As the first Budget of the new legislature, the Chamber argues that the focus must now move from identifying structural challenges and announcing policy commitments towards establishing credible implementation pathways that deliver tangible outcomes for Gozo.

A number of proposals and objectives advanced by the Chamber in recent years are now reflected, wholly or partly, in the Government’s programme for the new legislature. While this convergence is welcome, it also means that Budget 2027 should focus on translating commitments into clear programmes supported by institutional responsibility, adequate resources, realistic timelines and measurable milestones.

The document identifies eight principal priorities for Budget 2027:

Regionality – undertake an evidence-based assessment of alternative governance models and develop a roadmap for the progressive exercise of an appropriate devolution of responsibilities and powers to a regional autonomous entity.

Mġarr Harbour – finance the expansion and futureproofing of the harbour, aligned with future ferry-fleet requirements.

Logistics Hub – move the Government commitment from concept to implementation, with a defined location, functions, governance, financing and connection with Mġarr Harbour.

Innovation and Enterprise – reposition the Gozo Innovation Hub as the anchor of a wider start-up ecosystem together with designated start-up support measures that will support the development of such eco-system.

Rural Airfield and Air Connectivity – provide a realistic annual capital allocation and commence implementation of the Gozo Rural Airfield project.

Financial and Professional Services – introduce a pilot regular MFSA presence in Gozo and develop a coordinated proposition for attracting substantive operations to Gozo.

Skills and Talent – implement employee upskilling support, align training with Gozo’s economic priorities and develop the Youth4Entrepreneurship into a structured entrepreneurship platform for youth.

Existing Businesses – extend transport assistance, strengthen direct support for digitalisation and productivity, and implement the proposed Valletta facility for Gozobased enterprises.

The Chamber stressed that these priorities are interconnected and should not be pursued as isolated measures. Stronger regional governance, strategic infrastructure, connectivity, logistics, diversification, skills and support for existing businesses must form part of one coherent, place-based development framework for Gozo.

Implementation should also be underpinned by transparent decision-making, clear accountability, objective criteria and effective consultation. The inclusion of many of these measures into the present Government’s manifesto, following also proposals by the Chamber, make these binding steps for the next legislature providing already the strategic direction that needs to be taken.

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In a statement on Facebook, Camilleri said the evaluation process for these submissions will commence in the coming days and weeks.

This charter arrangement serves as an interim measure until two new permanent vessels are purchased to join the existing fleet, aligning with the long-term strategy for the future of the Gozo crossing service.

The new fourth vessel will be replacing the Nikolaus, which has been chartered by Gozo Channel for several years but which has limited operations and has been the subject of so much criticism by passengers.

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The Commission published its review of the EU ETS on 17 July, proposing a number of changes aimed at reducing carbon emissions while addressing concerns raised by the shipping industry over the impact of the scheme on European ports.

MMF Chairman Godwin Xerri said the proposed amendments acknowledge several of the concerns raised by the sector but argued that additional changes will be necessary to ensure the EU’s decarbonisation objectives do not come at the expense of Europe’s maritime competitiveness.

Among the proposals welcomed by the Forum is a temporary reduction in EU ETS allowance-surrender obligations for certain container cargo transhipped through EU ports, including Malta Freeport. The measure would apply until the end of 2035 for inbound voyages from non-EU ports undertaken by container ships with a capacity exceeding 10,000 TEUs, where cargo is transferred to another vessel destined for a non-EU port.

While the exemption would not apply to Malta’s import and export cargo, the MMF said it would help reduce the competitive disadvantage faced by European transhipment hubs when compared with nearby non-EU ports that are not subject to the same emissions trading rules.

According to the Forum, Malta Freeport has come under increasing competitive pressure from ports in North Africa, particularly in Egypt and Morocco, which have significantly expanded their infrastructure and capacity in recent years. Several shipping services have already shifted operations away from EU ports, resulting in non-EU hubs capturing the majority of new transhipment business.

The Commission has also proposed tightening the rules governing neighbouring non-EU transhipment ports by lowering the transhipment threshold from 65% to 50% and broadening the criteria used to identify ports that could benefit from avoiding EU ETS costs.

However, the MMF said these changes do not fully address the issue, noting that the rules become ineffective whenever vessels bypass EU ports altogether.

