COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 23.05.1995 
COM(95) 199 final 
95/0121 (SYN) 
95/0122 (SYN) 
95/0123 (SYN) 
COMMUNICATION 
on a common policy on the organization of the inland waterway transport market 
and supporting measures 
Proposal for a 
COUNCIL DIRECTIVE 
on the systems of chartering and pricing in national and international 
inland waterway transport in the Community 
Proposal for a 
COUNCIL REGULATION (EO 
amending Regulation (EEC) No 1101/89 on structural improvements 
in inland waterway transport 
Proposal for a 
COUNCIL REGULATION (EC) 
amending Regulation (EEC) No 1107/70 on the granting of aids for transport 
by rail, road and inland waterway 
(presented by the Commission) 

COMMUNICATION 
on a common policy on the organization of the inland waterway transport market 
and supporting measures 
I. INTRODUCTION 
1. When the Council adopted Regulation (EEC) No 3921/91, of 16 December 1991 laying 
down the conditions under which non-resident carriers may transport goods or passengers 
by inland waterway within a Member State (cabotage)(1), it requested the Commission 
to study the position, from the point of view of Community law, of the systems of 
rotation and compulsory tariffs fixed by the state which are in force in Belgium, France 
and the Netherlands and to submit a report to the Council on this subject. In making 
this analysis, the Commission took account of the judgments of the Court of Justice on 
17 November 1993 on the compulsory-tariff arrangements in road haulage in Germany(2). 
2. In the light of the judgments of the Court of Justice, the Commission, in its report to the 
Council on "the organization of the inland waterway transport market systems of 
chartering by rotation"(3), confirmed the incompatibility of those systems of chartering 
by rotation which are organized by the profession with the rules on competition. 
However, with regard to rotation systems regulated by Member States, national 
authorities may, subject to certain conditions, impose compulsory tariffs and operating 
conditions in the context of market regulation. 
3. However, the question of rotation systems not only has to be considered from the point 
of view of competition law, but also from the overall point of view of the inland 
waterway transport market. As a first step towards the completion of the Single Market 
in inland waterway transport, the carriers of the European Union now have free access 
to the entire market (general cabotage from 01.01.1995) but with the obligation to 
comply with the national regulations in force, including systems of rotation. As a second 
step, a more complete harmonization will be necessary. Indeed, in the long term, there 
can be no justification for the fact that certain shippers, depending on their place of 
establishment, are obliged to conclude contracts according to a rotation system whilst 
others can benefit from a free market as regards tariffs and chartering, as is in fact the 
case in by the far the greatest part of the market. 
4. The report referred to above recommends a global solution by introducing a common 
regime for the entire inland waterway transport market, with progressive liberalization 
of rotation systems in order to improve the operation of the market, accompanied by a 
parallel programme of measures aimed at reducing the structural weaknesses of the 
sector. Moreover, this liberalization should make inland waterway transport more 
attractive in relation to other modes of transport and thus increase the volume of goods 
transported via water. It should be emphasised here that all Member States involved in 
exporting or importing through North-western Europe have an interest in this sector. 
(i) 
(2) 
(3) OJNoL 373, 31.12.91, p. 29. 
EC J cases Ohra, Meng and Reiff. 
SEC(94) 921 final of 9 June 1994. 
Indeed, a large part of the European mainland is connected to the seaports of the Union 
by inland waterway, a fact which is particulary important in the market for container 
transport on the Rhine and other North-South axes. In this context, it contributes to 
reducing road congestion in the centre of Europe, which is in the interests of all. It is 
worth recalling that more than one-third (36%) of intra-Community transport, i.e. 
transport between Member States, is carried via water. 
5. However, the inland waterway transport sector is currently confronted with rather serious 
socio-economic problems. Structural overcapacity and the consequences of the abolition 
of compulsory tariffs in Germany on 1 January 1994 have resulted in a fall in transport 
prices. Consequently, the Commission proposes in its report a common overall approach 
consisting of: 
progressive liberalization of that part of the inland waterway market covered by 
rotation systems. 
accompanying measures which aim: 
to reduce structural overcapacity through a new Community scrapping 
programme, to be undertaken for three years (1996-1998), the co-financing 
methods of which are to be determined and the legal bases of which are 
established by Regulation (EEC) Nol 101/89 of the Council, as last amended 
by Council Regulation (EC) No (4); 
to encourage investment in inland waterway terminals; 
6. In its resolution of 24 October 1994 the Council gave its support in general terms to the 
measures recommended by the Commission(5). The Council considered that it was 
important to institute a substantial structural reform and requested the Commission to 
submit an overall proposal on inland waterway transport, in particular with regard to the 
future organization of the market and scrapping programmes. 
II. THE PROGRESSIVE LIBERALIZATION OF THE MARKET 
7. Currently, rotation systems are in operation in Belgium, France and the Netherlands and 
also for traffic between these countries (so-called "North-South" traffic) for the 
transportation for hire or reward of dry cargos by inland waterway (the transport of 
liquid cargo is not subject to the rotation sytem). The term "rotation system" refers to 
a number of regulatory measures in the market whereby compulsory freight tariffs are 
centrally established (generally by a public authority), and where the cargo available is 
distributed between the interested carriers according to the principle that the carrier who 
has been waiting longest for a cargo must be the first to be offered cargos as they 
become available. 
(4) 
(5) OJNoC 309, 5.11.1994, p. 5. 
The rotation systems referred to above are described in more detail in the 
Commission Report to the Council of 9 June 1994, referred to in paragraph 2 above. 
8. This report demonstrates the general reasons why a progressive abolition of these 
systems is required. Moreover, on 12 July 1994 France adopted a law which provides 
for the abolition of the national rotation system by the year 2000. Similarly, on 
15 July 1994, the authorities of the Netherlands submitted to the Commission a draft law 
on the rotation system in North-South traffic, which also envisages the abolition of the 
system by 1 January 2000. The Netherlands draft law and the French law comprise 
measures which, initially, introduce greater flexibility into the rotation systems and, 
subsequently, prepare the carriers concerned for the demands of operating in an open 
market. 
9. The Commission is of the opinion that the date referred to above of 1 January 2000 
allows for a suitably adequate transition period to implement the process of 
liberalization. However, in order to improve the operation of the internal market, it is 
necessary for liberalization measures to be adopted on a harmonized basis and in a 
synchronized manner. A proposal for a Council Directive to achieve this objective is 
therefore appended to this communication. Having regard to the principle of subsidiarity, 
and in order to guarantee uniformity while taking account as much as possible of the 
specific national characteristics of the markets concerned, a directive would seem to be 
the appropriate legislative instrument. 
