Negotiations on the European budget for 2014-2020 are in a crucial phase as member states have not reached a common agreement and the Cyprus Presidency of the EU Council has proposed a EUR 50 Billion reduction of the Multiannual Financial Framework. If implemented, this measure will significantly affect the funds of the Connecting Europe Facility (CEF) that will finance the implementation of transport projects and the development of railway network links to ports and airports.
The transport industry concerns 10 million EU citizens and represents 5% of the GDP. These figures almost double with the related industry (production, services, maintenance etc.). Moreover, transport is one of the European sectors where companies are world leaders in infrastructure, logistics, traffic management systems and manufacturing of transport equipments.
European policies confirm the importance of transport and its economic contribution and European leaders use strategies to increase freight transport by 80% until 2050.
If the EU wants a transport network to meet the demands and support economic activities, it will be necessary to allocate a financing of EUR 250 Billion by 2020, funds that will help eliminate bottlenecks and fill in the missing links of the central network.
To support railway projects and increase transport volumes, in 2012, the European Federation of Inland Ports (EFIP) and the European Organisation of Ports (ESPO) adopted a joint position as the railway infrastructure is vital for the activities of ports, including the activities of freight operators and infrastructure managers. In the uncertain context concerning the adoption of a firm decision on the multiannual budget, the two organisations call on the EU lea-ders to maintain the budget allocated to infrastructure projects. “The new TEN-T policy is the result of more than two years of negotiations with member states and the decision makers. The draft budget is based on a concrete plan and there are not many options to meet the transport development demands and the development of efficient connections between countries to permit an efficient and sustainable boost. It would be very shameful for the European leaders to reduce the budget and plan they had agreed on. In this case, the governments should apply “plan B” and identify other methods much more difficult and costly to meet Europe’s objectives of economic growth”, declared EFIP Director Isabelle Ryckbost.
The allocation of the EUR 32 Billion funds (around 3% of the Multiannual Financial Framework) would be allocated to the infrastructure projects within the Facility and would result in the connection of all transport modes and increase of passenger and freight flows. The transport industry is “worried that there will not be enough financing to cover the need for investments. The EUR 32 Billion allocated by the EC for the central network of CEF co-vers only a small part of the need for investments. Moreover, while the draft budget for transport seems ambitious, in fact it compensates for the significant cuts in regional funds”, shows the official statement of the two organisations.
For example, the European Fund for Regional Development (ERDF) which included a EUR 46.7 Billion budget for 2007-2013 will be significantly reduced and will even be eliminated by the new regulation in some regions.
Currently, “the fight for budget is between transport and other policies such as cohesion and agriculture, but we have to be aware of the fact that infrastructure projects don’t serve only to the industry, but also to interested parties. A European network with viable connections consolidates EU’s internal cohesion and facilitates many sectors, including agriculture. Ports are a link between EU exports and agricultural pro-ducts and using European funds for their integration into the TEN-T network brings benefits to the European cohesion and the agricultural sector”, declared Patrick Verhoeven, Secretary General of ESPO.
Ports require the performing and efficient railway connection to the hinterland especially when freight flows are increasing. Seaports are an important element for railway freight trains and for the European infrastructure, traffic through these ports being estimated at 603 billion/km/year (on EU’s maritime routes) which is a quarter of the total volume of carried goods. Also, as regards the volume carried by railways, 26% of the total volume of carried goods is connected to ports.
Therefore, ports have to be active in infrastructure projects as they are partners of railway transport. In adopting the deve-lopment strategies of the railway network, authorities and railway companies have to keep in mind the information provided by ports on the transport volumes as the foundation where investment projects are rooted.
Share on:
