Northern Europe, especially the northwest, has long been established as the primary gateway for goods moving in and out of wider continental Europe. The three largest European ports by tonnage handled, Rotterdam (the Netherlands), Antwerp (Belgium) and Hamburg (Germany), all lie in northwestern Europe. Moreover, of the 20 largest European ports, 10 lie on the North Sea coast, five are on the coasts of the Atlantic or Baltic seas and only five are located on the Mediterranean coast. According to an October 2011 report commissioned by the ports of Rotterdam, Hamburg and Antwerp, around two-thirds of economic activity takes place in the north of Europe. The Northern European ports' proximity to this large consumer base partially explains their importance. Another benefit for the northern ports is that the dense transport infrastructure in the northwest allows for quicker transport to the consumer base, while geographical features that divide the north and south of Europe increase the cost of getting goods from Mediterranean ports to the north. It is less costly to travel the extra distance to Northern Europe by water than by road. Southern Europe could only overcome its impediments through serious investment in infrastructure, but considering the already high debt levels in the south, the capital for such investment will be hard to acquire. Pressure will increase on countries to regain competitiveness by lowering labor costs in order to compensate for higher transport costs, creating a greater wage gap between the north and south. This is especially true when southern countries cannot decrease their trade costs by devaluing their currency because they are locked into the same currency union as the more competitive north. Competition between Europe's northwestern ports will likely increase as the consumer base in Europe weakens — a result of the Continent's aging and, in some countries, shrinking population.
