The European Union (EU) has found that France's support to build a new cross Channel terminal in the Port of Calais is in line with EU state aid rules, said the European Commission (EC) on Monday.

To allow better operation of cross-Channel sea transport services, French authorities intended to expand the Port of Calais, in particular, to build a new terminal, according to a press release by the commission.

French intended to finance the project with 270 million euros (299.37 million U.S. dollars) as analysis showed that the terminal operator's income would be insufficient to cover the investment costs over a period of 50 years.

The commission assessed the project under its guidelines on investment aid and concluded that the project furthers EU transport policy objectives without unduly distorting competition.

"This is a good example of how Member States can boost infrastructure investments without damaging competition in the Single Market," said Margrethe Vestager, the EU commissioner in charge of competition policy, noting that the project has attracted private funding.

"This is a trans-European project that will enable a better flow of cross-Channel links and stronger trade exchanges between the UK, Ireland and mainland Europe," she said.

The Port of Calais, on the strait linking the North Sea to the Channel, is active in the transport of goods and passengers.

The port is ranked first in mainland Europe for car traffic and is ranked first in France and second in Europe for passenger transport. Endit

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