Three weeks before the tender for the fast ferry service closes, Gozo Channel still has “all its options open”, according to chairman Joe Cordina.
The statement, maritime operations sources pointed out, indicated the company had not yet concluded an agreement with a joint venture partner.
The provider of the new fast ferry service to Gozo will have to take over the traditional channel crossing too, according to the tender conditions. Gozo Channel issued an invitation to find a partner last May and would need to reach an agreement in time for a bid to be submitted by January 31.
Read: Gozo-Malta fast-ferry provider must run traditional crossing
In theory, the sources noted, a new company could come forward and offer both the Ċirkewwa to Mġarr and Valletta to Mġarr routes but that would effectively mean leaving Gozo Channel without a raison d’etre – and its staff without work – unless the new operator opted to sublease its services and ferries.
Such a move would have tremendous political implications, the sources added. The government, however, insisted that tying the two services together was the best option, saying “a more technically-coordinated and sustainable level of service may be possible if this is provided by a single operator”.
The justification for this centred around the use of Mġarr harbour by competing operators but the sources said this was a regulatory issue and not an operational one because, ultimately, the same number of vessels would be using the quays at the same time whether they were operated by one company or two.
The other issue raised by the tender was whether it favoured the status quo with regard to competition, the sources said, noting that it was written in such a way to give an advantage to Gozo Channel by obliging the entrant to operate the Ċirkewwa to Mġarr route.
The request for proposal does not discriminate between possible commercial providers for the services being requested
When the Times of Malta raised the matter with the European Commission, which has not received any complaint in this regard, a spokesman replied: “In line with the principle of non-discrimination laid down by the Regulation 3577/92, member states must not set obligations that are tailor-made for a given shipping company and that would prevent other union shipowners from entering the market.”
The Transport Ministry insisted the tender did not infringe the rules. “The request for proposal does not discriminate between possible commercial providers for the services being requested… It should be underlined that a public service contract must fulfill scrutiny requirements to ensure no overcompensation for the service provided, apart from other competition and regulatory requirements,” a spokesman said. It remains to be seen what will happen on January 31, with Mr Cordina saying that “while it was certainly not the ideal solution”, Gozo Channel could bid even without a joint venture partner. This would entail the company having to buy or charter a 350-passenger ferry for the five or six years of the concession.
The ministry said one had to “clearly differentiate between (a) the corporate decisions of Gozo Channel Co. Ltd and (b) the government’s public transport policy remit in securing the provision of appropriate sea transport services between Malta and Gozo. The request for proposals is in furtherance of the latter objective.
“Given the scale and specificities of the local market we will have to see whether the market can positively respond to this requirement.
“The [original tender] time was extended [from July 2017 to January 2018] for all prospective bidders to enable them to actively consider and prepare the necessary documentation for their prospective bid.
“We will have to see whether more time may indeed be necessary to solicit market interest in this area given the scale and specificities in this area.”