MMF Electoral Proposals 2026

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A delegation of the Malta Maritime Forum (MMF) travelled to Brussels to discuss the EU’s Emission Trading System with the EU Institutions, Industry Associations and Maltese policy interlocutors.   The visit was intended to influence the forthcoming review of the Directive expected in July and served to :

1. present data on the negative repercussions of ETS in terms of business and carbon leakage and
2. to discuss possible alternatives to the implementation of ETS, the principles of which the Forum regards commendable.

To this end, meetings were held with the:

• European Commissioner Glenn Micallef and Head of Cabinet
• European Commission DG Clima EU ETS Head of Unit and Staff
• Deputy Permanent Representative to the EU and Maritime Attache
• European Tug Owners Association
• European Maritime Pilots Association
• European Sea Ports Organisation
• Federation of European Private Port Companies and Terminals
• European Parliament President Main Policy Advisor
• Malta’s MEPs Peter Agius, Alex Agius Saliba, Thomas Bajada, Daniel Attard and representatives from the offices of David Casa and EP President Roberta Metsola.

Whilst in Brussels the Forum sounding the alarm over the failings of EU ETS, arguing that it is failing spectacularly to achieve its commendable climate change green objectives because it is unable to enforce its Directive outside its jurisdiction.  As a result, transhipment business is largely shifting to new and expanded transhipment hubs that have mushroomed along the coast of North Africa to capture the business of cargo carriers that are re-routing away from EU ports to avoid ETS requirements with the risk of reducing southern EU ports to feeder hubs playing a secondary role to extra-EU ports where global cargo will become principally transhipped.

This effect runs diametrically counter to the objectives of the Commission’s new Port Strategy which was published while the MMF was holding its talks in Brussels and producing concrete evidence that EU ports were losing rather than gaining competitiveness yet the same amount of carbon was being generated in EU waters.  Hard facts were produced on the substantial growth being registered in non-EU ports at the expense of EU transhipment hubs. This shift has led to increased feeder traffic, paradoxically boosting overall emissions rather than curbing them.

This mounting practice is creating disproportionate economic risks for small island state economies like Malta’s which rely heavily on global maritime carriers to generate jobs and export-led growth. With high ETS costs and a relatively minute domestic container volume, the island risks losing direct calls from major shipping lines. If cargo bound for Malta is unloaded at neighbouring non-EU ports, Malta’s connectivity and competitiveness are undermined, jeopardising sectors such as manufacturing and logistics.

During its active interactions in Brussels, the Forum recommended that the European Commission:

• Adopts a temporary freeze on EU ETS and FuelEU for maritime transport until the establishment of a global decarbonisation measure
• Gives clear and concrete assurances to the industry that it would withdraw its ETS and FuelEU regimes once a global system is in place
• Extends derogations for small islands to major islands and prolong the sunset clause until 2035
• Exclude EU transhipment ports—where transhipment exceeds 65% of total activity—from the definition of “port of call” under the ETS Directive.
• Exclude short sea shipping from the scope of EU ETS until road transport ETS2 is operational.
• Introduce a risk assessment mechanism for ETS monitoring, applying predictive criteria to ensure fair oversight.

The Malta Maritime Forum is most appreciative of all Maltese MEPs for their unequivocal non-partisan approach in this matter and for attending in full force for the MMF presentation.  It also thanks EP President Dr Roberta Metsola and Commissioner Glenn Micallef for their support.

Buoyed by this positive feedback and support, the Forum plans to keep up its advocacy momentum with further visits in the coming weeks with a view to continue to urge EU policymakers to heed these recommendations and bring about a level playing field for all EU ports, thereby promoting an effective, sustainable and globally coordinated decarbonisation process in the maritime sector.

The MMF delegation consisted of Godwin Xerri, Chairman; Alex Montebello, Vice Chairman; Claudia Vella Casagrande, Director; and Kevin J Borg, CEO.

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The meeting was held shortly after the Forum’s announced commissioning of a second study about the Economic Contribution of the Maritime Industry which announcement was praised by Hon Dr Borg.  The MMF Chairman, Mr Godwin Xerri explained how this second study builds on the previous report and how it complements the forthcoming National Maritime Transport Strategy to which the MMF also contributed actively.

