Communication from the Commission to the Council and the European Parliament concerning the Euro-Mediterranean Partnership in the Transport Sector
Date: 1998-01-16
Institutions: European Commission
Subjects: Mediterranean third countries, bilateral agreement, common transport policy, cooperation policy, transport network

COMMISSION  OF THE  EUROPEAN  COMMUNITIES 

Brussels,  16.01.1998 
COM(1998) 7  final 

Communication from the Commission to the Council and the European Parliament 

concerning 

the Euro-Mediterranean Partnership in the Transport Sector 

CONTENTS 

EXECUTIVE SUMMARY 

1. INTRODUCTION. 

2. THE GENERAL CONTEXT FRAMEWORK FOR COOPERATION IN THE MEDITERRANEAN 

2.1 The Euro-Medterranean Partnership 

2.2 Trade and transport flows: current situation and forecast» 

2.3 Blataral agraamants 

2.4 Tha apacHc case of Cyprus 

,. 

3. THE TRANSPORT CONTEXT: A EURO-MEDITERRANEAN STRATEGY FOR TRANSPORT 

3.1 General objectives and principles 

3.2 The Mediterranean dimension of Community transport policy 

3.2.1 The White Paper 

3 

4 

4 

5 

6 

7 

7 

7 

10 

10 

3.2.2 The Trans-European Networks and their integration with transport networks in the Mediterranean partners 

10 

3.2.3 Maritime transport 

3.2.4 Air transport 

3.2.5 Air Traffic Management (ATM) 

3.2.6 Navigation and Positioning Network (GNSS) 

3.2.7 Rail and combined transport 

3.2.8 Statistics 

3.3 Research and development 

4. SUB-REGIONAL CO-OPERATION IN TRANSPORT 

4.1 The Western Mediterranean 

4.2 Regional co-operation on transport in the Middle East 

4.3 Eastern Mediterranean and the link to the Black Sea 

4.4 Cyprus 

5. INSTRUMENTS FOR IMPLEMENTING THE COMMUNITY'S STRATEGY 

5.1 Financial Instruments 

5.1.1 MEDA 

5.1.2 The European Investment Bank 

5.2 Conclusions and recommendations 

SUMMARY TABLE OF ACTIONS TO BE TAKEN 

11 

13 

13 

13 

14 

14 

15 

16 

16 

16 

17 

17 

18 

Iti 

1» 

19 

20 

21 

Executive Summary 

The Euro-Mediterranean Partnership, adopted at the Barcelona Conference in November 1995, 
heralds  a  new  era  and  approach  for  the  Community's  relations  with  the  countries  in  the 
Mediterranean  basin,  which  are  among  the  Union's  oldest  and  closest  partners.  The 
Partnership is based on three linked pillars: that of a political and security partnership, economic 
and financial co-operation, and social, cultural and human exchange. 

The  new approach  adds  a  multilateral  and  global  dimension  to  Euro-Mediterranean  relations. 
The new Euro-Mediterranean Partnership aims to increase the flows of goods and people within 
the  region.  This  Communication  is  intended  to  define  a  framework  for  co-operation  in  the 
transport sector to achieve improved integration of networks and therefore help create a space 
in which people and goods can move more easily. 

More  specific  objectives  are  defined  for  transport  infrastructure  (the  inter-connection  of  the 
national  networks  of transport  infrastructures  in all the countries  in question  in order  to  create 
multimodal  and  inter-operable  networks)  as well as for  transport  services  (to  ensure  that  the 
most efficient and cost-effective transport services can operate with a high standard, in terms of 
social, safety and environmental domains, across a common transport space covering the whole 
of  the  Euro-Mediterranean  Partnership  region).  These  are the  objectives  which  should  guide 
Community policy and actions in this domain. 

In defining  its  objectives  and associated working  principles, the  Community  has  been  able  to 
base  itself  on  some  initiatives  already  taken  within  the  Union  (such  as  the  Trans-European 
Networks  or its  Maritime  Strategy).  The  Euro-Mediterranean  Partnership  has  also  provided a 
forum for  considering  the widening  of  these  (as well  as the  Community's  Common  Transport 
Policy in general) to its Mediterranean Partners. 

The  Communication  announces  a  comprehensive  action  plan  for  achieving  integration  and 
improved  co-operation  in  the  region,  as  well  as  the  establishment  of  a  group  with  the 
Community's  partners  for  meetings  and  exchanges  of  information  on  transport  projects  of 
common interest in the Mediterranean and foresees co-operation on the implementation and co 
ordination of projects. 

1. 

INTRODUCTION 

Over  recent  years  the  Community  has rethought  its  relationship  towards  the  Mediterranean 
region, culminating in the development of a Euro-Mediterranean Partnership1, as adopted at the 
Barcelona Conference in November  1995.  The new approach proposed by the Community is 
global in nature and aims to create a free trade area in the Mediterranean  basin by the year 
2010. This  Partnership  has three objectives: a political and security  partnership; economic 
and financial cooperation; and social, cultural and human exchange. 

Transport  has a crucial role  : increased  exchanges  of goods and people will  require  effective 
and sustainable transport services.  Consequently the conclusions of the Barcelona Conference 
include statements that the participants: 

"stress the importance of developing and improving infrastructures,  including  through the 
establishment of an efficient transport system..." and "...undertake to respect the principles of 
international maritime law,  in particular freedom to provide services in international transport 
and free access to international cargoes..." 

The work programme attached to the Barcelona Declaration states that cooperation in the field 
of transport will concentrate on : 

"the creation of an efficient air-sea multimodal transport system in the Mediterranean,  through 
the  improvement and the modernisation  of ports and airports, the removal of  unjustified 
restrictions,  the simplification  of procedures,  the improvement of maritime and air safety,  the 
harmonisation  of environmental  rules at a high level, including a  more effective control  of 
pollution caused by maritime  transport,  and the creation  of harmonised  traffic  management 
systems; as well as the development of east-west land links on the southern and  eastern 
shores of the Mediterranean,  and the connection of Mediterranean transport networks to the 
Trans-European Network in order to ensure their inter-operability." 

The  aim of  this  Communication  is to formulate  such  a  strategy  in detail  and to  consolidate 
actions already undertaken (detailed below) and yet to begin into that context.  Chapters 2 and 3 
of  this  Communication  examine the transport  context  of the Euro-Mediterranean  Partnership. 
both  in terms  of  trade  and transport  flows  in the region  and in terms  of  the  Mediterranean 
dimension  of  Community  transport  initiatives.  Chapter  4  records  current  sub-regional 
cooperation  and Chapter  5  outlines  the  instruments  available  to  support  current  and future 
actions on transport within the Euro-Mediterranean Partnership. 

This  Communication  will  serve  as the basis  for  developing  a  comprehensive  action  plan for 
implementing the objectives set out in this paper.  Sectoral work programmes have already been 
drawn up for maritime transport and for transport research and development and these could be 
integrated into the action plan for transport. 

2.  THE GENERAL CONTEXT  :  FRAMEWORK FOR COOPERATION IN THE MEDITERRANEAN 

2.1 

The Euro-Mediterranean Partnership 

The fulfilment of the objectives  of the Euro-Mediterranean  Partnership will require an efficient, 
safe, environmentally sustainable and competitive transport network. 

Attaining  the  objective  of  creating  a  Euro-Mediterranean  free-trade  zone  means  removing 
barriers to trade between the European Union and each of the Mediterranean partner countries, 
as well as between the partner countries themselves.  This is fundamental to ensuring a long-

' 
In  this  Communication,  the  Euro-Mediterranean  partners  are  those  who  participated  in  the 
Barcelona  Conference,  i.e. the Union and its Member  States, Algeria,  Cyprus,  Egypt,  Israel, Jordan,  Lebanon, 
Malta,  Morocco,  Syria,  Tunisia, Turkey and the Palestinian Authority. 

term balanced development for such countries and reducing their dependence  on Europe and 
on European markets where important decisions concerning terms of trade are taken outside of 
their control. 

