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MSC in Valencia legal dispute over what ships can use its terminal
GENEVA's Mediterranean Shipping Co's (MSC) private container terminal in Valencia is the focus of a legal dispute between the port authority and terminal operator Noatum Ports and Maritime, reports Lloyd's List.
At issue is whether MSC is violating its concession agreement with the Port of Valencia by servicing shipping lines with which it operates a vessel-sharing agreement.
That is legal, says MSC, because under the concession agreements, one can service ships under one's management, and under vessel sharing agreements, one shares management ships under such agreements.
Not so, says rival Valencia terminal Noatum, which contends that MSC cannot service ships from other lines rather only those it directly manages.
Thus, contends Noatum, MSC won't be able to dock its own ships at its private terminal because they will be managed by a P3 Alliance agency and not by MSC, and therefore must call at another terminal when in Valencia.
Noatum claims that MSC is turning what was meant to be a private terminal into a public facility. The latter have their tariffs regulated by the port authority, whereas MSC Terminal Valencia (MSTV) has no such oversight.
Ships in MSC vessel-sharing agreements such as Maersk Line, Zim and Hamburg Sud have been calling at MSCTV rather than the public terminals, according to Noatum.
Noatum is anxious to settle the legal issue before the P3 trio begins operating a joint fleet in the fall once all necessary regulatory steps are taken.
Over the last year, there have been queues of MSC ships with dwell times of up to 36 hours outside port waiting for space at the MSC terminal even though there is capacity elsewhere in Valencia, according to Noatum.
Lloyd's List Intelligence data shows that several ships have been left waiting for a berth this week including the 5,560-TEU MSC Vigo and 2,825-TEU MSC Sena, whereas the Noatum terminal has vacant berths and idle cranes.
"It doesn't make any sense, why would a port allow a situation where ships are waiting outside the port, and not just one or two, but on average one vessel a day?" said Noatum CEO Douglas Schultz.
Noatum's facility could handle up to 4.5 million TEU a year versus actual throughput of one million TEU.
At issue is whether MSC is violating its concession agreement with the Port of Valencia by servicing shipping lines with which it operates a vessel-sharing agreement.
That is legal, says MSC, because under the concession agreements, one can service ships under one's management, and under vessel sharing agreements, one shares management ships under such agreements.
Not so, says rival Valencia terminal Noatum, which contends that MSC cannot service ships from other lines rather only those it directly manages.
Thus, contends Noatum, MSC won't be able to dock its own ships at its private terminal because they will be managed by a P3 Alliance agency and not by MSC, and therefore must call at another terminal when in Valencia.
Noatum claims that MSC is turning what was meant to be a private terminal into a public facility. The latter have their tariffs regulated by the port authority, whereas MSC Terminal Valencia (MSTV) has no such oversight.
Ships in MSC vessel-sharing agreements such as Maersk Line, Zim and Hamburg Sud have been calling at MSCTV rather than the public terminals, according to Noatum.
Noatum is anxious to settle the legal issue before the P3 trio begins operating a joint fleet in the fall once all necessary regulatory steps are taken.
Over the last year, there have been queues of MSC ships with dwell times of up to 36 hours outside port waiting for space at the MSC terminal even though there is capacity elsewhere in Valencia, according to Noatum.
Lloyd's List Intelligence data shows that several ships have been left waiting for a berth this week including the 5,560-TEU MSC Vigo and 2,825-TEU MSC Sena, whereas the Noatum terminal has vacant berths and idle cranes.
"It doesn't make any sense, why would a port allow a situation where ships are waiting outside the port, and not just one or two, but on average one vessel a day?" said Noatum CEO Douglas Schultz.
Noatum's facility could handle up to 4.5 million TEU a year versus actual throughput of one million TEU.
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