Malta should explore state aid and other financial initiatives that could ease the costs of freighting goods in and out of the island, industry experts have suggested.
Leading shipping and logistics experts told an industry-focused panel event that Malta could tap into schemes that target the shipping and logistics sector.
Italy, for instance, has, in recent years, used its 'Marebonus' programme, which redirects funds allocated to the road transport of goods towards sea freight instead.
This has pumped more than €100million towards the Italian logistics sector.
The European Commission has in recent years approved other Italian public support schemes to encourage a shift in the way goods are moved in and out of the country.
“As a country, we need to look at state aid more positively, and, rather than being scared of it, consider it as something that can help us achieve what we want to achieve,” said Malta Chamber CEO Marthese Portelli.
She was moderating a panel co-hosted by the Malta Chamber and the Malta Business Network.
The event, entitled “The current state of logistics in Malta” is part of the MBN’s industry-focused discussion series.
She was joined by Norman Aquilina, Group Chief Executive of Simonds Farsons Cisk Plc., Jonathan Shaw, CEO of Retail Marketing Ltd., and Pierre Attard, Commercial Manager at CMA CGM.
All panelists agreed that as an island reliant on sea and air freighting, Malta faces a significant competitive disadvantage.
In Malta, we run the 100-metre hurdles.
Other EU member states, the panelists said, have benefited from different support and aid schemes to help ease this burden on their economies.
Opening the event, Chris Meilak, Partner at EY specializing in Valuation, Modeling & Economics, gave an economic overview of the logistics sector in Malta.
He said that while the rate of growth of inflation is leveling out, 80% of the food supply in Malta is imported and this is still highly vulnerable to inflationary pressures.
Other sectors are also heavily impacted.
During the panel discussion, Aquilina was the first to advocate for some form of state intervention, pointing to the so-called Marebonus program.
In mainland Europe, he said, businesses run the 100-metre sprint. “In Malta, we run the 100-metre hurdles”.
Shaw suggested Malta could also explore joining forces with other island states that face similar challenges.
Attard suggested larger island states such as Ireland could help lobby in this direction.
The panel discussion also touched upon the reality of retailers and businesses in Malta, with the panelists suggesting that centralised logistics centres, similar to industrial estates, could help streamline deliveries of goods across the island.
This was particularly worth exploring, the panelists argued as Malta registers an uptick in the already 50,000 registered delivery vehicles.
The MBN’s next event, scheduled for May 20th, will focus on whether businesses can make a genuine positive contribution to society.