The Port activities sector plays a crucial role in the European economy. Ports are vital infrastructures with significant commercial and strategic importance, and they support the free movement of goods and people across Europe. In addition to traditional port activities such as cargo handling, logistics, and servicing the shipping industry, ports also facilitate the clustering of energy and industrial companies in their vicinity, contributing to economic and trade development. Furthermore, ports support a diverse range of industries, including shipbuilding, chemical, food, construction, petroleum, electrical power, steel, fish processing, and automotive industries. These industries are engaged in ambitious pathways towards decarbonisation and transition to clean energy. The EU recognises the importance of ports in driving economic growth and is committed to supporting their efforts to modernise and improve their competitiveness in the evolving global context. This includes making EU ports more sustainable and promoting the use of innovative infrastructures in port activities.
In 2021, the GVA generated by the sector amounted to €29.5 billion, representing a 9.2% increase from 2020 and a 27% increase from 2009 (€23.2 billion). Reported turnover, at €76.0 billion in 2021, marked the sharpest year-on-year increase since 2009 (+€8.1 billion). This led to a considerable increase in gross profits, which reached the highest value since 2011 (€12.1 billion).
In 2021, the Port activities sector employed about 410,000 persons, i.e. 5.7% more than in 2020 (slightly more than 387,500 persons). The average annual remuneration per employee also increased from €41,800 to €42,300 (+1.2%) (Figure 1.).
Overall, the sector’s turnover has been growing steadily since 2011, except for 2018 and 2020, when the sector was affected by the COVID-19 pandemic. The large rebound registered in 2021 shows that the sector has recovered since. In 2021, the Port activities sector accounted for 11.4% of the jobs, 17.2% of the GVA and 15.9% of the profits of the entire EU Blue Economy.
Results by sub-sector and Member State
Germany leads the port activities sector, producing nearly one fourth of the sectoral GVA (23%) and employing 21% of the sectoral workforce, followed by the Netherlands (17% of the GVA); Spain and France (12% each) and Italy (8%). Poland has the second-largest workforce employed in the sector, representing 12% of the sector’s jobs in the EU (Figure 2).
Employment: The Port activities sector directly employed nearly 410 thousand persons in 2021. It is estimated that the total number of people employed in EU ports under different contracts, including seasonal or part-time, is approximately 1.5 million. This includes both direct and indirect employment in various port-related activities across the 22 coastal Member States. Cargo and warehousing activities represented nearly 60% of total employment in the sector in 2021. The remaining 40% of the workforce was employed in the Port and water projects sector. Within these two sub-sectors, between 2020 and 2021 employment increased particularly in Warehousing and storage activities (+18%) and Construction of water projects (+4%).
Gross value added: In 2021, the Port activities sector generated the largest GVA on record since 2009, amounting to approximately €29.5 billion, thanks to a sharp 9.2% increase from 2020. In 2021, the two sub-sectors (Port and water projects and Cargo and warehousing) continued to generate an almost equal share of the sector’s GVA at approximately €15 billion each, with the largest year-on-year increase registered in Warehousing and storage activities (+16%).
Over the past few years, several significant developments have taken place in the port activities sector in the EU in response to technological advancements, environmental challenges, and evolving trade dynamics. Some of the most relevant developments include:
Geopolitical developments: Since mid-November 2023, the Iran-backed Houthi militia, which controls large parts of Yemen, has attacked numerous Western commercial ships near the Bab el-Mandeb Strait in the Red Sea. In response, major shipping companies have temporarily suspended Suez transits and diverted their trade. Geopolitical developments such as the Red Sea crisis have had a significant impact on the socio-economic performance of the Port Activities sector in the EU. The crisis has led to disruptions in trade routes and global supply chains, affecting the flow of goods and services through European ports.