“The proposed changes represent positive progress in addressing business and carbon leakage resulting from the implementation of the Directive,” Xerri said. “However, the review process must continue to ensure the legislation protects both Europe’s environmental ambitions and the competitiveness of its maritime sector.”

The Forum is also calling for permanent exemptions for island member states and other geographically disadvantaged regions, arguing that their dependence on maritime transport places them at a structural disadvantage.

Xerri said Malta’s insularity makes reliable maritime connectivity essential for both consumers and businesses, and that this should be permanently recognised within the EU ETS framework.

The MMF further urged the European Commission to clarify what would happen should the International Maritime Organization (IMO) introduce a global carbon pricing mechanism for shipping. The Forum believes the Commission should commit to withdrawing the regional ETS regime if a global measure is adopted, thereby avoiding overlapping compliance obligations and additional costs for shipping operators.

The Forum also welcomed proposals to earmark EU ETS revenues for the shipping sector through both national funding and the planned Maritime Transport Decarbonisation Fund.

However, it argued that financial support should extend beyond wind-assisted propulsion and shore-side electricity to include a broader range of technologies capable of improving energy efficiency and reducing emissions across all shipping segments, including short-sea, bulk and tramp shipping.

The MMF said it remains committed to working with the Maltese government, European institutions and industry stakeholders to pursue further reforms to the EU ETS Maritime framework, particularly those recognising the unique challenges faced by island states that rely heavily on maritime links for their supply chains.

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Lost time in congestion translates directly into delayed deliveries, missed appointments, reduced efficiency, higher operating costs, and lower quality of life. When traffic becomes normalised, the country pays for it in hours lost, fuel wasted, wellbeing reduced and business opportunities diminished, the chamber said.

It added it has been consistently putting forward concrete proposals to address Malta’s traffic and mobility crisis throughout the last legislature. We have done so in published press releases, consultation documents, pre-Budget submissions, pre-election submissions and sector-specific proposals because the status quo is not sustainable. Yet, despite repeated warnings and practical suggestions, very few of the Chamber’s recommendations have been taken on board in any meaningful way.

“The Malta Chamber has said this repeatedly: a real shift in behaviour will not happen through incentives and positive reinforcement alone. If the objective is to reduce private car dependency, disincentives must also form part of the policy mix. Without a balanced approach that includes practical alternatives and measures that make continued car use less attractive in peak conditions, behavioural change will remain limited and the roads will remain congested,” the chamber said.

It is of great concerned to note that effective implementation improves quality of life and productivity has been lagging far behind. In an age of digitalisation and AI, Malta is still discussing basic coordination issues, with too many roadworks, permits and transport decisions still managed in fragmented ways. The country cannot continue deploying manpower to manage roundabouts and congestion manually when intelligent traffic-light systems, smarter data tools, and better coordination platforms should already be standard.

The Malta Chamber therefore reiterated its call for a fundamental change in the way traffic is managed. This is not a matter of isolated fixes; it requires a coherent national effort, backed by strong governance, proper coordination and the political courage to take decisions that may be difficult in the short term but are essential for the country’s long-term health.

The Malta Chamber’s proposals include the following:

• Introduce mobility e-wallets funded through targeted urban parking and congestion-management revenues, so that the scheme promotes actual modal shift.

• Use an AI driven solution through which local councils process domestic and business requests for road closures and permits, including an interactive public-facing platform to give residents and businesses advance visibility of disruptions to allow for their proper planning. This system should build on and be an integral part of the internal system being used between various government entities intended to minimize road disruptions and which currently is lacking on the public-facing on-the-fly information updates.

• Introduce a public-facing platform for local council domestic and business requests for road closures, giving residents and businesses advance visibility of disruptions. This should complement the existing coordination system between entities, while addressing the missing public-facing element.

• Reform school transport through geographic pooling and wider use of supervised walking and community-based initiatives to reduce school-front congestion.

• Deploy smart parking information systems in congestion-prone localities to reduce unnecessary circulation in search of parking.

• Roll out smart mobility and logistics solutions for commercial areas, including loading-bay management, delivery-slot booking and enforcement tools.

• Use public-private partnerships to relocate on-road parking into underground or multi-storey facilities, while freeing surface space for more efficient mobility uses.

