The government received just one proposal following its call for new and innovative means of transport to ease traffic congestion in the Grand Harbour area and around Marsamxett.

The call for submissions closed today. The proposal, from AX Holdings, will now be evaluated, the government said.

It is understood that the proposal involves a ferry service linking Marsamxett with Valletta and Cottonera. The €10m project would include a tunnel under Valletta through which the ferry would travel, ensuring that this would be an all weather service.

Last year, AX Holdings chairman Anglu Xuereb told Times of Malta he had updated his plans for a rail-based transport system. Instead of tunnels below sea level to cut across the harbours, he was suggesting inland subways closer to the road surface and a monorail transportation system.

He said he was proposing four main underground stations: one close to Mater Dei Hospital, another in Valletta and the others in Fgura and Marsa. Six kilometres of track would be underground where, he noted, it is “easy to dig tunnels” due to the geology of the islands. Another 1.5 kilometre-long stretch in Marsa would be above ground.

His original proposal would have cost €400 million in today’s money. His newly revised proposal is estimated to cost about €300 million.

The largest expense would be the building of an underground car park able to take 2,000 vehicles at each station.

The project would also include electric cabins or buggies used at transportation nodes. A number of them would circle Valletta, he said, encouraging commuters to venture off the common paths of Republic and Merchants streets.