Digitalization and automation: Ports across the EU have been increasingly investing in digitalization and automation technologies to improve efficiency, reduce emissions, and enhance overall operations. This includes the implementation of smart port solutions, such as blockchain-based platforms for supply chain management, automated cargo handling systems, and the use of data analytics for optimizing port processes. The adoption of technologies such as blockchain and the Internet of Things (IoT) in port logistics, for instance, is transforming the management and tracking of cargo by expediting the transit of goods, lowering operational costs, and streamlining the processes of loading, unloading, stowing, and storage. Additionally, these advancements can alleviate administrative costs and simplify compliance procedures. Examples of smart port development vary across Europe. In the Port of Rotterdam, for instance, the current focus is on three main areas: smart logistics, smart energy and industry, and resilient port infrastructure. It has been estimated that these measures can generate savings to shipping companies worth approx. $80,000 per visit in terms of shorter waiting times and optimised cargo handling and terminal yard usage. Rotterdam's ambition is to transition to a fully automated port featuring automated vessels, intelligent containers, and autonomous cranes. Following Rotterdam and Antwerp, the Port of Hamburg ranks as Europe's third-largest port, managing 20% of the continent's exports. Its smart port project aims to cut operational costs by 75% and reduce port congestion by 15%1.
The port sector is undergoing significant transformation towards more sustainable practices and reducing carbon emissions, aligning with global strategies to address environmental challenges. Initiatives such as the REPowerEU strategy, the Alternative Fuels Infrastructure Regulation (AFIR), the EU Emissions Trading Scheme (ETS), the Innovation Fund, and FuelEU Maritime are instrumental in driving this transition. Specifically, AFIR foresees the deployment of alternative fuel infrastructure across the EU, with mandatory national targets set for the rollout of this infrastructure. In addition, the FuelEU Maritime regulation aims to reduce the greenhouse gas intensity of fuels used in the maritime sector, encouraging the use of renewable and low-carbon fuels. This regulatory framework aims to progressively decrease these emissions by up to 80% by 2050 compared to 2025 levels, thus promoting the adoption of new technologies and alternative fuels in maritime transport. Both regulations represent significant steps towards the decarbonisation of transport and highlight the crucial role of ports in achieving long-term environmental goals. In this connection, many European ports have launched initiatives to reduce their carbon footprint, such as investing in shore power facilities to enable vessels to connect to renewable energy sources while at berth, as well as adopting alternative fuels and technologies to minimize emissions from port activities.
Onshore Power Supply (OPS) allows ships docked in port to connect to electrical power derived from renewable sources. The number of ports in the EU equipped with OPS facilities in 2020 was 212. According to the European Alternative Fuels Observatory (EAFO), this number has now increased to 40 ports. These installations include 320 supply points, with 84% operating at low voltage.
The abovementioned transformations are marking a widespread transition toward green ports, which combine technological innovation, environmental management and community engagement. European ports have positioned themselves at the forefront of these efforts. This transition is reflected in the evolution of the Environmental Management Index, which increased from 7.8 in 2020 to 8.08 in 2023)3. Strategies to turn a port into green include the installation of shore power facilities, the promotion of the use of alternative energy sources for port operation and vessel fuelling (e.g. LNG, hydrogen, biofuel), the reduction of air and water pollution (e.g. gas cleaning systems, particulate filters and water treatment facilities), the implementation of waste management and recycling programs. European ports are among the busiest and most efficient in the world, serving as major hubs for container shipping, bulk cargo transport, and passenger traffic. The Port of Rotterdam, for example, is one of the leaders in sustainable port development.
Significant investments have been made in upgrading and expanding port infrastructure to accommodate larger vessels and handle increased cargo volumes. This includes the construction of new terminals, the deepening and widening of navigation channels, and the enhancement of intermodal connectivity to facilitate the efficient movement of goods. Ports also have great potential to house the development of large-scale electricity storage which will be needed for balancing fluctuating supply and demand, and for facilitating the transportation of green hydrogen. The deployment of the green technology facilities, such as large-scale electricity storage and the abovementioned OPS, also requires considerable investments from both port authorities and ship owners. A similar trend is also applying to Liquefied Natural Gas (LNG)4, which is experiencing a significant growth in Europe. The expansion of LNG as a transition fuel to meet the ambitious EU decarbonisation goals requires a parallel improvement of associated infrastructure, including the expansion of terminals, supply stations, and bunkering and trans-shipment services. Currently, there are 56 ports in Europe offering LNG bunkering services, with an additional 40 ports currently planning to do so.
