Fast ferry service forecast boost in Malta-Sicily trade

Malta's effective entry into the European Union on May 1 this year, leading to the elimination of lengthy import/export procedures, are expected to give a boost to trade between Malta and Sicily.

Virtù Ferries, which operates a car/passenger ferry between Malta and southern Sicily, anticipates the EU move would present new opportunities for imports and, hopefully, also an increase in exports of Maltese goods to the far larger neighbouring market.

Henri Saliba, director of Virtù Ferries, said the company was looking forward to providing wholesalers, retailers and SMEs with this new and exciting opportunity when Malta joined the EU.

"In the past two years, ever since we introduced the car ferry, we knew there was potential for the importation of cargo from a neighbouring country that was not being fully tapped," he said.

He said that a substantial number of small-scale importers frequently go to Sicily in their vans to buy goods in sizeable quantities at conditions a large market can offer, particularly good prices.

"The duration of the ferry trip between Malta and Sicily is only 90 minutes. This was an advantage to those who import perishable goods, like farming products, plants and flowers, apart from other items.

"This will become even easier when Malta joins the EU because of the elimination of certain procedures which caused delays," he explained.

Mr Saliba said that with less delays at ports, it could be possible to go to Sicily on a 7 a.m. ferry, collect goods at the Sicilian port, leave Catania or Pozzallo at 10 a.m. and ensure that the goods are on the shelf in Malta by noon.

Importers have already come to appreciate the logistic value of such crossings, effectively making Malta a part of the much larger, six-million strong Sicilian market.

"Economies of scale apply to all items, perishable or otherwise. Although the service provided by Virtù Ferries is used by importers of an ever-increasing variety of goods, experience over a period of two years has shown a predominance of traders of such items as plants, fruit and vegetables, groceries, Italian wines and delicacies, fish, shellfish, confectioneries and building material."

The frequent crossings also allow purchases of smaller quantities, in line with requirements, including seasonal variations, thus reducing stock levels and, consequently, cutting financial costs.

Taken a step further, by employing structured purchasing, the costs of warehousing and storage can be almost totally eliminated, reducing further the price to the consumer, Mr Saliba said.

Virtù Ferries also provides a clearing and forwarding service, and shipments can, by prior arrangement, be collected at the catamaran's port of call, Pozzallo or Catania, Mr Saliba added.

He said: "There will be less procedures, for example, no green card will be needed to take a vehicle over if this is adequately covered by insurance locally. The green card was a form of extension of the insurance cover for driving overseas for which one had to pay a fee.

"Procedures with regard to documents at Customs would be practically removed at both ports and passage through the ports will be hassle-free. Imagine, it would be similar to when the Maltese go to Gozo by ferry and vice-versa," Mr Saliba said.

Between January and December the car and passenger high speed catamaran makes over 500 scheduled day return crossings between Malta and Sicily.