2.2 

Trade and transport flows: current situation and forecasts 

Current situation: freight transport 

About 150 million tons of goods are transported per year between the European Union and the 
12 Mediterranean partners (around 10% of the Union's external trade by weight).  The principal 
transport  modes  used  are  maritime  (75% of  all  transports)  and  pipelines  (17%).  40%  of  this 
transport is between the  European  Union and Algeria due to the large traffic  of  hydrocarbons; 
the 3 Maghreb countries (Algeria, Morocco and Tunisia) together account for about 50%.  In the 
Eastern Mediterranean the most important trade partners (by weight of goods) are Egypt, Syria 
and Turkey.  Turkey alone absorbs 25% of  EU exports to the Mediterranean  partners and it is 
the only trading partner where land transport to and from the EU plays a role. 

Less  than  half  a  million tons  of  goods  (0.3%)  was  transported  by  air  between  the  European 
Union and the Mediterranean partners in  1993, out of which approximately  40% to/from  Israel 
In  Europe  more  than  half  of  the  total  amount  of  air  freight  to/from  the  partnership 
alone. 
countries  passed through airports  in Germany  and the  Netherlands,  although  it is likely  that a 
large part of the goods transported through these countries are destined for/coming from other 
European  countries,  either  by  air,  or  (most  probably)  by  road.  No  precise  statistics  are, 
however, available. 

Trade between the  European  Union (EU  12) and  11 Mediterranean  partners2 

1993, mk> tons 

EU imports 

EU exports 

sea 

pipeline 

road 

rail 

air 

other 

total 

trade by value, bill ECU 

ECU/ ton 

73(70%) 

40(87%) 

26  (25%) 

0 

3  (3%) 

4  (9%) 

0.1 

0.2 

18 

104 

28 

270 

0.7 

0.2 

0.3 

46 

43 

940 

In contrast to movements between the European Union and the Mediterranean  partners, inter 
regional trade is very low, particularly in the Maghreb. 

(source. Eurostat external trade statistics) 

Morocco-Maghreb 

Exports: 6%;  imports:  2.3% 

Tunis-Maghreb 

Exports: 6.4%;  imports:  4.5% 

(Source: Inframed) 

Intra-Maghreb air transport flows of both business travellers and freight are almost non-existent. 
At the same time, 90% of  international traffic  of  Maghreb airlines takes  place with Community 
Member  States  -  70-80%  of  Maghreb  international  trade  taking  place  with  these  countries. 

The Palestinian Authority is excluded from these kjures, although  tr,ido flows  to <md horn the qooffr.iplm:  ,110,1  now 

controlled by the Palestinian Authority are included with those to and from Israel 

Moreover, there is a strong imbalance in transport flows between the two regions: by weight the 
Union  imports  twice  as  much  as  it  exports  (more  than  100  million  tons  versus  less  than  50 
million tons).  By  value,  however,  the  EU  shows  a trade  surplus,  since  the  value  of  goods 
exported  is  3.5  times  as  high  as that  of  goods  imported,  due  to  the  nature  of  goods  traded 
(imports:  energy,  minerals,  agro-foodstuffs,  exports:  manufactured  goods,  finished  and semi 
finished products). 

Current situation: passenger transport 

The principle mode used for passenger movements between the Union and the Mediterranean 
partner countries is air transport.  In 1993 the total flow of air transport passengers between the 
European Union and the Mediterranean partners was approximately 28 million, out of which the 
non-scheduled market accounted for more than half (54%).  Turkey and Tunisia were the two 
most  important  Mediterranean  partners,  representing  respectively  34%  and  16% of  the  total 
traffic. 

Among the European Union countries, Germany,  UK and France alone generated almost 75% 
of all air traffic.  While nearly two thirds  of the traffic from Germany  and the  UK went  by non-
scheduled flights,  mostly  to Turkey  and Tunisia  (from the  UK  also  to  Malta  and  Cyprus),  the 
French traffic was, however,  characterised by a much bigger portion of scheduled  passengers 
(70%), half of which was destined for the Maghreb countries. 

Forecasts 

Transport  flows  between  the  EU and the  Mediterranean  partners  will  continue  to  grow  in the 
future, but their development  is difficult to forecast  accurately  since  it is closely  linked with the 
development of the market for hydrocarbons, which make up 90% of imports of the EU from the 
Mediterranean  partners.  Petroleum  imports  from  North  African  countries  fell  for  example  in 
1993 but they increased in 1994.  Fertilisers (phosphates) make up another 5% of imports. 

Indirectly, the Euro-Mediterranean Partnership should also lead to an expansion of trade flows, 
and  therefore  of  traffic  flows  as  an  increased  awareness  of  market  potentials  between 
Mediterranean  partners  (created  by  the  activities  that  the  Euro-Mediterranean  Partnership  is 
promoting)  results  in the greater  use of  these  markets which  are  so  close.  Furthermore,  the 
Euro-Mediterranean Partnership will also be working on the indirect barriers to trade such as the 
promotion of co-operation in a number of sectors, or trade facilitation.  Some of these  planned 
measures in transport are detailed in Chapter 3 below. 

This forecast increase in trade flows applies  not only to links between the Community  and the 
Mediterranean  partners,  but  also  between  these  partners  themselves,  as  promoting  regional 
integration between these is a key objective of the  Partnership.  Indeed, many  of the  planned 
measures detailed below will be targeting this specific objective. 

All  of  this  reinforces  the  importance  of  an  adequate  preparation  of  the  Euro-Mediterranean 
Partnership  in  the  transport  sector  -  a  preparation  which  has  already  begun  in  a  number  of 
transport fields. 

2.3 

Bilateral agreements 

The main instrument devised by the Commission for creating the desired free trade area is the 
series  of  Euro-Mediterranean  Agreements  negotiated  or  under  negotiation  with  the  partners. 
These Agreements are at various stages of preparation, negotiation or ratification.  In the case 
of Turkey, Cyprus and Malta, relations are covered by Customs Union arrangements. 

The Agreements  or draft Agreements  provide for early  negotiations  leading  to  liberalisation  of 
trade in services. In the transport sector, the aim for  maritime transport will be to  establish the 
principle of  unrestricted access to the international  maritime transport  market.  Other  transport 
modes are exempted from the standard provisions on rights of establishment  and operation in 
these  Agreements.  However,  most  of  the  Agreements  contain  a  commitment  to  negotiating 

sectoral market access agreements  in road,  rail,  inland waterways  and air transport  at  a later 
date. 

Each Agreement also aesdresses technical co-operation in the transport field, En  order to target 
the Community's technical assistance programmes to the restructuring and modernising of their 
transport networks.  Furthermore, financial protocols signed in 1995 with Malta and Cyprus with 
a view to preparing their accession to the EU (although Malta's position has now changed) cover 
transport and infrastructure, and a resolution of the EU-Turkey Association Council calls for an 
extension of the area of co-operation to transport. 

2.4 

The specific  case of Cyprus 

Following its signature of an Association Agreement on a Customs Union with the Community in 
1972, Cyprus entered into the process of Structured Dialogue with the European Union3 with a 
view to preparing its accession. This dialogue is intended to provide a framework for addressing 
topics of  common interest related to the implementation  of a pre-accession  strategy,  including 
(in the transport sector) inter alia: 

•  continued support for the process of approximation of its legislation; 

•  examination of means of extension to Cyprus of the transport Trans-European Networks; 

•  participation in the Euro-Mediterranean Partnership. 

Relations  with Cyprus  on transport  address  issues  in maritime,  air,  combined  and  multimodal 
transport, so as to avoid the imbalances resulting from an excessive concentration on individual 
modes.  These points will be developed further in 4.4 below. 

3.  THE TRANSPORT  CONTEXT:  A EURO-MEDITERRANEAN  STRATEGY  FOR  TRANSPORT 

3.1  General objectives and principles 

The Community's  general objective is the integration of transport  networks  both between the 
Community  and  the  Mediterranean  partners,  and  between  the  partners  themselves.  As 
indicated  in  Chapter  1,  the  transport  element  of  the  Barcelona  Declaration  focuses  on 
infrastructure, as well as mentioning specifically maritime transport as a service, and the need 
to respect the principles of international maritime law, in particular freedom to provide services in 
international transport and free access to international cargoes. 

