A RECENT news item headlined “SA not the only country with anti-port privatisation views” on FTNow, FTW’s sister online publication, may have created an incorrect perception of Europe’s port privatisation policies. See also ‘Port privatisation hits flak in Europe’ (FTW Junuary 6/13, 2006). A European Parliament and Council directive makes it clear that there is unanimous support for greater private sector participation in the financing of ports and port facilities, which were previously expected to be paid for by the taxpayer. “This is increasingly becoming the responsibility of the private sector while the port authorities tend to restrict themselves more and more to their landlord role and the financing and operation of those facilities which are essential to the safe and efficient operation of the port as a whole,” the directive states. “At the same time, more and more ports are seeking to develop a more active commercial role in co-operation with private partners inside and outside the port. Indeed some ports are operating entirely on a commercial basis.” The following letter from a local representative of a European shipping line puts the issue in perspective: ‘On a different wavelength’ I read the story with concern because it creates the impression that Europe is averse to inter port competition and that a decision against privatisation in general has been taken. The opposite is true and I have no idea where the writer is coming from. European ports are open to competition between ports and port users benefit from competition between terminals within the ports. With very few exceptions all port operations are run by private companies, which even includes tugs and pilots. The issue at stake was the European Port Services directive, also known as ‘port package II’, which was initially voted down in November. The legislative process, however, is far from being completed and this important initiative may well be accepted in the end. The European port services directive intends to liberalise the ports even further. It will, if accepted, allow companies and individuals within the European Union to become active in all ports. As an example a company in Hamburg would be allowed to bid on port concessions in Rotterdam and vice versa. This is already possible today but hampered by administrative obstacles which the intended directive tries to do away with. The headline of your story implies that Europe is on the same wavelength as South Africa when it comes to privatisation of ports. Nothing could be further from the truth and it is important that you put this right.
