Advertise On EU-Digest

Annual Advertising Rates

5/26/07

Truth About Trade & Technology - Activists Choke Growth Of European Shipping

For the complete report in the Truth About Trade & Technology click on this link

Activists Choke Growth Of European Shipping

Supported by strict European Union environmental laws and a band of die-hard residents, squatters and Gypsies, Ms. Apers has sued to keep alive the 17th-century village of Doel, which was slated for destruction. Her efforts delayed the first stage of the Antwerp port's expansion by three years and now stand in the way of new infrastructure and a second container dock, port officials say. At a time when the global container-shipping trade is growing by 11% a year, thanks to booming exports from Asia, Europe's ports can't keep up, say growth advocates. A combination of environmental protections and resistance from local residents is helping to stifle ports' expansion plans across the continent. And with China planning to spend $54 billion in the next 10 years on building and expanding ports, the mismatch between its capacity to ship and Europe's ability to receive goods is growing fast. Some maritime economists say all this could have big implications for the European economy. As Europe's deep-water ports jam up, ships from China will face growing costs as they wait in line to dock. Fewer imports could lead to higher prices for consumers and shortages of some goods made in Asia. If exports are affected, it could restrict economic growth in Europe.

"Europe just needs to buy less from Asia," says Joris Wijnhoven, a Netherlands-based campaigner against port expansion at Friends of the Earth, an environmental group. In the first quarter of 2007, 73% of container ships arrived late in European ports, up from 45% in the same period last year, according to the latest annual report by Drewry Shipping Consultants Ltd. Every extra day at sea costs shipping companies an average $30,000 per vessel. Rotterdam in the Netherlands, Hamburg in Germany and Southampton in the United Kingdom all had to turn away container ships for lack of docking space lately. U.S. ports face expansion hurdles too. Environmental activists and local residents in Houston, Los Angeles and Charleston, S.C., have delayed projects. Although the U.S. also has tough environmental rules and protected areas, its coastline is less crowded and offers more area for expansion, say port experts. Additionally, ports in Mexico and Canada have been taking some of the overflow.

No comments: