'We have made a fair offer'

The issue of whether Sea Malta should be privatised or not has somehow got confused with whether the company is profitable or not. The real issue is whether a private company can offer a reliable and satisfactory service to industry, come what may. Vanessa Macdonald spoke to Dott. Emanuele Grimaldi, the managing director of Grimaldi Naples, about their intentions.

Atlantica Spa di Navigazione is interested in buying a company that is barely profitable, with one ship that is nearly obsolete, with a bloated work force - some of whom are highly paid and who have termination benefits of up to Lm50,000 - merely to operate routes that are anyway liberalised.
Why pay for something that you can get for free?

The company is highly unprofitable. One vessel is definitely obsolete and needs to be scrapped.

Like every small company, including Sea Malta, it has been hard to build an efficient framework operating a liner service with only two ships.

At the same time, the integration of Sea Malta into the Grimaldi Group logistics network can produce significant synergies with mutual benefits, especially from the passenger and tourist point of view.

Besides, across the years we already made significant investments in new services, linking Malta with Italy, Spain and Tunis, as well as creating Grimaldi Tour Operator to be able to offer an all inclusive service for tourists.

The government is making it very clear that privatisation will only go ahead if there is agreement with the General Workers' Union on the employees, and if the interests of industry are met. If not, then the government will declare the company bankrupt. Why not just wait for this to happen and get it all for free - and without the constraints?

We have made a fair, transparent and reasonable offer for the privatisation of Sea Malta. If any artificial obstacle should arise at this stage, it would represent an irresponsible attitude by social and industrial parties.

There is considerable concern that Sea Malta is of strategic importance to Malta as the only reliable sea transport for Maltese industry. Other shipping lines have come and gone before.

In the era of globalisation this thinking has become really obsolete.

The history of our Group clearly states that we never deserted any commercial initiative. In every case where we focused our efforts and investments we achieved our targets. Maybe we are lucky; most probably we are very selective and invest only when we are confident of success.

The integration of Sea Malta in the Grimaldi Group logistics network represents for Maltese industry an opportunity to reach a much larger market. For example, with only one bill of lading, and consequently one single responsible entity, it will be possible to forward a container from Malta to New York, as well as Dakar, Rio de Janeiro, Luanda or Montreal.

Is the Public Service Obligation enough to ensure the service?

No, but we believe that we have found a reasonable compromise.

Certain hazardous gases can only be carried on particular vessels. Is this going to pose a problem?

I believe not.

Are you planning to change any of the schedules or to introduce any new routes?

Apart from the services already offering direct links from Malta to Genova, Salerno, Catania and Tunis, and the Euromed Service that has linked Malta with Mediterranean and North Europe for years, new services in transhipment will be planned along with West Africa and North and South America.

What vessels are you planning to use on the Sea Malta routes? Will you mix cargo and passenger?

The Eurostar Salerno will continue to call in Malta on its way from Tunis. The Malta Express will be additionally deployed. Both vessels can transport a mix of cargo and passengers.

Sea Malta? Would it retain its name?

Yes, Sea Malta will retain its name and the Grimaldi Group will invest around €10 million in order to upgrade the company.

The reliability of the service is crucial. Sea Malta spent a considerable amount of money chartering vessels when its ships were undergoing maintenance. Would you be willing to do the same?

We have always done this, but from a far more advantageous position, owning over 50 vessels.

Manning levels at Sea Malta have already fallen from 160 to 120, but this is still considered to be quite high.
Are you planning to reduce the staff?

The information we have is rather different. However, staff is absolutely necessary to this business. An underutilisation of the human resources, if any, would be easily solved by the increase of fleet and traffic that is planned to be managed.

Seafarers are concerned that even if their jobs are guaranteed, they may be deployed overseas. If they find this unacceptable, they would have to leave of their own volition, in which case they would not benefit from termination packages...

It is also in our interest to employ, when possible, seafarers on vessels deployed on services calling at Malta. The employment opportunities for Maltese seafarers will be preserved and even increased.

Apart from this, all International Transport Workers' Federations' rules and standards will be applied.

Sea Malta offered a valuable placement service to maritime cadets. What will happen to this?

We have always been in favour of this practice. We want this practice to continue, even to be strengthened, thanks to the larger opportunities offered by the over 50 vessels owned by our Group.

What if the venture is not profitable? Would you sell out?

Our own history shows that we buy companies, and not sell. Any venture can be profitable if adequate efforts, skill and resources are deployed.

Adopting this approach, across the years, we have built an international logistics network made up not only of vessels, but also ports, shipping and logistics companies, terminals, truck companies and agencies.

We are ready to focus our attention on Sea Malta, upgrading its fleet, increasing its logistics opportunities, developing its traffic and business, making all necessary interventions in order to make it a sustainable venture.