If we take first transport infrastructure, the objective is the inter-connection of the networks of 
transport  infrastructures  in all partners  in the region in order to create  an inter-regional, cross-
area, multimodal and inter-operable network.  To achieve this: 

• 

the  international  community,  and  the  Community  in  particular  (inasmuch  as  it  has  a  co 
ordinating  role)  should  concentrate  its  planning  and  financial  efforts  on  infrastructure 
projects  of  an  international  importance  rather  than  those  of  a  purely  national 
importance; 

•  multimodal transport networks should be planned reflecting real and anticipated flows 
of goods and passengers,  in an exercise  involving all the countries  in a region to ensure 
that the realisation of transport networks takes place in a coherent and co-ordinated fashion, 

•  once  transport  networks  have  been  defined, the  participants  should  identity  bottlenecks 
and impediments to smooth traffic flows as weH as missing links in the networks, in order 
to focus on projects to tackle these; 

Resolutions ofGw EU/Cypms and EU/MaHa Association Councils on 12 June 1995 

7 

• 

• 

in planning multi-modal transport networks, an emphasis should be given to  improving links 
between  ports and their hinterland, particularly  important given the  potential  role of  short 
sea  shipping  and the  possibility  of  creating  an integrated,  multimodal  door-to-door  service. 
Often -links between ports and the rest of the network are weak or sometimes even missing 
altogether4.  However, in improving port links with the hinterland, attention should be given to 
the  potentially  distortive  effects  of  port  investments,  and  consequently  principles  of  fair 
competition between ports should be respected; 

the  Community  should  give  careful  consideration  to  the  balance  between  different 
transport  modes  and  therefore  encourage  projects  which  are  either  favourable  to  modes 
less harmful to the environment or which are neutral from the point of view of this balance.  In 
particular,  projects  connected with  short-sea  shipping  should  be  given  a  special  attention, 
although care should be taken to promote projects which generate overall benefits from an 
environmental point of view5; 

•  projects  should  be evaluated  as far  as  possible  according to objective  and verifiable 
socio-economic  criteria,  including  their  promotion  of  regional  development;  support 
should  be  given  to  projects  which  have  a  certain  minimum  economic  viability  and  there 
should be promotion of public-private partnerships where possible.  The potential sources of 
investment  capital, whether  private  or  public,  state  or  institutional  (including  the  European 
Investment Bank and the World Bank) should also be involved in such discussions from an 
early stage; 

•  "software" measures (such as the improvement/rationalisation of administrative procedures) 
should be given priority over "hardware" measures.  Many transport  bottlenecks  (border 
crossings or intermodal points such as ports) have their principal causes in "software" rather 
than  "hardware"  and  investing  in  measures  which  alleviate  waiting  times  at  transport 
bottlenecks may bring much greater benefits than infrastructure investments; 

•  given 

of 

the 

scarcity 

resources, 

the 
rehabilitation/reconstruction  of  existing  infrastructure  rather  than  the  construction  of 
new infrastructure.  Although there are clear examples where new infrastructure is required, 
in many instances the same benefits can be obtained by the better use or the improvement 
of the existing infrastructure. 

should  be  given 

priority 

to 

Turning now to transport services, the Community's objective should be to ensure that the most 
efficient and cost-effective transport services can operate with a uniformly high standard (from a 
social, safety and environmental point of view) across a common transport space covering the 
whole Mediterranean region. To achieve this: 

•  obstacles to the free provision of transport services should be removed.  This  removal 
should take place in discussions with all the countries (taking account of any legal obligations 
of the partners under WTO rules).  Removing obstacles to the free flow of transport is also a 
means of removing obstacles to free trade.  In particular,  the Commission's  Communication 
on  Short  Sea  Shipping6 identified  obstacles  to the  promotion  of  this  form  of  transport  and 

Obstacles  to  short  sea  shipping services do  not  only exist in  the  Mediterranean  partners  However, the 
Community is  addressing this in  the  framework  of  its  own  internal policies and  instruments  such  as  the Common 
Transport Policy, TENS,  the promotion of intermodal transport and of short sea shipping 

We should avoid a situation  where the improvement  of short sea shipping is accompanied by an increase in 
•* 
environmentally-unfriendly road transport services between the port and the hinterland  The Community should favour 
short  sea  shipping projects which improve the competitiveness  of mantime transport vis-à-vis other  transport modes 
more harmful to the environment (essentially  road transport), and avoid promoting projects  which, by  heightening  the 
competition with modes less harmful to the environment (such as rail transport)  cause a switch from rail to road. 

6 
Sea Shipping in Europe " (COM(95) 317 final) 

Communication of the Commission to the Council and the European Parliament on "The Development of Short 

stressed the need to remove these.  Also in aviation, removing existing obstacles to the free 
provision of air transport  services is an important priority and the  administrative,  operational 
and regulatory  systems cf these countries will need to be assessed to identify these where 
they exist; 

a  harmonisation  of  standards  (based  on  international  conventions  cr  Community 
legislation), as well as their enforcement  needs to be promoted.  The unequal application of 
social,  technical,  environmental  and  safety  standards  currently  constitutes  not  only  a 
distortion  of  competition  but  also  in  some  cases  a  real  danger  to  citizens  in  the  region. 
Moreover,  it can often  be a technical barrier to transport flows.  In addition the  Community 
should  promote  the  adoption  of  the  necessary  standards  and  practices  that  ensure  a 
smooth  integration  of  transport  networks.  The  Community  is  in  a  particularly  favourable 
position  to  assist  its  Mediterranean  partners  on  a  multilateral  basis,  through  technical 
assistance projects which help the regional development of common standards according to 
international practices.  Such projects should therefore be given a priority.  For example, the 
multi-annual Work Programme for Maritime Transport in the Mediterranean (see 3.2.3 below) 
identifies  projects  for  funding  under  the  financial  instruments  of  the  Euro-Mediterranean 
Partnership which contribute towards: 

- developing the potential of maritime transport in the Mediterranean; 

- the development of ports; 

- improvement of maritime safety and pollution prevention; and 

- the development of logistics; 

the  question  of  market  access  will  have  to  be  addressed  by  the  Euro-Mediterranean 
partners.  Indeed, in the negotiations on maritime transport services  in the WTO, a number 
of  market  access  problems  in  the  Mediterranean  partners  were  identified. 
In  addition, 
preparatory  discussions  will  need  to  open  between  the  Community  and  its  Mediterranean 
partners on the development of air transport  agreements.  In this context, the Commission 
services  are preparing a request to the Council for  negotiating  Directives for  an  agreement 
with  Cyprus  and  in  the  longer  term  agreements  with  other  Mediterranean  partners  may 
follow7.  To  initiate this  process the  Commission will  arrange  air transport  seminars  for the 
relevant partnership authorities as well as the industry in these countries.  The seminars will 
primarily focus on Community policy questions and be followed up by information on the legal 
and factual situation in the air transport sector in the Mediterranean partners  The readiness 
of  these  countries  to  join  a  common  European  aviation  area  should  in  the  meantime  be 
assessed. 

the Community has an interest in developing a strategy which will promote  environmentally 
friendly  modes  of  transport 
in  this  region  -  especially  in  congested  or  environmentally 
sensitive areas - given the large distances involved.  This objective could be achieved by two 
approaches.  Firstly,  consignors  and  consignees  should  be  encouraged  to  limit  the 
combination  of  "roll  on-roll  off'  services  and  consecutive  road  transport  to  short  road 
distances  to and from the  port.  Secondly,  consideration will be given to the  negotiation of 
agreements  with our  Mediterranean  partners  with  a  view to  developing  multimodal chains, 
consisting of combined short sea shipping and rail transport; 

the  Community  should  also  consider  the  problem  of  the  necessary  restructuring  of 
transport  industries, given that in a number of the partners air, road and maritime transport 
(either completely or for certain categories of services) are still in the hands of state or para-
state monopolies with an absence of  competition.  There are indications  of  moves to open 
these sections to further competition.  The Community can assist in these ventures based on 

I ho  Commission  lias  already  received  a roquost  from  lurkoy  to  this  effoct 

9 

the  experiences  of  a  number  of  Member  States  and  could  therefore  consider  favourably 
technical assistance projects  (particularly  bilateral ones) in the field of  industry restructuring, 
privatisation and transfer of know-how, with a priority given to assisting transport operators to 
adjust and to become more competitive whilst observing the necessary norms and standards 
for transport operations in a wider international transport space; 

o  the Community  should seek to promote improvements  in the level of the training  of people 
working  in  the  transport  sector,  as  a  means  to  increase  their  productivity.  Training  of 
workers,  particularly  in  safety  and  environmental  issues,  is  also  a  means  to  ensure  the 
application  of  European or international standards.  Specific attention  should be directed to 
projects funded by the Union in this field.  Most technical assistance projects will, in any case, 
inevitably have a training component; 

• 

the  Community  should  promote  exchanges  of  information  to  encourage  regional 
integration  and  the  possible  establishment  of  meaningful  institutional  structures  for  the 
purpose  of  ensuring  observance  of  competition  rules.  This  is  a  domain  where  the 
Commission  can  play  an  important  co-ordinating  role  within  the  Euro-Mediterranean 
Partnership. 
In  particular,  promoting  regional  data  transmission  systems,  combining 
communications  networks  (including  satellite  navigation)  and  vessel  traffic  management 
systems, will help promote regional trade and traffic and improve the efficiency  of transport 
and trade. 

