Opportunity to buy replacement for Sea Malta vessel lost

A golden opportunity to replace the aging Sea Malta vessel Zebbug has been lost as a decision on funding from the government has not been taken yet, sources close to Sea Malta said.

An alternative vessel, described as being "superb" for the national shipping line, was eventually sold to another purchaser, when Sea Malta could not confirm its ability to proceed.

The sources said the Zebbug was now 31 years old, and that efforts had been underway for over two years to find a suitable replacement.

"The shipping line has now lost its chance. The vessel that had been identified was superb for it. Two years' work has been wasted and it is now back to square one.

"It is crucial for the national line to have a reliable ship. The local economy cannot risk losing what is such an important lifeline to importers and exporters. Neither can it depend on foreign-owned shipping lines. If they were to stop coming to Malta, what would happen?" the sources said.

Last year, the shipping line lost Lm0.25 million, representing a considerable cut in losses for the second year running. However, Sea Malta chairman Marlene Mizzi has stressed that substantial capital investment - in the region of Lm5 million - was now needed. The government is a major shareholder in the line.

During the annual general meeting last October, Ms Mizzi made it clear that Malta as an island was vulnerable, especially as it depended on both imports and exports, most of which were carried by sea.

"It would be sheer folly to allow a country whose trade depended so heavily on the carriage of goods by sea to depend on foreign lines, which might have other agendas, perhaps even imposed on them by their own governments for their own exigencies," she had said.

Sea Malta owns two vessels, the Maltese Falcon and the Zebbug. The replacement of the latter had been discussed at board level and with the government, which had fully supported the plan.

Sea Malta has never received any grants or subsidies, and has not had any funding for the past 28 years. The Maltese Falcon was paid for out of Sea Malta's own money and commercial loans.