10. In order to ensure the success of the liberalization process, those transport operations 
currently exempt from the obligations of rotation systems should remain so, as should 
those transport operations which cannot be carried out efficiently or effectively under 
rotation systems. With regard to traditional traffic, which will remain subject to 
compulsory tariffs and cargo distribution until 1 January 2000, it is advisable to seek an 
operating mode which meets the logistic needs of shippers. 
11. In order for the liberalization process to progress sufficiently in all the Member States 
concerned during the transition period, it will be necessary to draw up a first assessment 
two years after the entry into force of the directive. From this date, it must be possible 
not only to charter ships for single or multiple voyages (where tariffs and conditions are 
laid down by the public authority) but also to conclude other forms of contract such as 
chartering "over time" or "by tonnage". The conditions of the latter form of contract 
must be freely negotiated between carriers and shippers. 
12. A crisis mechanism will be necessary to ensure that, in the event of a serious disruption 
of the market (for example, an imbalance in the relationship between supply and 
demand), it will be possible to intervene. Consequently, a system of market observation 
is envisaged which will enable any potential problems to be detected in good time. Given 
that it is difficult to influence demand in the transport market, then, in the event of 
serious overcapacity, efforts must be concentrated on limiting the supply of carrying 
capacity. The measures already taken by the Council in Regulation (EEC) No 1101/89 
of 27 April 1989 relating to structural improvements in inland waterway transport could 
then be either continued or widened (see paragraphs 13 to 22). Accompanying measures 
in the social field, enacted at Member State level, may also prove necessary in such 
cases. 
m. MEASURES TO COMBAT STRUCTURAL OVERCAPACITY 
13. During the past decade, the supply of carrying capacity has, on several occasions and for 
long periods, outstripped demand. The first interventions aimed at re-structuring were 
carried out on the basis of national scrapping programmes. In April 1989, the Council 
decided on a Community approach based on Regulation (EEC) No 1101/89 and since 
then efforts to combat overcapacity through national scrapping funds have taken place 
within a Community framework. In essence, the system works by paying a premium to 
owners who scrap one of their vessels. The introduction of new capacity is conditional 
on a given quantity of old tonnage being scrapped (no premium being paid in this case). 
To finance this programme, all vessel owners pay, according to the size and type of their 
vessels, an annual contribution to their national scrapping fund. More recently, public 
financial resources (coming from the national budgets of the Member States concerned) 
were also placed at the disposal of the scrapping funds (see paragraph 16) as a source 
of additional financing. Switzerland adopted similar measures in 1989 for that part of 
its fleet which is active in the Community market on the Rhine. 
14. During the period between 1 January 1990 and 1 July 1994, 1 457 667 tonnes of 
capacity were scrapped through this method. 486 911 tonnes of new capacity were 
brought into use, with the result that the total loading capacity of the fleet has fallen 
from 13 188 343 tonnes to 12 217 587 tonnes, i.e. a reduction of 8%. The Commission, 
which is charged with managing and coordinating the programme referred to above, 
draws up a report every six months which is intended for the Member States concerned 
and for the international professional organizations. Further details on the scrapping 
programme can be found in this report, and also in the SEC report (92) 1284 from the 
Commission to the Council and the European Parliament concerning "the effects of the 
structural reform measures in inland waterway transport", of 15 July 1992. The latter 
report notes that the total amount of goods transported by the inland waterway fleet 
remained essentially constant during the period 1990-1995 (approximately 420 million 
tonnes per year). This clearly illustrates an improvement in productivity, since the 
demand for transport is being met by a constantly decreasing number of vessels. 
15. It can be expected that the trend referred to above will continue for some time. Indeed, 
increases in economies of scale and improvements in productivity are taking place 
throughout the inland waterway sector. Specialized new vessels are needed to cope 
effectively with new trade patterns, such as, for example, container and chemicals 
transport. In the traditional bulk cargo sector (coal, steel, agricultural products, sand, 
gravels, petroleum products), however, there is no question of structural growth. The 
constant improvement of productivity in a stagnant market, therefore, must be offset by 
the removal from service of a large number of older vessels, generally those of lower 
tonnage. The liberalization of the market will also accelerate this process. 
16. The Community programme of restructuring provided for by Council Regulation (EEC) 
No 1101/89 was based on the principle of self-financing by the profession, with interest-
free advance financing provided by the Member States concerned (ECU 105 million), 
which was to be completely refunded by the profession. Commission Regulation (EEC) 
No 3690/92 of 21 December 1992(6) allowed for new scrapping actions. The extent to 
which these can be carried out is dependent on the available finance: this finance comes 
from special contributions which have been paid to the national scrapping funds since 
1 January 1993 ("old for new"). By 1994, mostly as a result of the recession of the 
1990's, substantial overcapacity had reappeared. Consequently, a waiting list of 
applications for scrapping premiums grew up - consisting of several hundred vessels -
without the scrapping funds having the necessary financial resources to meet the demand. 
The sector itself was no longer able to provide sufficient means, particularly since the 
original 1990 loan had not yet been repaid. In the second half of 1994, therefore, the 
Member States concerned informed the Commission that they were prepared to provide 
sufficient funds from their national budgets to finance all the scrapping requests 
(approximately 350) which were on the waiting list on 30 June 1994. 
The procedures for implementing this action were adopted by the Commission in 
Regulation (EC) No 3039/94 of 14 December 1994 (OJ No L 322, p. 11, of 
15 December 1994). The total budget amounts to ECU 26 716 000. The action began on 
1 January 1995 and will be completed before the end of the year. 
17. However, notwithstanding these actions, the restructuring process is not finished, and 
even after 30 June 1994, requests to the scrapping funds for scrapping premiums have 
continued. In the second half of 1994, 156 requests for scrapping were thus recorded, 
including 136 for dry cargo vessels and 20 for tankers. The sum of the scrapping 
premiums involved for these vessels amounts to approximately ECU 15 million. 
18. In this general context, at the initiative of the European Parliament, an amount of 
ECU 5 million has been set aside in the 1995 budget for structural improvements in 
inland waterway transport. However, during the budget discussions - as in its report to 
the Council on 9 June 1994, mentioned above - the Commission continually stressed the 
need for a substantial multiannual structural improvement programme, including in 
particular measures to accompany the ongoing liberalization process. In its Resolution 
of 24 October 1994, the Council supported this position. 