3.2 

The Mediterranean dimension of Community transport policy 

With  these  strategic  objectives  in  mind,  the  Community  has  already  undertaken  a  certain 
number of initiatives in the Mediterranean region, linked to transport infrastructure and networks, 
to transport  services, as well as to horizontal issues such as regional  integration  and  research 
and development. 

3.2.1  The White Paper 

In  1992 the Commission's  White  Paper on the future  development  of  the  Common  Transport 
Policy8,  called,  inter  alia,  for  the  progressive  transformation  of  existing  bilateral  regimes  into 
multilateral arrangements  and the development  of  a comprehensive  approach to the transport 
services and networks of Europe to promote integrated, pan-European development. 

The  "pan-European"  approach  should  be  extended  to  the  non-Union  Mediterranean  partners 
(see  also  3.2.2  below).  The  fundamental  thrust  of  this  approach  is  to  consolidate  the 
developments towards liberalisation in the provision of transport services. This is particularly the 
case  for  maritime  transport  services  where  the  EU  has  consistently  sought  multilateral  trade 
liberalisation for the sector. 

3.2.2  The  Trans-European  Networks  and  their  integration  with  transport  networks  in  the 

Mediterranean partners 

The  Union's  transport  network  policy  aims  at  ensuring  the  development  of  an  efficient  wd 
modally  balanced  transport  infrastructure  and  its  intelligent  use,  as  a  basis  for  the  effective 
provision of services, allowing the free movement of persons, goods and services in the Union's 
Internal Market. 

This  has  been the  rationale  behind the  development  of  Trans-European  Transport  Networks, 
both  within  the  Union  and  in  the  connection  of  the  Union's  TENs  to  the  networks  of  third 
countries,  as  outlined  in the  Commission's  recent  Communication  on  connecting  the  Union's 

"The Future  Development  of the  Common  Transport Policy: A  Global Approach  to the  Construction  of  a  Community 

Framework  for Sustainable Mobility" (COM(92)494  final) 

10 

transport  infrastructure  network  to  its  neighbours:  towards  a  co-operative  pan-European 
transport network policy9 and a number of initiatives have already been taken in this regard. 

There  is  a  clear  need  for  coordination  in  network  planning,  identifying  projects  of  common 
interest.  In this context the Union is working with its neighbours  (to the east, south and south 
east) to create, on a pan-European scale, a common transport  space to ensure that transport 
networks  of  these  countries  can  inter-connect  to  create  a  smooth  space  in  which  transport 
infrastructures and transport markets offer the same high level of performance. This exercise is 
undertaken by the pan-European Transport Conferences, the third of which, in June  1997 in 
Helsinki,  introduced  the  new  concept  of  pan-European  Transport  Areas  (PETrAs)  -  to 
supplement the Corridor concept developed at the second Conference in Crete in March 199410 
- specifically to cover the regions of the Mediterranean, the  Black Sea and the Adriatic/Ionian. 
Against  the  background  of  the  Euro-Mediterranean  Partnership,  the  non-European  partner 
countries in the Mediterranean participated either as active observers in the Helsinki Conference 
or in the case of Turkey, Cyprus and Malta, as full members. 

In preparation for this Conference a number of regional conferences were established, among 
them  the  Mediterranean  Transport  Conference  in  Lisbon  in January  1997,  to  report  on  their 
activities  for  the  creation  of  a  common  transport  space,  promoting  regional  transport  co 
operation between the partners.  Work on co-ordinating  infrastructure  networks  already  began 
In anticipation  of the  Helsinki Conference  establishing  the  pan-European  Transport  Area  of 
the Mediterranean Basin, and as a follow up to the Lisbon Conference mentioned above.  A 
first step was the identification of corridors within this region, an exercise known as Corrimed. 

In addition, work on the coordination of planning of such transport networks is already fairly well 
advanced  at  the  sub-regional  level: Western  Mediterranean,  Middle  East  region  and  Cyprus 
(see Chapter 4).  In the  Middle  East and in the Western  Mediterranean  the  Commission  has 
financed  studies  to  identify  transport  infrastructure  needs  on  a  regional  basis.  Actions  are 
already underway to develop an overall approach to the coordination of planning of an efficient 
transport infrastructure in the Maghreb, and the Middle East, including links through Turkey, and 
its connection with the TENs  in Spain and  France  and to the evolving  network  in  South-East 
Europe  and  the  Black  Sea.  This  will  build  on  the  Union's  existing  involvement  through  the 
multilateral Peace Process in the development of transport infrastructure in the Middle East. 

It  is  clear  then  that  work  on  Mediterranean  transport  networks  should  be  supported  on  two 
levels,  combining  the  initiatives  in the  various  sub-regions,  in which  a  political  and  technical 
consensus  can  be  achieved, with work  addressing  the  Mediterranean  as  a whole,  ensuring 
coherence  between  the  sub-regions  and  therefore  identifying  the  links  between  sub-regional 
networks. 

3.2.3  Maritime transport 

Maritime  transport  is a mode  of  particular  importance to the  Community  in  its trade with  third 
countries, as 90% of its such movements are by sea.  In the Mediterranean, maritime transport 
is the most important mode. 

The  Commission's  Communication  on  the  Development  of  Short  Sea  Shipping  in  Europe11 
proposed  the  opening  up  of  short-sea  shipping  lines  between  the  Community  and  its 

Communication  from the Commission  to the Council and the European Parliament "Connecting  the Union's 

l> 
transport infrastructure network  to  its  neighbours: towards  a  co-operative pan-European  transport  network policy" 
(COM(97) 172 final). 

1 f) 
Union. 

Multi-modal transport corridors comeeting Oie Union to the countries of Central Europe and tlte former Soviet 

1 ' 
Sea Shipping in Europe' (COM(95)317 final) 

Communication of the Commission to the Council and the European Parliament on 'The Development of Short 

11 

Mediterranean  partners.  It particularly  highlighted the importance of this transport  mode in the 
Mediterranean, given the absence in many instances of viable land-based alternatives.  In other 
instances,  improved  short  sea  shipping  services  provide  an  important  component  in  a multi 
modal  (road-sea  or  rail-sea)  transport  chain.  As  a  result,  any  increase  in  trade  flows,  and 
therefore of transport flows, within the region, is likely to make extensive use of shipping. 

Two further Communications  of the Commission in the maritime field concern the development 
of  a  new  maritime  strategy12  and  External  Relations  in  the  Field  of  Maritime  Transport13 
Maintaining open markets in maritime transport is vital to the Community and is therefore a key 
component of the proposed new strategy.  The Commission's general objective is to consolidate 
developments  towards  liberalisation  and  to  obtain  a  further  reduction  in  existing  restrictions. 
Ensuring  unrestricted  access  to  cargoes  on  a  commercial  and  non-discriminatory  basis  has 
been a fundamental component in the agreements which the Community  has negotiated, or is 
currently negotiating with the Mediterranean partner countries. 

The  first  priority  for  transport  in  the  Mediterranean  has  to  be  given  to  facilitating  and 
improving  maritime transport flows. This will  include  a careful  examination  of  requirements 
for the development  of infrastructure  in certain ports in the countries  concerned,  associated 
with a major global effort to improve port operations and customs procedures.  It will also be 
necessary to assess the needs for improving the land-based  infrastructure  linking ports with 
economic centres. 

