Some thoughts on the Strategic Role of Coastlines CEO Series Some thoughts on the Strategic Role of Coastlines By Professor Alkis John Corres

Why is there such an interest in the issue of coastal zones? Coastal zones and their economic exploitation are of central importance in the design of long term development policies everywhere in the world, with one resounding exception: The European Union, which has none!

The EU has the longest coastline in the world after Canada With 96,000 km, the EU has a coastline which is 5 times longer than that of the US 6.5 times that of China 2.5 times that of Russia At the moment the coastline of the EU, a potentially huge asset, lies fragmented more than 20 national economic spaces which through hindering all kind of economic activities prevent the creation of a single market.

It is precisely that space of 96,000 km that the EU Commission had targeted.. ..to turn it into a Common Maritime Space. A space of potentially enormous importance for the EU’s future ..and A multidimensional catalyst for rapid change and economic development

All these leading eventually to: The idea was to use common rules for a great number of activities in that space.. Such as: Common EU coastal waters for shipping, trading, fishing, drilling. Increased participation of EU officers onboard EU vessels Common supervision of shipping activities Disappearance of customs’ formalities in intra - Community cargo movements. All these leading eventually to: Intensification of the Road-to- Sea initiative through Community-wide domestic voyages, and Common external frontiers, a necessary prerequisite to a Common External Policy All these would make Europe take a big step forward.

Let us briefly review what the others have been doing.. United States have the Jones Act since the beginning of the last century which is perhaps the strictest form of flag reservation requiring US built ships, US nationality of seafarers and US flag. Russia also maintains a strict cabotage regime with flag reservation. China also reserves its domestic transport for Chinese flag ships since July 1993, as.. India and Australia do in their own domestic waters.

Someone please explain to me Why on Earth should the EU members be constrained to diminutive national spaces .. ..which give to true short sea voyages the burdensome designation of an “international voyage”? How reasonable is it a 2,000 sea miles voyage from Houston to New York to be a domestic voyage, While in Europe, a 250 sea miles passage from Patras (Greece) to Brindisi (Italy) , fifty one years after the Treaty of Rome , to be still an international voyage.

Let us consider the facts.. FACT NUMBER ONE: It is no secret that the ship owners’ institutions in the EU are dominated by deep sea interests who are less concerned about trading conditions in the EU coasts – this is, after all, the European Short Sea domain. FACT NUMBER TWO: When the Short Sea Initiative was introduced 17 years ago, the EU Commission and the member states were only interested in shifting cargo from the roads and not about the function of the Short Sea markets. Big mistake which continues to be the case today. FACT NUMBER THREE: Deep sea operators in a common maritime space would have to forget voyages from, say, Livorno to Hamburg, when flying a Panama or a Liberian flag.

Their last problem however is easily resolved .. ..with a swift flag change into an EU registry. There are twenty eight flags to pick and choose from. There are other benefits too from flying a quality EU flag. . Such as fewer boardings of Port State Control as a result of the EU flags’ good track records. .

Turning the problem on its hat .. If there is no Common Maritime Space, The EU Short Sea fleet will shrink further as its ageing ships are not replaced , EU operators will continue being replaced by foreign ones. The deep sea sector will continue using their Panama flagged ships in intra- EU trading. EU officers will become collector’s items, and The Customs, despite Codes and efforts, will continue to hinder the struggling Road to Sea initiative .

Ladies and gentlemen, Decision time is rapidly approaching, and.. ..the European Union must be made to function.. .. and the only way is through.. SIMPLE COMMON RULES. While EU controlled deep sea shipping is extremely important. EU controlled Intra Community shipping is extremely important just as much, as it is an integral part of its internal transport infrastructure in the same way as Road and Rail.

Ladies and Gentlemen, After half a century of trying, the EU still cannot face the challenges of globalization. We need to create the right environments to help the EU acquire the confidence to go ahead. Thank you for listening