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Jul 8, 2020 at 6:02 AMThe Kiel-Canal Initiative welcomes the suspension of fees for the North-East Sea Canal by the government. This marks an important step for the competitiveness of the canal. It also prevents ships from choosing the longer and less environmentally friendly route around Denmark.
(Kiel) The Kiel-Canal Initiative has persistently advocated for the suspension of navigation fees for the North-East Sea Canal in recent months, with the support of the five northern German federal states and the Central Association of German Ship Brokers, and welcomes the decision made today by the federal government to waive navigation fees until December 31, 2020.
“Due to the Corona crisis, the maritime economy is under massive cost pressure, and traffic on the North-East Sea Canal is experiencing an unprecedented decline,” emphasizes Jens Broder Knudsen, chairman of the Kiel-Canal Initiative. This decline is primarily based on the currently historically low bunker prices, which would lead to a significant competitive disadvantage for the North-East Sea Canal compared to the longer route around Skagen. Although the route around Denmark is longer and less environmentally friendly, it is free of navigation fees.
Impact on the Port of Hamburg
“The suspension of navigation fees is an important step to restore the competitiveness of the North-East Sea Canal. It does justice to the significance of the North-East Sea Canal, as it secures over 3,000 jobs in the region and around 51 million tons of total cargo handling in the Port of Hamburg,” Knudsen points out. Knudsen highlights that export-oriented federal states such as Bavaria and Baden-Württemberg also depend on the Port of Hamburg and a functioning North-East Sea Canal, as this ‘logistics hub’ is of central importance for exports to the Baltic region and connections to international transport chains.
According to Knudsen, it is now necessary to examine whether the temporary suspension of fees is sufficient or whether a permanent suspension would represent a better overall economic solution. He points out that last year, the federal government permanently waived annual revenues of 350 million euros for railways and 35 million euros for shipping fees for southern and northern German inland waterways to strengthen the competitiveness of alternative transport modes such as rail and inland shipping. Only the North-East Sea Canal and the Moselle were excluded.
The Kiel-Canal Initiative e.V.
Founded in late 2012, the Kiel-Canal Initiative e.V. brings together committed voices for the North-East Sea Canal and advocates for the operational maintenance and future viability of the canal to the economy, politics, and authorities. Members include numerous companies, several chambers of commerce, public law corporations, institutions, associations, clubs, and local authorities.
Photo 1: © Loginfo24 / Photo 2: © Kiel-Canal Initiative e.V.
