THE heavy cost of port charges on short-sea shipping need to be reduced if the "Motorways of the Sea" (MoS) service is to survive, says LD Lines boss Christophe Santoni.
The LD Lines managing director was speaking as the ro-ro company was contemplating shutting down its thrice-weekly service between Nantes-Saint Nazaire and Gijon, in Spain as EU funding comes to an end.
"Port charges, pilotage, mooring, stevedoring, etc, represent 30 per cent of costs. If ports are interested in attracting MoS they must contribute to making short-sea shipping less expensive through the provision of special rates," he said.
The likely demise of the MoS service has raised questions whether such eco-friendly freight systems are financially sustainable when faced with truck competition.
The French and Spanish governments have spent EUR15 million (US$19.7 million) apiece on the Nantes St Nazaire-Gijon MoS since September 2010 with the service also receiving a further EUR4 million through the EU's Marco Polo programme. Without this, MoS would have posted annual losses of EUR6 million.
Mr Santoni continues to hope for rescue. "With the two governments, we continue to look for solutions and a business plan that would enable us to maintain the service without recourse to public money or with less of it," he said.
Experience over the past four years had shown that the Nantes-Saint-Nazaire-Gijon service is appreciated by customers with high load factors. But truckers agree to take the ship only if it is no more expensive than the road, he said.
WORLD SHIPPING
04 September 2014 - 19:15
EU short sea service in dire straits without additional eco subsidies: LD Lines
THE heavy cost of port charges on short-sea shipping need to be reduced if the "Motorways of the Sea" (MoS) service is to survive, says LD Lines boss Christophe Santoni.
WORLD SHIPPING
04 September 2014 - 19:15
EU short sea service in dire straits without additional eco subsidies: LD Lines
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