Spanish ports take a mauling as recession bites

As a result, the fund administered by the National Ports Authority (Puertos del Estado) that ensures resources within the Spanish ports system are redistributed – allowing the sector to be self-financing and guarantee open competition can take place – has had numerous calls on it in the last two years.

In 2010, it is likely that 19 of the 28 national ports will require financial assistance from the fund amounting to €22.7m ($31.7m), while just nine ports will pay into the fund money totalling €12.5m ($17.5m).

This compares with the situation in 2005, when 21 ports paid into the fund, subsidising losses made by seven port authorities, indicating how healthy the sector then was.

When representatives of the Port Authorities and the fund came together in July some €37m ($51.7m) was distributed to those running a deficit. Significantly, four non-peninsular ports -Tenerife, Las Palmas, Melilla and Ceuta – will receive the largest compensation in 2010, amounting to €17.9m ($25m).

In the last six years, the largest ports in Spain have contributed €86m ($120.1m) towards offsetting losses made it smaller ports. Barcelona, Algeciras and Valencia have accounted for 60% of the overall fund.