The captain wears many hats 20


“We’re certainly not facing any crisis here,” says Captain David Bugeja, chief officer at Transport Malta’s ports and yachting directorate. “In fact, business is very good.” The directorate is a multi-


faceted business, encompassing both the Freeport transhipment terminal and the Grand Harbour in Valletta city. And the latter itself includes not only commercial freight, but


also cruise liners,


yachts and the Malta’s remaining ship repair and ship building industries. In fact, a former shipbuilding


yard has just been privatised and will now be developed as a specialised oil and gas hub, says Bugeja. “We believe it will be a first


for the region, and it will carry out services like rig repairs, manufacturing and logistics for the oil and gas industry – it will in effect be a one-stop shop - and it would complete the range of


maritime services we can offer in Malta.” The new hub could increase


shipping and freight movements in and out of Malta but, equally importantly, it will add a lot of value to the local economy including the creation of highly skilled, well paid jobs. It also builds on Malta’s historic skills in ship building and repair. “We think it could also create a very good basis for maritime apprenticeships – it’s important that we have those hands-on skills here in Malta as well as jobs in areas like high tech,” Bugeja adds. “Also, it could lead to a lot of opportunities for freight forwarders, as a lot of logistics is involved in rig repair and refurbishment.” While the global oil and gas


industry is currently digesting the implications of the major fall in prices over the past few months, Bugeja believes that this is just a temporary hiccup and that, ultimately, the industry will go on


expanding. The Grand Harbour is an


unusual and vibrant area, encompassing not just freight handling but passenger shipping, cruise liners and yachting, along with quite a few cultural events like firework displays or even Eurovision finals. To top it all, Valletta is also a UNESCO World Heritage site. “We have such a mixture of activities; it’s always a challenge to find a balance,” says Bugeja. Cargo handling activity in the


Grand Harbour tends to continue at the same level, year in year out, he says, constrained as it is by the port’s physical limitations and the size of the local economy. “There is a level of consistency – you are not going to get dramatic increases in domestic traffic, although there are opportunities for car transhipment, provided costs can be kept competitive.” Valletta’s


cargo operator, Valletta


terminal Gateway


Terminals, has a new chief executive and is pursuing new business


opportunities These


will be mainly in the ro ro sector – the port is the terminal for the Grimaldi Motorways of the Sea conventional, mainly freight, ferry and the high speed freight and passenger Virtu Ferries to and from Sicily, which has created a niche for just-in-time freight services from Malta’s nearest large land mass and major supplier. Other carriers have operated


into the Grand Harbour in the past, including Grandi Navi Velcoci. The latter is


reported


to be considering returning to the island and preliminary discussions have taken place but for this to happen the delayed refurbishment of the port’s deep water quay would need to be completed; this is now expected to happen in mid-2016, says Bugeja. “Once it is complete, I think it would be of interest. Malta is


becoming very dynamic, and at the moment cargo handling berths are at a premium. Having 30% of our capacity not available is quite a chunk. But we are very excited about the prospects here. The economy is growing and we can see a lot of opportunities for value-added services.” The directorate is also the


harbour authority for Malta Freeport, whose main business is


container transhipment,


along with energy imports and a limited amount of ro ro business. A programme to deepen channels and berths for the latest generation


of containerships


has just been completed, only for major customer CMA CGM to announce plans for yet larger container


vessels, topping


20,000teu. The new ships will be the same length as the 400 metre long 18,000teu ships, but will be wider, so more dredging could be needed at some stage. The Freeport does compete


with the Grand Harbour to some extent. A very small percentage of the Freeport’s container business is destined for Malta itself, and the Freeport also has a ro ro berth, although its main traffic – transhipment of cars to Libya – is understandably at a low ebb at the moment. The Freeport will also soon be


handling LNG shipments for the local power station, part of which is being converted to burn the fuel, as well as oil for the existing operation. Longer term, there are also


plans to create a new logistics area north of the Freeport, equidistant between there and Malta airport. That would really help the island exploit its strategic position astride the world shipping lanes, Bugeja considers. Aſter all, how many places of Malta’s size can boast regular container services to China, the Far and Middle East, the Americas – or indeed, virtually every major port on the globe?


Issue 4 2015 - Freight Business Journal


///MALTA


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