By Times of Malta
From the EU’s environmental rules and the global shift to cleaner fuels, to digital transformation and stronger regional competition, Malta’s maritime industry is facing mounting pressures, exacerbated by a growing skills gap and limited youth interest. “An alignment between the maritime industry and the State is not just desirable but essential,” says the MMF. The Malta Maritime Forum is calling for stronger alignment between public and private efforts and for a shared vision that secures Malta’s position as a leading maritime hub in the Mediterranean. Godwin Xerri, who has just been re-elected as the MMF’s Chairman alongside Alex Montebello as Vice Chairman and Kevin J. Borg as CEO, explains how the Forum has sharpened its focus on long-term competitiveness, investment and national strategy. “The MMF brings together like-minded professionals working to advance the maritime sector, and its credibility lies in the reliability of its insight to government and stakeholders. There is great teamwork and a shared vision, which gives us visibility and influence,” says Xerri. “And at a time of mounting challenges such as the EU’s Emissions Trading Scheme and shifting trade routes caused by nearby conflicts, our strong internal alignment has been crucial and has given real impact on national policy,” he added. A major milestone was the recent launch of Malta’s Maritime Transport Strategy, a long-awaited initiative that is now finally taking shape with MMF’s involvement. “We had been advocating for a national maritime strategy for years, and we are now very satisfied not only at the government’s commitment but also at the level of our involvement, where the MMF’s AGM was used as the platform to launch an extensive consultation process. “The proposed strategy, which we are particularly pleased that it has been championed by the Minister for Transport, Public Works and Infrastructure, dovetails with Malta’s Vision 2050, which identifies the maritime industry as a pillar of economic growth and targets a doubling of the sector’s contribution to GDP”. “This strategy aims to zoom into how the public and private sector will achieve this ambitious target. It aspires to define Malta as a logistics hub, a centre for maritime services, and a platform for research and innovation, but this strategy will only succeed if there is ownership from all stakeholders,” adds Xerri. “Industry and State have to work in tandem. Government, departments and EU counterparts need to be aligned and share the same goals. For the Forum, this alignment is not just desirable, but essential.” Meanwhile, the sector continues to face immediate and complex pressures, particularly technological change and environmental regulation. A worrying point of contention is the ETS Directive. “The ETS, as applied now, is causing unfair competition and business leakage,” argues Alex Montebello. “Terminals like Malta Freeport have invested heavily in infrastructure, technology and skilled workers. But nearby ports outside the EU, suddenly gained an unfair advantage, not because they offer better services, but because they are outside the regulatory net and shipping lines calling at nearby non-EU ports stand to save millions of euros. This is a distortion of competition.” The MMF has long argued that the ETS would only be effective if applied globally. Now, the International Maritime Organization (IMO) appears to be moving in that direction, with a vote expected later this year. “If adopted, the burden will be shifted onto polluters rather than ports. More importantly, it could redirect revenue from ETS back into maritime research and innovation, which Malta supports. The Forum welcomes the political support, as it is up to governments to drive this agenda at the IMO. We are reassured by the Maltese government’s commitment to this initiative.” Xerri explains that one major area where investment is urgently needed is in the transition to cleaner fuels. “The bunkering industry in Malta is a key economic driver within the broader maritime industry, but if Malta is not in sync with the cleaner fuels that the ships will decide upon, then Malta would be losing out. However, there are extensive discussions going on between the Climate Change Authority and the bunkering industry as represented by the MMF to gear up for this challenge. We are confident that Malta will succeed in overcoming this challenge. “We also need to think bigger in terms of infrastructure, and we are glad that the concept of land reclamation, which the MMF has always supported, no longer appears to be a taboo.” Finally, Kevin J Borg addresses the shortage of skills. “Another of the MMF’s priorities is the aspect of education and training. Maritime education must reflect the realities of today’s industry, whether it is technical training, engineering, surveying or logistics. The curriculum and career-guidance structures need to be aligned with the industry’s needs.” An encouraging step is the launch of a Masters’ degree in Port Management and Logistics – a collaboration between Malta Freeport and the University of Malta. “However, more needs to be done to attract young talent. Maritime careers are often seen as tough, risky and overly demanding. This perception needs to change because there are also many land-based roles that offer fulfilling, well-paid careers,” adds Mr Borg who notes the National Skills Council’s current work on a pilot skills-gap analysis for the maritime sector and how the MMF is pushing for better synchronisation with the education system. “Beyond education, the Forum is also looking at how Malta can broaden its maritime activities and tap into underdeveloped areas. We should identify which opportunities are being missed, understand the reasons and work on the tools and capacities needed to attract new investment.” Xerri, Borg and Montebello all agree that Malta has plenty to be proud of. “We have a world-class flag registry, top-notch legal and consultancy firms and professional ancillary services, excellent ship repair facilities, a strong cruise industry, a solid bunkering sector and a robust judicial system which is internationally acknowledged for its efficiency. But we cannot stop here. Those before us have laid solid foundations. Our responsibility now is to take this sector to the next level.” “In a competitive world, you cannot remain within your comfort zone. The maritime industry offers high-value jobs and long-term growth, but it is up to us to ensure that Malta remains a leader and not just a participant.” This article was first published in The Corporate Times.