EU Tightens Scrutiny of Port FDI

A leaked draft of the European Union’s forthcoming Ports Strategy signals a tougher stance on foreign direct investment in maritime infrastructure, reflecting mounting concern over economic security within the bloc. The document proposes stricter ownership and control rules aimed at mitigating risks linked to foreign state-backed investors.

The European Commission’s draft, expected to be unveiled on March 4, calls on member states to introduce more rigorous screening of foreign ownership in ports and to ensure governments can assume temporary control of port assets on national security grounds. It builds on the revised FDI Screening Regulation and the EU’s broader economic security strategy, extending scrutiny to the bloc’s 173 core Trans-European Transport Network ports. The draft also urges systematic classification and risk assessment of ports in relation to critical supply chains and military mobility.

Although China is not named, data cited in the document show that state-owned Cosco and China Merchants Ports, alongside Hong Kong-based CK Hutchison, hold minority or majority stakes in around 30 EU port terminals, including Rotterdam, Antwerp-Bruges and Hamburg. Cosco’s majority control of Piraeus Port in Greece has drawn particular attention. Since its investment began, Piraeus has risen from 16th to seventh place among EU ports by container throughput between 2007 and 2024. The draft further highlights concerns about reliance on equipment from high-risk suppliers, an apparent reference to China’s dominance in port machinery.

Political debate across Europe has intensified in recent years, with Sweden and Poland advancing regulatory proposals to curb security risks linked to port FDI. Members of the European Parliament have argued that foreign government-linked investors require enhanced transparency and safeguards to protect strategic interests, particularly in critical infrastructure.

The final scope of the strategy remains uncertain. European Commissioner for Sustainable Transport and Tourism Apostolos Tzitzikostas has indicated that not all foreign port investments are necessarily security issues. Nonetheless, the Commission’s initiative underscores the tension between commercial competitiveness among EU ports and the imperative to manage perceived vulnerabilities associated with foreign capital.