Maritime growth

The process of structural reforms within the Malta Maritime Authority's operational procedures has continued to gain momentum. Being in themselves an additional driving force to the various economic sectors pertinent to the maritime community, we are already witnessing an encouraging outcome.

Throughout the past year, the number of ships calling in Malta has increased by six per cent. The ports of Valletta and Marsaxlokk continued to experience a steady growth in their activities. Additionally, providers of services in our ports, ranging from ship-repair to ship chandling and bunkering, registered a sustained increase in their operations. These results are considered to be significant.

The composition of traffic clearly indicates that the number of vessels calling within territorial waters for a particular service, without entering a port, has continued to register the fastest growth. The number of passengers using ferry services from Grand Harbour had again increased by 15 per cent.

The economic activity generated by merchant shipping activities in the period under review has been quite considerable. Economic benefits, including the significant amounts of foreign exchange earned, is beneficial both to the government as well as the domestic private sector. Revenue collected by the MMA is ploughed back into various projects beneficial to the different sectors of the maritime industry. Merchant shipping continues to be a very important component of Malta's maritime and international service industries.

Within this context, in spite of difficult market conditions worldwide and the further tightening of controls, at the end of September 2004 the number of ships registered under the Merchant Shipping Act was 3,660 with a total gross tonnage of 23.9 million, placing Malta as the second largest register in Europe and one of the largest registers in the world, with an average vessel age of 11.1 years. These statistics are a clear indication of the policy adopted by Malta's flag administration to focus on quality shipping and ensure that ships with a poor detention or safety and marine pollution record do not operate under the Malta flag.

Yachting activity in general has experienced a steady expansion thus creating a continued pressure on the supply of new berths. This trend of unabated demand is creating a stronger need for the development of new marinas. The government has already expressed itself on the matter and following close discussions between the MMA and the Malta Environment and Planning Authority, which had identified Xemxija Bay as an ideal site for this potential development, we expect that a design brief will be issued in the near future, immediately followed by a call for expressions of interest.

Inspections were intensified to verify compliance by commercial vessel operators, terminals, vessels, port users and service providers with local legislation. Passenger activities were re-dimensioned in view of recent developments in the industry. Following exceptional growth over the previous four years, all indications are that the number of cruise passengers for 2005 are expected to surpass those of 2003/04.

My ministry in collaboration with the MMA is leaving no stone unturned by way of implementing a ports development plan. In line with the guidelines identified in the Grand Harbour Local Plan, the MMA has carried out a survey of the areas around the port of Valletta that could be identified for port commercial activities. Ports-related maritime economic activities continued to expand. It is hoped, however, that as the ports reform process intensifies in the coming weeks, with the tender for handling of cargo to be issued in the near future, the benefits that will accrue will lead to a more sustained expansion. The Malta Labour Party has still steered away from admitting to the urgency and significance for such an exercise. Instead it limited itself to a few infrastructural shortcomings forgetting all about obsolete and untenable work practices, double charging and inefficient work methods which contribute to additional costs on industry and the consumers.

What the opposition failed to answer is my claim as to why the MLP in government, on two separate occasions, and both a few weeks before the general election, sought to ensure that the General Workers' Union-owned company was granted exclusive operations within the handling of cargo. This happened at a time when the then Labour government was fully aware of the various shortcomings of the company. These two instances happened in April 1987, with effect from March, for a period of seven years, and in July 1998 for another period of eight years expiring in 2006. Another interesting point is the 1997 recommendation by the then minister responsible for ports that the next agreement to be entered into, which subsequently happened in July 1998, should "cover a 15-year period".

The economic and financial model relevant to the port of Valletta is ready. The handling of cargo tender will be issued shortly. Meetings between the reform steering committee and the various port sectors are also well underway and on schedule. The reform's advantageous effect will kick off soon.

Mr Galea is Minister for Competitiveness and Communications.

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