During the exchange of views, in fact, the Opposition and the Forum agreed on the potential for growth in the Industry beyond ship registration, cruise-liner operations and transhipment.  The meeting discussed areas that are ripe for further development and growth including ship finance, bunkering of new fuels and the establishment of a regional logistics hub, all of which were recommended in the Forum’s recent 2026 Budget Proposals position paper.

The meeting also served to discuss current issues of prime mutual interest which are acting as bottlenecks to future growth including international regulation, infrastructural limitations and an acute shortage of workers.

To this end, the meeting underlined the role of education and talent in ensuring further success for the industry.  The MMF explained that as a matter of priority, it was consistently pressing for increased exposure of maritime careers and better coordination between the relevant stakeholders in this regard.

The Leader of the Opposition reaffirmed his Party’s belief that the maritime industry remains one of the most important for the Maltese economy and every initiative aimed at strengthening its competitiveness, employment and long-term resilience is a significant step forward.  He reiterated the Opposition’s firm intentions to establish a dedicated maritime authority and a Minister for maritime affairs if elected to govern.

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Addressing guests at the Magazino Hall, Valletta Cruise Port, Chairman Godwin Xerri paid tribute to Dr. Ann Fenech and Mr. Jospeh Bugeja, who together with him were the founders of the Forum. He also extended his appreciation for the sterling work undertaken by his predecessors, former European Commissioner Dr Joe Borg and Judge Joseph Zammit McKeon.

Mr Xerri described the Forum as “an influential body formed by the maritime community for the maritime community — to consult with the authorities and to be consulted.” He highlighted the organisation’s key achievements over the past decade, noting that these have strengthened Malta’s position amid growing regulatory and geopolitical uncertainty. “The Forum’s work has helped safeguard Malta’s attractiveness as a regional maritime hub of excellence across multiple complementary services, including ship registration,” he said.

Looking ahead, Mr Xerri underlined the importance of the forthcoming National Maritime Transport Strategy, which the Forum has actively promoted and contributed to. “We have long felt the need for this strategy, and we are delighted that our industry will soon have a clear vision and blueprint for its future — defining where we are heading, what resources we require, and the milestones we aim to achieve,” he added.

The event was also addressed by Hon Chris Bonett, Minister for Transport, Infrastructure and Public Works and the Hon. Ivan Castillo – Shadow Minister for Employment, the Maritime Sector and Aviation.  Minister Bonnett praised the Forum for its objectivity and meaningful input in shaping Malta’s position on the EU ETS as well as on a wider scale in terms of the National Maritime Strategy.   On his part, the Shadow Minister commended the Forum for ensuring a unified industry voice in the national interest despite the diversity of sectoral priorities.

As the Forum marks this milestone, it reaffirms its commitment to representing the collective interests of Malta’s maritime industry and to working closely with the authorities and stakeholders to strengthen Malta’s role as a leading maritime centre in the Mediterranean and beyond.

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During a seminar where participants filled the Conference Hall in Kappara and which was part of the MMF’s Annual General Assembly, key decision-makers from the public and private sectors gathered to discuss the articulation and next steps of the much-anticipated strategy which is designed to integrate into the wider Malta Vision 2050 economic plan.

While emphasising the importance of consultation, Xerri welcomed the government’s appointment of Perit Karmenu Vella to spearhead the coordination of the strategy, supported by E-Cubed Consultants. Xerri underscored that the ultimate goal of the strategy should be an actionable plan, complete with specific targets, KPIs and regular updates − “a living document” that adapts to evolving realities.

In his keynote speech, the Minister for Transport, Infrastructure and Public Works, Chris Bonett, described the event as “an essential meeting point for an industry that quite literally keeps our nation moving”. He pointed out that given Malta’s unique geographical and economic profile, the country’s reliance on maritime transport is among the highest in the world.

“The country would come to a halt if any link in the maritime transport chain were to fail,” he said, explaining why the strategy was not just a technical exercise but a central pillar in Malta’s future. The minister reiterated that the strategy will feed directly into Malta Vision 2050 − building a modern, agile and sustainable economy.

