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

By | 2024 Newsletter week 48 | No Comments

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

Deltamarin to do the approval and detail design of La Méridionale’s upcoming ro-pax vessel project

By | 2023 Newsletter week 49 | No Comments

Deltamarin, part of China Merchants Group, has signed a contract with China Merchants Jinling shipyard (Weihai) for the approval and detail design of La Méridionale’s upcoming ro-pax vessel project.

As a part of the contract, Deltamarin will be responsible for providing both the approval and detail design services for the construction of the new ro-pax vessel pair. Deltamarin has earlier provided the shipyard with consultancy and contract design services on the project.

CMA CGM confirms its interest in La Méridionale

By | 2023 Newsletter week 7 | No Comments

The CMA CGM Group finally confirmed what we announced last week: the French container giant enters into exclusive discussions to acquire La Méridionale.

A press release (in French) says that the planned acquisition will enable:

-The recovery of the Company and the preservation of the employment of French crew under the 1st French register flag,

-The investment in fleet and in the energy transition of the company.

Just in time and no surprises: Corsica Linea and La Méridionale share the Marseille-Corsica routes until 2029

By | 2022 Newsletter week 51 | No Comments

The Assembly of Corsica voted on Tuesday 20 December 2022 the attribution of the delegation of maritime public service (DSP) to Corsica Linea (the red ships) and La Méridionale (the blue ships).

Aim: guaranteeing territorial continuity between mainland France and Corsica.

Duration: from 1 January 2023 until 31 December 2029.

Annual cost: EUR 106.7 million (against 93 million for the actual DSP)

Routes:

Marseille-Ajaccio: Corsica Linea/La Méridionale, alternating, daily

Marseille-Bastia: Corsica Linea, 7/7

Marseille-Ile Rousse: Corsica Linea 3/7

Marseille-Propriano: Corsica Linea 3/7

Marseille-Porto-Vecchio: La Méridionale 3/7

Political:

Separatist and Autonomist Opposition voted against, denouncing an increase in costs and the postponement of the creation of a public shipping company (…).

The European Commission had to be convinced that a maritime public service is necessary.

Not possible to book Corsica Linea and La Méridionale tickets for 2023

By | 2022 Newsletter week 43 | No Comments
  • Corsica Linea and La Méridionale, the two candidates for the DSP 2023-2029 (Delegation of Public Service) cannot open the bookings for 2023, because the DSP has not been finalized yet
  • The Government said it did not want to increase the budget of EUR 187 million.
  • A big issue is the fuel compensation, which was EUR 21 million in 2021, and EUR 56 million in 2022.
  • Another issue is the complaint of local freight forwarders, saying that up to 400 trucks a month have to stay on the quay because a lack of capacity.
  • Although it is about a public service, several people complain about the fact that the decision-making process is not transparent.