The Commission continues to place particular emphasis on maritime safety, and in its relations 
with the Mediterranean partners has identified a particular need to assist them to reinforce their 
maritime  administrations  and  also  to  encourage  their  ratification  of  the  main  International 
Conventions  on  maritime  safety  and  their  effective  implementation  and  enforcement.  One 
particular approach taken by the Commission has been the running of workshops and seminars 
for  the  establishment  of  regional  agreements,  such  as  the  one  on  Port  State  Control  in  the 
South-Eastern Mediterranean. 

Achievements so far 

The Regional Conference for the Development of Maritime Transport in the Mediterranean, held 
in Barcelona in April 1995, issued conclusions and recommendations on future cooperation and 
set  up  a  specific  Waterborne  Transport  Working  Group.  This  met  in  September  1995  and 
adopted  a  multi-annual  rolling  Work  Programme,  which  is- now  being  put  into  action  This 
covered  a  wide  range  of  potential  activities  from  the  necessary  fact-finding  to  ports 
development,  the  strengthening  of  the  commercial  and  legal  environment,  maritime  safety, 
environmental issues and logistics, including telematics. 

On this basis, and taking account of the beneficiaries' priorities and their absorption capacity, as 
well  as  the  objectives  of  the  Barcelona  conclusions  and  the  Euro-Mediterranean  Work 
Programme,  a  meeting  held  in  Cyprus  in  October  1996  identified  a  first  series  of  actions, 
including  regional  projects  that  could  be  financed  by  MEDA  (see  5.1  below).  A  number  of 
projects  were  subsequently  submitted  to  and  received  approval  from  the  MED  management 
committee  in  1997  for  financial  support. 
In  particular  the  maritime  action  programme  has 
identified for financial support projects aimed at preventing or reducing pollution at sea, such as 
the establishment  of  emergency  plans  in case of  accidents, hydrographie surveys  and related 
cartography,  actions  to  improve  handling  of  dangerous  goods  and  development  of  waste 
reception  facilities. 
In this  respect,  one  of  the  main  actions  relates  to  the  development  and 
implementation  of  harmonised  VTS  procedures  as  part  of  an  integrated  network  of  traffic 

12  Communication  of the Commission  to the Council and the European Parliament: "Towards a new 

Maritime Strategy" (COM(96)81 final) 

13  Communication of the Commission to the Council and the European Parliament: External Relations in the 

field of Maritime  Transport : (CO M(96)707 final ) 

12 

management and information  systems, as well as the development  of  electronic  infrastructure 
and related software and telematics applications. 

3.2.4  Airtransport 

The  Barcelona  Declaration  integrated  co-operation  in the field  of  air transport  into  a broader 
context  of  sea-air  multimodal  transport,  through  the  improvement  of  safety,  environmental 
standards  and  airport  infrastructure,  the  elimination  of  restrictions  and  the  establishment  of  a 
harmonised  system  of  traffic  management.  These  elements  are  included  in  the  Euro-
Mediterranean Association Agreements. 

Achievements so far 

Apart from this, regular contacts have been established between the EC and Arab air earners in 
the framework of the Euro-Arab dialogue.  Until recently, no government organisation existed in 
this sector, and the Arab Air Carriers Organisation (AACO) has therefore been the only available 
counterpart  for  more  regular  discussions  at  a  multilateral  level.  However,  a  regional 
governmental  organisation was  created  in  November  1996, and further  contacts  between the 
Community and these countries are now being held within this framework. 

In addition to this, a seminar on EU air transport issues was held in Malaga in March  1996 with 
the  participation  of  air  carriers  as  well  as  government  representatives  from  the  Maghreb 
countries.  This  was  later  followed  up  by  exploratory  talks  on  air  transport  between  the 
Commission and Moroccan and Cypriot authorities respectively,  as a first preparation for future 
negotiations.  This type of contact is also envisaged with other countries  in the region and has 
already been proposed with Turkey and Israel. 

3.2.5  Air Traffic Management (ATM) 

In the field of ATM, the  EU  has  for  many  years  been  supporting  the  ECAC  strategies  which 
concentrate  on  increasing  airspace  and  air  traffic  control  (ATC)  capacity  in  Europe  by 
harmonising,  integrating  and  developing  the  operation  of  national  facilities  devoted  to  air 
navigation services.  They also address  the  issue of  consistency  between  European  systems 
and those based in third countries, such as those in the Mediterranean region.  While the scope 
of  applicability  refers  only  to  Europe, this  geographical  framework  is  likely  to  be  extended  to 
adjacent  Mediterranean  states,  at  least  as  far  as  the  operational  and  technical  aspects  are 
concerned.  As an example, co-operation has been launched between Western  Mediterranean 
partners to increase the capacity  in south-west  Europe  through  the  harmonisation  of  services 
and installations. 

The main deficiencies  of ATC  in the Mediterranean  lie with the  lack of  radar coverage  and of 
data processing capabilities.  Future programmes of modernisation will need to focus mainly on 
these domains, requiring corresponding investment to improve human resources.  The  budget 
line  for  the  ATM  component  of  the  TEN  T  is  used  to  support  these  developments  on  the 
European side, while MEDA funds might be used for the corresponding elements in the partner 
countries. 

3.2.6  Navigation and Positioning Network (GNSS) 

Contacts have already been established with some Mediterranean partners, in order to optimise 
the navigation signals in the region - transmitted through the European contribution to a global 
navigation  satellite  system  (GNSS)  -  and  to  enable  satellite  navigation  users  to  benefit  from 
improved transport safety and efficiency.  GNSS will also serve to facilitate intermodality. 

Numerous  initiatives  are  underway  and  decisions  have  been  taken  in  support  of  the 
implementation  of  GNSS  in  the  Mediterranean  area. 
the  Commission's 
Communication on the connection of the Union to its neighbours  (see 3.2.2  above)  recognises 
that GNSS is an important instrument for the creation of the pan-European Transport Network 
as well as for the cohesion of multimodal transport systems in the Mediterranean  basin, which 
represents an important transport nodi for the- three continents of Europe, Africa and Asia.  Tho 

In  this  context 

Lisbon  Conference  -  which  provided  the  Mediterranean  region's  input  into  the  Helsinki 
Conference (see 3.2.2) - underlined the importance of satellite navigation and positioning in the 
Mediterranean  region  and  agreed  on  cooperation  between  the  Mediterranean  partners  to 
develop a masterplan for GNSS implementation.  Furthermore, GNSS has been recognised as 
a  potential  priority  project  for the extension  of the Trans-European  Navigation  Network  to the 
Mediterranean region14. 

For  its  part,  Italy  has formally  stressed the  need for  inter-operability within  the  Mediterranean 
region in GNSS and consequently a feasibility study for the creation of a homogenous  satellite 
navigation service in the Eastern Mediterranean is under approval for financing under the TEN-
T. 

A workshop on space applications  in the Mediterranean region was held in Cairo in May 1997 
with  particular  emphasis  on  the  development  of  satellite  navigation  infrastructure  in  the 
Mediterranean basin. 

Discussions  now need to be intensified in order to define  concrete  cooperation  arrangements 
with the relevant Mediterranean authorities to ensure the implementation of a system that is fully 
inter-operable with those in adjacent regions.  Inter alia this requires: defining a regional strategy 
to  ensure  the  implementation  of  a  navigation  and  positioning  network  masterplan  in  the 
Mediterranean; ensuring convergence of initiatives  into coherent action satisfying the needs of 
users and inter-operability  requirements with systems in adjacent regions; optimising navigation 
infrastructure;  promoting  a  multimodal  GNSS  receiver;  educating  users; and finally,  facilitating 
industry (including support to service provision). 

3.2.7  Rail and combined transport 

Although  maritime and to a lesser extent air transport will remain the principal modes used for 
relations  between the  Union and its Mediterranean  partners, in the  longer term, a Community 
policy  for  transport  in  the  Mediterranean  should  foresee  an  evolution  towards  combined 
transport by rail, building on the existing rail networks in some of the countries concerned (such 
as the  Mashrek  countries  and  Turkey)  in  order to  anticipate  the  necessary  infrastructure  and 
fleet technology  needs, as well as the modification of the necessary  international  and national 
legal frameworks.  Such a policy could also promote the longer-distance transport of goods, for 
which rail transport (particularly flexible when in combination with other modes) is well suited. 

