Anchor drops – Angelique Abela

Maritime Business is where the anchor drops

By Angelique Abela -Member of The Malta Chamber and Executive Chairperson, MMH Malta Ltd.

CORPORATE SERVICES

Encompassing the Financial, Legal, Insurance, Shipbroking, IT and Consultancy activities. These services already build on a locally strong attractive regulatory platform and are yielding positive results. In fact, Malta is at the forefront as a ship registering nation; Malta being one of the largest ship registers in Europe. This is a success story on which we should keep building as nation.

The maritime industry is a dynamic and diverse sector that overlaps into a number of other industries. Just by skimming through the various segments, one realises the vastness of the maritime sector.

LOGISTICS

This activity goes beyond sea transportation activities. It comprises all those activities undertaken in ports, warehousing, storage, stripping/stuffing, distribution centres, testing and quality control and may even be extended to light assembly, packaging and re-packing as well as inter/intra modal transportation facilitation, the management and handling of containerized, bulk and project cargo; ro-ro activities; Stevedores; agencies, public sector employees etc. Ports play a critical role in logistics and as an island nation Malta requires everything from deepwater container ports to small harbours and leisure marinas. Malta’s two main logistical ports are the Ports of Valletta and Marsaxlokk which handle over 90% of the goods that enter or leave the country, as well as being two of the core European ports handling nearly 74% of goods entering or leaving the Europe via the sea. Creating further opportunities for increased maritime logistics both in volume and added value requires coordination and cooperation between all players in the industry with the primary objective being that of increasing commercial activities. Only then can we start discussing Malta as an efficient logistics hub. There must be focus on improving the infrastructure, expansion of facilities and digital transformation. The shift to the digital era, could have been triggered further by COVID whereby the necessity to work remotely instigated the use technology to improve efficiencies and reduce bureaucratic processes. For example, Freeport has already invested in technologies to semi-automate processes in 2020 and Customs also shifted to a digital platform.

The time invested in research, development and seeking new opportunities in this sector to instigate growth, will automatically have a positive spill-over effect on interrelated economic sectors, making the maritime truly one of the strong pillars of the Maltese economy.

TECHNICAL SERVICES

This is a very vast segment of the industry ranging from ship building to ship repair and maintenance. It encompasses all the skills and technical expertise required in the maritime. Whilst Malta has seen a decline in ship building after the privatisation of the Malta Drydocks, there has been increased activity in the ship maintenance and conversions sector through the various facilities available locally in Valletta Port. Through the Maritime Hub and various drydocking facilities, Malta has unique facilities to cater for ship and yachting repair facilities. This segment of the industry has generated an increase in the local technical activity, thanks to the now available facilities; activities which previously were being done in neighbouring countries like Italy. The investment in the segment is critical to attract ship and yacht owners to Malta as a technical destination stop.

YACHTING

Malta is a popular destination for those sailing the Mediterranean. The addition of various new yacht marinas throughout the years and difficulty to find berthing space is evidence of the popularity of this segment, both with foreigners and locals. There is also the opportunity to develop yachting as a sport and provide opportunities for youngster to compete internationally. For this sector to grow further and for Malta to be truly a yachting destination the country needs to provide services across the whole supply chain, from the technical services to the leisure activities of the yacht owners.

FISHERIES AND AQUACULTURE

Fishing has always played an integral part of the Maltese economy. Fish caught in Maltese territorial waters is not only consumed locally but an increasing share of catches is being exported to foreign markets. There are numerous challenges for local fishermen and potential of growth in this sector may be possible through investment in the fish processing industry. Fishing is also tied to the aquaculture sector, which, has developed and grown significantly over the last decade, mostly thanks to the investment directed to research and innovation in the sector. Years of work have enabled Malta to build a respectable reputation in the field and its expertise is recognised internationally. The environmental considerations associated with this sector must be carefully evaluated and implications need to be studied to ensure the overall wellbeing of the marine environment. In this respect there is a need to promote research and innovation in new environmentally sustainable technologies in aquaculture.

ENERGY

Being an island nation, the territorial waters and the possibility of an exclusive economic zones will definitely have a bearing on the energy sector. From oil and gas exploration to renewables, the government whilst working hand in hand with the private sector will require to identify the right resources and invest in the research and studies to strike the correct balance between Malta’s potential to create new revenue streams, whilst fulfilling its international obligations related to energy.

EDUCATION

All the various segments mentioned above can only thrive with a competent workforce. The availability of a skilled and flexible workforce is vital for the survival and development of the maritime sector as a whole. However, this is becoming a challenging feat for the industry due to the shortage of skilled personnel. Education and career guidance is key to ensure growth in the sector and truly transform Malta into a maritime centre.

The maritime sector in its vastness, encompasses an immense variety of activities that are directly or indirectly linked to the sea. The development of one policy for the maritime can be challenging due to the due to sheer size and diversity of each segment. However, the maritime sector, with its ancillary and support services, has a considerable impact on Malta’s economy and labour market. Therefore, the time invested in research, development and seeking new opportunities in this sector to instigate growth, will automatically have a positive spill-over effect on interrelated economic sectors, making the maritime truly one of the strong pillars of the Maltese economy. n