Thomas Smith operates in three related markets: shipping; port agency; and insurance. Looking at these three markets, how has business in Malta changed over the last 50 years?
I can only claim knowledge on the last 30 years. Allow me the pleasure to say I am too young to have knowledge about 50 years!
I will not surprise anyone by saying that all three sectors have become much more competitive – each with lower margins, increased customer knowledge of what is available, and where hardware and software play a more important role.
Previously the insurance industry involved one local company and over 20 agents of British companies. Today most companies are local, and brokers have taken a much more active role.
The shipping of cargo has become a sharper skill. Clients know what is available by who, and have access to schedules, cargo tracking, etc. The level of customer service, the communication with client and the skill of putting a solution together have become more important. The market has many more players and the traditional untouchable shipping agent is a dead species. To stay at the forefront nowadays, you have to deliver a high level of service at a competitive price, and you have to go out there to find the cargo. We do not run shops which customers come to; we run all over the place and jump at opportunities.
The Freeport is now an important part of the Maltese economy. How do you see it developing in the future?
Freeport is an important part of the Maltese economy in two ways: It’s an export of a service to container shipping lines, but indirectly it is also attracting shipping services which Malta-based importers and exporters find readily available due to the transhipment service. The service to local business is unfortunately a by-product. This is a precarious situation and all at national level need to be conscious of it.
Its future very much depends on its consolidated reputation with major shipping lines. This is something Freeport is doing successfully today and has been for a number of years. Its future should involve a wider scope of services than container transhipment. It would need to widen its range of services to logistics and maximise on its position. It needs to stay ahead of competing ports around it. The more integrated it is into the activity of shipping lines, the deeper its establishment with them.
From a cargo perspective you must have seen a strong shift in your markets between 50 years ago and now. What markets do you see as the present and the future for Maltese business?
What used to be primarily UK has become Europe, and what perhaps did not exist has become Far East. The mode of transport has also shifted and the reliability and scheduling of all transit times has become sharper. Planning around shipping promises has become the norm. Shipping in any mode is not an unknown factor in planning – the “just in time” concept really works.
What is it that has helped make Malta such a successful location for doing business over these last 50 years?
International profile, human skills, work ethic, languages, and reputation. It’s the human resource and the publicity of its existence, plus Malta’s track record.
Planning for the next 50 years, what foundations need to be put in place now to continue today’s success into the future?
Service, people, education, skills, and human resources are the essential foundations for Malta’s success.
Thomas Smith is one of the longest established service groups of companies on the island, offering a diversified portfolio of services in international shipping and logistics - with operations in Malta, Libya, Algeria and Tunisia - and insurance. Today, Thomas Smith Shipping is also considered to be one of the largest shipping services company in the Maltese islands.