• Develop logistics consolidation hubs where evidence supports them, in order to reduce duplicate freight trips and improve competitiveness.

• Link public funding for transport and infrastructure to independently verified mobility outcomes, so that money follows results, not promises. 

The Malta Chamber urged the government to heed these proposals with urgency and seriousness. Malta can no longer afford piecemeal measures, slow implementation and half-measures that fail to address the root causes of congestion. If Government does not act decisively now, the country risks entrenching inefficiency, weakening competitiveness and failing residents, workers and businesses alike. It’s time to break the gridlock!

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The strategies, unveiled on 10 June 2026, focus on improving connectivity, boosting economic resilience, and tackling structural barriers affecting islands across Europe.

ATTO chairman Joseph Bugeja said the initiative marks an important step for Malta’s transport and logistics sector, which has long argued that EU policies do not fully reflect the realities of operating from an island state.

“For years, Malta and other island regions have had to work within EU frameworks that failed to adequately address the higher costs, logistical difficulties, and competitiveness challenges linked to insularity,” Bugeja said.

He added that the Commission’s strategy validates concerns repeatedly raised by ATTO over transport inefficiencies, limited connectivity, and the disproportionate burden carried by island-based operators.

ATTO said the Commission’s priorities closely mirror the day-to-day realities faced by Maltese transport operators, who play a key role in maintaining supply chains and supporting economic stability.

The association also welcomed the EU’s commitment to engaging more closely with island stakeholders in future policymaking, saying it is ready to contribute to discussions to ensure Malta’s transport and logistics sector is properly represented.

While describing the announcement as a significant breakthrough, ATTO stressed that the strategy must now lead to concrete legislative and financial measures, particularly in areas such as transport, climate policy, and state aid.

“Only through effective implementation can the full promise of this strategy be realised,” Bugeja said, adding that ATTO looks forward to working with both national and EU institutions to ensure Malta’s realities as an island state are fully recognised in future policymaking.

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The Malta Maritime Forum (MMF) has called for active measures to strengthen Malta’s position as a regional maritime hub, warning that growing geopolitical uncertainty, regulatory pressures and the transition towards decarbonisation are reshaping the global shipping landscape.

Addressing the Forum’s Annual General Assembly held at MaritimeMT, MMF chairman Godwin Xerri presented a 77-point maritime-centred electoral manifesto aimed at reinforcing the sector’s strategic contribution to the Maltese economy ahead of the next general election.

The proposals, which have already been presented to Malta’s main political parties, focus on four key areas: governance, the National Maritime Transport Strategy, education and skills, and infrastructure. Central among the recommendations is the re-establishment of a National Maritime Authority, a measure the forum argues would improve coordination, accelerate decision-making and provide clearer strategic direction for the industry.

Xerri also called for the appointment of a minister specifically responsible for maritime affairs, supported by a permanent interministerial structure to strengthen coordination across government.

“The common objective across all proposals is to strengthen the industry’s role within the economy and position Malta as a leading regional maritime hub,” he said.

The MMF stressed that Malta’s maritime policies must align both with the government’s Vision 2050 framework and emerging European Union strategies. Xerri argued that EU policies should better reflect the realities faced by island states such as Malta, particularly as the industry grapples with digitalisation and decarbonisation requirements.

Among the forum’s proposals are measures to enhance the competitiveness of the Malta ship registry, attract investment in ship finance and support the development of clean-fuel bunkering infrastructure.

On infrastructure, the MMF reiterated its call for new multi-purpose quays within the Grand Harbour and urged the government to proceed with the long-delayed Ras Ħanżir project before works linked to the Grand Harbour Revival Plan commence. The forum also renewed calls for a full nautical risk assessment to safeguard existing and future commercial port activity.

Addressing members during the assembly, MMF CEO Kevin J. Borg outlined the organisation’s lobbying efforts in Brussels, particularly concerning the European Union Emissions Trading System (EU ETS).

Borg said an MMF delegation had met European Commission officials, Maltese MEPs and European Commissioner Glenn Micallef earlier this year to highlight concerns about carbon leakage and business competitiveness arising from the current ETS framework.