3.2.8  Statistics 

There  is  a  clear  need  for  the  Community  to  co-operate  with  its  Mediterranean  partners  on 
statistics.  Under  its  transport  component,  MEDSTAT  -  a  project  of  20  MECU,  initiated  by 
Eurostat,  the  Statistical  Office  of  the  European  Communities  -  has  developed  a  work 
programme for establishing co-operation in the field of transport  statistics in the  Mediterranean 
area in order to reply to the needs for information in this field.  The work programme includes an 
analysis  of  users'  needs  and  of  existing  systems,  assistance  in  convergence  towards  EU 
standards, and exchange and dissemination of information. 

3.3 

Research and development 

The Union's transport  research policy aims at supporting the CTP and the development  of the 
TEN-T,  including  its  interconnection  with  the  networks  of  other  countries.  Current  research, 
being  carried  out  mainly  under  the  specific  Transport  Programme  of  the  4th  Framework 
Programme of Research and Technological Development (1994-1998) pays particular attention 
to  the  way  the  TENs  might  evolve  and  how  issues  related  to  access,  inter-operability,  inter 
connection  and  inter-modality  might  be  addressed.  (By  virtue  of  a  Science  and  Technology 

/ 4 
the Implementation  of the  Trans-European  Transport Network  (L 228). 

Decision no.  1692/96/EC of the European  Parliament and the Council of 23 July  1996 on Community  Guidelines for 

14 

Cooperation  Agreement  Israel  is  associated  to  the  EU's  4th  Research  and  Development 
Framework  Programme  and  thus  already  participates  on  an  equal  footing  in  the  Transport 
Programme of the Framework  Programme.) 

Attempts  should  be  made  to  increase  the  capacity  of  the  Mediterranean  partners  to  participate 
in joint  research  activities,  by setting  up structures  and  effective  institutional  frameworks  and  by 
ensuring active participation from the Union in both scientific and technical staff training.  Where 
it  is  feasible,  a  regional  approach  could  promote  the  sharing  of  experience  between 
Mediterranean  partners. 

In order  to  foster  cooperation  with  the  Mediterranean  partner  countries  in  the  field  of  transport 
research  and  development 
the  Commission  services  established  a  RETRAMED  group 
(Research  on  Transport  in  the  Mediterranean)  which  brought  together  experts  from  all  EU 
Member  States  and  twelve  Mediterranean  partners.  The  aim  has  been  to  gather  information 
about  the  Mediterranean  partners'  transport  research  actions  and  to  identify  areas  of  common 
interest for future co-operation  in transport  research.  On the  basis  of this work  the  Commission 
has  drawn  up  a  multi-annual  Work  Programme  for transport  research, that  has  been  approved 
by  the  RETRAMED  group.  This  Work  Programme  aims  at  supporting  future  choices  in  the 
development  of  transport  policy  in  the  Mediterranean  region  -  in  the  light  of  the  likely 
establishment  of  a  free  trade  zone  -  taking  both  economic  and  environmental  considerations 
into  account.  Elements  of  this  work  programme,  together  with  the  maritime  programme 
mentioned  above,  will  be  incorporated  into  a  transport-wide  action  plan  for  the  Mediterranean, 
which  will  identify  specific  projects  to  be  put  forward  for  financial  support  under  Community 
financial instruments, including MEDA.  Under the 4th Framework  Programme  for  Research  and 
Development at least, funding is not available to support the RETRAMED  programme. 

The Work  Programme covers: 

(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

research  into the methods  required for collecting data for transport  statistics  (in close  co 
operation  with  the  initiatives  and  programmes  of  the  Statistical  Office  of  the  European 
Communities  (EUROSTAT)); 

strategic  research,  including:  transport  demand  trends  and  management;  transport 
network  efficiency  and  impact;  the  links  and  inter-connections  of  the  various  transport 
networks of the Mediterranean area; 

research  into  transport  infrastructures,  including  research  on  the  organisational  and 
technical  solutions  to  optimise  infrastructure  management  (e.g.  infrastructure  charging, 
telematics for pricing); 

research  into  urban  transport,  focusing  on  problems  arising  from  the  need  to  meet 
demand  for  accessibility  in  urban  and  metropolitan  areas  while  at  the  same  time 
minimising  transport  time  for  goods  and  people  without  neglecting  safety  and  the 
environment; 

research  into  traffic  management,  in  particular  in  the  area  of  air  and  maritime  traffic 
control,  focusing  on  the  conditions  necessary  for  developing  integrated  (inter-operable) 
networks at sub-regional  level and throughout the Mediterranean; 

research towards enhancing the inter-modality  and complementarity  of various  modes  of 
transport with a view to improving the Mediterranean transport  networks; 

research  on  improving  transport  safety  and  the  environment  -  focusing  particularly  on 
road transport (road user  behaviour,  vehicle design)  and the  impact of transport  systems 
on socio-economic  activity and the  environment. 

In  addition  to  these  initiatives,  research  institutes  in  third  countries  in  the  Mediterranean  are 
already  able  to  participate  in  individual  COST  actions  to  exchange  information  on  research 
projects.  However, full participation in the exercise depends on the extent to which the  countries 
are  integrated  into  the  COST  structure,  (Turkey  and  Malta  are  full  members  and  Cyprus  has 
applied  for  membership).  There  is  a  need  to  examine  how  these  countries  can  be  associated 

15 

with  the  overall  initiative.  Currently,  albeit  without  Community  financing,  the  Mediterranean 
partners are entitled to participate in the transport initiatives under the current 4th and the future 
5th Framework Programmes. 

4.  SUB-REGIONAL CO-OPERATION IN TRANSPORT 

Regional integration in the Mediterranean as a whole is being complemented by a considerable 
dynamism in a number of sub-regions.  The main such sub-regions are as follows: 

4.1 

The Western Mediterranean 

In the Western  Mediterranean,  co-operation  in a number  of  transport  fields,  but  in  particular 
that of infrastructure development, had already begun before the Barcelona Conference, in the 
framework  of meetings  of the Ministers of Transport  of the three Community  countries (Spain, 
France,  Italy)  and  the  three  partner  countries  in  the  Maghreb  (Morocco,  Algeria,  Tunisia),  in 
which the Commission participates (known as '3+3'). 

In Rabat in September  1995 the Ministers of Transport of the Western Mediterranean  identified 
a  number  of  priority  corridors  of  regional  importance,  as  continuations  of  Trans-European 
Networks.  A  number  of  important  criteria  were  established  for  the  evaluation  of  projects  on 
these  corridors,  including:  common  interest  (for  both  Trans-European  and  Trans-Maghreb 
networks);  economic  viability  of  the  project  (and the  possibility  of  public-private  partnerships); 
contribution  to  economic  development  and  regional  integration;  environmental  impact  (and 
emphasising  transport  systems which promote  sustainable  development);  maturity  of  projects; 
and  coherence  with  national  and  Community  planning.  Work  is  continuing  on  transport 
demands,  on  the  identification  and  evaluation  of  projects  of  a  regional  importance  on  these 
corridors (INFRAMED study commissioned by the EC), and it is hoped that this can evolve into 
pre-investment  work,  facilitating  the  promotion  of  these  projects  to  interested  financial 
institutions. 
In this  respect,  Community  financial  instruments  (MEDA)  could  perhaps  finance 
some  of  the  technical  assistance  pre-investment  work  linked to the  preparation  of  investment 
projects. 

The  last  meeting  of  Ministers  of Transport  of  the  Western  Mediterranean  (including  Portugal) 
established a "Groupe transport de la Méditerranée Occidentale" (GTMO).  The group uses as a 
secretariat the Centre d'études  des transports  pour la Méditerranée  occidentale  (CETMOl and 
has already adopted a number of planned actions, including definition of a multimodal transport 
network, establishment of improved databases and initiatives in maritime and air transport. 

The GTMO framework  has  been active  on other transport-related  activities,  including  regional 
trade  facilitation,  liberalisation  and  commercialisation  of  air  transport  (seminar  in  Malaga  in 
March  1996), and reconciliation  of transport  infrastructure  planning with the  imperatives  of the 
environment and of spatial planning.  Two studies in these fields are in preparation. 

