Puertos del Estado (State Ports Authority) has conducted a thorough review of the revenues of the state port system derived from maritime business activity in order to help the sector overcome the economic crisis brought on by the COVID-19 pandemic. It has prepared a document outlining economic support measures for companies in the maritime sector, which was approved today by the Council of Ministers of the Government of Spain as part of the Royal Decree of urgent complementary measures to support the economy and employment.
“Port authorities will have the autonomy to modify, with justification, the fees in accordance with the decree-law, reduce the minimum required traffic and activity levels, and grant deferrals,” says Francisco Toledo.
The commitment to the management autonomy of the authorities is a sign of confidence and seeks to streamline their management by eliminating the State Ports filter and allowing for better adaptation to the particular conditions of each one.
MEASURES REGARDING THE MINIMUM REQUIREMENTS IN TRAFFIC OR ACTIVITY
This measure is aimed at concessionary companies located within port service areas. Port Authorities, in accordance with the powers conferred by the Consolidated Text of the State Ports and Merchant Marine Act, approved by Royal Legislative Decree 5/2011 of September 5, may, with due justification, reduce the minimum traffic and activity levels required for 2020, thereby avoiding penalties for non-compliance with these minimums.
These measures will prevent economic penalties for non-compliance with these minimums, which is not attributable to the companies but a consequence of the health crisis.
MEASURES REGARDING THE OCCUPANCY RATE
This measure complements the previous one. It is also aimed at companies that are part of the port community and many of which provide services considered essential.
From a quantitative standpoint, this measure has the greatest economic impact, potentially reaching a maximum of €84 million for the entire port system in 2020. Passenger stations or terminals are treated differently from the rest, allowing for an extended reduction in the occupancy fee of up to 60 percent, while for other concessions the maximum reduction will be 20 percent, given the enormous impact that mobility restrictions and the suspension of regular services by decree have had on passenger traffic.
MEASURES REGARDING THE VESSEL FEE
This measure is aimed at shipowners and shipping companies operating in the port who are being seriously affected by the COVID-19 crisis. All vessels forced to dock or anchor in a port as a result of an order from the competent authority are exempt from paying the vessel fee.
Furthermore, even without such an order, if a ship needs to dock in a port for an extended period, it will receive a reduced port fee from the first day of its berth, which can reach up to 30 percent during the first week. This applies particularly to cruise ships that have been idled and require a long stay in port before becoming operational again. A reduced fee is also applied to vessels providing port services.
Finally, a 10 percent reduction in the basic fee is planned for the duration of the state of emergency for all vessels involved in short-sea shipping. For regular passenger or roll-on/roll-off cargo services, this reduction will be 50 percent. This reduction is intended to support and ensure the continuity of maritime transport services that provide essential travel in the maritime areas of the Spanish coast. This includes both domestic services (maritime connections between the Peninsula and the Canary/Balearic Islands, Ceuta and Melilla, and inter-island travel, among others) and all other short-sea shipping or motorways of the sea with third countries, including transit through the Strait of Gibraltar.
MEASURES TO POSTPONE THE SETTLEMENT OF FEES
Port authorities may grant payment deferrals of up to six months for port fees settlements, without accruing late payment interest or requiring additional guarantees.
PASSENGER TERMINALS
Given that the reductions to the occupancy rate provided for in this decree can reach 60 percent in the case of maritime stations or terminals, in order to prevent an economic imbalance in port authorities that depend heavily on their passenger traffic flows, it is established that the Interport Compensation Fund (FCI) may compensate those port authorities under the aforementioned conditions, either in the current fiscal year or in fiscal year 2021.
