Malta’s maritime lobby is calling for a minister with specific responsibility for maritime affairs and the blue economy. Definitely, I say, considering that we have even some ministries that do not substantially add to Malta’s GDP.
Having a specific maritime ministry will help address the challenges that the industry will face in the near future. Why continue relegating this vital industry to the lower echelons of a minister’s portfolio?
It is estimated that, by 2027, the global maritime analytics market value will be more than double that of 2019 and will continue to grow at a compound annual growth rate of 10 per cent for the next six years. Just look at the substantial contribution of the industry to the economy of our country. There is no reason why the maritime sector should not have its own ministry.
There will be great challenges facing the shipping industry, from a flattening demand growth, to industry consolidation forcing freight rates down and fuel emission regulations. It is true that, to date, this administration has done much in the maritime industry to commit itself to a long-term goal of achieving carbon neutrality by 2050, such as port management governance adapting to a changing port ecosystem, but the future of maritime and shipping will be deserving of specialised attention.
Again, the government had wisely invested in laying the fundamental and strategic infrastructure that will aid the maritime industry in meeting future challenges.
For example, Malta has a new regulatory framework built for blockchain technology and blockchain technology is expected to replace the previously used system of the shipping industry of bills and transactional documents. It will instead act as a secure online mechanism for the trade of goods. Since the technology is decentralised, it also makes it more efficient and completely transparent.
The maritime industry is constantly evolving. There are many factors that speed up this process, such as digital evolution, technological progress and environmental concerns. It is not easy to predict ‘the next big thing’ in the industry.
It is imperative that we have a ministry for maritime affairs headed by an energetic, seasoned and visionary minister- Mark Said
The digital evolution has been shaping the maritime industry for a while now and it will certainly continue to do so. Both onshore and offshore shipping companies will have to digitalise their operations as much as possible in order to operate more efficiently and profitably.
5G technology will shape the future of the maritime industry as well. It will open up infinite possibilities. The experts say that the nearest benefits of this technology will be the utilisation of smart drones for real-time monitoring, ship-shore communication for vessel traffic management and the use of Internet-of-Things sensors during search-and-rescue for real-time communications and accurate positioning.
Automation is also the future of the industry. Technological progress brings us closer to the date when unmanned vessels will be the norm. Thanks to them, ships will be able to spend much more time at sea than human-controlled ones. Such innovation will enable increased productivity, reduces reliance on human resources and is less prone to human error.
International Maritime Organisation (IMO) member states, including Malta, are expected to fully implement the new global marine fuel sulphur cap, which is only part of a bigger plan. The IMO’s main strategy is to reduce annual greenhouse gas emissions from ships by at least 50 per cent by 2050 compared with 2008. This means that environmental concerns will continue to shape the industry as well.
The new era requires the actors of the industry to upgrade to a greener business while still making a profit. Therefore, it is now important for shipowners and operators to consider and adopt some new strategies such as installing scrubbers and switching to liquefied natural gas and other low sulphur fuels.
The regulations will also force shipbuilders to find solutions for building fast and efficient enough ships with less emissions. An industry like shipping has very tight profit margins. Maritime clusters could be a way for companies in the industry to work together to promote sustainability while fulfilling the demands of consumers and markets.
This way forward should provide a platform that links national maritime-level strategic interests to our government’s interest in economic development. So, yes, it is imperative that we have a ministry for maritime affairs headed by an energetic, seasoned and visionary minister.