The Malta Independent 28 April 2024, Sunday
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Gozo Channel Ltd – approaching a dead-end!

Emmanuel J. Galea Sunday, 17 March 2024, 08:14 Last update: about 2 months ago

The writing has long been on the wall, but no one is heeding it. Now the chickens are coming home to roost and the problems concerning Gozo Channel are snowballing.

Where are the promises of the present government that they will extend to Gozitans a state-of-the-art service? The tunnel is now sidelined, and after all, it never made sense.

Gozo Channel is a monopoly and, as such, according to European Union (EU) rules, it needs to compete commercially for the Public Service Obligation (PSO) contract, which entitles the operator to state subsidies to run an essential service.

This PSO contract expired in October 2017 and the present government has been extending it annually rather than issuing a call for bids from private sector companies interested in offering the essential service. 

In October 2022, Prime Minster Robert Abela stated that Gozo Channel’s monopoly could soon end, with the government set to liberalise completely the transport of passengers and goods between Malta and Gozo.

But the way forward is not that clear. In October 2022 opposition MPs Alex Borg and Ivan Castillo said that the prospect of a privatised Gozo Channel raised multiple questions, from what would happen to the Ċirkewwa and Mġarr ferry terminals to the fate of the many workers employed by the state-owned firm.

The concerns of these MPs are justified. Figures published in 2024 by Gozo Minister Clint Camilleri in parliament following a request by Nationalist Party MP Chris Said, show that despite millions of euro paid by Gozo Channel to hire additional staff through contractors, this is still not enough to run its daily operations.

It’s March 2024, over six years later and while the government is feeling the heat from the EU, this PSO is still in draft form and will remain so for quite more time.

Maybe the Minister for Gozo was right when he stated and insisted in parliament in November 2022: “Gozo ferry was and will remain government run”. He had his interest in saying so.

‘The Shift’ reported in 2021 that through various contracts, most of them given through direct orders, Gozo Channel is hiring an additional 150 employees to cover most of its operations, including operating the vessels, security, cleaners, bar attendants, and more.

According to the latest figures, Gozo Channel is registering massive losses every year and in 2022, the taxpayer came to its rescue by a €10 million subsidy. Gozo Channel spent €2.7 million in overtime for its 180 fixed employees between 2022 and 2023. This equates to over €113,000 in extra overtime costs every month.

Meanwhile, the Gozo Minister announced last month in February 2024 that Gozo Channel will unveil a “new vision” later this year giving no further details.

Gozo Channel is provoking EU patience and stretching the efficiency of the current fleet of ferries beyond permissible limits to the detriment of the ferry service to meet commuters’ expectations. Government insiders consider the three Gozo Channel ferries, the Gaudos, Malita and Ta Pinu, which were commissioned in 1996 as “outdated fuel-guzzlers”. But the government could not care less. To add insult to injury, they provided Gozitans in 2019 with a wet leased 35-year-old Greek owned ferry, the MV Nikolaus. Even more, the vessel can now only carry half the commissioned passengers because of safety concerns.

The MV Nikolaos and its crew cost the government €8,000 daily during the off-peak season and €13,000 daily during peak seasons while Gozo Channel bears the cost of its fuel. The government has already forked out €22 million taxpayers’ money towards this lease. This is more than adequate to cover the cost of a state-of-the art eco friendly ferry. 

Another important issue is that these ferries need regular maintenance. Gozo Channel has no option on a replacement ferry at least to have four ferries operating normally. This means hardship and frustration for commuters wishing to visit Gozo during weekends. Waiting at Mgarr or Cirkewwa for about 3 hours to board the ferry is ridiculous and unacceptable.

The MV Nikolaus is presently undergoing maintenance. Last week, hundreds of frustrated passengers faced extensive delays exceeding four hours to board the Gozo ferry on Sunday evening. This prompted Joe Cordina, chairperson of Gozo Channel, to issue a public advisory urging travellers to avoid crossing between Gozo and Malta between 5pm and 8pm on Sundays. This is how Gozo Channel addresses such issues arising from their lack of suitable policies required to provide an effective and efficient ferry service.

How is it that a ferry wet leased at the rate of €13,000 daily and the leasing company does not provide another replacement ferry when the leased ferry is due for maintenance? Other sources say that this is not wet leasing but a direct order. Gozo Channel should realise that the ferry service is bound to fail seriously during weekends with only three ferries.

Gozo Channel should consider that the ticketing system it is introducing is merely a waste of money. Why did Gozo Channel never consider introducing a ticketing system similar to that of airlines? Such a system would minimise, if not eliminate, any boarding delays, especially when there is a ferry out of service.

A feature of this system offers the option that, if a ferry schedule comprises three ferries for a limited period, then the availability of vehicle slots for boarding is lower than normal. These boarding slots should be available in advance on a first come first served basis. If these time desired slots are not available, then the commuter has to find an alternative time to board the ferry. Obviously, certain slots need to be reserved for emergencies. The system should also address the yearly discrepancy of about 18,000 ‘ghost’ vehicles crossing from Cirkewwa and vanishing in Gozo.

Here I humbly ask how many priority passes are being issued by Gozo Channel and whether these are all justified? If a reservation system is to be introduced, will this system be free from tampering by the Gozo Channel and Gozo Ministry to reserve slots for their die-hard supporters? 

Each year, the government does not allocate any funds in the budget to update the ferry fleet and expand the present berthing facilities in Gozo. So much so, the fourth ferry has to be berthed at Cirkewwa.

The delay by the government in issuing a PSO is hampering the attractive possibility of considering the service of a private operator, providing ferries that may carry vehicles from Mgarr to Valletta and back.

GRDA–Gozo Regional Development Authority, stated: “Connectivity to the main island of Malta is critical for Gozo’s development. A service that needs to be consistent and available almost constantly. For this reason, the ferry service needs to reflect new realities and continue to ensure delivery of the required capacity for both commercial and passenger vehicles.” 

Well said! Now please convince the Gozo Minister that time is running out to implement the aim of this statement.

All concerned, especially Gozo Channel and Minister for Gozo, should realise that commuters are visiting Gozo on the vessels and through the terminals provided by the previous government.

Soon the end is near – they are not concerned – somehow or other Gozitans, especially daily commuters for work and students, will still have to face the same difficulties we faced in decades ago. When the election approaches, the Prime Minister visits Gozo and assures us anything he can think of to gain our vote. After all, he does not need Gozitan votes that much. The surveys show his party is still enjoying a comfortable majority which can cushion any protest vote from Gozo. 

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