EU Approves €853.6 Million Public Service Compensation for Corsica Linea and La Méridionale

By 2 December 20242024 Newsletter week 48
December 2, 2024

The European Commission has confirmed that €853.6 million in public service compensation granted by France to Corsica Linea and La Méridionale complies with EU State aid rules. This financial support covers passenger and freight maritime transport services between Marseille and five Corsican ports—Ajaccio, Bastia, Propriano, Porto-Vecchio, and L’Île Rousse—over the period 2023-2030.

 Background

In February 2024, the Commission launched an in-depth investigation to determine whether the compensation met the EU’s Service of General Economic Interest (SGEI) Framework. The inquiry focused on justifying certain public service obligations included in five service contracts. Two key concerns emerged:

  1. Towed Freight Traffic: The Commission questioned whether there was a genuine need for public service obligations related to the transport of towed freight between Marseille and Corsica, given that private operators from nearby ports already provided similar services.
  2. Freight Volumes: Concerns arose over the minimum freight volumes required per crossing, which appeared potentially disproportionate to user demand.

 Key Findings

Following submissions from France and stakeholders, the Commission concluded that the public service measures were justified:

  • Genuine Market Need: French authorities demonstrated that private market forces could not fully meet the demand for towed freight between Marseille and Corsica. The investigation revealed irregular and insufficient market offerings from Marseille, with neighbouring ports unable to substitute the services adequately.
  • Proportional Freight Volumes: The set minimum freight volumes were deemed reasonable and necessary to avoid ship saturation and ensure seamless operations. Historical data and traffic forecasts supported the need for these thresholds, highlighting risks of operational inefficiencies if they were not maintained.

 Approval

Based on this evidence, the Commission ruled that the compensation aligns with EU State aid rules, recognising the importance of uninterrupted maritime connectivity for Corsica’s economic and social needs. This decision ensures reliable transport services between Marseille and Corsica, benefiting passengers, businesses, and freight operators.


Reaction from Corsica Linea

Corsica Linea celebrates the European Commission’s validation of the public service delegation. “This decision reaffirms Marseille’s role as the primary freight port for Corsica and strengthens a robust, socially responsible, and environmentally ambitious service.”

As the leading employer of French sailors in the Mediterranean, CORSICA linea invests €500 million in its fleet to reduce CO2 emissions by 40%, with a goal of achieving net zero emissions by 2040. Operating under the French flag, the company upholds the highest standards of safety and environmental stewardship.

Source: European Commission and Corsica Linea

Photo: Jean-Pierre Fabre