Valencia Port expansion faces political and economic scrutiny in 2023

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The Council of Ministers is set to approve the green light for Valencia Port’s northern container terminal project this Tuesday, although the vote will include a negative stance from Sumar Board members. After an extended standoff tied to municipal, regional, and national elections, the central government appears ready to authorize the project, a development disclosed by Minister Óscar Puente in Valencia last Thursday.

The project is projected to cost Valencia Port Authority about 600 million dollars from public funds and roughly 1,600 million dollars for the shipping operator MSC. The new facility would become the largest in the Mediterranean, covering 136 hectares and offering a capacity of 5 million TEUs, about 70 percent larger than the current Valencia port footprint.

Sumar leaders, led by Vice President Yolanda Díaz, returned to criticize the central decision, arguing that the project would impact climate goals and harm nearby natural areas. As reported by Efe, Sumar spokesperson Ernest Urtasun described the expansion as a mistake that ignores contemporary environmental limits and timescales.

Environmental Impact and Compliance

In the midst of political debate, Valencia’s mayor, María José Catalá, asserted that the container terminal project rests on an up-to-date Environmental Impact Declaration from 2007 and the assessments of the center’s technicians. She noted that management accepted these criteria because the professionals are specialists in the field.

Ahead of the anticipated authorization, Valenciaport released data on loading and unloading activity at its berths, highlighting recent trends in maritime traffic.

November showed a year-over-year increase of 19.31%, marking three consecutive months of growth. The port handled 6,509,381 tonnes of goods and managed 395,078 TEUs, up 18.72 percent, with 73,847 TEUs destined for export and 61,283 for import. General cargo rose by 5,744,630 tonnes, up 20.73 percent, while bulk cargo totaled 764,751 tonnes, up 9.57 percent in October 2023.

When looking at January through November 2023 compared with the previous year, a stable trend emerges with a slight overall decline in total handled tonnage and TEUs, signaling a cautious but steady pace in port activity.

As part of Valencia Port Authority’s environmental strategy, measures aim to cut logistics emissions and expand the port’s rail infrastructure, targeting zero emissions by 2030 at Valenciaport.

Meanwhile, Barcelona Port reported 59 million tonnes of traffic from January to November, down 9.2 percent from the same period in 2022. Container traffic stood at around 3 million TEU, reflecting a 7.5 percent decrease in the first eleven months of the year.

Compromís Will Not Tie Support to Expansion in Congress

Compromís announced it will pursue a judicial, political, and social campaign against Valencia’s expansion but will refrain from applying direct political pressure on the PSOE and the Sumar government. The coalition met with top officials to align on its stance as the project nears approval, a delicate move given Compromís’s historical opposition to the expansion and its current association with Sumar in government leadership. The party opted to support studies while maintaining dissent from Yolanda Díaz.

Some voices urged conditioning expansion support on lawmakers in Congress, but the meeting resulted in a plan to intensify political and legal advocacy rather than immediate legislative action.

According to Compromís’ co-spokesperson, Agueda Micó, there is room for negotiation through a modified project pathway, with the Ciutat-Port Commission as the first step. He also called for explanations from Transport Minister Óscar Puente and Ecological Transition Minister Teresa Ribera on how a project could move forward with an apparently expired environmental declaration, noting that official reports say otherwise.

Major Shipping Lines Halt Red Sea Routes

MSC, Maersk, CMA CGM, and Hapag-Lloyd announced the suspension of routes through the Red Sea after attacks by Houthi forces in Yemen, allied with Hamas. These four companies hold a substantial share of the global market. With Christmas approaching, the disruption threatens freight movement through the Suez Canal, a vital link between the Mediterranean and the Red Sea. The canal remains one of the world’s busiest, with more than 50 ships passing daily. MSC indicated that its calls at Valencia would not be affected by the broader disruption.

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