Beyond the port worker

For quite some time, the government has been strongly voicing its intention to spearhead a port restructuring exercise aimed at reforming current work practices and removing obsolete ones. There are many who contend that one of the main problems within our ports is the port worker structure and its functions. One has to be very careful when drawing such conclusions. It is not a case of merely pointing fingers at the port workers, since the present structure is much more complex than one can possibly imagine and involves a number of internal sectors and service providers.

The success of any port activity can only be achieved if it encompasses the provision of a high quality of service, maintains a close relationship with service users and optimises and maximises the use of available resources. It is ultimately the service providers who are tasked to ensure the smooth running of port operations and who should provide value for money and reasonable charges for their services. A case in point is the handling of cargo within our ports.

For many years, perennial difficulties have existed in the handling of cargo in the port of Valletta due to the segregation of ship and shore operations. Inevitably, this situation leads to a multiplicity of service providers resulting in double handling and double charging. It is abundantly clear that this situation is no longer tenable and it is unreasonable to expect the consumer and our local industry to foot the bill of such irrational practices. Therefore, the government is also seriously aiming to eliminate these unacceptable practices and to ensure that charges will be paid only and if the corresponding services are actually rendered.

Furthermore, the government shall be implementing measures to achieve more efficiency with regard to the handling of cargo and to ensure that the relevant service agreements and contracts with the terminal operators are indeed adhered to. For instance, a cargo handling service provider would be expected to maintain cargo handling equipment, invest further in plant and equipment, provide adequate training to employees, particularly with respect to health and safety issues, and seek to promote further business within our ports by securing opportunities for further work throughputs. It is, therefore, totally unacceptable that the present shortcomings of service providers who do not honour their contractual obligations are made good through the unauthorised engagement of additional services of private contractors.

Another cardinal point of reference is the Malta Maritime Authority which, as port administrator is also the port regulator. Here too, the intention is to carry out a significant overhaul in its regulatory functions and operations, in the process creating a one-stop-shop for maritime services which should lead to more efficiency and attract more possibilities of work and business within our ports.

With regard to the present organisation of port workers, the system is unnecessarily complex and archaic. Costs do not reflect the number of man hours actually required to carry out a particular job but are based upon outdated tariffs when port work was more labour-intensive and, as such, the costs do not really reflect the port work presently being carried out.

The setting up of a legal entity of port workers could, therefore, be considered whereby they would be in a position to conclude agreements with the terminal operators and not with the end user directly, thus eliminating the current practices of non-tariffed and unauthorised ad hoc arrangements.

At present there exists no fixed set of regulated port tariffs but these vary from time to time. This is especially pertinent, again, to the handling of cargo within our ports. At this stage, it is worth pointing out that the total charges for the handling of domestic cargo in Malta is among the highest when compared with other European and Mediterranean ports. Consequently, this incurs extra burdens on the user and, ultimately, on our local industry and the consumer. This situation is further compounded by the unauthorised negotiations frequently done at shore between the importers and other parties and which, regrettably, leads to the practice of overhead monies for the handling of cargo. This practice has to cease!

In a nutshell, this is primarily the basis of the port reform process and, as stated earlier, it involves much more than pointing fingers solely at the port workers. Even though their work practices have to be revisited, they are part of the whole complex and not necessarily the fulcrum. Excessive port tariffs and practices are, therefore, vital targets that will be focused upon when implementing the port restructuring exercise.

The government has set clear targets in mind and Prime Minister Lawrence Gonzi has underlined port reform as one of the main priorities of this government. Once the domino effect starts and is completed, we will have much more competitive ports, ready to rise to any occasion and, ultimately, Malta would indeed be in a position to enhance its historical importance as a primary Mediterranean hub.

I augur, among others, one very important thing... that all those stakeholders who have ad nauseam expressed the above concerns in my office would comprehend this necessity and will not be tempted to fight for the unjustified interests of the few.

Mr Galea is Minister for Competitiveness and Communications.