Gozo Channel’s cargo service will have to start using Valletta’s Gateway Terminal’s facilities in Grand Harbour in the near future – but the chairman is dismayed that this will mean paying extras fees.

Gozo Channel has been using the quay at Sa Maison for its thrice-weekly cargo service, but the area has been earmarked for a marina and the ferry company will have to move from there.

However, the only feasible alternative – given the need for a marshalling area for the heavy trucks and containers, as well as hazardous cargo, is Grand Harbour.

Chairman Joe Cordina made it clear that Ċirkewwa was not an option: “These trucks will not – and should not – be loaded at Ċirkewwa. The impact on traffic is simply not worth thinking about!" he told The Business Observer.

“It is up to the government to decide whether or not to offer a cargo service. But is doing without one really an option? The Public Service Obligation was set up to ensure that this service is provided, no matter what.”

He lamented that they had been left in the dark and with just weeks to go before works start on the marina, he still has no idea what the company is going to do.

I do not want to commit Gozo Channel to paying to berth if the government will not cover that cost

Mr Cordina is clearly reluctant to pay VGT charges which would erode his efforts to turn the loss-making Gozo Channel back into profits. The annual accounts for 2014 filed last month show that Gozo Channel made a loss of €1.3 million in 2013 and a token profit of €42,633 last year. But based on the results of the first nine months of the year, he anticipates making a profit in 2015 of €500,000. But turning profitable is just the first step in sorting out the financial mess relating to the purchase of the Ta’ Pinu hoistable deck – let alone thinking ahead to the replacement of the current fleet in 15 years’ time.

Gozo Channel is clearly out on a limb on this: both the Transport Authority and the Transport Ministry referred questions sent by The Business Observer back to Gozo Channel.

Mr Cordina did not beat around the bush: he expects the government to cough up for the extra charges.

“Gozo Channel used to get €5 million from the government to cover its Public Service Obligation. Since 2011, it only gets €720,000.

“We do not know what VGT would cost – there are various figures being mentioned but we have not yet been presented with a specific offer. I do not want to commit Gozo Channel to paying to berth if the government will not cover that cost. We are discussing it with the government but it clearly has to pay more through the PSO.

“That is what a ‘public service obligation’ is. It is there to cover all the extra services provided as a public service whether they are commercially feasible or not, from reduced rates for Gozo residents to Kartanzjan holders, and night trips to cargo services.”