Seaport PPPs in the EU: Policy, Regulatory, and Contractual Issues

Abstract

In many ports of the European Union (EU), public port authorities routinely award terminal contracts to private operators who undertake substantial capital investment in port superstructure such as terminal surface layout, handling equipment, and warehouses. This well-nigh traditional collaboration can be considered a form of PPP avant la lettre. Partnerships where the private terminal operator also finances the port infrastructure, such as capital dredging, quay walls, or even breakwaters and locks, are rare in the EU. There are several reasons for this, including the strong role of the public sector in ports, the availability of sufficient public funding sources, and the usually satisfactory functioning of the classic combination of public infrastructure investment and private superstructure investment. Generally, the setting up of PPPs in EU ports does not seem to encounter major legal obstacles deriving from either Union or national law. However, port terminal contracts in the EU Member States take different forms. In the few cases of private infrastructure investment, models are lacking, and there is often experimentation, which entails risks. There is scope for EU institutions to issue a guidance instrument that offers practical, legal, and financial advice and explains best practices on both classic and innovative PPPs in ports.