Issue link: https://maltatoday.uberflip.com/i/634260
maltatoday, SUNDAY, 31 JANUARY 2016 VII Shipping & Logistics into three categories: oil, containers and the tourism cruises. To this, one could also add transhipment for other resources offshore within bunkering/ anchorage areas making use of our coast for ship-to-ship transhipment transfers of bulk cargoes, generating further income for transport Malta and deviation of operations to our compet- ing ports. Managing the Marsaxlokk Oil termi- nals, Enemed & Oiltanking lease out oil storage facilities to third parties, these being the petroleum companies that store product for transhipment destined to other countries and for the local market. There's currently big demand for Malta to increase facilities for oil and container transhipment. Sullivan said that one cannot overstate the impor- tance of looking into the future and planning LNG infrustructue for bun- kering, especially since Malta's new power station will be run on LNG. Cruise tourism is also on the in- crease in Malta and this has a number of positive ripple effects for the economy. The Malta-to-Malta cruises, meaning that ships leave from Malta for their cruising voyage and end it in Malta, also contribute greatly to the economy, through ancillary expenses. Malta has all the elements to establish itself as a principal cruises port, being itself a major tourism destination. Asked about Malta's comparative advantages as a transhipment hub, Sullivan identified a number of these. As already mentioned Malta's geo- graphical location is an important one, with ships able to avoid unnecessary deviations enroute to the Gibraltar straits from the Suez, or vice versa. The other would be our EU mem- bership, with a common regulatory system allowing easy access between EU member states. Another important factor is the high standard of berthing facilities the country offers at the Freeport, in Val- letta and the Oil Terminals. Also im- portant is Malta's commercial flexible structure allowing for efficiency in the provision of services. It is extremely important that we maintain or even im- prove that efficiency. "Delays cost ship operators a lot of money. The cost for certain ships can go as high as €50,000 per day in demurrage fees," Sullivan explained. Malta is also ideal for container transhipment ,where large main lin- ers use Malta as a hub to discharge containers that are then loaded onto smaller feeder ships, which then go to various other ports according to the destination of the containers. Some containers are also discharged for the local market. Sullivan also identified the Hurd Bank as another important natural feature for shipping. This shallow area outside Malta's 12-nautical-mile terri- torial waters allows most ships to drop anchor and wait for orders, without having to pay any port charges. How- ever this is often used for carrying out safe ship-to-ship transfer operations (petroleum/bulk cargoes) and Malta is in an ideal position to service them with their needs. Launch providers benefit greatly from this as they pro- vide transport for spare parts, supplies and provisions for crews, discharge of slops for oil recycling, and other such services. For these reasons and others, ship- owners prefer Malta for crew changes, to recieve supplies and provisions, to carry out repairs, and to collect waste for proper recycling and disposal. All these services are provided by local service providers who benefit greatly from the volume of business passing through their facilities. A number of port workers and their families rely on the business generated at our ports for their livelihood. One must add to these the business that is generated to the airlines, taxi drivers, buses, hotels, retailers, ship provision suppliers, freight forward- ing, spare parts suppliers, repair shops, doctors and health provid- ers, skip services, restaurants and bars, and the local banks (as crew need to be paid and supplies need to be bought). Add to these the class surveyors, insurance firms and the law firms specialising in maritime law, and the number of people who owe their income (or substantial parts of their income) to the shipping industry is enormous. Ship registration for a Maltese flag also brings considerable income to the country. Ship owners and operators also need to pay a number of fees to Transport Malta, pilot and tug boat fees, mooring fees, waste management fees, bunker tax, port authority charges, and others. Malta's opportunities In recognition of this contribution to country's coffers, Malta needs to invest in facilities. "We need to pro- vide more space for ships," Sullivan insisted. "We should be working on providing more lay-up facilities includ- ing moorings, more quay space, and more bunkering areas. The privatisa- tion of Malta Ship Buliding is a move in the right direction as more quay space is now available for vessels to come alongside." The Increase in quay space automat- cially stimulates all sectors of the industry, be it for repairs, lay ups and also oil and gas logisitics. He suggested intensification of dredging at certain areas to create more quay space. As an example Sullivan mentioned an area in Marsa, near Menqa, known as it-Tinda tal- Patata. Marsaxlokk's oil facilities could also be developed further to allow for an increase in the transhipment of oil. Sullivan said that these develop- ments can start happening immedi- ately, although of course with cau- tion. Certification and enforcement of regulations is paramount to avoid oil leak disasters. Sullivan also suggested that Malta increase its offshore bunkering areas around the islands, including pos- sibly one off Gozo. Allowing vessels to bunker off Gozo, especially during the winter months, will allow for the possibility of crew changes and other services to take place from the island. The more bunkering areas available on different sides of the island, the greater the number of ships that can be serviced in inclement weather and different wind direction with alternative bunkering areas being available. Sullivan predicts that if these im- provements are put in place, the busi- ness will increase immediately as cur- rently the demand is higher than what the country can supply. It would also help if Malta embarked on the prepa- ration of a strategic plan to maximise the shipping industry in the country. A kaleidoscope of colours on the Pinto wharf warehouses' doors Oil storage tanks at Marsaxlokk Terminal Shipping is an important pillar of Malta's economy Efficiency is key to a successful shipping industry