The European Commission has approved €286 million in German state aid for infrastructure works at two quays in the port of Hamburg.
The support covers two separate €143 million measures for projects at the Salzgitter quay and the Steinwerder quay, the Commission announced on Friday.
Germany told the EU executive that the wider investment costs total €293 million for the Salzgitter quay project and €258 million for the Steinwerder quay project.
The aid will be paid as direct grants by the City of Hamburg, with the port authority funding the rest through its own resources as well as debenture bonds and loans. The money will be used to replace decayed quay walls at both sites.
Safety works at two Hamburg quays
The Commission said it assessed the measures under EU state aid rules that allow member states to support certain economic activities under conditions set out in Article 107(3) of the Treaty on the Functioning of the European Union.
A potential collapse of the Steinwerder quay would be avoided and the continued use of the Salzgitter quay for moving bulk goods would be supported, preventing disruption to a “core” port in the Trans-European Transport Network.
The Trans-European Transport Network is the EU’s designated system of major transport routes and hubs.
The projects will not increase the port’s capacity, which the Commission said would limit distortions of competition.
It also said the aid would not exceed the difference between the projects’ costs and revenues over their lifetime — known as the “funding gap”.
Non-confidential versions of the decisions will be published in the Commission’s state aid register under case numbers SA.118016 and SA.118022 once confidentiality issues have been resolved.