In the transport research field, the GTMO has begun co-operation (seminar in Rabat in January 
1997) with the aim of integrating the Maghreb countries, where possible, into Community  R&D 
activities, and promoting, within these activities, research projects which are of  specitic interest 
to the region. 

4.2 

Regional co-operation on transport in the Middle East 

In the Middle East the European Union, through the Regional Economic  Development Working 
Group  (REDWG)15,  has  assumed  a  leading  role  in  the  promotion  of  regional  co-operation 
between  the  core  parties.  Within  this  structure  the  regional  parties  agreed  to  establish  four 
Sectoral Committees, one of which covers infrastructure, and within this Committee a Transport 

15 
US, Russia, Japan,  Canada, Norway,  Saudi Arabia and Tunisia. 

Members  of the REDWG  Monitoring Committee are EU  (gavel-holder), Egypt,  Israel, Jordan,  the Palestinian Authority, 

16 

Strategy Group has been formed.  Under the chair of the  European Commission  on behalf  of 
the Union, this Group will oversee the development of transport in the Middle East. 

The Transport Strategy Group agreed in April 1996 on the concept of transport corridors.  Each 
of  the  partners  in  the  Middle  East  is  heavily  dependent  on  its  neighbours  for  long-distance 
transport.  As a nucleus for future development, discussion has already taken place on four land 
transport corridors in this region. The European Commission is currently funding a Middle East 
Regional Transport Study which will provide transport scenarios up to the year 2020. 

Once  a wider  regional  co-operation  has  become  feasible, the  concept  of  corridors  should  be 
extended geographically  (to the North, through  Lebanon and Syria to Turkey,  and to the  East 
and  South  East  to  the  Arabian  Peninsula).  Transport  corridors  as  a  means  for  long-term 
planning are of specific importance for land-based transport from the Middle East to Europe into 
Saudi Arabia and the Gulf countries and towards Iraq and beyond. 

4.3 

Eastern Mediterranean and the link to the Black Sea 

The  absence  of  a  political  framework  for  the  countries  of  the  Eastern  Mediterranean  has 
hindered  progress  on  developing  a  regional  approach  to  transport  networks  in  the  region 
However,  private  organisations  have  been  active  in  promoting  regional  co-operation.  The 
International  Transport  Conferences  on  the  development  of  Transport  Connections  between 
Western  Mediterranean  and the  Black Sea  in  Piraeus  in April  1996, and Sochi  in  May  1998. 
organised  by the  Hellenic Chambers Transport Association, with the  support  of  the  European 
Commission and Eurochambres, have provided a useful forum for discussion  The conferences 
have highlighted the need for co-operation within a competitive environment between the ports 
and  between  ports  and  other  transport  modes  to  improve  the  quality  of  multimodal  transport 
services in the region, of which maritime transport is the central mode. 

The absence of activities in the Eastern Mediterranean contrasts with the dynamism manifested 
by the regional body for the Black Sea, the Black Sea Economic Cooperation (BSEC).  The two 
regions  are  linked  by  transport  flows.  BSEC  is  promoting  the  creation  of  regional  transport 
networks  and  now  plays  a  co-ordinating  role  in  drawing  up  a  programme  of  infrastructure 
development  for  the  pan-European  Transport  Area  of  the  Black  Sea  basin,  as  endorsed  by 
Helsinki.  This dynamism might perhaps spread to its neighbouring region. 

4.4  Cyprus 

Substantive  talks  on  transport  issues,  on  the  basis  of  the  Commission's  Opinion  on  its 
application  for  membership16,  had  already  taken  place  with  Cyprus  before  the  Structured 
Dialogue process began in December  1995.  A second meeting, at Ministerial level, took place 
in Nicosia in October 1996. 

Maritime  transport  dominates  transport  relations  between  the  Community  and  Cyprus,  given 
that the latter has built up major ship registers and is now among the world's  largest  holder of 
registers.  A large proportion of the tonnage in Cyprus is owned by Community  interests  ship 
owners  are  attracted  to  open  registers  such  as  those  of  Cyprus,  due  to  the  more  relaxed 
conditions  of  vessel  registration  and  operation  as  compared  to  those  in  the  EU  Member 
States. Records of detention of Cyprus flagged ships under Port State Control inspection show 
substantially  higher  figures  than  the  Community  average.  This  raises  concerns  for  the 
Community about, inter alia, distortions of competition, and maritime safety and pollution. 

In the air transport sector, Cyprus has made important progress in adapting to EC legislation on 
aviation, is open for competition and wishes to begin negotiations on an aviation agreement with 
the Community.  The Commission has recently entered into detailed technical discussions with 
Cyprus to prepare for this. 

16 

Commission  opinion: COM(93)313 final for Cyprus (June 30th  1993) 

II 

Discussions  have  also  touched  briefly  on  the  need  for  Cyprus  to  adapt  its  legislation  and 
practices on state aids and competition in the transport sector to be compatible with those in 
the Community.  Discussions are taking place at technical level to address Cyprus' connections 
with the Trans-European Networks.  In this context, Cyprus will be integrated into the Union's 
TINA  process  (Transport  Infrastructure  Needs  Assessment).  The  most  important  aspect  for 
Cyprus  will  be  that  of  integrating  its  ports  and  airports  into  the  Trans-European  Networks 
process. 

5. 

INSTRUMENTS FOR IMPLEMENTING THE COMMUNITY'S STRATEGY 

The Barcelona Declaration states that the creation of a free-trade area and the general success 
of the Euro-Mediterranean  Partnership require a substantial increase in the financial assistance 
that the Community  grants to the  Mediterranean.  This  assistance  must, above all, encourage 
sustainable indigenous development and the mobilisation of local economic operators. 

The  Euro-Mediterranean  Partnership  is  policy-driven.  For the  financial  partnership,  the  three 
priorities set out for the financing of the EU's co-operation are: 

•  economic transition: support for structural adjustment programmes, company  restructuring 

and modernisation and technical assistance; 

•  support  for  socio-economic  balance:  social  infrastructure,  vocational  training,  rural 

development, population and health and the environment; 

•  support for regional integration projects. 

5.1 

Financial Instruments 

5.1.1  MEDA 

MEDA  is  the  Community's  main  financial  instrument  for  the  implementation  of  the  Euro-
Mediterranean  Partnership.  The  programme  has the  purpose  of  encouraging  and  supporting 
the  reform  of  the  economic  and  social  structures  of  the  Mediterranean  partners,  notably  in 
preparation for free trade with the European Union. 

In the  course of  programming  MEDA  funds, about  90% of the  budget  is allocated to  bilateral 
(national)  projects and about  10% to regional projects, involving a number of  Mediterranean 
partner countries , although bilateral and regional projects are intended to be complementary 

Believing that the future prosperity  and stability  of its partners  rests on increased co-operation, 
the Community will be using its influence to promote regional co-operation (both between the 
Mediterranean  partners  and  the  Community  as  well  as  between  the  Mediterranean  partners 
themselves).  The  Community  will  finance  regional  co-operation  projects  including  those  on 
transport (there is no formal division of MEDA funds between the different sectors). 

The Community has set aside 4 685 billion ECU for financial cooperation with the Mediterranean 
partners for the period 1995-99, of which 3 4245 billion ECU, is devoted to MEDA.  Technical 
assistance  projects  (particularly  preparatory  work  and  feasibility  studies)  in  sectors  such  as 
transport17  may  be financed from  MEDA  in the  framework  of  national  and  regional  indicative 
programming. 

A particular emphasis will be placed on projects benefiting a number of countries.  So far, this 
involvement has concentrated on the Middle East as part of the Peace Process, and there is a 
desire to extend this beyond the core players (Israel, Jordan, Egypt, the Palestinian Authority) if 
the political framework allows such an extension.  This is the case with the regional projects to 

OJLI89  of July 30th  1996 

18 

be  financed  by  MEDA  under  the  multi-annual  Work  Programme  for  Maritime  Transport  (see 
section 3.2.4  above). 

MEDA will serve to assist the Mediterranean partner countries in preparing for free trade with the 
European  Union  and  to  raise  their  standard  of  living.  The  wider  objective  of  European 
Community  interventions  will  be  to  increase  the  competitiveness  of  the  partners'  economies, 
with  a  view  to  achieving  sustainable  economic  growth,  in  particular  through  improved  export 
performance.  The  transport  sector  has  therefore  been  identified  as  one  area  for  targeting 
MEDA  funds,  (as  regards  both  bilateral  and  multilateral  projects),  for  accompanying  the 
upgrading  of transport  infrastructure and the improvement  of quality and reduction  of the cost  of 
service provision. 

