Rotterdam losing out to unfair subsidies
“Unfair competition” means that Rotterdam could be missing out on 1m teu of additional container traffic every year, claims a report commissioned by the Netherlands’ Ministry of Infrastructure.
The study, undertaken by RHV-Erasmus University and Ecorys, states that subsidies at German and Belgium ports cost Rotterdam 7% of its containers. When dredging costs on the Elbe, Maas and Scheldt are taken into account, this loss percentage rises to 10%.
According to a review of the study in Seatrade Global, Flemish ports receive EUR0.54 ($0.74) per tonne per annum from the government to help cover the cost of infrastructure development and German ports receive EUR0.81, while Dutch ports finance their own infrastructure without subsidies.
Port of Rotterdam chief executive Allard Castelein said: “That leads to a distortion of the market, so that the terminals in Rotterdam lose cargo to their rivals in Hamburg and Antwerp in particular.”
The Port Authority reportedly intends to bring the matter before the European Commission, stating in a company circular that “the free movement of goods and services on a level playing field is the cornerstone of a strong European economy”.