19. The Commission recently forwarded to the Council a draft amendment of Regulation 
(EEC) No 1101/89, which aims primarily to create a clear legal basis for spending the 
ECU 5 million referred to above. This proposal also opens up, in principal, the 
possibility of a multiannual contribution by the Community to co-finance a scrapping 
programme covering the period 1996-1998. In the view of the Commission, this 
co-financing goes together with the proposed liberalization of the market. For this reason, 
a separate proposal based on this principle is attached to the present report. 
(6) OJ No L 374, 22.12.1992, p. 22. 
20. The professional organizations of inland waterway carriers at the Community level 
currently estimate structural overcapacity in the dry cargo sector to be 15%. It can be 
assumed that economic recovery will lead to an increase in demand in this sector in the 
coming years. However, this will be absorbed - at least in part - by the constant increase 
in productivity, itself accentuated by the liberalization process. The abolition of the 
rotation system will also lead to those vessels which are incapable of competing in a free 
market being excluded from this sector. 
In the liquid cargo sector, the professional organizations estimated overcapacity to be 
approximately 20%. However this figure appears too high. Indeed, even if the level of 
freight charges remained very low at the beginning of 1995, it is nonetheless true that 
the utilization rate of the tanker fleet was rather high. But, insofar as the tanker fleet will 
not be affected by liberalization measures (the tanker fleet already operates in a 
completely free market, outside rotation sytems), there is no reason to suppose that the 
need for scrapping in this sector should be proportionally higher than in the dry cargo 
sector. 
In summary, one can say that, in both sectors, overcapacity will probably remain at a 
level of approximately 15% if no restructuring measures are applied. Since the fleet 
includes approximately 10 million tonnes of dry cargo vessels and 2 million tonnes of 
tanker ships, the need for scrapping would amount respectively to 1.5 and 0.3 million 
tonnes. 
21. On this basis, it is possible to calculate the necessary financing for the 1996-1998 
programme. In addition, one must bear in mind that the scrapping premiums, since they 
were fixed in 1989, require some corrections (on average an increase of approximately 
15%), in particular because of monetary depreciation and the devaluation of the ECU in 
relation to the currencies of those countries with a significant inland waterway transport 
sector. In 1990, a sum of ECU 66.04 million was paid for the scrapping of 8% of the 
dry cargo fleet and ECU 38.36 million for scrapping 13% of the tanker fleet. Scrapping 
15% of the fleet during 1996-1998 would therefore require ECU 142 million and 
ECU 50 million respectively, i.e. a total of ECU 192 million. 
22. Given the levels and importance of the finance required, a joint effort of all the parties 
concerned (inland waterway transport operators, Member States and the Community) is 
necessary. 
With regard to financing the restructuring actions in inland waterway transport, the 
Council, in its Regulation No 1101/89, followed the principle that responsibility for this 
financing rested initially with the operators of the sector under consideration. The 
Commission considers that it is important to maintain this principle as far as possible. 
The annual contributions of the Community to the 1996-1998 programme must therefore 
be in relation to the financial contributions of the profession. 
The annual contributions paid by the profession (Switzerland not included) up to 
31 December 1994 amounted to approximately ECU 13 370 000. For the years to come, 
these contributions will be of the order of ECU 14 million a year, i.e. ECU 42 million 
for the period 1996-1998. However, approximately ECU 12 million must be deducted 
from this amount, since this must be used to repay the amount of advance finance 
provided by the Member States for the 1990 action. Consequently, there remains 
ECU 30 million available for the new action. If the Community and the Member States 
concerned can each place at the disposal of the scrapping funds half of the remaining 
amount, i.e. ECU 81 million each, to be spread out over 3 years (ECU 27 million a 
year), the financing of the programme will be assured. 
Taking account of the budgetary funds currently available, the Community is already in 
a position to be able to contribute up to ECU 40 million over three years 
(ECU 20 million inl996 and ECU 10 million in 1997 and 1998). The remaining part 
of the finance needed for the scrapping scheme - at least ECU 81 million (half the total 
contribution of the Community and the Member States) and at most ECU 122 million 
- would be raised from the budgets of the Member States concerned, the amount of each 
contribution being based on respective fleet sizes. 
Whatever the case, the annual contribution paid by the Community will not be more than 
double that of the industry. 
23. The scrapping action of 1996 to 1998 will have to be evaluated annually by the 
Commission, in order for it to carry out any modifications necessitated by market trends 
and the liberalization measures which will be implemented. The Commission will 
determine, at the beginning of each year and according to the available funds, the 
practical means by which the scrapping action of the current year will be carried out. 
IV. THE PROMOTION OF INLAND WATERWAY TRANSPORT 
24. Inland waterway transport offers several advantages to society as a whole: it is 
environmentally-friendly, it is particularly safe, it is energy-efficient and it contributes 
to reducing congestion on the overloaded road network of North-western Europe. But 
these general advantages do not play a major role in influencing a shipper's choice of 
transport mode. In fact, it is above all considerations of an economic and financial nature 
which influence the decisions of transport users. 
25. In recent years, organizations for promoting inland waterway transport have emerged in 
several Member States. These aim to inform both shippers and the general public of the 
opportunities and advantages offered by waterway transport. They have met with a 
certain success, but it has proved difficult to persuade transport users to convert to 
waterways, especially when they have no experience of using this mode. Certainly, the 
tonne/km cost of transport by inland waterway is lower, but this advantage is likely to 
be outweighed by higher transshipment costs. Moreover, the often considerable amount 
of investment needed in infrastructure and equipment by the loading company (quays, 
loading and unloading equipment) constitutes an obstacle. 
26. In order to ensure that investments which are desirable from a social point of view are 
made in the development of the inland waterway transport system, it would seem 
necessary to introduce a temporary support scheme for investment in inland waterway 
ports. Such a scheme is contained in the proposal for a Regulation appended. It has a 
clear parallel with the aid scheme for investment in combined transport terminals, 
introduced earlier by the Council (see Article 3, paragraph 1. of Council Regulation 
(EEC) No 1107/70 relating to the granting of aids in the field of transport, as last 
amended by Regulation (EEC) No 3578/92 of 7 December 1992). 
27. The proposed scheme takes a comprehensive approach and is aimed at both public and 
private waterway terminals. In all cases, a request for investment aid must be 
accompanied by an assessment of the volume of cargo that the waterway will handle 
following investment. In order to encourage responsible investment, if the new or 
additional tonnage envisaged on the waterway is not achieved, then recipients will have 
to repay the aid. For the same reason, the amount of aid can under no circumstances 
exceed 50% of total investment. Priority has therefore to be given to those investments 
which will attract the highest possible tonnages onto the waterway. 