While supporting the principle behind the emissions system, the forum argued that revisions are needed to better reflect the operational realities of European ports and maritime operators.

The MMF has also submitted formal positions to the European Commission regarding the EU’s Islands and Coastal Communities Communication, as well as proposed Ports and Maritime Industrial strategies.

Meanwhile, Kenneth Farrugia, CEO of Bank of Valletta, highlighted the banking sector’s role in supporting the industry’s next phase of growth.

Farrugia pointed to opportunities in ship finance and noted that the bank is exploring syndicated financing structures in collaboration with the MMF. He also emphasised the importance of financing digitalisation and green investments through partnerships with the European Investment Bank and the Malta Development Bank.

The BOV CEO underlined the importance of compliance, transparency and anti-money laundering procedures, while noting that a resilient maritime ecosystem remains critical to Malta’s wider economy given the country’s dependence on maritime connectivity.

Economic projections presented by economist Gordon Cordina showed the maritime industry continued to expand steadily between 2018 and 2025, driven by port activities, maritime business services and water transport.

Cordina said the sector now generates 4.8% of Malta’s value added while accounting for around 2% of national employment, making labour productivity in the industry more than double the economy-wide average.

He noted that future growth should increasingly focus on high-productivity services such as regulatory and governance functions, maritime finance and legal services, as well as education and human capital development.

“The industry is of systemic importance to Malta’s economic model,” Cordina said, adding that continued competitiveness and sustainability would be essential for long-term economic resilience and the successful implementation of the National Maritime Transport Strategy.

He concluded that Malta’s maritime ambitions under Vision 2050 would depend on continued innovation, private investment and political commitment to higher-value maritime services.

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In an interview with The Malta Business Weekly, Etienne Attard says the logistics industry has moved beyond reacting to occasional shocks and is now adapting to a fundamentally different global trading environment shaped by geopolitical instability, trade fragmentation, energy volatility, and supply chain insecurity.

“International logistics is no longer characterised by episodic disruption,” Attard explains. “What we are seeing today is a structural condition of uncertainty that is reshaping the entire sector.”

With more than seventy years of experience in transport and logistics, Express Trailers has witnessed multiple economic and geopolitical cycles. However, Attard argues that the current environment differs significantly from previous periods of volatility.

“In the past, crises were generally viewed as temporary events — whether it was the pandemic, the war in Ukraine, port congestion, or energy shocks. The assumption was always that markets would eventually stabilise. Today, there is growing recognition across the industry that instability itself has become the operating environment.”

According to Attard, the traditional logistics model built around efficiency optimisation and predictable globalisation is being replaced by one centred on resilience and adaptability.

“Global trade is more fragmented, more politicised, and less predictable than at any point in recent decades,” he says. “Supply chains are now being redesigned around the expectation of recurring disruption rather than stable international conditions.”

The impact is particularly visible in smaller and strategically located markets such as Malta, where maritime connectivity and international trade routes are critical to economic activity.

“For Malta’s logistics sector, trade wars, tariff volatility, and maritime insecurity can no longer be treated as temporary distortions,” Attard notes. “They are increasingly structural features that directly influence routing decisions, pricing, transit times, and customer behaviour.”

One of the most immediate challenges facing operators is growing operational complexity.

Attard identifies three major dynamics currently reshaping the sector.

“The first is persistent route volatility,” he explains. “Disruptions in maritime corridors such as the Red Sea have forced significant rerouting around Africa, increasing transit times and creating cascading effects throughout supply chains.”

A second challenge is regulatory fragmentation.

“As trade blocs become more rigid and tariff regimes shift more frequently, logistics companies are having to develop stronger capabilities in customs intelligence, compliance management, and regulatory coordination,” he says. “These are no longer administrative functions — they are now strategic operational requirements.”

At the same time, customer expectations are also evolving rapidly.

“Many businesses are moving away from purely cost-driven just-in-time supply chain models,” Attard says. “There is a growing emphasis on resilience, redundancy, regional diversification, and maintaining higher inventory buffers.”

This transformation, he argues, is also changing the role of logistics providers themselves.

“The sector is becoming less transactional and far more advisory in nature. Customers increasingly need partners who can help them interpret instability, manage scenarios, and maintain visibility across disrupted networks.”

