Despite the increase in fuel price from May 1st, the Greek ferry market keeps the prices of coastal ticketswith the contribution of the Ministry of Maritime’s initiative to reduce port fees by 50%.
This is emphasized by the president of the Association of Businesses of Passenger Shipping (SEEN), Dionysis Theodoratos, while noting that “no one says that ferry tickets are cheap but the ferry companies have already implemented discounts such as the Easter period, especially to families.”
He stresses that the speedboats may offer additional discounts as they are not affected by the new fuel as they already use it while at the same time proposing a reduction in VAT on passenger and vehicles tickets from 13% and 24% respectively, stressing that in the latter case the vehicle is not accompanying the vehicle.
This proposal has also been reinforced by the new Community Directive that enables the implementation of reduced VAT rates to passenger ferry and to the accompanied vehicles from January 1, 2025.
Mr Theodoratos asked that many argue that if the government reduces VAT, companies will not pass this reduction to the consumer, the SEEN president calls on the Ministry of Shipping to check whether these reductions are passed on passengers through the Price Observatory.
He said that Greece, although it is 2% of the European population and has 18% of Europe’s coastal traffic, still has the highest VAT rate on 13% passengers and 24% in vehicles when in other EU countries is already reduced (10% in Spain and 6% in Spain and 5% in Spain and 5% in Spain and Finland. Denmark).
As he said, such a change from the financial staff could be easily applied, at limited budgetary costs, as it could be covered by the stimulation of passenger traffic.
The proposal is based on the new European Directive (EU) 2022/542, which from January 1, 2025, allows VAT to reduce VAT not only for passenger ferry, but also for the transportation of vehicles and related services, giving it room for adaptation to Member States.
He also noted that 40% of tickets are currently given by discounts, either through compulsory social benefits or through commercial bids.
Finally, he recalled that, unlike other means of transport such as KTELs, the ferry does not receive compensation for mandatory discounts, covering the cost in itself.
In particular, SEEN President Dionysis Theodoratos said the following to RES journalist Paris Tsirigoti:
Emphasis on port infrastructure
The need to reinforce port infrastructure in the ports of the Aegean islands and the safety of passengers and ships was the president of the Association of Officers of Shipping (SEEN), Dionysis Theodoratos, pointing out the lack of basic installations in many ports of the country.
“Each year, the Association of Masters issues a research on Greek port shortcomings and the Greek State and local Port Funds and Organizations should be dealt with in this logic in order to make the ports more friendly and more friendly to ships.”
Mr Theodoratos stressed that the state must pay particular attention to the management of Port Funds’ revenue, noting that three Port Funds in the Cyclades are reaping more than 1m euros each from only one ferry company.
Regarding the reduction of port fees by 50%, he assured that there is no expected viability problem for the Port Funds, as the Ministry of Shipping has already predicted the replenishment of revenue losses through funding by the Green Fund.
These funds will be available exclusively for “green” interventions and projects in the port.
Green transition
The SEEN president over the Fleet Renewal Program said that the transition to a more environmentally friendly model, according to the goals of the European Fit for 55 measures, is proceeding, but the necessary financial tools have yet to open.
“Although the previous political leadership of the Ministry of Maritime had begun processing proposals for fleet renewal and had assigned studies to assess the required investment level, no funding line has been opened, no investment or fiscal cycle for construction or supply.
The challenge stressed is double: both the renewal of the aging fleet, with the average age of 36 years by 2030, as well as the technological upgrading of younger ships to meet new fuel consumption standards such as LNG and methanol.
According to Mr Theodoratos, the full renewal of the fleet over 25 years of age will require investments of over € 3 billion, while upgrading ships under 20 is estimated to exceed 200m euros.
He also emphasized that at a time when joining the EU broadcasting system. (EU ETS) brings additional burdens in the industry, no key features of Greek shipping, such as seasonality, increased energy costs and demanding operating conditions in remote islands, are not taken into account.
He also referred to the importance of the institutionalization of multiannual contracts for barren lines, but also to the creation of a special fund & reward fund that will return to the industry the revenue from the EU ETS.
As he pointed out, the notice of 12 years of barren contracts would be a strong incentive for investment in new ships.
“When a shipowner knows that he will secure steady activity and compensation for over a decade, he can safely proceed with the renewal of his fleet,” he said.
At the same time, the President of SENE referred to the need to reinvest in revenue resulting from the inclusion of shipping into the ETS through the creation of a “fund & reward” mechanism.
The purpose of this mechanism, as he explained, will be for carbon emissions to head to the maritime sector, enhancing the green transition.
“This money can support investments in cleaner fuels, low or zero emissions, technologies, but also serve as a lever for the entire supply and shipping chain,” Mr Theodoratos underlined.
“We do not ask for grants to be given but a return to the resources paid by the industry and which will benefit the whole society through investment,” the SEEN president concluded.
Attracting to Naval Profession
The president of SENE also referred to the crucial issue of attracting young people to the maritime profession, stressing that this is the next big Greek shipping bet and in particular the shipping.
As he noted, to have a substantial approach to new generations, coordinated actions are required on all sides: the coastal, the PNO (Pan -Hellenic Maritime Federation) and the Ministry of Shipping.
“Youth interest is no longer only exhausted at the height of the earnings. They want perspective, meritocracy and quality of life, “he said.
Mr Theodoratos stressed that the ferry industry is completely ready to participate actively in the dialogue on the reform of maritime education, supporting the Ministry of Shipping’s initiative to prepare, in the fall, a comprehensive and applicable plan by all stakeholders.
Source: RES – EIA