Writing in The Malta Independent over the Christmas season, Competitiveness and Communications Minister Censu Galea dealt at length on the workings of his ministry in the maritime sector, so important for a country that is surrounded by sea.
Over the years, the sector has greatly improved and has been greatly enhanced by successive governments. The setting up of the Malta Maritime Authority has no doubt been crucial in this regard since it started its operations in January 1992. The authority is currently undergoing a structural reform exercise that ought to improve its
efficiency.
Mr Galea listed several statistics in his articles, including the fact that with 3,660 ships with a gross tonnage of over 24.5 million tonnes registered under the Merchant Shipping Act, Malta had the second largest register in Europe. He went on to say that this is a “clear indication of the policy adopted by Malta’s flag administration to focus on quality shipping and ensure that ships with a poor detention or safety and marine pollution record do not operate under the Malta flag. Malta is not a flag of
convenience.”
But there is more than numbers in the maritime industry. For example, the minister wrote about the capital projects the government is undertaking, in particular the Cirkewwa and Mgarr ferry terminals. Of course, the one at Mgarr is taking a bit too long to complete and the government has been criticised because the first impression one gets at the Gozo harbour is not a good one. Once the project is completed, however, Gozo will have something to be proud of.
But the real issue that Mr Galea’s ministry will have to deal with over the next few months is that related to port reform. The minister wrote that when one looks at the work practices of service providers within the ports, “the conclusion to a logical and studied examination is that many of these practices are outdated and no longer needed by modern demands”.
Reform in the ports is needed to bring their administration in line with other modern ports that are competing with Malta. Unless the changes envisaged are made, there is the risk that Malta stands to lose.
Port service providers “should ensure the smooth running of port operations, providing value for money and reasonable charges for their services”, according to Mr Galea. He insists that reducing overall tariffs does not
necessarily mean a reduction in the income of the various individuals who offer a service. A high quality service at competitive prices will, on the other hand, mean more business.
The reform the government has embarked upon is daunting, because, as usual, the resistance to any change will be great. This is more so in a sector dominated by one company, Cargo Handling Ltd, which practically runs all cargo handling operations within the port of Valletta. Cargo Handling’s major shareholder is the General Workers Union.
Still, such a reform is needed and, once in place, it will make the system more efficient and, hopefully, more
profitable.
The government is set to announce more details about the port reform in the coming weeks, when a steering group that is leading government negotiations with the various sectors of the ports completes its report. The steering group’s terms of reference are the conclusion of an agreement to reform and revise present work practices and conditions in the Valletta port.
The Competitiveness and Communications Ministry has a lot on its plate with regard to the port reform. But knowing that the changes are intended to increase the sector’s competitiveness, leading to potential growth both in terms of cargo handled and in revenue, should encourage it to push ahead.