tarrif Authority for Major Ports TCDD Türkiye Cumhuriyeti Devlet Demiryollari (Turkish Railway and Ports) TEN-T Trans European Transport Network TEU TONNAGE UAPNA Twenty-Foot Equivalent Units (intermodal shipping container) International Convention on Tonnage Measurement of Ships Union des Administrations Portuaires du Nord de l'Afrique 111 EuroMed Transport Project Main Contract Diagnostic Study Module 5 Acronym UMTS UNCTAD VSL VTMIS VTS WTO ZIM 112 Meaning Universal Mobile Telecommunication System United Nations Conference on Trade & Development Vessel Vessel Traffic Management and Information Services Vessel Traffic Surveillance / Services World Trade Organization Zim Integrated Shipping Services Ltd (Israel) Maritime Shipping and Ports 10. 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European Commission, Ports Package on 'Reinforcing Quality Service in Sea Ports: A Key for European Transport) in the form of a Directive Proposal (COM (2001) 35 final of 13 May 2001) Regulation (EC) No 417/2002 of the European Parliament and of the Council of 18 February 2002 on the accelerated phasing-in of double hull or equivalent design requirements for single hull oil tankers and repealing Council regulation (EC) No 2978/94 (OJ L 64 of 7 March 2002, p.1) Regulation (EC) No 1726/2003 of the European Parliament and of the Council of 22 July 2003 amending Regulation (EC) No 417/2002 on the accelerated phasing-in of double-hull or equivalent design requirements for single-hull oil tankers Abdellah Meziane, Ports Secs en Algérie, Algerian Containers Services, juillet 2001 Direction des infrastructures maritimes, Ministère des Travaux Public, octobre 2003 Loi No 98/05 du 25 juin 1998 modifiant et complétant l'ordonnance No 76/80 du 23 octobre 1976 portant code maritime. La Loi No 98-05 juin 1998 115 Module 5 10.2. Websites EuroMed Transport Project main website: http://www.euromedtransport.org IMO, International Maritime Organization: http:// www.imo.org/index.htm EMSA, European Maritime Safety Agency : http://www.emsa.eu.int/ European Commission, DG TREN, Maritime (includes Policy, Safety, Short-Sea-Shipping, and Sea Ports) http://europa.eu.int/comm/transport/index_en.ht ml European Commission, DG TREN, GNSS (Galileo) http://europa.eu.int/comm/dgs/energy_transport/ galileo/index_en.htm European Commission, DG External Relations, Euro-Mediterranean Partnership, http://europa.eu.int/comm/external_relations/eur omed/index.htm Mediterranean Memorandum of Understanding on Port State Control http://www.medmou.org Paris Memorandum of Understanding on Port State Control: www.parismou.org VTMIS-NET, Transport RTD Programme: http://www.cordis.lu/transport/src/vtmis.htm CETMO - The Transport Study Center for the Western Mediterranean: http://www.cetmo.org REG-MED - a thematic network coordinated by CETMO is aiming to develop a common analysis and discussion on the transport-related regulatory framework in the Mediterranean: http://www.reg-med.net/eng/index.html Rempec - the Regional Marine Pollution Emergency Response Centre for the Mediterranean Sea: http://www.rempec.org FEPORT - The Federation of European Private Port Operators: http://www.feport.be/ 116 EuroMed Transport Project Main Contract Diagnostic Study OECD - Organisation for Economic Cooperation and Development (Maritime Transport Committee): http://www.oecd.org/department/0.2688.en_264 9_34367_1_1_1_1_1.00.html ESPO, the European Sea Ports Organisation: http://www.espo.be/ IAPH - International Association of Ports and Harbors: http://www.iaphworldports.org/top.htm The WORLD BANK GROUP -Ports and Logistics http://www.worldbank.org/transport/prt_over.ht m ESCWA - The Economic Commission for Western Asia: http://www.escwa.org.lb Maritime Shipping and Ports Appendix 1: Synthesis of an integrated Maritime Action Plan Action lines 1. Competition and Market Liberalisation Shipping Promote competition in maritime transport within Mediterranean by lifting cabotage restrictions, supporting the development of Short Sea Shipping, minimisation of state-owned fleets and of entry barriers to foreign investment (local majority, unilateral reservation etc). Set up competent maritime authorities with clear mandate, assigned to the task of planning, implementing and monitoring suitable maritime strategy and legal / regulatory framework to promote and ensure fair competition (including effective FSI & PSC mechanisms in order to extinguish substandard shipping). Adopt legislation against unfair competition practices such as liner conferences, state aid to state-owned carriers etc. Provide incentives to domestic and foreign investment. Promote port efficiency and port passage facilitation. Promote Short Sea Shipping within Mediterranean region (see specific measures below). Ports Promote Port Reform by developing and implementing work force rationalisation plan and suitable legal and regulatory framework (necessary in all countries but more mature to advance in Egypt, Morocco, Tunisia, Cyprus, Lebanon and Jordan). Egypt, Lebanon, Morocco, Tunisia, Algeria and Jordan should focus on the implementation of their port reform plans. Syria on the other hand should start first with the development of a suitable port strategic plan. Major commercial Turkish ports under TCDD should adopt a plan of becoming independent port authorities. Provide integrated support on port reform issues on a regional basis, by setting up regional observatories (one for Mashrek and on for Maghreb) Provide regional assistance for qualified Port Sector training in the subjects of Port operation, IT systems use, Maritime Safety / Security, Marine Environment Protection Explore and encourage / develop regional cooperation in that respect. Capitalise on know how and experience of regional training centres (e.g. Arab Maritime Academy, ISEM, ISM), of international institutions like IMO and