For operators in Malta, this creates both pressure and opportunity.

“The pressure is clear — tighter margins, shorter planning cycles, and less predictable asset utilisation,” Attard says. “Traditional efficiency-led models are becoming increasingly insufficient.”

However, he believes companies that can offer agility, intelligence, and responsiveness will be best positioned to grow.

“As complexity increases, so does the value of orchestration,” he explains. “Logistics providers are evolving from transport operators into strategic intermediaries between global volatility and local execution.”

In this environment, Attard believes scale alone is no longer enough.

“The key differentiators today are adaptability, information, and responsiveness,” he says.

Looking ahead, Attard believes the industry must abandon the expectation that global logistics will eventually return to a stable equilibrium.

“The strategic question is no longer how to return to normal,” he concludes. “The real question is how to operate reliably in a world where normal no longer exists.”

The post ‘Today, logistics is about helping clients manage permanent disruption’ first appeared on The Malta Business Weekly.

Operators are reporting sustained diesel price inflation, with Italian retail prices exceeding €2 per litre. This has triggered significant cost escalation across the trailer and freight industry, with estimates suggesting additional weekly sector costs in the region of €80 million. Diesel, which typically accounts for 30% to 40% of operating costs, is now placing extreme pressure on carrier margins.

ATTO Chairman Joseph Bugeja said early signs of disruption are becoming more evident.

“Alongside sustained cost pressures, we are seeing isolated instances of fuel supply constraints in parts of Italy. While not yet systemic, these warrant close monitoring,” he said.

Member operators report increasing operational strain.

“To date we have not experienced systemic uplift failures, though drivers have occasionally encountered stations with limited availability,” said Antoine Vella of Express Trailers. “Rising diesel costs are now requiring continuous monitoring and rapid operational adjustments.”

He added that the volatility is increasingly affecting planning and network reliability.

“With vehicles operating across Europe, refuelling has become more critical and is adding complexity to daily operations. The uncertainty in the current environment could have significant implications for Malta’s logistics chain,” he said.

GMC Transport reported fuel cost increases of 20% to 30% over recent months, with margin compression of up to 40%. Director Mark Buttigieg said pricing pressure is now forcing urgent rate reassessments across client contracts.

Concorde’s Jonathan Vella said operators are responding with tactical mitigation measures.

“We are refuelling earlier, relying on larger motorway stations, and avoiding low fuel thresholds before entering Italy or France,” he said. “Even minor delays can now cascade into missed ferry schedules and trailer rotation disruption.”

He noted that cost inflation across EU corridors remains severe, with diesel up approximately 35% over three months and 37% over six months.

Meantime, the Italian government has introduced excise duty reductions and tax credits for transport operators to ease pressure on the haulage sector. However, industry feedback suggests these measures are being outpaced by the scale of cost increases.

At the same time, associations are raising concerns that part of the recent diesel price escalation may be driven by speculative pricing dynamics, amplifying volatility beyond underlying market fundamentals and intensifying financial strain across operators.

More broadly, the Italian haulage sector is facing liquidity pressure due to rising costs and 60–90 day payment cycles, increasing the risk of rate renegotiations, service reductions, and potential operational disruption.

ATTO also noted that pricing transmission across Europe remains uneven due to differing taxation systems and policy interventions, contributing to corridor volatility.

Bugeja emphasised Malta’s structural exposure as a fully import-dependent island economy.

“With no overland alternatives, Malta is entirely dependent on the reliability of European transport corridors. Around 55,000 trailer movements annually underpin national trade flows, and any sustained disruption, whether it’s cost-driven or physical, can rapidly impact economic stability,” he said.

ATTO concluded that while domestic fuel pricing measures offer partial insulation, Malta remains exposed to external corridor volatility, as most absolute fuel uplift occurs outside the country. The association will continue to monitor developments closely and engage stakeholders where necessary to safeguard supply chain continuity.

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Xuereb, who also serves as chief Operations officer of Global Ports Holding, said the move forms part of a broader strategy to expand home porting operations and strengthen Malta’s position as a Mediterranean cruise hub.

The port recorded a landmark year in 2025, with 962,966 passengers passing through its facilities across 385 cruise calls. While this represents strong performance, Xuereb noted that most calls are transit visits, meaning passengers spend only the day in Malta. Cruise ships typically berth at 8am and depart around 6pm, limiting visitor engagement to roughly 10 hours.

