MMF explains plight on EU ETS shipping directive and other issues during members’ meeting

The Malta Maritime Forum held its Progress Meeting for members on 1 December where the maritime community heard how, over the past months, the Forum has been engaged in solid representations aimed at seeking solutions to the serious business and carbon leakage issues which emanated from design flaws in the implementation mechanisms of the EU ETS Directive on Shipping. The risks arise from the fact that the EU has limited jurisdiction on enforcing the directive outside its shores and subsequently, transhipment activity is set to shift from established EU Mediterranean ports to new and existing hubs in North Africa where capacity is being significantly enhanced through new investment.

Chairman Godwin Xerri, vice-chairman Alex Montebello and CEO Kevin J. Borg explained how the Forum engaged in relentless discussions with the government, the Opposition, the EU institutions, Maltese social partners and industry associations in the EU on the matter.

Besides ETS, Xerri explained how the Forum was engaged in other consultation processes not least the run-up to the 2024 National Budget for which it submitted its formal proposals to Ministers Aaron Farrugia and Clyde Caruana. A report was also presented on a special Board meeting held with the Leader of the Opposition and the Opposition spokesperson for Maritime Affairs last July.

In this regard, Xerri welcomed the fact that the MMF’s flagship proposal for a National Maritime Strategy was included in the Budget Speech with reference by Minister Caruana to “a 20-year vision for the maritime industry”. Xerri informed fellow members that the MMF

had already been participating in preliminary talks leading to the setting up of a Strategic Advisory Board, which would be responsible for the articulation and implementation of the strategy.

The MMF chairman thanked Ivan Sammut for his sterling contribution to the Malta Flag and the industry and congratulated Ivan Tabone on assuming the role as new registrar general of Shipping & Seamen. He expressed the Forum’s eagerness to forge a close and open professional relationship with Tabone as soon as possible in the interest of ensuring that the Malta Flag remains competitive. Xerri reminded that the industry requires a proper marketing plan, adequate resources, fast responsive reaction time and budgets to serve the needs of stakeholders and overcome the threat of aggressive competitors.

In his address, Xerri also updated members on the regular meetings held with Transport Malta and the permanent secretary in the Ministry for Transport, Infrastructure and Capital Projects

where the Forum conveyed its dissatisfaction at the handling of the proposed Ship Agency Regulations. In the interest of Malta’s reputation as a maritime centre of excellence, Xerri appealed for Transport Malta to act with determination and without further delay, enact the regulations and demand from the industry the level of standards that would make Malta proud of the service it conveys to foreign shipowners and bring to an end the unregulated and low standards prevailing in the industry today.

During such meetings, Xerri explained that the Forum continued to insist on the need for a dedicated national maritime authority. He said that only this approach can guarantee focus, fast response time and short communication lines for the benefit of the industry and the country. “The bottlenecks that remain with an authority responsible for all forms of transport cannot be solved unless the responsibilities are divided by means of a re-organisation of resources or a demerger,” Xerri concluded.