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Displaying items by tag: EU Paliament

#Ports&Shipping - The European Parliament's Transport Committee supported yesterday the removal of tax barriers for the uptake of shore-side electricity supply (OPS) in ports for ships at berth.

The Ertug report on the deployment of infrastructure for alternative fuels in the EU which was voted by the Transport committee, pointed out that taxation has a major impact on the price competitiveness of alternative fuels and underlined that disparities in energy taxation for shore-side supply for ships should be addressed.

European ports welcome the vote in the Parliament and believe that energy taxation on electricity has been a significant barrier for the uptake of shore-side electricity for ships, being often the reason why it does not make a strong business case.

Currently, electricity produced from the combustion of marine fuel on board of ships is tax-exempt. But, when ships at berth are plugging into the shore-side electricity system, they have to pay taxes applied to electricity. Sweden, Germany and Denmark have been provided under the Energy Taxation Directive with a permit to temporarily apply a reduced rate of taxation to shore-side electricity for ships.

ESPO believes that a permanent and EU wide tax exemption for the use of shore-side electricity under the Energy Taxation Directive, would put it on an equal footing with electricity generated on board of ships produced from the combustion of tax-exempted marine fuel.

“Ports in Europe are investing a lot in on shore-side electricity infrastructure (OPS). The tax barriers, which make it for ships more expensive to plug in, have resulted in OPS installations which are often underused. The vote in the Parliament gives a strong signal. A permanent and European tax exemption for shore-side electricity for ships at berth would take away a great disadvantage of using electricity and would enhance its uptake, allowing ports and their surrounding communities to reap the environmental benefits of these costly investments. The uptake of OPS would contribute to further improving air quality and achieving the EU climate targets. On top of that it reduces the noise of ships at berth. We now hope that the message also reaches the Commission, the national governments and the Ministers in charge of taxation issues,” says ESPO’s Secretary General, Isabelle Ryckbost.

ESPO welcomed that the Evaluation and Fitness Check Roadmap of the European Commission on the evaluation of the Energy Taxation Directive (2017) made a reference to an exemption on shore-side electricity for ships.

To find out more on information about ESPO’s position click here to read or download. 

Published in Ports & Shipping

Ferry & Car Ferry News The ferry industry on the Irish Sea, is just like any other sector of the shipping industry, in that it is made up of a myriad of ship operators, owners, managers, charterers all contributing to providing a network of routes carried out by a variety of ships designed for different albeit similar purposes.

All this ferry activity involves conventional ferry tonnage, 'ro-pax', where the vessel's primary design is to carry more freight capacity rather than passengers. This is in some cases though, is in complete variance to the fast ferry craft where they carry many more passengers and charging a premium.

In reporting the ferry scene, we examine the constantly changing trends of this sector, as rival ferry operators are competing in an intensive environment, battling out for market share following the fallout of the economic crisis. All this has consequences some immediately felt, while at times, the effects can be drawn out over time, leading to the expense of others, through reduced competition or takeover or even face complete removal from the marketplace, as witnessed in recent years.

Arising from these challenging times, there are of course winners and losers, as exemplified in the trend to run high-speed ferry craft only during the peak-season summer months and on shorter distance routes. In addition, where fastcraft had once dominated the ferry scene, during the heady days from the mid-90's onwards, they have been replaced by recent newcomers in the form of the 'fast ferry' and with increased levels of luxury, yet seeming to form as a cost-effective alternative.

Irish Sea Ferry Routes

Irrespective of the type of vessel deployed on Irish Sea routes (between 2-9 hours), it is the ferry companies that keep the wheels of industry moving as freight vehicles literally (roll-on and roll-off) ships coupled with motoring tourists and the humble 'foot' passenger transported 363 days a year.

As such the exclusive freight-only operators provide important trading routes between Ireland and the UK, where the freight haulage customer is 'king' to generating year-round revenue to the ferry operator. However, custom built tonnage entering service in recent years has exceeded the level of capacity of the Irish Sea in certain quarters of the freight market.

A prime example of the necessity for trade in which we consumers often expect daily, though arguably question how it reached our shores, is the delivery of just in time perishable products to fill our supermarket shelves.

A visual manifestation of this is the arrival every morning and evening into our main ports, where a combination of ferries, ro-pax vessels and fast-craft all descend at the same time. In essence this a marine version to our road-based rush hour traffic going in and out along the commuter belts.

Across the Celtic Sea, the ferry scene coverage is also about those overnight direct ferry routes from Ireland connecting the north-western French ports in Brittany and Normandy.

Due to the seasonality of these routes to Europe, the ferry scene may be in the majority running between February to November, however by no means does this lessen operator competition.

Noting there have been plans over the years to run a direct Irish –Iberian ferry service, which would open up existing and develop new freight markets. Should a direct service open, it would bring new opportunities also for holidaymakers, where Spain is the most visited country in the EU visited by Irish holidaymakers ... heading for the sun!