German transport ministers of the states bordering the Rhine River called on the government to expedite the deepening of the river basin. The planned development project received special attention recently as officials seek to avoid last year’s disruptions caused by critical low water levels.

More than 300 million tonnes are transported annually through the Rhine River. Vessels had to carry as low as 25% of their capacity to safely sail the river last year when Europe suffered severe drought conditions during summer.

According to the German transport newspaper DVZ, little progress has been made with the development projects targeting the Rhine. These include the unloading optimisation project, deepening parts of the river, and improving access to ports. “There is a backlog in politics,” said Winfried Hermann, Baden-Württemberg's Transport Minister.

Similarly, Jens Schwanen, managing director of the Federal Association of German Inland Shipping (BDB), called for the expansion of the Middle Rhine to be significantly accelerated. He believes, “All instruments for faster planning and approval should be used, including in the waterway area,” reported DVZ.

Improving the infrastructure of the Rhine River is not the only development needed for Germany to regain its competitive advantage in Europe’s shipping market. Officials in the port industry are also demanding federal aid.

The import sales tax, tonnage tax and the high rents and leases in German ports are part of the problem. Unlike in Rotterdam, where quays are not rented, terminal operators in Germany need to rent the quay from the port authority, reports DVZ. According to Gunther Bonz, president of the Federation of European Private Port Operators (FEPORT), one meter of quay costs between 100,000 and 120,000 euros for a large ship, and 400 meters are required for a ship's berth. "We're talking about millions in annual rent," he said, as cited by DVZ.

In addition, ship brokerage experts claim productivity is higher in other European ports where ships are handled relatively faster due to a 24/7 approach. Although the same approach is adopted at German ports, this is not reflected in German hinterland operations.

Despite good financial results in 2022, the Port of Hamburg expects a significant volume decline during this year’s first quarter. Similarly, the ports of Bremen lost nearly 20% of their container throughput in the first three months. While the decline is mainly attributed to the geopolitical conflict in the region and weak market demand, officials believe development projects need to move forward in the country.