Member States will be required to report periodically to the Commission on the 
application and impact of this arrangement in order that new initiatives can be developed 
accordingly. 
V. SUBSIDIARITY 
28. The Community action under consideration in the proposal for a Directive on chartering 
systems and fixed prices in the field of national and international transport of goods by 
inland waterway in the Community can be analysed in terms of subsidiarity by 
answering five fundamental questions: 
(a) What are the objectives of the proposed action in relation to the obligations of the 
Community? 
This action is being proposed as a result of the disparities which exist between 
Member States' legislation concerning the commercial use of inland waterway 
transport, disparities which hinder the proper functioning of the single market in this 
sector. It is therefore appropriate to include in the Community proposal common 
provisions for the inland waterway transport market as a whole, so that the 
companies concerned may enjoy the full benefit of the internal market. The 
completion of the single market, whereby the free movement of goods, persons, 
services and capital is guaranteed, requires that, where the transport of goods by 
inland waterway is concerned, the organization of the systems of chartering by 
rotation should be adapted to allow greater commercial flexibility, in order to 
establish a regime which allows completely free transactions by 1 January 2000. 
(b) Does the proposal for a Directive fall within the exclusive competence of the 
Community or is competence shared with the Member States? 
The proposal is submitted on the basis of Article 75 of the Treaty and therefore 
falls within the exclusive competence of the Community. 
(c) What is the Community dimension of the problem? 
The Member States directly concerned with the liberalization of the market are: 
France, Belgium and the Netherlands. Other countries with an inland waterway 
transport sector have established open markets. 
(d) What methods of action are at the disposal of the Community? 
The Commission is proposing to liberalise that part of the inland waterway transport 
market which is still regulated, by means of a legislative proposal. 
(e) Is a uniform regulation necessary or would a directive be sufficient? 
The adoption of a single and non-discriminatory arrangement requires that measures 
are taken to guarantee a harmonized approach in all the Member States. However, 
a directive, which establishes the general framework and the various stages needed 
to arrive at a completely free market, whilst leaving to the Member States the 
choice of the means, would appear to be the most suitable instrument for achieving 
the desired objective. 
10 
Proposal for a 
COUNCIL DIRECTIVE 95/0121 (SYN) 
on the systems of chartering and pricing in national and international 
inland waterway transport in the Community 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in particular 
Article 75 thereof, 
Having regard to the proposal from the Commission(1), 
In cooperation with the European Parliament^, 
Having regard to the opinion of the Economic and Social Committee(3), 
Whereas the growing problems of road and rail saturation, transport safety, environment, 
energy saving and quality of life call, in the public interest, for greater development and better 
use of the transport potential offered by inland waterway, in particular by improving its 
competitiveness; 
Whereas the difference in national laws on the systems for the commercial operation of inland 
waterway transport does not make for the smooth functioning of the internal market in this 
sector; whereas, therefore, common provisions should be introduced at Community level for 
the whole of the inland waterways market, as was suggested in the Commission report to the 
Council of 9 June 1994 on the organization of the inland waterways transport market and 
systems of chartering by rotation, of which the approach was approved by the Council in its 
resolution of 24 October 1994(4); 
Whereas the completion of the internal market, in which the free movement of goods, 
persons, services and capital is guaranteed, calls for an adjustment in inland waterways 
transport to the organization of chartering by rotation, so as to move towards greater 
commercial flexibility and a system of open transactions; 
Whereas in view of the socio-economic characteristics of the sector, provision should be made 
for a transitional period, the scope of the rotation system being gradually limited prior to the 
attainment of freedom of chartering and pricing; 
Whereas that period is needed for carriers to adapt to the conditions of a free market and, 
where appropriate, to set up trade groupings better suited to the logistical needs of shippers; 
a) 
(2) 
(3) 
(4) OJNo C309, 5.11.1994, p. 5. 
11 
Whereas in view of the abovementioned objectives, it is both necessary and adequate to set 
a timetable at Community level for the gradual liberalization of the market, while leaving with 
the Member States the responsibility for putting such liberalization into effect; whereas this 
is in accordance with the third paragraph of Article 3b of the Treaty; 
Whereas provisions must be adopted to allow action to be taken on the transport market in 
question in the case of a serious disturbance; whereas, to this end, the Commission should 
be given the power, through an advisory committee, to take appropriate measures, 
HAS ADOPTED THIS DIRECTIVE: 
Article 1 
For the purposes of this Directive the following meanings shall apply: 
(a) "chartering by rotation": a system which consists of allocating in a charter exchange 
requests for transport operations, at fixed prices and under the conditions published, from 
customers on the basis of the order in which vessels become available after unloading. 
Carriers are asked, in the order of their registration on the rota, to choose in turn a load 
from those on offer. Those who make no choice nonetheless keep their position in the 
order; 
(b) "carrier": 
- owner of one or several (up to a maximum of three) inland waterway vessels; 
- owner or more than three inland waterway vessels; 
- group or cooperative of owner-operators of inland waterway vessels; 
(c) "competent authority": the authority appointed to manage and organize the system of 
chartering by rotation; 
(d) "serious market disturbance": the emergence in the sector in question of problems 
specific to that market likely to cause a serious and potentially persistent excess of 
supply over demand, thereby posing a serious threat to the financial stability and survival 
of a large number of inland waterway carriers, unless the short and medium-term 
forecasts for the market in question indicate substantial and lasting improvements. 
Article 2 
In the field of national and international inland waterway transport in the Community, 
contracts shall be freely concluded between the parties concerned and prices freely negotiated, 
where appropriate, within charter exchanges. 
Article 3 
Nnotwithstanding Article 2 Member States may, for a limited period up to 1 January 2000, 
maintain a system of minimum compulsory tariffs and systems of chartering by rotation, 
provided that: 
there is compliance with the conditions set out in Articles 4 to 7; and 
12 
the rotation and pricing systems imposed are freely accessible under the same conditions 
to all Member States' carriers. 
Article 4 
During the transitional period referred to in Article 3 the scope of the systems of chartering 
by rotation shall be limited to general cargo. 
The following shall not be subject to these systems: oil and gas, liquid cargo and dry bulk 
freight, special cargoes such as heavy and indivisible loads, container transport, transport 
within port areas, any kind of own-account transport and any type of transport operation 
outside the rotation system. 