Rempec and of ports regional associations like UAPNA and UPA. Finally explore the 'Twinning' model for know how dissemination. Improve port connections with hinterland (Lebanon, Turkey, Egypt) and support the inter-modal role of ports - development logistics platforms within and close to ports in all countries. Modernise / develop Lattakia and Tartous (Syria), Algiers (Algeria) and La Goulette/Rades (Tunisia) ports investing further in port infrastructure & equipment, management, IT technology and staff training. Promote PPP and gradual market access in the ports of Aqaba, Beirut, major Egyptian ports, Algiers, La Goulette/Rades, Casablanca, ensuring profitability without allowing private monopolies and obstructions in maritime safety and marine environment issues. In Syrian ports of Lattakia and Tartous ports, PPP and market access must be seen within the framework of a new port strategic plan and the plan for economy liberalisation. Privatise ground handling and introduce IT/EDI application in Aqaba Port. Promote port tariffs liberalisation and port labour rationalisation in all countries. Promote inter-port competition by lifting cross-border trade barriers (see cases between Morocco – Algeria, Turkey - Cyprus). 117 EuroMed Transport Project Main Contract Diagnostic Study Module 5 Action lines Shipping Ports Promote PPP and gradual market access in all countries, ensuring profitability without allowing private monopolies and obstructions in maritime safety and marine environment issues. Promote technical and management port staff training (Syria, Turkey, Algeria, Tunisia, Jordan, Morocco). Fight inefficiency of administration procedures within ports (customs and immigration) by process rationalisation, effective computerisation (IT and EDI technology) and development of regional cooperation. 2. 3. 118 Investment (New Investment, Incentives and Financing) Promote Port Reform by developing and implementing work force rationalisation plan and suitable legal and regulatory framework. Promote PPP and gradual market access in all countries, ensuring profitability without allowing private monopolies and obstructions in maritime safety and marine environment issues. Promote PPP and gradual market access in Promote competition in maritime transport the ports of Aqaba, Beirut, major Egyptian within Mediterranean by lifting cabotage ports, Algiers, La Goulette/Rades, Casablanca, restrictions, supporting the development of Short ensuring profitability without allowing private Sea Shipping, minimisation of state-owned fleets monopolies and obstructions in maritime and of entry barriers to foreign investment. safety and marine environment issues. In Intensify effectively the fight against Syrian ports of Lattakia and Tartous ports, substandard shipping. PPP and market access must be seen within Provide incentives to domestic and foreign the framework of a new port strategic plan investment. and the plan for economy liberalisation. Privatise ground handling and introduce IT/EDI application in Aqaba Port. Promote port tariffs liberalisation and port labour rationalisation in all countries. Improve port connections with hinterland (Lebanon, Turkey, Egypt) and support the inter-modal role of ports - development logistics platforms within and close to ports in all countries. Maritime Safety/ Security and Marine Environment Protection Promote harmonisation of local legislation to EU 'acquis' level (technical assistance, gap analysis, twinning). Capacity building of competent maritime authorities for FSI and PSC. Provide suitable education to seafarers and maritime administration. Provide systematic and frequent continuous training to seafarers. Invest on suitable VTMIS monitoring along whole coastline and promote regional networking. Promote the coordinated application of ISPS Code on ships and within ports (requirement of systems, training, funds). Promote GNSS adoption at regional level (demonstrations, training, focal points, partnerships and networking). Maritime Shipping and Ports Action lines Shipping Ports 4. Short Sea Shipping Development Design and finance crucial port infrastructure within the framework of a Euro-Mediterranean transport network based on an extended version of Motorways of the Seas in the Mediterranean, including links of Malta, Cyprus, Southern and eastern shores to the rest of EU. Simplification adjustment (minimise number of needed documents) and standardisation of customs procedures suited for SSS - Computerisation of procedures and all related information Close cooperation between ports on a regional level. Full adoption of the IMO FAL for standardisation of ship reporting formalities in ports. Encourage companies in Mediterranean Partner Countries to participate in pilot projects under the Marco Polo Programme. Promote the SSS concept to potential players in both sides of Mediterranean along the known lines of: nominating focal points (national representatives in each country assigned with the task to promote SSS at national level). setting up SSS promotion centres. extending the role of the European Short sea Network (ESN) to cover the whole of Mediterranean region. Set up one-stop shops offering the customers a single contact point that takes responsibility for the whole inter-modal chain (integration of Short Sea Shipping into logistics chains to offer doorto-door solutions). Abolish legal barriers (trade barriers, cabotage, any restrictions of port access). 5. International and Regional Cooperation Although typically present both in Mashrek and Maghreb, it must be more effective (to produce results) by promoting maritime cooperation and coordination within areas such as maritime safety, protection of marine environment, naval repairs and construction, seafarer’s education and training, implementation of bilateral agreements, seaports access and cooperation etc. 119