For  projects  relating  to  transport  infrastructure,  MEDA  financing  is  likely  to  be  used  to  focus  on 
pre-investment  work.  A  particular  emphasis  should  therefore  be  placed  on  the  optimal 
definition of viable projects. 

5.1.2  The  European  Investment  Bank 

The  EIB  plays  a  key  role  in  implementing  the  Union's  co-operation  policy. 
In  addition  to  the 
more  than  4  billion  ECU  of  aid  provided  between  1992  and  mid  1996,  a further  1.8  BECU  was 
made  available  by way of  EIB capital loans for horizontal financial co-operation  projects  with  the 
non-member  Mediterranean  partners  (designed  to  finance  projects  of  a  regional  nature  of 
mutual  benefit  to  both  sides).  In the  transport  sector,  this  will  finance  the  improvement  of  links 
between  non-Member  Mediterranean  partners  and  the  Union  (such  as  the  construction  of 
sections  of  the  Rabat-Fez  and  Rabat-Tangier  motorways  in  Morocco;  expansion  of  the  port  of 
Beirut in Lebanon; enlargement  of main commercial ports in Turkey  and Tunisia  or  improvement 
of ATM in Cyprus). 

The  EIB  looks  to the  private  sector to  play  a greater  role in the  Mediterranean  region, which  will 
facilitate the financing of projects  and have a beneficial effect on project identification.  The  ElB's 
experience  in  infrastructure  financing  by  the  private  sector  within  the  Union  is  now  being 
transferred  to  countries  outside  (including  the  Euro-Mediterranean  partner  countries)  where  the 
Bank  can  complement  local  and  other  international  sources  of  finance,  as  well  as  act  as  a 
catalyst. 
the 
Mediterranean  partners  with  some  1.6  billion  ECU  since  1991.  In  1995,  infrastructure  projects 
worth 617 MECU were financed  in the Mediterranean, 210  MECU  of which were  in the  transport 
sector. 

infrastructure  sector  (including 

the  EiB  has  provided 

transport), 

In  the 

The  EIB  attaches  particular  importance  to  the  development  of  trans-national  projects  between 
North  and  South  essential  for  trade,  communications  and  a  fair  and  balanced  distribution  of 
common  resources.  It has  already  contributed  to  extending  trans-European  Networks  from  the 
Union to the Mediterranean basin. 

5.2 

Conclusions  and  recommendations 

Defining  a  Community  policy  for  implementing  the  Euro-Mediterranean  Partnership  in  the 
transport  sector  is  an  important  step  towards  the  improvement  of  transport  networks  and  the 
implementation  of this Partnership.  Against this background, the Commission will: 

•  draw  up  a  comprehensive  action  plan  based  on  the  elements  outlined  in  annex.  Such  an 
action  plan  will  integrate  the  separate  elements  of  the  maritime  and  transport  research 
programmes  developed for the Mediterranean, as well as new  initiatives  being taken  (or  to bo 
taken)  in the  other  modes  and  sectors,  in order to  help transform  objectives  into  projects  and 
actions;  and 

•  establish  a  group  on  Mediterranean  transport,  composed  of  all  Mediterranean  partners  as  a 
framework  for  meetings  and  exchanges  of  information  between  the  partners  concerning 
transport  co-operation.  This  group,  which  should  also  provide  a  more  global  picture  of  the 
ongoing  activities  at  sub-regional  level,  will  operate  within  the  framework  of  the  Euro-
Mediterranean  Partnership, having in mind the objectives  of the  Partnership  as  a whole.  The 

19 

Commission will co-operate with the  countries  concerned  on the  implementation  of  projects 
of  common  interest  and  facilitate  co-ordination  on  future  projects,  in  accordance,  where 
appropriate,  with the objectives  and  the  Community  decision-making  procedure  as  regards 
MEDA. 

20 

Summary table of actions to be taken 

Domain 

Actions undertaken1X 

Actions planned 

Development 

Strategic  objectives  defined 

in 

this 

Transformation  of 

of 
a 
action plan 

transport  Communication 

Communication 
establishment of a working group 

into  a 

the  elements  of 

this 
transport  action  plan; 

Work to be initiated in Eastern Mediterranean and 
on  the  links  between  the  sub-regions,  based  on 

Planning  of 

transport  networks 

(by 
identifying corridors of international interest and 
the  projects  to  implement  these  corridors)  is  CORRIMED, 
taking place for the Med. as a whole (Corrimed 
for  Med. Basin  PETRA)  and with a number  of 
sub-regions (Western Med., Middle East) 

Integration of Cyprus into TINA 

Extension 
Trans-European 
Networks 

of 

Maritime 

Creation  of  a  Multi-Annual  Rolling  Work 
for  Maritime  Transport 

in  the  concrete projects 

Implementation  of  the  Work  Programme  with 

Programme 
Mediterranean 

Maritime safety 

Dealt with in the framework of the Maritime 

Work  Programme to  be transformed  into  a list  of 

Work Programme 

actions, some to be financed by MEDA 

Air transport 

Regular  contacts  between the  EC  and  air 
carriers  from  Mediterranean  third  countries, 
Exchanges of information on aviation matters 

Prepare  for  air  transport  negotiations  with  some 
key  countries.  Launching  seminars  on  air  transport 
questions as a first step to reinforcing contacts with air 
carriers  and  aviation  authorities  in  all  partnership 
countries. 

Air 

Traffic 

Management 
(ATM) 

Co-operation 

in  the  Western 
launched 
Mediterranean  between  Directors  General  of 
Air  Navigation  Services  on  harmonising  air 
traffic  control  across  national  borders  and  on 
defining modernisation programmes 

Extension of  ECAC  strategies which concentrates 
on increasing airspace and control capacity  in  Europe 
issue  of  consistency 
the 
and  which  addresses 
between  European  systems  and  those  based  in  third 
countries such as the Mediterranean area 

Navigation  and 

positioning 
network(GNSS) 

Bilateral  contacts  begun  with  some  of  the 
groups  of  countries  to  ensure  inter-operability 
of ground infrastructure 

Defining  co-operation  arrangements  with 
the 
televant Mediterranean region authonties to implement 
a fully inter-operable technical solution 

Rail 

and 
combined transport 
services 

Transport R&D 

Facilitation  of  CT  transport  axes  between 
northern/western  Europe  and 
its  eastern, 
southern and south-eastern neighbours.  Policy 
transport 
reorientation 
technologies for long-distance freight transport 

towards  multimodal 

RETRAMED  Committee  has  established 
R&D  co-operation  priorities,  and  elaborated 
multi-annual work programme on transport  R & 
D 

Regional 
integration 
Western 
Mediterranean 

Identification  of  a  number  of  priority 
in  the  multimodal corridors, work on the evaluation of 
priority  projects  on  these  corridors,  using 
INFRAMED  study;  work  on  transport  and 
spatial  planning  and  the  environment  and  on 
R&D 

Anticipation  of  the  necessary  infrastructure  and 
fleet technology  needs, as well as the  modification  of 
the  necessary 
legal 
frameworks 

international  and  national 

Work  Programme to  be transformed  into a  list  of 
actions,  consideration  of  sources  of  Community 
funding (including MEDA) for some actions 

Further evaluation of priority projects 

Regional 
integration 
Eastem-Med. 

in  the 

Regional 

integration  in  the 
Middle East 

Conference organised by private sector 

Begin work on infrastructure networks 

Work  taking  place  in the  'Peace  Process' 
framework.  Multimodal  corridors  identified; 
work beginning on the identification  of  projects 
fast  track 
on  these  corridors  suitable  for 
financing 

Further 

identification 

/  evaluation  ot  priority 

projects 

IX  Untess otherwise stated, these actions will be pursued and, where appropriate, intensified. 

21 

ISSN 0254-1475 

COM(98)  7 final 

DOCUMENTS 

EN 

07 

IO  n 

Catalogue number  : Cli-CO-W-OOS-l-N-C 

ISBN  92-78-30048-9 

Office  for Official  Publications of the European Communities 

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