NIKOS BARDOUNIAS

Ferry operating companies are in a state of expectancy following the Merchant Marine Ministry’s recent announcement that fares will be deregulated on major routes where more than two independent firms are active.

The announcement has been well received by operators, who say they are “waiting for the date on which the new system will be launched.” Company officials take the view that the ministry has delayed the process of harmonizing legislation with the rest of the European Union and this has resulted in serious problems which affect firms’ financial performance. They claim that existing legislation retains many provisions permeated by the logic of state interventionism and runs counter to free competition, hampering the improvement of services.

“The ministry’s policy distorts free and healthy competition, creates permanent problems in company management and does not allow for their proper business planning. As a result, it reins in and distorts the efforts of ferry operators, both listed and unlisted on the Athens bourse, to attract investment in the sector for a renewal of the fleet,” said a company official who declined to be named.

Moreover, ferry operators note that the obligation for them to submit regular operating schedules, as required by existing provisions, runs counter to EU legislation and poses a major issue of freedom for business activity, to the degree that the ministry’s approval of the schedules is tantamount to issuing operating licenses.

A further issue of concern to coastal shipping firms, which they see as hampering their investment decisions, is the delay in implementing the Stockholm Agreement on the maximum age of ships in service.

Current Greek legislation sets a ceiling of 30 years and operators argue that the uncertainty prevents them from making investment plans.