Maritime

Opportunities and Challenges

As Malta’s maritime sector is on expansion mode, the country’s maritime experts stressed the need to fully exploit opportunities as well as to address key challenges to tap the sector’s full potential.

“We need to ensure that the right infrastructure is in place. In fact, my government is committed to identifying zones within our ports that can be transformed and developed to more modern facilities related to high-value maritime services,” Transport Minister Joe Mizzi said. Increased environmental regulations and the need to reduce emissions could offer new opportunities, he mentioned. “We predict more alternative fuels, such as LNG and bio fuels, will be used for shipping. This would also create opportunities for the development of supply terminals for LNG, as fuel must be accelerated, while low sulphur fuels must be supplied at competitive terms.”

Michel Cordina, Head of Commercial Banking of HSBC, said Malta should further develop its role as transshipment hub and as logistical centre for warehousing and distribution. He said far eastern multinationals could ship their goods to Malta, store them on the island and then ship them on demand to either North Africa or Europe. “There could also be some value added by labelling in Arabic.”

The lack of flight connections was a key challenge the island needed to address because it presented a major impediment for Malta’s yachting industry to grow further, according to Paul Cardona, Managing Director and Managing Surveyor at MICS Yacht Surveyors and Consultants. Most managers tell me ''I am sorry I cannot bring a yacht to Malta if it takes two days to come and go.'' He also highlighted the need for competitive costs. “Since the marinas have been privatised, we have had a reduction in yachts coming here because the prices went up. If it is cheaper to winter in Cannes than in Malta, there is something wrong.”

In addition to strengthening the maritime industry’s human capital, “we need to reduce bureaucracy and red tape within the administration in order to allow the industry to flourish,” Ivan Sammut, Registrar-General of Shipping and Seamen of the Merchant Shipping Directorate at Transport Malta, emphasised. He also pointed out that Malta’s maritimeindustry is already a very mature one and highlighted that for it to develop further, the industry needs “to act more coordinated and not in a fragmented manner”.

Maritime Hub

Investing in Blue Growth

Malta is seeking to take its thriving maritime industry to the next level. The island already boasts Europe’s largest flag register, and now aims to develop one of Europe’s premier maritime hubs.

The government’s plan is to develop a maritime hub “which will not be just made of keys and piers but the best facilities that we can provide in maintenance, bunkering, in channelling, in conversions that take place in the maritime sector, in research and innovation, and in an academy,” Dr Christian Cardona, Minister for the Economy, Investment and Small Business stressed. All vessels including super yachts and cruise liners would be welcome to make use of the facility. “The business opportunities are endless because of the support services that would be given: the financial services, the legal services and many more,” the Minister said. “For Malta, the Mediterranean Sea is a tremendous resource: it surrounds us, it shapes us, it is actually part of who we are. For us it is important to develop a blue economy, blue growth and blue jobs.”

Transport Minister Joe Mizzi shared Dr Cardona’s view. He said that Malta had been a maritime power throughout the ages, and the island had built up an impressive array of maritime services. “Our geographical position, natural ports, the relatively complete range of maritime activities encompassing ship repairs, ship registration, cargo transshipment, bunkering, cruise lining, cruise ferry, yachting, ship management, marine insurance, and ship handling serve as a very good basis on which we can build.”

Education & Training

Talent Needs to Anchor Maritime Sector

In tandem with Malta’s ambition to develop a first-class maritime hub, the island seeks to nurture top talent as well as to make more Maltese aware that there are many high-value jobs available.

Minister Joe Mizzi laid out the government’s vision: “We need to ensure that this industry is supported by hundreds of well-trained and qualified professionals including seafarers, engineers, maritime lawyers and research analysts. One of our first priorities is to consolidate the maritime education and training system in Malta, and we are committed to attracting more investment in maritime training.” Mr Mizzi pointed out that enhancing the image of shipping and careers at sea opened not only new employment opportunities but also provided added value to the maritime industry as a whole.

Economy Minister Dr Christian Cardona emphasised that the plans for Malta’s maritime hub also include educational initiatives. “We are exploring the possibility of a maritime academy, so that prospective seafarers acquire the necessary skills and training to get work in this sector while businesses get the people they need and the Maltese get high-quality jobs,” he added.

Paul Cardona, Managing Director and Managing Surveyor at MICS Yacht Surveyors and Consultants, said that for Malta to become a maritime hub, one would need technical training to service ships. “A maritime academy on its own is not enough. You also need hands-on training, which we do not have anymore because we destroyed the shipyard industry.” He suggested the introduction of an apprenticeship scheme similar to those in Germany and Austria.