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MMF believes maritime sector must expand beyond any single area of activity

As the Malta Maritime Forum marks its tenth anniversary, the organisation’s role as the unifying voice of Malta’s maritime industry has never been more relevant, the MMF leadership told The Malta Business Weekly.

Over the past decade, the Forum has evolved into an influential policy partner, shaping national and European discussions that directly impact the sector. This ten-year milestone represents a moment to reflect on how far the industry has come and how it must now prepare for an era defined by environmental, technological and geopolitical change.

The most transformative developments of the past decade have extended beyond the growth of Malta’s ship registry, MMF the leadership said. The significant rebound of the Valletta Cruise Port from COVID, the Freeport’s expansion, the regeneration of the ship repair facilities, and many other success stories in industry, and the continued global prominence of the Malta Flag are some of the successes of the maritime industry, which has established itself as a key contributor – though not always   publicly acknowledged – towards the Maltese economy.

Yet, the Forum’s leadership said they recognise that the country’s future depends on expanding beyond registration to build a broader maritime services cluster to include ship management, financing, crewing and specialised logistics. The industry’s potential lies in value creation through integration rather than dependence on any single area of activity.

The Forum’s collaborative model, bringing together ship owners, port operators, agents and service providers, has also proven instrumental in shaping national policy, the MMF said. By providing government with a unified industry position on issues ranging from port competitiveness to climate adaptation, the MMF has strengthened the quality of consultation and policymaking.

At EU level, the Forum has been active in discussions on environmental regulation, particularly around the Emissions Trading System (ETS) and other decarbonisation initiatives. Its technical input has ensured that Malta’s perspectives as a small maritime state are heard in broader European debates.

As the global maritime industry faces accelerating regulatory obligations, the Forum believes Europe must seek to strike a careful balance between sustainability and competitiveness. The MMF is not against decarbonisation, it is against the regionality of the ETS scheme which has created a disproportionate impact on smaller, island ports in the Mediterranean.

For years, we were able to compete on efficiency and quality, despite Northern African ports already enjoying lower operating costs. “It is not an issue of fearing competition. We never had any issue about being part of a competitive market,” the MMF said. But ETS presents existential challenges on various levels. The reality is very simple: if the ETS scheme continues to be imposed exclusively on European ports, there is no way that those ports in  proximity to competing non-EU hubs can compete.  Ships will simply choose North African ports, where they are able to save millions in costs.

The Forum is therefore urging the government to work more closely with like-minded EU member states, particularly from Southern Europe, to push for fairer measures at EU level. Environmental obligations cannot come at the expense of people and jobs. That cannot be right, the Forum said. Moreover, in the wake of the Russian invasion of Ukraine and the US’s isolationist policies, the EU has spoken a lot about defending its industries from unfair competition as well as about the need for strategic autonomy. Yet the MMF fears that with such move, Europe will end up losing control of supply chains, and “we will end up depending on other countries to keep our goods coming in.”

The MMF’s tenth anniversary comes at a moment of strategic reflection for Malta’s maritime community, chairman Godwin Xerri said. This reflection is also timely from a national perspective, as Malta shapes its Vision for 2050 and defines the pillars that will sustain future growth.

Encouragingly, there appears to be broad political consensus on the need to transition from a labour-intensive model to one driven by higher value-added sectors, and the maritime industry stands out as a natural fit for this shift, offering both the scale and sophistication to anchor Malta’s next phase of economic development. It is also very positive that more often than note, this industry has not been characterised by political division, rather there has been ample convergence between the major parties on maritime issues.

The Forum views the forthcoming maritime strategy as a defining opportunity to chart a clear and practical course for the next generation of maritime policy. “We take great pride in being recognised as the industry’s principal interlocutor, a role underscored by the fact that both the decision to develop this strategy and its initial details were first announced at MMF events. This stands as a strong testament to the Forum’s influence, credibility and sustained contribution to the sector,” Xerri said.

It is a feather in our cap that the government’s consultation process drew heavily on our members’ feedback, he added. But we now need to move from recognition to action. The industry has a clear vision, but its members cannot be expected to deliver the strategy alone. Infrastructure, education and regulation all fall within the public domain, Xerri said.

Asked how the Maltese industry is adapting to technological changes, MMF vice-chairman Alex Montebello said We must plan for the industry’s needs today and anticipate what it will require tomorrow. Technology is redefining the way ports operate. At the Freeport, we have already seen how semi-automation and remote-operated equipment are reshaping the skill set required.

MaritimeMT’s training simulators, used by pilots to replicate navigation in the Grand Harbour and the Port of Marsaxlokk, demonstrate Malta’s capacity to deliver high-quality maritime training. This facility is not just a resource for local seafarers, it is used for research and operational planning by major shipping lines before attempting high risk, real-life manoeuvres.

It shows that Malta can be at the forefront of maritime education if we continue to build on this foundation. Yet the sector still faces a shortage of seagoing professionals. It is regrettable that a cadet struggles to find a placement on board a ship, he said.

The Forum’s strength lies in its ability to unite a highly diversified industry around common objectives, MMF CEO Kevin J. Borg said. “Our members range from terminal operators to bunker suppliers, towage operators to logistics companies and consultants to ship repairers. Yet they all share one belief that Malta’s maritime future depends on dialogue, evidence, and policy consistency,” he said.

The Forum’s work goes well beyond advocacy. It acts as a technical partner to the authorities, ensuring that recommendations are both fact-based and implementable. Our success is measured not only by the policies adopted but by the trust our members place in us to represent their interests responsibly, Borg said.

For example, we have contributed actively towards green transition policies such as the EU’s Renewable Energy Directive (RED III) and new fuel standards. We are fully in favour of decarbonisation, but the way these rules are being implemented is flawed. “Without proper infrastructure and supply of compliant fuels, we risk driving business away from Malta rather than making it greener,” he said.

Looking ahead, the Forum’s first decade has been one of unity and consolidation; the next must be one of innovation and strategic diversification, the leadership said. The maritime industry can no longer rely solely on traditional strengths but must embrace new opportunities in technology, education, and green energy. The MMF’s role will continue to be that of a bridge, linking policy ambition with practical industry realities to secure Malta’s position as a leading maritime hub in the Mediterranean.

The first part of the interview was carried in The Malta Independent on Sunday

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