FRENCH PORTS: IS THERE A SOCIAL REVOLUTION IN THE MAKING?

Has anyone been paying attention to events in France? There is a clear case of decentralisation in progress. Can we expect a further move towards the private sector? Maybe, but that will take some time. In the meantime consider what is happening right now.

French ports are either directly controlled by the Ministry of Transport or by Chambers of Commerce. The state owned ports are the “port autonome” making up seventeen ports “of national interest” representing a total of 75 million tons (20 % of total tonnage). They include Le Havre and Marseille.

The ports operated by the various Chambers of Commerce (CCI) are the smaller ones, but let’s be honest, they are still state owned. A new law will allow regional authorities such as Bas Normandie and the Pas de Calais to take control from the Chambers of Commerce to better integrate them into the broader economic goals of the region.

This is French for getting someone else to pay for infrastructure development. Of course the law is worded to allow the Chambers of Commerce to still maintain actual control.

The Government is also pushing the concept of completely private terminals, whereas today the port controls the infrastructure but not the labour. It is also responsible for dredging and access. Consulting studies, effectively port audit studies, are being carried out. What is clear is that the Central Government does not have the funds to continue to maintain the full portfolio of ports. It has come to the realisation that it must concentrate its funds to support Le Havre and Marseille if they are not to lose out in the booming cargo market that Europe is experiencing.

So what can we expect? If economic reality prevails there is certainly the possibility that private investors will be invited to play a role in developing the ports in a landlord/tenant relationship. A first, but a big step, for France.