This article appeared in the ‘Connecting Malta to mainland Europe’ supplement by ATTO published with The Sunday Times of Malta on April 7, 2024
Our nation’s geographic setting has inevitably helped in creating a robust industry and a strong maritime legacy. Malta’s economic journey throughout history, has seen this sector as one of its strongest and most important pillars. This is still true today as the maritime industry contributes to 12% of our country’s GDP, amongst the highest contributors in terms of value added. Testament to this is the Malta ship registry and the strength of the Maltese Flag in the maritime industry, making it one of Malta’s proudest success stories. Indeed, the Malta Ship Registry places as the sixth largest globally and the largest in Europe. This establishes Malta as a reputable and internationally recognized maritime hub.
The industry has in fact played a critical role in the issue of connectivity. This feeds directly into our economy and our involvement the wider European and global markets. Our position at the crossroads of several major shipping lanes has granted us a unique advantage in fostering economic growth and international trade, which reinforces Malta’s position as a vital link in the chain of global maritime logistics. This success was not built by chance, but it was through the intelligence, hard work and perseverance of our people that it has managed to stand the test of time.
However, as we chart our course forward, we find ourselves navigating through the choppy waters of new regulations, more specifically that of the European Union’s Emissions Trading System (ETS) Directive. The ETS poses a significant challenge, particularly for peripheral regions like ours, which rely heavily on maritime connectivity for their economic vitality. This directive, aimed at reducing carbon emissions, inadvertently threatens to increase the operational costs for our maritime sector, potentially compromising Malta’s connectivity with mainland the rest of the world, and rendering the European Mediterranean ports uncompetitive.
Thankfully the Maltese government is not standing by idly. We are proactively investing in infrastructure and improving our regulatory frameworks to, not only mitigate the impact of the ETS, but to ensure that Malta remains a leader in the maritime industry and remains a sought-after safe haven for transhipment for vessels crossing our vicinity as the go about their trade routes. Recent investments in the Malta Freeport, are a prime example of this commitment. This expansion will enable the port to accommodate larger, more environmentally friendly LNG-powered ships enhancing our commercial competitiveness as well as encouraging sustainability. Beyond addressing the present issues, through innovation and promoting greener practices, our goal is to make use of sustainable practices, alternative fuels, and clean technology establishing Malta as a leader in the movement towards a more environmentally friendly marine future.
We are aware of the delicate balance that must be struck between environmental responsibility and economic prosperity, but this should not come at a cost to our citizens, especially in a time where Europe is facing an inflationary crisis and in industries where costs play a big contributor towards obtaining a competitive advantage. Maintaining a leading stature in the maritime and in the transhipment, industry will be paramount in keeping Malta interconnected within the value chains.
By extension the same applies to the trailer and road haulage industry which also presents itself as a strategic asset that contributes to Malta’s economic robustness. The trailer industry plays a central role in our connectivity, handling the transport of essential goods across the roads of Europe. Despite our isolation, the industry stands strong, embodying the resilience and ingenuity of Maltese enterprise. So much so, our economy relies daily on this industry for its lifeline of imports with 1,300 trailers operating to and from Malta on a weekly basis.
Notwithstanding this fact, this trade is sometimes taken for granted from the man on the street who thinks, buying a truck and driving it, is all it takes to operate in this sector. The regulatory burdens operators face is, more often than not, unseen and ignored by the everyday consumer. Thus, our focus is to mitigate the economic impacts of regulatory changes, such as the ETS or the Mobility Package Regulation, and make sure operators remain competitive without compromising quality or affordability in their service. These efforts will inadvertently spill over to our citizens and improve their quality of life.
Together, with the support of our industry partners such as ATTO and the community, we can mitigate the challenges that lie ahead and take advantage of new opportunities. The government will always extend its commitment to assisting this industry and ATTO in their efforts to strengthen their services and I wish them luck in their endeavours. In a combined effort, we will navigate these regulations in a way that sustains the industry’s vitality and maintains Malta’s essential connectivity with mainland Europe, all while ensuring compliance with EU mandates aimed at promoting sustainability and fair working conditions.