Officials from the French Atlantic port have proposed more than 500 million euros (U.S. $613.5 million) in investments following a 14 percent increase in container traffic in 2017.
HAROPA, which manages the French ports of Le Havre, Rouen and Paris, is considering an aggressive expansion plan at Le Havre in the wake of increased global trade volumes and an improved financial situation.
Officials from the North Atlantic port have proposed an “ambitious” capital expenditure plan that includes more than 500 million euros (U.S. $613.5 million) in investments aimed at handling growing cargo demand, HAROPA said in a statement.
The port noted, however, that currently available subsidies for such an expansion total roughly 115 million euros, well short of the stated goal of 500 million euros.
As such, HAROPA said it will seek additional subsidies, specifically from the European Commission, and will in the meantime “work on prioritization and phasing of the projects” based on projected financial capacity.
According to HAROPA, Le Havre saw its overall throughput rise 10 percent year-over-year in 2017, with container volumes surging 14 percent to 3 million TEUs.
The port operator also noted a 1.5 percent increase in 2017 revenue to 180 million euros as well as free cash flow of 41.6 million euros, which exceeds the target set by port officials of 40 million euros by 2019.
Following several months of discussion, the HAROPA supervisory board agreed to a broad-based plan to increase the efficiency of transporting containerized goods inland via the Seine River.
The Port of Le Havre said it will work with other relevant stakeholders to launch five “worksites” related to the investment plan within the first six months of 2018. The worksites will focus on improving efficiency and reducing costs for intermodal services, including the potential integration of a rail shuttle to and from the port’s multimodal terminal; pooling of river transport assets; reducing ocean terminal handling costs; improving navigation conditions on the Seine via a connected information system and an appointment system for vessels traveling to inland terminals; and decreasing the environmental impact of river vessel operations by deploying more efficient engines.
Port of Le Havre floats ‘ambitious’ capex plan