This map shows LNG terminals in the EU member states that are currently operational, due for further expansion, under construction or at the planning stage. Spain, France, Italy, Portugal, Belgium, the Netherlands, Croatia, Poland, Greece, Finland and Lithuania all have operational LNG terminals.
Although LNG storage capacity has remained relatively stable over the past decade, the RePower EU initiative has revitalized dormant regasification projects and initiated new infrastructure endeavours, ranging from the expansion of existing onshore infrastructure, to capacity upgrades or the deployment of offshore Floating Storage and Regasification Units. A number of planned investments are treated as EU projects of common interest, which benefit from streamlined procedures and, in some cases, co-financing through the Connecting Europe Facility.
Thanks to recent investments – with co-financing from the RePower EU initiative and the Connecting Europe Facility – the EU’s LNG import capacity grew by 40 billion cubic meters (bcm) in 2023, and an additional 30 bcm is expected to become available in 2024. The EU is the largest LNG importer in the world. In 2023, the EU imported over 120 bcm. The largest LNG importers in the EU are France, Spain, Netherlands and Belgium and Italy5.
The importance of these developments for the competitiveness of European ports and their role in the energy transition are also highlighted in non-legislative resolution on Building a comprehensive European port strategy adopted by the European Parliament in January 2024.
1 EEA 2022. Transport and environment report 2022: Digitalisation in the mobility system: challenges and opportunities European Environmental Agency. EEA Report No. 07/2022. Luxembourg: Publications Office of the European Union, 2022.
2 EEA. (2021). Number of ports and OPS facilities in the EU (updated to December 2020). Retrieved from https://www.eea.europa.eu/data-and-maps/figures/number-of-ports-and-ops.
3 The Environmental Management Index is a composite indicator developed by the European Sea Port Organisation (ESPO) and used to monitor the environmental performance of European ports. Puig, M., Raptis, S., Wooldridge, C., & Darbra, R. M. (2020). Performance trends of environmental management in European ports. Marine pollution bulletin, 160, 111686.
4 Traditional LNG: This is natural gas that has been cooled to about -162 °C (-260 °F) until it liquefies. This process reduces its volume by approximately 600 times, making it easier to store and transport. LNG mainly consists of methane and is used as an energy source for heating, electricity generation, and as fuel for vehicles and ships. It is considered cleaner than other fossil fuels like coal or oil, but it is still a source of CO2 emissions when burned (source: https://energy.ec.europa.eu/topics/oil-gas-and-coal/liquefied-natural-gas_en).
Bio-LNG: Similar to traditional LNG in terms of usage and physical properties, but it is produced from biomass or organic waste materials. Inputs such as agricultural waste, municipal solid waste, or sewage sludge are broken down in the absence of oxygen (a process known as anaerobic digestion) to produce biogas, which is then purified and liquefied into Bio-LNG. This process makes Bio-LNG a renewable energy source and can significantly reduce greenhouse gas emissions compared to traditional LNG and other fossil fuels (source: European Biogas Association. (2020). BioLNG in Transport: Making Climate Neutrality a Reality. European Biogas Association, Belgium).
Renewable Synthetic LNG: Also known as e-LNG, it is produced by combining renewable hydrogen with CO2 captured from industrial sources or directly from the air (direct air capture). The hydrogen is produced through the electrolysis of water using electricity generated from renewable sources such as wind, solar, or hydro. The hydrogen is then combined with CO2 in a process called methanation to produce methane, which is liquefied to form LNG. This process results in a fuel that is carbon-neutral or even carbon-negative if the CO2 is captured directly from the air, making it part of the solutions to combat climate change (source: Comer, B., O'Malley, J., Osipova, L., & Pavlenko, N. (2022). Comparing the future demand for, supply of, and life-cycle emissions from bio, synthetic, and fossil LNG marine fuels in the European Union).
5 European Council. https://www.consilium.europa.eu/en/infographics/lng-infrastructure-in-the-eu/