Editorial

The Federation of Industry is not one to sensationalise issues. But it is persistent when it sees a problem that needs to be tackled. It has been warning about the need for reliable sea connections, mainly to the UK, for months now.

Industries affected had been reassured that the government would look into the options, one of which was a form of incentive to ensure that shipping lines came to Malta.

What form could this incentive take (assuming that anything is permissible under EU rules)? Can something be done along the lines of the incentives offered to airlines that fly to underexploited destinations? The problem is how much of an incentive shipping lines would need to re-route a vessel to Malta and guarantee a dozen or so slots for Maltese exports. After all, the Freeport already does all it can to attract new shipping lines to Malta but the reality is that the total number of containers shipped by Maltese exporters in a whole year would just about fill one vessel.

The problems are not limited to the number of ships that call in Malta en route to the UK. Operators complain of ships that bypass Malta, of ships that arrive late and also of ships that do not upload all the Maltese containers. The Freeport maintains that it is not aware of regular or major problems, as do most of the shipping lines.

In the meantime, however, the situation has not improved and, if anything, has festered while attention was distracted during the general election. The FOI said this week that problems were becoming regular and clients were complaining. It also said, without elaborating, that business was being lost.

"Business is won and sustained by remaining competitive. This does not imply competitively-priced and good quality products but the ability of the supplier to deliver on time, every time. Dependability and reliability of supply are crucial factors," it said.

There have been laments from industries facing complaints from their parent companies or their clients. Many do not speak up because they fear they might raise doubts in the minds of their other clients. However, their stories are deeply worrying.

Those outside Malta may sympathise with the problems of living on an island but it would be foolish to think that they will allow sentimentality to override their commercial concerns. There are plenty of other manufacturers in many other countries ready and waiting to take over any business that Malta loses. And once lost, that business will be much harder to regain, even if the shipping situation is sorted out.

There are too many shrugs. One suggestion made by a stakeholder was for exporters to use other shipping lines when they faced problems. Indeed? What about the fact that the exports are often loaded into a container belonging to a particular line and can hardly be retrieved from the stack at the Freeport, unpacked and repacked to be sent via another vessel?

And neither is it that easy to re-route the containers via other European ports. Companies calculate that the cost for warehouse space and sending exports days early to ensure they are there in time is as unacceptable an option as sending them late.

The dangers of ignoring this situation are rife. If a client decides that a Maltese exporter is unreliable - or that his shipping arrangements are - he will drop him like a stone. That business will be lost not only to the exporter but to Malta. Companies have lost clients. One company persuaded its parent company to bring more of its work to Malta but lost it when shipping problems reared their ugly head.

This is about major companies, which employ large numbers of people and generate indirect jobs for everyone from transport companies to raw material suppliers, from printers to packaging companies.

Is this problem within the government's power to solve? Perhaps not. But it is clearly the only catalyst that can bring all the stakeholders together and put pressure to bear until a solution is found.