Article 5 
Loads shall not be subject to chartering by rotation if they cannot be effectively dealt with 
by such systems; in particular: 
transport requiring handling equipment; 
combined transport, namely, intermodal transport where the routes are principally by 
inland waterway and the initial and/or terminal legs (as short as possible) are by road or 
rail; 
new types of transport not covered by Article 4 or by the first and second indents, where 
shippers, for a preliminary test period of up to 24 months, will have the option of using 
or not using the rotation system. 
Article 6 
During the transitional period referred to in Article 3 Member States shall take the necessary 
steps to maximize flexibility in the systems of chartering by rotation, in particular: 
by providing shippers with the opportunity of concluding contracts for multiple trips, that 
is to say, a series of successive trips using one and the same vessel; 
by providing that single or multiple trips offered twice under the rotation system without 
finding any takers shall be taken out of the rotation system and be freely negotiated. 
Article 7 
Within a period of two years from the entry into force of this Directive, Member States shall 
take the necessary measures to enable shippers to have a free choice between three types of 
contract: 
contracts on a time basis, including leasing contracts where the carrier makes one or 
more vessels and crew exclusively available to a customer for a specific period for the 
transport of goods for that customer against payment of a given sum of money per day. 
The contract is freely concluded between the parties; 
13 
tonnage contracts where the carrier undertakes to transport, for a period laid down in the 
contract, a given tonnage against payment of cargo rates by the tonne. The contract is 
freely concluded between the parties and must involve large consignments; 
contracts for single or multiple trips to be undertaken through the system of chartering 
by rotation. 
Article 8 
1. In the event of a serious disturbance in the inland waterways market the Commission 
may, on its own initiative or at the request of a Member State, take suitable measures, 
and in particular measures designed to prevent any new increase in the transport capacity 
on offer on the market in question. The decision shall be taken in conformity with the 
procedure laid down in Article 9(2). 
2. In the event of a request from a Member State for measures a decision shall be taken 
within a period of three months from receipt of the request. 
3. The request from a Member State for suitable measures to be taken must be 
accompanied by all the information needed to assess the economic situation in the sector 
in question, in particular: 
indication of the average costs and prices for the different types of transport; 
the rate of utilization of the hold; 
forecast demand. 
This information may only be used for statistical purposes. It may not be used for tax 
purposes or communicated to third parties. 
4. Decisions taken pursuant to this Article shall be notified immediately to the 
Member States. 
Article 9 
1. The Commission shall be assisted by the committee established by Council Directive 
(EEC) 91/672(5). 
2. The Commission representative shall submit to the Committee a draft of the measures 
to be taken. The Committee shall deliver its opinion on this draft, where necessary by 
vote, within a time limit set by the Chairman according to the urgency of the matter. 
The opinion shall be recorded in the minutes; in addition, each Member State has the 
right to request that its position be recorded in the minutes. 
The Commission shall take full account of the opinion of the Committee. It shall inform 
the Committee of the manner in which it has taken account of its opinion. 
(5) OJNoL 373, 31.12.1991, p. 29. 
14 
Article 10 
1. Member States shall bring into force the laws, regulations and administrative provisions 
necessary to comply with this Directive before 1 January 199. They shall forthwith 
inform the Commission thereof. 
When Member States adopt these provisions, these shall contain a reference to this 
Directive or shall be accompanied by such reference at the time of their official 
publication. The procedure for such reference shall be adopted by Member States. 
2 Member States shall forthwith communicate to the Commission the text of the main 
provisions of national law which they adopt in the field covered by this Directive. 
Article 11 
This Directive shall enter into force on the third day following that of its publication in the 
Official Journal of the European Communities. 
Article 12 
This Directive is addressed to the Member States. 
Done at Brussels, For the Council 
The President 
15 
Proposal for a 
COUNCIL REGULATION fEO 95/0122 (SYN) 
amending Regulation (EEC) No 1101/89 on structural improvements 
in inland waterway transport^ 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in particular 
Article 75 thereof, 
Having regard to the proposal from the Commission(1), 
In cooperation with the European Parliament^, 
Having regard to the opinion of the Economic and Social Committee(3), 
Whereas Council Regulation (EEC) No 1101/89(4), as last amended by Regulation (EC) 
No ..../95(5), introduces measures for structural improvements in the inland waterway sector; 
whereas that Regulation sets out to reduce structural overcapacity in inland waterway 
transport by providing for vessel-scrapping schemes coordinated at Community level; 
Whereas Regulation (EEC) No 1101/89 provides for the possibility of Community financing 
for 1995 to 1998; whereas the procedure for 1996, 1997 and 1998 has still to be determined; 
Whereas the system of structural improvements currently in force is in principle to be 
financed primarily by the operators in the sector; whereas the latter must provide this 
financing through annual contributions; 
Whereas public contributions must be granted annually, in line with the contributions made 
by the trade; whereas measures are scheduled for a period of three years from 1996 to 1998; 
whereas they must be assessed annually; 
(*) 
(i) 
(2) 
(3) 
(4) 
(5) This proposal is drafted in the light of the proposal for an amendment to 
Regulation (EEC) No 1101/89 submited by the Commission on ... (Doc. ...). 
OJNoL 116, 28.4.1989, p. 25. 
16 
HAS ADOPTED THIS REGULATION: 
Article 1 
The following paragraphs are added to Article 4(a) of Regulation (EEC) No 1101/89: 
"4. Financial contributions from the Community for 1996, 1997 and 1998 shall not be 
more than double the contributions from the trade. 
5. The Member States in question shall jointly make available from their funds similar 
amounts to those from the Community for the years mentioned in paragraph 4. The 
proportionate share of each Member State concerned shall be calculated against the 
size of its active fleet as compared with the Member States. These amounts shall 
be determined by the Commission in conjunction with the authorities of the various 
scrapping funds. 
6. At the beginning of each year during the scrapping operations for 1996 to 1998 the 
Commission shall lay down, as part of this Regulation, the procedures for scrapping 
for the year in progress as a function of available finances, market developments 
and liberalization measures taken." 
Article 2 
This Regulation shall enter into force on the twentieth day following that of its publication 
in the Official Journal of the European Communities. 
This Regulation shall be binding in its entirety and directly applicable in all Member States. 
