The European Commission has approved, under EU State aid rules, two €143 million German measures to support infrastructure works in the port of Hamburg. The measures concern two distinct infrastructure projects, one at the Salzgitter quay and one at the Steinwerder quay. The measures aim to ensure quay infrastructure is maintained, to increase safety and to continue activity at the port.
The German measures
Germany notified to the Commission two measures to help with the investment costs for the infrastructure works, which amount to €293 million for the Salzgitter quay and €258 million for the Steinwerder quay. The aid will take the form of direct grants paid by the City of Hamburg. The port authority will provide the rest of the financing from its own funds, debenture bonds and loans. The aid will be used for replacing the decayed walls of the two quays and will mainly benefit the economic activity of the port.
The Commission's assessment
The Commission assessed the German measures under EU State aid rules, in particular Article 107(3) of the Treaty on the Functioning of the EU (TFEU), which allows Member States to support the development of certain economic activities under certain conditions. The Commission found that the measures will promote common transport objectives without unduly distorting competition in the internal market. In addition, the measures are proportionate as they do not go beyond what is necessary for implementing the projects. Finally, the Commission concluded that the measures' positive effects outweigh any potential distortions of competition brought about by the public interventions.
In particular, the Commission found that:
- by avoiding a potential collapse of the Steinwerder quay and allowing the continued use of the Salzgitter quay for moving bulk goods, the measures avoid disruptions to the activities of a core port of the Trans-European Transport Network;
- the aid measures do not exceed the difference between the costs and the revenues of the projects over their lifetime (the 'funding gap');
- distortions of competitions are limited, mainly because the projects will not increase the port's capacity.
On this basis, the Commission approved the German measures under EU State aid rules.
Background
The Commission assesses compatibility of State aid to port investment projects under Article 107(3)(c) TFEU, which allows aid to facilitate the development of certain economic activities or of certain economic areas, where such aid does not adversely affect trading conditions to an extent contrary to the common interest.
The Commission therefore examines whether the aid contributes to the development of an economic activity and whether the aid does not adversely affect trading conditions to an extent contrary to the common interest.
