Discussion on issues related to the growth of trade and transportation of cargo in the Mediterranean is currently rife. This region is a complex container market in the midst of a transformation. Previously home to high costs, inadequate investment, state-run inefficiency and unreliable service levels, it now houses some of the best facilities in the world.

This government is aware of the challenges facing the maritime sector. Since elected to government in 1987, we have unfailingly striven to develop Malta as a major regional maritime sector. Pre-eminent in our efforts was the setting up of Malta Maritime Authority, support to the Malta Shipping Register, the development of transshipment services at Malta Freeport as well as the formulation and implementation of an on-going port reform programme.

All our efforts necessitated an overhaul of the country’s maritime legislation. Over the recent past, legislation was amended to cater for the changed realities of our maritime activities within the European Union. Our efforts continue, unabated. My ministry initiated a process of coordination and consolidation with local stakeholders aimed at developing a coherent and updated maritime policy. To this effect a Maritime Permanent Forum was set up within the government under my chairmanship. A national conference, held earlier this year, addressed the need for a holistic maritime policy.

The support of all stakeholders is vital for our country’s sustainable economic development. The maritime sector is estimated to contribute around 15 per cent of the GDP of the Maltese economy, whereas the EU average is three to five per cent. The maritime sector is also important for local employment. Yet, these statistics are not enough on their own. They hide a number of inherent features of our maritime sector that require reform.

Thus, following a process of consultation, we are now implementing our port reform programme. Last year, the Malta Maritime Authority awarded a concession to a new cargo terminal operator in Valletta. The new operator, Valletta Gateway Terminal, has acquired equipment and introduced improved working practices that should render cargo handling activity in Valletta more efficient and less costly to consumers. At the same time, the cruise passenger terminal operations in the Valletta harbour continue to grow. It is a challenge that we now face to ensure that these two important activities can subsist side by side.

The privatisation of Malta Freeport Terminals Limited and of Sea Malta reveal a government prepared to allow market forces to perform well rather than allow state intervention in the economy. Our intervention is primarily exercised to ensure that the new private operators are carrying out their business with due regard to our mutual contractual obligations.

A new service, Malta Motorways of the Sea, replaces the service provided by the now defunct national shipping line without undermining the level of service previously guaranteed by Sea Malta. Also last year, the Malta Maritime Authority invested in a coastal and port vessel traffic management system.

Contemporaneously with this process, my government realised that the development of a robust maritime sector requires the development of skills. Thus, it is of particular satisfaction to witness that both ports in Malta and a major shipping line are involving themselves in training opportunities with the local Maritime Institute with government support.

I believe that maritime careers should be promoted on a level equal to other career paths. These initiatives should target EU citizens at an early age, whilst the same opportunities should not be barred to whoever should opt for further education that could afford one’s re-deployment opportunities in maritime activities. The European Union recognises that difficulties exist in enticing young people to embark on a maritime career. In this regard, the European Commission and member states cannot work separately.

All our efforts aim to achieve success in the National Reform Programme, which is coordinated by my ministry. The NRP’s aims of achieving fiscal sustainability, reducing the economic role of the government and stimulating private sector involvement and raising educational standards are reflected in our ongoing port reform programme and in the measures mentioned above. In addition, we also encourage an approach that involves and supports not only local stakeholders but also regional partners, whether fellow EU members or third countries. We actively participate in international and regional fora aimed at ensuring a maritime sector that is both economically viable and socially responsible.

Driven by the globalisation of the world economy, the introduction of much larger vessels into the deep-sea trades – with associated rapid feeder demand growth and also strong expansion in the intra-regional trades – the rate of growth in the European and Mediterranean container port markets has been highly dynamic in recent years. In fact the throughput volume in the Mediterranean rose from over 21.7 million TEUs in 2000 to nearly 32.6 million TEUs last year.

This reflects an evolving region with 34.6 million TEUs expected to be handled this year. The containerisation market demand is expected to maintain this remarkable upward trend to reach nearly 41.7 million TEUs by the year 2010.

These developments support a thesis of sustainable economic growth in the Mediterranean in the immediate future. In line with our obligations under the Lisbon Agenda, it is our erstwhile wish that we promote employment opportunities as an adjunct of the expected economic growth. Amongst the objectives of the Lisbon Agenda is EU economic growth with emphasis on employment. Yet, the maritime industry, including shipping and ports, is experiencing a lopsided employment growth amongst EU citizens at seafaring and shore-based levels. While the opening of new ports and/or terminals is increasing the number of jobs in these facilities, for a myriad of reasons seafaring employment opportunities are not growing at the desired levels.

Thus while shipping and port industries are continuing in their investment programmes to enlarge their existing facilities or acquire new ones, the investment in training and development, however is not at the same level. Aware of such situations, shipping and port industries and inter-modal transport industry players would do well to place further importance on the need to promote coordinated employment in the maritime sector amongst EU citizens I firmly believe that states should seriously further consider extending their administrative and financial support for innovative schemes such as EU twinning initiatives, involving the exchange of know-how and education programmes on bilateral/multilateral agreements.

Censu Galea is Competitiveness and Communications Minister