Done at Brussels, For the Council 
The President 
17 
Proposal for a 
COUNCIL REGULATION (EQ 95/0123 (SYN) 
amending Regulation (EEC) No 1107/70 on the granting of aids for transport 
by rail, road and inland waterway 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in particular 
Article 75 thereof, 
Having regard to the proposal from the Commission(1), 
In cooperation with the European Parliament^, 
Having regard to the opinion of the Economic and Social Committee(3), 
Whereas Regulation (EEC) No 1107/70(4), as last amended by Regulation (EC) No ...(5), 
provides in Article 3(1) that the Member States may grant aid designed to facilitate the 
development of more economic transport systems and technologies for the community in 
general, and the development of combined transport; 
Whereas the growing problems of road and rail saturation, transport safety, environment, 
energy saving and quality of life call, in the public interest, for greater development and better 
use of the transport potential offered by inland waterway, in particular by improving its 
competitiveness; 
Whereas the costs of loading and unloading form a significant part of the total cost of 
transport by inland waterway; whereas it is essential to the development of inland waterway 
transport for major investments to be made to render loading and unloading installations more 
efficient and better suited to the current logistical requirements and thereby help to develop 
inland waterway transport; 
Whereas, to this end, support should be given to investments in equipment, infrastructure 
and/or machinery for inland waterway terminals which help to create or increase traffic by 
inland waterway; whereas, consequently, it is important that aid granted by the Member States 
or through State resources can be made available to the undertakings concerned; 
Whereas harmonized conditions should be laid down for the granting of this aid for the 
development of inland waterway transport; whereas the impact of the aid must be assessed 
at regular intervals; 
0) 
(2) 
(3) 
(4) OJNoL 130, 15.6.1970, p. 1. 
(5) 
18 
Whereas this aid must be granted for a sufficiently long period for the said investment in 
equipment to have the time to win over the market and bring new traffic to inland waterways; 
whereas those aid arrangements should remain in force until 31 December 1999; whereas the 
Council should decide, under the conditions set out in the Treaty, on subsequent arrangements 
or, where appropriate, on the conditions under which those arrangements will be terminated; 
Whereas it is necessary to adjust Community provisions on aid; whereas, as a result, 
Regulation (EEC) No 1107/70 should be amended, 
HAS ADOPTED THIS REGULATION : 
Article 1 
The following letter is added to Article 3(1) of Regulation (EEC) No 1107/70 : 
"(f) up to 31 December 1999, where aid is granted on a temporary basis and is designed to 
facilitate the development of inland waterway transport, such aid having to be either: 
investments in the infrastructure of inland waterway terminals; 
or: 
investments in the fixed and mobile equipment needed for loading and unloading. 
The aid granted may not exceed 50% of the total amount of investment. 
The beneficiaries of this aid shall undertake to provide new or additional transport 
tonnage on the inland waterway, to be determined with the competent authorities of the 
Member States, for a period of five years. In the event of failure to honour this 
undertaking the aid shall be recovered by the competent authority. 
Every two years the Commission shall submit to the European Parliament and the 
Council a progress report on the implementation of the measures, stating in particular 
the purpose of the aid, the amount and its impact on inland waterway transport. 
The Member States shall provide the Commission with the information needed to 
establish this report. 
No later than 31 July 1999 the Council shall decide, on a proposal from the Commission 
and under the conditions set out in the Treaty, on subsequent arrangements or, where 
appropriate, on the conditions for terminating those arrangements." 
19 
Article 2 
This Regulation shall enter into force on the twentieth day following that of its publication 
in the Official Journal of the European Communities. 
This Regulation shall be binding in its entirety and directly applicable in all Member States. 
Done at Brussels, For the Council 
The President 
20 
FINANCIAL STATEMENT 
Budget Line B2-708: Scrapping actions in inland waterway transport. 
1. TITLE OF OPERATION 
Structural reform actions in inland waterway transport. 
2. BUDGET HEADING INVOLVED 
B2-708 line. 
3. LEGAL BASIS 
Article 75 of the EEC Treaty. 
Council Regulation (EEC) No 1101/89 of 27 April 1989 relating to structural improvements 
in inland waterway transport (OJ EEC of 28 April 1989), last amended by Regulation (EC) 
No 844/94 (OJ No L 98 of 16.4.1994, p. 1). 
Amendment of Council Regulation No 1101/89 by Council Regulation (EC) No / 95. 
4. DESCRIPTION OF OPERATION: 
4.1 General Objective: 
Temporary and additional financial contribution by the Community to the scrapping 
programme in order to significantly reduce structural carrying overcapacity, estimated 
at approximately 15% in both sectors (dry cargo and tankers), and thus to improve the 
structure of inland waterway transport. This intervention is justified in the first instance 
by particularly severe economic circumstances, which mean that it is no longer possible 
to increase the level of contributions made by the profession - which is currently 
financing its own structural reform programme. However, this proposal is essentially a 
supporting measure in the Community programme of progressive liberalization of the 
inland waterway market which is planned for the next few years. These wide-ranging 
measures, which were requested by the Council, aim to guarantee the sustainable 
competitivity of the sector. For this purpose, additional financial resources are needed, 
funded simultaneously from the Community budget, by the Member States concerned 
and by the profession. 
4.2 Period covered and arrangements for renewal. 
3 years: 1996-1997-1998. Any extension of the action after 1998 will have to be 
financed entirely by the profession itself. 
21 
5. CLASSIFICATION OF EXPENDITURE or REVENUE 
5.1 Non-compulsory expenditure 
5.2 Differentiated appropriations 
5.3 Type of revenue involved: none. 
6. TYPE OF EXPENDITURE or REVENUE 
subsidy for joint financing with other sources in the public and private sector. 
Should the operation prove an economic success, is there provision for all or part 
of the Community contribution to be reimbursed? NO. 
Will the proposed operation cause any change in the level of revenue ? NO. 
7. FINANCIAL IMPACT 
7.1 The annual amount needed for the structural reform of carrying capacity (15% of overall 
overcapacity, being 1 500 000 tonnes for the dry cargo fleet and 300 000 tonnes for the 
tanker fleet) is estimated at ECU 64 million/year over three years, from 1996 to 1998, 
or ECU 192 million composed of ECU 142 million for the dry cargo fleet and 
ECU 50 million for the tanker fleet. 
In making this calculation, one must take into account the effects of the liberalization 
process on the inland waterway market, which will at the same time expel numerous 
boats which are incapable of surviving in an open market from the rotation systems. 
One must also take account of the accession of Austria and the integration of its fleet 
into the Community programme, as well as the fact that the scrapping premiums have 
not been modified since 1990 (an overall increase of 15%, with variations according to 
the category of boat, is judged necessary). 
The level of annual contributions by the profession for the 3 years 1996-1997-1998 is 
set at approximately ECU 14 million a year, i.e. ECU 42 million for the period under 
consideration. 
However, ECU 12 million of this amount must be used for repaying the amounts pre-
financed by the Member States for the 1990, which leaves only ECU 30 million for the 
new action. 
