At the same time, they propose multi-year contracts of over 12 years for unprofitable lines, especially for newly built vessels.
The president of the Hellenic Association of Passenger Shipping (SEEN), Dionysis Theodoratos, within the framework of a consultation by the Competition Committee for the modernization of the sector, proposed incentives for off-peak season routes, subsidies for fuel costs and port duties during the winter period, and the institutionalization of stable tools for guaranteed coastal shipping coverage throughout the year.
“Smoothing out seasonality is not only an economic issue but a social obligation for insular Greece,” Mr. Theodoratos emphasized and added that coastal shipping companies are currently facing high operational costs (fuel, port duties, insurance, spare parts, payrolls), inadequate port infrastructure, environmental compliance obligations that increase operating costs, as well as regulatory burdens, such as annual route licensing, uncompensated discounts, and a frozen state tariff schedule.
Regarding the issue of high-speed and conventional vessel route licensing, he recalled that in 2013, with law /2013, the legislator recognized the particularity of high-speed vessels and established separate licensing procedures for them.
However, as he mentioned, in 2012, 13 high-speed and 37 conventional vessels were operating, while in 2024 the high-speed vessels increased to 34 and the conventional ones to 44.
Today, he said, conventional vessels operate year-round, affected by high costs and reduced demand outside the tourist season.
At the same time, he reiterated the need for social pricing, updating the Transport Equivalent, and also for realistic multi-year public service contracts of over 12 years for newly built vessels, which would enhance vessel viability.
Referring to the competitive framework, he said that, according to EU Regulation /92, any entity can operate in Greek coastal shipping by simply submitting an application to the Ministry of Shipping, however he pointed out that the problem is not the entry of a business scheme into the market but its viability within it.
The president of the coastal shipowners, speaking about the public service contracts that cover unprofitable lines, stressed that they do not constitute state subsidies, but compensations for providing coastal shipping services on lines with low passenger and commercial traffic.
He underlined that 95% of coastal shipping transport at the moment is covered without any state support, while the remaining 5% is served through public service contracts, which ensure the connection of the “unprofitable” islands.
Mr.
Theodoratos requested stable state funding, the reinstatement of multi-year contracts (over 12 years) and the rationalization of compensation, as current charter fees “barely cover the operational cost.”
He also pointed out the need for new contracts to incorporate criteria for the green transition and the enhancement of 12-month island connectivity, noting that “the social cohesion of the islands is not a cost, but an investment in the future.”
Regarding the Coastal Transport Communications Council (CTCC) which advises on the routing of unsubsidized lines, he said the representation of the coastal shipping sector is minimal, as only 4 out of the 29 members come from the sector’s businesses, highlighting the need to strengthen the voice of the coastal shipping sector.
The president of the HSCG placed particular emphasis on port infrastructure, which he characterized as a “critical element of the coastal transport system.”
“Several Greek ports have inadequate reception facilities, lack suitable ramps and fenders, face significant wave surge problems, and, to a significant extent, are not suitable for the safe berthing of modern ships,” he said, adding that “in several cases the depth remains insufficient, hindering the docking of new, larger, and more environmentally friendly ships.”
These shortcomings, as he explained, translate into schedule delays, malfunctions in the smooth management of passenger and vehicle traffic, an inability to serve more than one ship simultaneously due to a lack of berths and waiting areas, as well as inadequate infrastructure for refueling with alternative fuels or supplying power from shore.
“All of these increase costs, compress reliability, and ultimately weaken competitiveness,” he noted.
He added that Greece has the highest number of coastal passenger ports in the E.U.: 145 ports, followed by Denmark with 73 coastal ports, while Italy and Germany have 41 each, France 25, and Spain 20.
It is noted that after the public consultation on the Interim Report of the Sectoral Inquiry into coastal shipping, the Competition Commission will proceed with the collection and evaluation of comments, while the conclusions will be incorporated into the Final Report, which will include policy proposals to strengthen competition and improve service quality, constituting the roadmap for Greek coastal shipping.