Opposition spokesperson for maritime affairs, Ivan Castillo, echoed the spirit of cross-party consensus that generally characterises maritime affairs. He acknowledged the quiet but strategic contribution of the sector and stressed the need for greater visibility to attract new talent.

Gordon Cordina, executive director at E-Cubed Consultants, presented the draft strategy framework. He explained that the strategy aims to be an enabling instrument that guides investment, regulatory reforms and other policy actions over time.

By aligning with Malta Vision 2050 and unlocking synergies across connected sectors, the maritime industry could increase its GDP contribution by 2.5 percentage points, generating around 5,500 new, higher quality jobs in the process.

Transport Malta CEO Kurt Farrugia underlined the regulator’s contribution towards the draft and thanked Capt. David Bugeja, in particular for his efforts in this regard. He thanked the forum for bringing the industry and wider stakeholders together to contribute their views at this early stage of the consultation process with a view to shape a strategy which best suits the country which was so dependent on maritime transport.

Industry voices at the seminar reinforced these priorities with practical insights. Joseph Bugeja, chair of ATTO, highlighted the fundamental role of international logistics in ensuring Malta’s economic connectivity. Representing an organisation that accounts for 85% of weekly trade via trailers, Bugeja commended the MMF and the ministry for their collaborative work in developing the strategy.

Alex Montebello, CEO of Malta Freeport Terminals, stressed that maintaining global connectivity is critical to Malta’s role as a regional transshipment hub. He cited examples of multinational companies that used Malta as a hub for their vast international business and a gateway to North Africa. Montebello noted that realising such opportunities depended on continued investment, robust infrastructure and a well-functioning ecosystem. In line with skills development, he announced a new master’s degree in port management and logistics, developed in collaboration with the University of Malta.

Bank of Valletta CEO Kenneth Farrugia also addressed the seminar and praised the strength of Malta’s maritime cluster while urging operators to integrate ESG principles into their business models to ensure resilience and long-term success.

Farrugia emphasised the need for sustained investment and shared that the bank was working with institutions like the EIB, EIF and MDB to provide innovative financial tools. He also expressed openness to syndicated financing and co-risk mechanisms to support ambitious maritime projects.

In summing up the discussions, it became clear that the Malta Maritime Forum is more than just a platform − it is a driver of strategic change, uniting Malta’s maritime stakeholders under a common vision. With momentum building behind the strategy, Malta is poised to strengthen its position as a maritime leader in the Mediterranean and beyond.

Kevin J. Borg is the CEO of the Malta Maritime Forum.

This article appeared on the Times of Malta on 8th June 2025

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Please see the full programme below.

CELEBRATING WORLD MARITIME DAY:

IMPLICATIONS ON THE MALTESE MARITIME INDUSTRY

A Conference organised by the Malta Maritime Forum

with the support of the Ministry for Transport, Infrastructure and Public Works (MTIP)

26^th September 2024

The Orchid Room – Xara Lodge, Limits of Rabat

9.00     Welcome Coffee and Registration

9.15      Implications of the World Maritime Day for Malta : An Industry Perspective – Godwin Xerri, Chairman MMF

9.20     Government’s Vision and Maritime Mission – Hon Chris Bonett, Minister for Transport, Infrastructure and Public Works (MTIP)

9.50     A Public/Private Approach for the Maltese Maritime Industry – Godwin Mifsud,  Permanent Secretary MTIP

10.05   Direction and strategy for the maritime industry – Perit Karmenu Vella, former European Commissioner

10.25   Keynote Speech: Maritime Transport Policy – IMO Insights – Jonathan Pace, former Deputy Director, TCD IMO

10.45   Panel Discussion – Aligning National Priorities to Industry Needs

• Regulator: Capt. David Bugeja, Chief Officer Maritime Affairs, Transport Malta
• Policy Maker: Diane Muscat, DG Strategy and Policy MTIP
• Cargo Terminals: Alex Montebello, CEO Malta Freeport Terminals
• Liquid (Energy) Storage Terminals: Sonke Stein, MD EVOS Malta Ltd
• Professional Service Providers: Dr Lisa Camilleri, Secretary MMLA
• Ship Owners: Manuel Portelli, Senior Manager Malta Motorways of the Sea part of Grimaldi Group
• Maritime Tourism: Stephen Xuereb, CEO Valletta Cruise Port and COO Global Ports Holding plc

