1. SECTOR INQUIRY ON DOMESTIC SEAPORTS
Portuguese Competition Authority
11 June 2015 26

2. Outline Description of the logistic chain and its players
Economic relevance of seaports
Main conclusions on the sector
PCA’s recommendations - structure
PCA’s recommendations in detail 15

3. Description of the logistic chain and its players
Origin of the goods
Inland transport to the harbour
Port services
Maritime transport
Inland transport to the destination
Destination of the goods 15

4. Economic Relevance of Seaports
Means of transport used in Portuguese exports (2013)
Ports in Portugal (mainland)
Source: IEVA, Final Report, 2014.
Source: Statistics Portugal 15

5. Main conclusions – 1/4 High concentration levels
Concentration indexes for Port Terminals Services per Type of Cargo
TYPE OF CARGO C1 C2
Containerised
49%
97%
Liquid bulk
77%
>77%
Dry bulk
56%
67%
Break bulk
41% 15

6. Main Conclusions – 2/4 Port terminal concessions and entry barriers
Time-limit for current port terminals concessions 15

7. Main conclusions – 3/4 PCA’s questionnaire results to port users15

8. Main conclusions – 4/4 Summary
High concentration levels;
High barriers to entry (concessions, legislation, port authorities);
Low satisfaction from port users (specially with price/value for money)
Capacity constrains;
Specialization and differentiation in the services provided by port terminals;
Vertical integration of the main players;
In general, shippers and port services’ users do not have significant countervailing buyer power

9. PCA’s Recommendations - Structure
Portuguese State
Sector regulator
Governance Model
Cost Transmission along the value chain
(Pass-Through)
Port Administration
Concessions model
Port terminal operators
Other port services
Port administration tariff scheme
Ship owners
Access to the port services markets
Shippers 15

10. PCA’s Recommendations in detail
Main Competitive Constraints
Main Preliminary Recommendations
Governance model of the ports system
A clear separation of regulatory activity, port management and comercial activities: AMT should be effectively implemented.
Main objectives of port authorities: promote the use of port infrastructures, the performance of port services and the value for end users, including the reduction of tariff and fees
Access conditions to terminal concessions
Adopt the rules and principles laid down in the EU Directive on Concessions (Directive 2014/23/EU)
Access conditions to port services
Liberalisation of market access to port services
Tariff scheme adopted by port authorities
Reduce fees charged by port authorities on concessions
Reduce the variable component of the two-part tariff charged by port authorities
Pass-through of cost savings in the supply chain to port end-users
Promote the pass-through of any cost savings upstream – including the reduction of fees charged by port authorities – to end users, through a renegotiation of existing ports concessions and the implementation of concession contracts with clear performance-based incentives and performance measurement schemes 15

11. 26