The port’s strategic focus is now shifting toward home porting and fly-cruise operations, where voyages begin or end in Malta. Unlike transit calls, home port operations generate additional economic activity through air travel, hotel stays and extended tourism. Xuereb argued that cruise-and-stay packages are particularly valuable, as they encourage passengers to arrive earlier or remain after disembarkation, converting cruise visitors into stay-over tourists. This increases per capita expenditure, lengthens stays and deepens engagement with the destination.

Home port operations generally run between 4am and 10pm, sometimes extending overnight to accommodate boarding. However, the current terminal infrastructure is limited. The existing facility is small, and the company believes a purpose-built home port terminal is necessary to support its expansion plans.

Such a terminal is not included in the government’s Grand Harbour Revival Plan. Xuereb said the port is seeking further clarity on planned infrastructure changes before submitting a formal proposal. Ideally, the new facility would be located at the Deep Water Quay, which he described as the only logical adjacent expansion point. Splitting operations across multiple locations on a small island would be inefficient, he argued, and expansion toward the Deep Water Quay aligns with the broader government vision.

Xuereb welcomed the public consultation process surrounding the Grand Harbour plan, describing it as a long-term and transformative vision that balances heritage preservation, public access and mixed-use development. He said regeneration efforts complement cruise operations and enhance the wider destination experience. The cruise port and the Valletta Waterfront, he added, have already played a catalytic role in revitalising the area. The port is participating in consultations both independently and through the Malta Maritime Forum.

Space remains the port’s primary operational constraint. Situated at the foot of the capital beneath historic bastions, the narrow strip between quay and fortifications limits flexibility. Xuereb acknowledged these challenges but said operational efficiency has improved as a result. He also credited support from national authorities, particularly the Transport and Tourism ministries, and highlighted the importance of Transport Malta officials in managing traffic during busy operational days.

Looking ahead, 2026 is expected to build on the momentum of 2025, which surpassed pre-pandemic highs recorded in 2019. Cruise calls are projected to increase by around 20% to 420, although passenger numbers will remain broadly stable. This reflects a shift toward smaller, luxury vessels with lower capacity.

The rise in luxury cruising is influencing both port operations and onshore offerings. According to Xuereb, higher-end guests increasingly request exclusive experiences such as private concerts, lunches in private residences or curated wine-tastings. Luxury cruise lines sometimes even request scheduling gaps to avoid sharing port space with large ships. In response to growing demand for high-service travel, some major operators have adopted a “ship-within-a-ship” model, creating premium enclaves within larger vessels that combine exclusivity with the amenities of mass-market cruising. This hybrid approach allows operators to serve more discerning clientele without sacrificing scale.

Xuereb emphasised the sector’s strategic value as a gateway market: 80% of cruise passengers last year were first-time visitors to Malta. Of the remaining 20% who had previously visited, two-thirds had first discovered the island via cruise travel. Additionally, 87% expressed interest in returning for a longer stay, and nearly 90% rated Malta eight out of 10 or higher when asked if they would recommend it. In Xuereb’s view, cruises function as a powerful marketing channel, generating repeat visitation and sustained tourism growth.

He suggested that Malta could leverage cruise arrivals more effectively within its broader tourism strategy. Delivering a high-quality experience during a brief port call is essential if visitors are to return. Infrastructure improvements, reduced waiting times at cultural sites and smoother traffic management would enhance overall satisfaction. While the port manages the on-quay experience, the wider visitor journey depends on coordination across multiple stakeholders.

Demographic shifts are also reshaping the sector. When Xuereb entered the industry more than two decades ago, the average cruise passenger was over 65. Today, the global average age has fallen to around 45, reflecting broader market diversification. The cruise season has likewise expanded. What was once concentrated between May and September now stretches from March through November, with winter cruising increasingly common. According to industry data, nearly one-third of global cruise passengers in the past two years were first-time cruisers.

