Motorway hold up is testing patience
Among consultants there is a standard joke that if Europe had funnelled into the marketplace as much money as it has spent studying the idea of Motorways of the Sea then the European maritime sector would be much richer for it.
This is a tongue in cheek comment but it does throw the spotlight on the reality that three months after the formal launch date and many years into the project overall nothing tangible, as yet, has happened with Motorways of the Sea.
The reality is that so far subsidies totalling around ¢60m ($88m) have not been released they still await the formal green light from Brussels.
The blockage is apparently due to the Brussels competition authorities studying the state aid requests in fine detail. And this is happening against a background of parties opposed to the nominated shipping routes suggesting that state aid will distort the market – one of the traditional concerns associated with Motorways of the Sea.
Clearly, the European Commission wants to take its time to ensure it does not throw itself open to criticism. In the meantime, the parties involved with the new shipping routes sit and simmer with frustration. The two groups are:
- Acciona Trasmediterranea, Spain which intends to operate a service between Nantes, Vigo, Le Havre and Algeciras, and
- Grimaldi, Italy and Louis Dreyfus, France who intend to operate between Gijon and Nantes.
Hope is expressed that the funds will be released by the end of the year but there is no guarantee this will happen.
The theory behind Motorways of the Sea is that it is a “real competitive alternative to land transport.” As such it has been lauded heavily politically with diverse benefits highlighted not the least of which are the environmental benefits. The publicity, however, clearly outshines the reality.
Fundamentally, it also has to be borne in mind that the current level of annual funding for Motorways of the Sea is limited: ¢60m ($88m) p.a. through the Marco Polo programme and ¢100m ($147m) p.a. through TEN-T. Less than the cost of one new-build deep-sea container terminal!