* Italy to present reform plans to parliament
* Needed investments seen at 3 billion euros
By Danilo Masoni
MILAN, June 4 (Reuters) - After years of neglect, Italy aims to upgrade ports such as Genoa, La Spezia and Trieste to grab a greater share of the shipping market dominated by big ports in northern Europe such as Rotterdam.
Infrastructure Minister Altero Matteoli is to present a reform proposal to parliament, perhaps later this month, that could help bring badly needed investment to the ports and draft legislation could be ready by August.
"Italy is projected in the Mediterranean and it is only right that it comes forward to attract this big traffic," Luigi Grillo, head of the Senate commission for public works that will review the proposal, told Reuters.
Italy's ports are often bypassed by ships coming through the Suez Canal with Asian goods because they are not equipped to handle the biggest cargoes. The services they offer are also slower than those of northern rivals, making ships prefer to sail a few more days to northern Europe.
Yet ports in northern Italy such as Genoa are no further from the heart of Germany, Europe's biggest market, than Rotterdam.
Grillo said port procedures had to be streamlined and governance simplified. Most of all, financing had to be brought in by private investors to help improve logistics as well as links to railways and highways.
Assoporti, the association that represents the country's biggest ports, estimated 3 billion euros ($4.3 billion) of investments were needed.
Rotterdam is already undergoing an expansion plan worth 3 billion euros having overcome opposition from environmentalists by agreeing to cut polluting emissions.
"Today (ships) go to Rotterdam because logistics (there) are more efficient and customs different ... We want to win this competition," Grillo said.
In 2007, Italy handled 16 percent of Europe's container traffic compared with 65 percent by northern European ports, according to industry figures. Some ship owners want investments to be focused on just a few ports -- about 10, an industry source said on condition of anonymity.
They also want more frequent dredging and lower tariffs.
"The ports have to see ships again. A port without a ship is like a Mom without a baby," the source said. "The port has to listen to the ship, it is its only real customer." (Editing by David Holmes) ($1=.6999 Euro)