EU investigates state aid to Antwerp port businesses

The European Commission has begun an investigation into possibly illegal state aid to two of the port of Antwerp’s major businesses: container terminal operators PSA Antwerp and Antwerp Gateway. The complaint was lodged by a third business, logistics company Katoen Natie.

The two companies were granted the concession for container handling at the Deurganck dock in 2004, under an agreement that included a penalty clause imposing a fine if too few containers were handled in any given year. That was the case in the years between 2009 and 2012, yet no penalties were levied.

In 2013, the agreement was made more flexible, with retroactive force. The Port Authority lowered the minimum container volume so that the fines due were reduced by millions of euros. Katoen Natie filed a complaint.

The commission’s investigation will look into whether the Port Authority granted an unfair competitive advantage to PSA and Antwerp Gateway (pictured), in which case the action could be seen as illegal state aid to industry.

According to Katoen Natie CEO Fernand Huts, the start of an investigation is only logical, as the practice of ignoring the original container minimum continues, with uncollected fines now approaching €100 million. The Port Authority is announcing record figures for container traffic, Huts said, at the same time as it cancels fines blamed on the slow economy.

Katoen Natie has also been offered a reduction in its fines, he said, but he has insisted on paying the full amount.

Photo courtesy port of Antwerp