Malta’s central Mediterranean location supports its inclusion in Western, Eastern and Adriatic itineraries, reinforcing its strategic appeal. Cruise visitors are also venturing beyond Valletta during stopovers. Excursions frequently include trips to Mosta, Mdina and Rabat, as well as combined cultural tours linking the Upper Barrakka Gardens and St John’s Co-Cathedral with the Tarxien Temples and Mdina’s ramparts. Experiential activities such as Maltese cooking classes, wine and olive oil tastings, and visits to prehistoric temple complexes are increasingly popular. Smaller-group or private excursions – including visits to the Blue Grotto and Marsaxlokk – are also in growing demand.

In parallel with operational expansion, several infrastructure projects are underway. The government, through Transport Malta and Infrastructure Malta, is widening the Pinto 4 and 5 quays. The cruise port is developing a four-storey car park within the Valletta Waterfront precinct. Additionally, the historic old power station complex in Floriana, located at the foot of Crucifix Hill, is set to be converted into a boutique hotel under an agreement with a local hospitality company.

Environmental measures are also advancing. Valletta became the first Mediterranean port to provide onshore power supply to cruise ships through its shore-to-ship project. In 2025, approximately 107 vessels connected to the system, significantly reducing emissions in the harbour area. Xuereb noted that each vessel requires technical adaptation and testing before connecting, but described the initiative as a major success that contributes meaningfully to carbon reduction.

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He was addressing the association’s annual conference, named Europe’s Island Link: Advocating Malta’s Role in the EU’s Transport Strategy. The conference brought together key policymakers, European representatives and industry stakeholders to discuss the strategic, regulatory and operational challenges facing Malta’s road haulage and logistics sector, particularly the fragility of Malta’s connection disadvantages as an island state.

In his opening address, Bugeja declared that Malta “can no longer afford economic isolation,” and stressed that the sector which keeps the island supplied and connected to Europe is being pushed to its operational limits.

“A mere two-day storm recently led to reported shortages in supermarkets. If disruptions of that nature were prolonged, the consequences would be catastrophic,” Bugeja said.

“Our members are not simply moving trailers. They are safeguarding Malta’s economic resilience and national security of supply.”

ATTO represents the operators responsible for guaranteeing the seamless daily movement of goods between Malta and mainland Europe. Yet, despite their strategic importance, the sector continues to face structural disadvantages at both EU and national levels.

At a European level, ATTO has intensified its advocacy against blanket policies that fail to recognise Malta’s island realities. Chief among these is the EU’s Emissions Trading System (ETS), which as of 1 January has reached 100% implementation for maritime transport.

According to ATTO, the cumulative impact of ETS-related costs and fuel surcharges is imposing disproportionate and unjust financial burdens on Malta’s transport and logistics industry.

“These costs are ultimately being filtered down to Maltese consumers. As an island state on the periphery of Europe, Malta does not have the luxury of alternative land connections. Yet EU environmental and transport measures continue to be designed as though we operate under the same conditions as continental Member States,” he added.

Turning to local issues, Bugeja referred to infrastructure constraints within the Grand Harbour which continue to undermine operational efficiency, particularly as trailer volumes increase under increasingly strict delivery timeframes.

While acknowledging the long-term vision behind the recently unveiled Grand Harbour Revival Plan, Bugeja made it unequivocally clear that ATTO cannot support proposals that may compromise two of the most strategic Ro-Ro berths without guaranteed and viable alternatives.

“Our Grand Harbour is a cornerstone of Malta’s supply chain and economic competitiveness. We cannot accept regeneration plans that jeopardise Ro-Ro trailer operations. Another berth was already sacrificed in previous years to accommodate larger cruise liners. Repeating that approach would be extremely dangerous.”

He maintained that any redevelopment, including proposals involving Ras Ħanżir, must be operationally robust, future-proof and aligned with national logistics requirements before implementation proceeds.

The Association also called for stronger political recognition of the sector’s strategic status.

“This is not merely a business activity,” Bugeja stressed. “International trailer operations underpin employment, sustain trade flows and ensure uninterrupted connectivity with Europe. Both major political parties must fully grasp the national implications of policy decisions affecting our industry.”

“ATTO is not anti-progress,” Bugeja concluded. “We advocate forward-thinking, balanced solutions. But we will firmly oppose any proposal, local or European, that undermines Malta’s operational resilience or places our nation at a structural disadvantage. The stakes are simply too high.”

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