It is therefore proposed that the difference, i.e. 192-30=ECU 162 million, be financed 
from the Community budget and by the Member States concerned, distributed over 
3 years (1996-1997 and 1998). In view of the current and projected budgetary resources, 
the community is already in a position to be able to intervene to the tune of 
ECU 40 million over 3 years (ECU 20 million in 1996 and ECU 10 million in 1997 and 
1998). The Commission will nevertheless will keep open the option of mobilising 
supplementary resources depending on the future budgetary situation. 
22 
The outstanding part of the funding for the scrapping action, i.e. at least half 
(ECU 81 million) and at most ECU 122 million, will come from the national budgets of 
the Member States concerned, the actual amount being set in proportion to the size of 
their respective fleet. For example, Germany, whose fleet accounts for 30% of the 
Community fleet, should therefore part-finance at most (depending on the resources 
allocated by the community in 1997 and in 1998) an amount of ECU 36,6 million 
(122x30:100), i.e. ECU 12.2 million/year or approximately 22 million DM/year. As far 
as this particular example is concerned, these resources partly exist already in the 
German budget, which allocated DM 60 million to be distributed over 3 years for a 
scrapping programme of this type. 
7.2 Itemized breakdown of cost 
EC in MEcus 
Budget 
CONTRIBUTION TO 
THE SCRAPPING ACTION 
TOTAL Allocation 
95 
5.0 
5.0 PDB 96 
20.0 
20.0 97 
10.0 
10.0 98 
10.0 
10.0 
7.3 Schedule for multiannual operations. 
The budget of ECU 40 million is for the period 1996 - 1998 
EC in MEcus 
Accumu­
lated 
position 
end 1994 
(1) 
0 1995 
budget 
5.0 PDB 
1996 
20,0 Indicative plan 
1997 
10.0 1998 
10.0 1999 2000 
and 
subs. 
yrs. TOTAL 
45.0 
8. FRAUD PREVENTION MEASURES; RESULTS OF MEASURES TAKEN 
Management will be carried out in accordance with Council Regulations (EEC) 
No 1101/89, Commission Regulation No 1102/89 and on the basis of Regulation (EC) 
No .... amending Regulation No 1101/89. The management of each national scrapping 
fund is the responsibility of the competent authorities of the Member State concerned. 
At the beginning of each year, the Commission, in collaboration with the authorities of 
the national scrapping funds, shall balance the accounts and shall ensure financial 
coordination between the various national scrapping funds. 
23 
9. ELEMENTS OF COST-EFFECTIVENESS ANALYSIS 
9:1 Specific and quantifiable objectives; target population 
Specific objectives.Considering the structural weakness of the inland waterway 
transport sector and the interest that exists in exploiting the advantages of this mode 
of transport, the aim of this action is to bring about structural improvements in the 
inland waterway market in parallel with its progressive liberalization, while 
endeavouring to reduce the structural overcapacity of the fleet which is currently 
estimated at approximately 15%. 
Target population: Inland waterway operators. 
9.2 Grounds for the operation 
The need for Community financial aid is justified by the need for measures aimed 
at restructuring the sector which must accompany the process of the inland 
waterway market. This restucturing will be achieved by a reduction of the size of 
the fleet brought about by the temporary additional co-financing by the Community. 
In addition, the Council, in its resolution of 24.10.1994 (published in the 
OJ No C309/5 of 5.11.94) stated that to guarantee the long-term competitiveness of 
the sector, it was important to proceed to a substantial new structural reform. If 
additional measures proved necessary after 1998, these would be a matter for the 
profession alone. 
Choice of ways and means 
Scrapping premiums * 
Operation of the measures for structural improvement in inland waterway 
transport laid down in Commission Regulations (EEC) No 1102/89 and 
No 690/92. The management of the scrapping funds is the responsibility of 
each Member State concerned. The Commission is instructed, on the basis of 
Article 6 of Regulation (EEC) No 1101/89, in particular paragraph 5, to 
determine the conditions for allocating these scrapping premiums. 
9.3 Monitoring and evaluation of the action 
Performance indicators 
* Level of requests for scrapping premiums accepted. 
The scrapping premium must be paid by the authorities of the national 
scrapping funds within a month of the date on which the owner provided proof 
of scrapping. The authorities of the national scrapping funds must forward to 
the Commission each month a list of payments of scrapping premiums in order 
for it to check the state of progress of the action. 
* Tonnage and carrying capacity subject to contribution in the various Member 
States concerned which is actually scrapped. 
24 
Details and frequency of planned evaluation: 
Six-monthly reports and final Report at the end of 1998, carried out by Commission 
services, intended for the Member States as well as for the European professional 
organizations. 
Paragraph 2 of Article 10 of Council Regulation (EEC) No 1101/89 of 27 April 
1989 stipulates that Member States must forward all relevant information on the 
development of the current scrapping action to the Commission every 6 months. 
This information relates in particular to the financial position of the funds, the 
number of requests for scrapping premiums submitted, and tonnage actually 
scrapped. 
Since then, Commission departments have drawn up a six-monthly report. The tenth report 
(for the period from 01.07.1994 to 31.12.1994) was distributed to the profession and to the 
Member States concerned on 15 March 1995. In addition, Article 6 paragraph 6 of Regulation 
(EEC) No 3690/92 provides for Member States, at the end of each quarter, to forward to the 
Commission a list of requests for scrapping premiums as well as a complete table of the 
financial resources available, in order for a quarterly meeting to be held in Brussels,. 
10. ADMINISTRATIVE EXPENDITURE (PART A OF THE BUDGET) 
The efficient use of the administrative resources which are called for will depend on the 
annual decision of the Commission regarding its own resources; this in turn will depend 
largely on the increased staff and additional money provided by the budgetary authorities. 
10.1 The action requires the recruitment of an additional A category official to implement the 
package of measures for liberalizing the inland waterway transport market (already 
allocated in the resource framework for 1995). 
10.2 The other operational and personnel costs engendered by the action are covered by the 
normal allocation to the DG and are not likely to result in significant increases, given 
that the work involved is part of actions which are mainly external, (for example, the 
coordination of the national scrapping funds). 
25 
IMPACT EVALUATION FORM 
IMPACT OF THE PROPOSALS ON FIRMS AND IN PARTICULAR ON SMALL 
AND MEDIUM-SIZED ENTREPRISES 
Title of the proposals : 
Proposal for a Council Directive (EC) of ... 1995 on the systems of 
chartering and pricing in national and international inland waterway transport in the 
Community. 
