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Why Transhipment Ports Are Vital to the EU Economy?

With the EU Ports Strategy now entering its final stage of finalisation, the discussion on the future role of Europe’s ports is becoming intense.

The choices that will be made in this Strategy will not only shape port policy. They will also influence how Europe positions itself in global supply chains at a time of heightened economic, security and geopolitical pressure.

Transhipment hubs are a central element of this debate. They are the operational backbone of Europe’s maritime connectivity, allowing large volumes of cargo to be concentrated, redistributed and moved efficiently across the Union and beyond. Through hub-and-spoke networks, they connect peripheral regions and smaller ports to global trade routes, while anchoring industrial activity, logistics services and investment in Europe’s port regions.

Maintaining these hubs within the EU is therefore not a given. Transhipment is by nature mobile and highly sensitive to cost differentials, regulatory uncertainty and operational efficiency. As EU policies on decarbonisation, security and digitalisation move from design to implementation, the risk of traffic diversion towards non-EU ports must be addressed realistically. If transhipment activities migrate outside the Union, Europe does not simply lose volumes. It loses visibility, control and resilience across its supply chains.

This risk becomes particularly relevant as climate policy enters an operational phase. Measures such as the extension of the EU Emissions Trading System to maritime transport are now being applied in practice, with shipping companies integrating carbon costs into their operations and ports adapting to the resulting operational and commercial impacts. While these measures are essential to achieving Europe’s climate objectives, their effect on routing decisions and hub selection must be carefully monitored. If cost differentials encourage vessels to bypass EU transhipment hubs in favour of nearby non-EU ports, the result would be carbon leakage rather than emissions reduction, alongside a weakening of Europe’s logistical position.

Investment is therefore a first critical pillar. Europe’s ports are being asked to deliver on ambitious objectives: deploying onshore power supply, integrating alternative fuels, electrifying terminal equipment, strengthening cybersecurity, adapting to climate impacts and, increasingly, supporting dual-use and military mobility requirements. These investments are capital-intensive and often generate broad societal benefits rather than immediate commercial returns. A credible EU Ports Strategy must therefore be accompanied by funding instruments and State aid rules that enable ports and terminal operators to invest at the scale and speed required, while preserving Europe’s attractiveness as a location for private capital.

A stable and level regulatory playing field is equally essential. Ports operate in a global market, competing not only with each other but also with hubs outside the EU that are subject to different cost structures and regulatory constraints. Predictability, proportionality and coherence across EU policies are key to ensuring that environmental ambition strengthens, rather than undermines, the competitiveness of European ports and terminals.

Digitalisation and connectivity form another pillar. Efficient transhipment depends on seamless data flows, reliable port-hinterland connections and high-performance terminal operations. At the same time, increased reliance on digital tools makes cybersecurity and data protection indispensable components of operational continuity.

Security and resilience have also moved firmly to the forefront of the port agenda. Ports and terminals are increasingly exposed to organised crime, drug trafficking and cyber threats, while remaining essential gateways for legitimate trade. Initiatives such as the European Ports Alliance underline the importance of intelligence-led, risk-based approaches and close cooperation between public authorities and private operators. Strengthening security in ports must go hand in hand with maintaining efficient operations, recognising that security-related investments deliver benefits far beyond individual terminals.

EU ports handle around 74% of goods entering or leaving the Union. This simple figure illustrates what is at stake. Transhipment hubs are not just logistical assets; they are gateways to Europe’s economy, enablers of industrial competitiveness and key instruments of strategic autonomy. The EU should remain a place where transhipment hubs can invest, operate and thrive, supporting security, sustainability and competitiveness in equal measure.
Source: FEPORT



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