Proposal for a Council Directive (EC) of ... 1995 amending Council Regulation (EEC) 
No 1101/89 on structural improvements in inland waterway transport. 
Proposal for a Council Directive (EC) of... 1995amending Regulation (EEC) No 1107/70 
oh the granting of aids for transport by rail, road and inland waterway transport. 
The proposals 
1. With regard to the principle of subsidiarity (see chapter V of the communication to the 
Council), why is community legislation necessary in this field and what are its main 
goals ? 
The disparities in national laws on commercial waterway operations do not contribute to the 
proper functioning of the single market in this sector. The completion of the single market 
calls for a further harmonisation of the different rules presently applying to different market 
segments of the Union's waterways market. Indeed, it is difficult to understand, in particular 
from a shippers point of view, why certain shippers, because of their place of establishment, 
are obliged to work via the so-called "tour-de-role" system (sharing of cargoes to be 
transported, at fixed tariffs and uniform conditions, between waiting vessels according to their 
position in the queue after being unloaded), whilst other shippers can operate in a free market. 
To promote transport by waterways, it is desirable gradually to replace existing regulations, 
likely to hinder its development, by a system of free chartering and free pricing (1st proposal). 
In order to ensure the necessary uniformity and transparency, a timetable should be set at 
Community level for this progressive liberalization of the market, so enabling the Member 
States concerned to act in a synchronised manner. Because of the socio-economic problems 
in the waterway sector and the structural changes required as a result of its progressive 
liberalization, an accompanying measure is called for, that is a new scrapping action of a 
considerable size (see Council Resolution of 26 October 1994) in order to ensure enduringly 
the competitiveness of the sector (2nd proposal). 
Lastly, the 3rd proposal allows the possibility of state aids for investments in terminal 
infrastructure an/or equipment in order to stimulate waterway traffic. This measure is inspired 
by the existing rules for aid for combined transport. 
26 
In the market concerned, for instance in North-South traffic between the Netherlands and 
Belgium, the number of single-trip contracts ("assignments", see below) is going down since 
many years (see page 41 of the report of NEA of 24/02/1995 on market observation in inland 
navigation). One of the reasons is that shippers object the tour-de-rôle system (too rigid, no 
free choice of carrier, etc.) and turn to alternatives. 
In order to make waterway carriage more attractive, measures are called for such as 
progressive deregulation with accompanying measures. 
Average waiting time and assignments in Tour-de-Rôle traffic from Netherlands to Belgium 
waiting days / assignments 
20 
assignments (x 50) 
i i i i i i r~i i iiii i i i i m—i—i 
1224123412 3 4123 41 2341234 
1999 | 1990 | 1991 | 1992 | 19*3 ( 1994 
Quartor/yoar 
Source: NEA 
27 
Impact on the companies 
1':' Who will be affected by the proposals ? 
(a) Direct impact (possibilities of new activities). 
shippers in B, F and NL. 
private owner operators 
ship owner companies (companies with more than 3 vessels) 
groupings or cooperatives of private owner operator 
other operators (terminal operators, inland ports ...) 
Positive impact : the liberalization of the market will make waterway transport more attractive 
to the users and will make these services more competitive compared to other transport modes. 
(b) Indirect impact (provision of transport services). 
all enterprises needing transport (shippers). 
Positive impact : will dispose of improved services; allieviation of road congestion. 
3. What measure will companies have to take to conform to the proposal ? 
The private owner operators, that participate in the rota systems progressively have to give up 
this freight distribution system. They will have to reorganize; so as to adapt to free market 
conditions, either by creating commercial groupings or by putting the accent on marketing and 
logistics. Those who want to leave the business will benefit from scrapping premiums. 
4. What economic effects is the proposal likely to have ? 
Positive impact on the waterway market. The research institutes NEA and PLANCO made, 
on behalf of the Commission, an estimate of the additional freight volume for waterways that 
would follow the liberalization of the market. According to these institutes the increase should 
be in the order of 6 to 7 million tonnes per annum, which is more than 10 % of the total 
freight currently handled by the various rota systems. However, the psychological effect on 
shippers of such measure, in combination with the stimulation measures contained in annex 
III, could lead to a substantial higher outcome. 
Negative impact on owner-operators with low levels of performance, who may have to leave 
a more competitive market, but who can nevertheless receive an aid in the form of a scrapping 
premium for their vessels. 
5. Do the proposals contain measures intended to take account of the specific situation of 
small and medium-sized enterprises (SME's) ? 
Precisely because of the specific socio-economic structure of the sector (atomisation of the 
waterway industry with a strong majority of single owner operators) the proposals provide for 
a™1tieasures to accompany the liberalisation in order to reduce the structural weaknesses of the 
sector and to promote waterway carriage. In addition, the Commission is authorized to lay 
down the rate of the scrapping premium for different vessel types and tonnage-classes and 
hence has the possibility of ensuring that the smallest SME's will not be disadvantaged. 
28 
Consultation 
6. List of the organizations which were consulted on the proposals and statement of the 
essential elements of their position 
O.E.B./E.S.O. European Organization of Barge owner operators 
U.I.N.F/LBU. International Union of inland waterway operators 
U.N.I.C.E. International Union of Industries in the Community 
F.E.P.I. European Federation of Inland Ports 
C.S.T. Committee of trade unions in transport 
CX.E.C.A.T. Freight forwarders • 
General agreement on the need for a transitional period before total liberalisation of the 
market, except for O.E.B. which fears that the liberalisation proposal of annex I will only 
have an impact on transport prices and considers that prior to liberalisation the waterway 
sector has to be rehabilitated. However, the organization welcomes the proposals set out 
in annex II and III. 
All organizations consider it useful to improve the market observation system. O.E.B. 
considers this even a condition for liberalisation. 
It is commonly felt that the quantified objective for a new action to take structural 
overcapacity out of the market in the period 1996-1997-1998 is around 15 %. However, 
to take into account the effects of a likely improvement of the general economic 
situation, it seems necessary to spread this over 3 years (5 % p.a. x 3) with the 
possibility of reviewing the situation at the end of each year. 
The measures to promote inland waterway traffic were endorsed by all organizations and 
in particular by those in favour of a specific waterway terminal policy. This type of 
policy was vividly supported by U.N.I.C.E. and CX.E.C.A.T. in particular. 
29 

ISSN 0254-1475 
COM(95) 199 final 
EN 07 
Catalogue number : CB-CO-95-229-EN-C 
ISBN 92-77-89143-2 
Office for Official Publications of the European Communities 
L-2985 Luxembourg 
30