11.30    Interventions from the Floor by Key Industry Representatives

12.00    Conclusion of Event & Networking Lunch

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At this third edition, the MMF’s ESG Conference brought together public and private sector stakeholders from the Maltese maritime industry. This time round the event was supported by BIMCO – the world’s largest direct-membership organisation for shipowners, charterers, shipbrokers and agents.

The objective of the event was to dissect the different elements which make up ESG, focusing on the key challenges which maritime stakeholders are facing, while sharing insights on major efforts being taken by the industry to achieve such objectives.

Mr Borg highlighted how effective ESG implementation was fundamental not only to satisfy regulatory requirements but also as it gives companies a competitive advantage, strengthening their reputation and brand. “Strong corporate governance is the backbone of successful ESG initiatives, providing the necessary leadership to achieve environmental and social targets”. Addressing an ESG conference hosted by the Forum, Kevin J Borg told maritime industry stakeholders that there can be no E and S without G. “A clear tone from the top and effective oversight are critical to attain these objectives”, Mr Borg insisted.

MMF Chairman Godwin Xerri added that ESG requires us to prioritise environmental stewardship, value human relationships, and uphold governance standards. “Business as usual is no longer an option, we must leverage advancing technology and strong human resources to meet these challenges”, he argued.

Now in its third edition, the MMF’s ESG Conference brought together public and private sector stakeholders from the Maltese maritime industry which employs more than 12,000 persons directly, with the figure approaching double that amount in considering of indirect and ancillary services.

Mr Christian Bækmark Schiolborg, Maritime Technology and Regulation Manager at BIMCO, the world’s largest organisation for shipowners, charterers, shipbrokers and agents highlighted the key regulations and standards impacting the maritime industry in the years ahead, including an IMO target that near-zero greenhouse gas emission fuels shall represent at least 5% of the energy used by shipping in 2030.

While reporting was not mandatory for all local shipping firms given their size, Dr Roberta Lepre, Managing Director at Weave Consulting, argued that companies would do well to consider this option in the interest of accountability. “Operators must identify the most suitable reporting framework for their organisation and engage stakeholders to enhance their impact on employees and the broader community”, she explained.

Mark Scicluna Bartoli, Head of Product Development at Bank of Valletta highlighted the facilitation ofrelationships between firms and credit institutions through ESG. He said that given the complexities involved, firms needed to invest in a skillset upgrade to meet these increasing demands which are fundamentally altering the landscape of industry.

The MMF ESG Conference was moderated by Kevin Spiteri and supported by BIMCO, Bank of Valletta and Weave Consulting.

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1. The development of a National Maritime Strategy
2. The setting up of a Maritime Court
3. The detachment of Maritime Malta from Transport Malta
4. The enactment of the necessary regulations to lay down standards for shipping agents.

Mr Xerri expressed hope that the administrative framework to develop a national maritime strategy will be put in place without further unnecessary delay whilst announcing that Government was working and consulting with the MMF to create a public/private work group that would be responsible to undertake the necessary consultations across the whole industry before articulating the strategy to guide us economic operators over the next decade or beyond.

“The Forum will strive to be at the forefront of this activity and to create mechanisms to cover all sectors of this industry” said Mr Xerri, “because we know that attracting new investment and business lines entails strong marketing and a clear vision and strategy as to where we need to get”.

With regards to the setting up of a dedicated maritime authority and the promulgation of the Ship Agency Regulations, Mr Xerri recognised that these were challenging goals which were not helped by sudden changes at the Ministerial level  and the continuous changes within the Authority.  He said that the MMF shall continue to elaborate on the benefits of these objectives with the new incumbents because it believes that through constructive dialogue the right formula can be found to attain these strategic intents.

The Forum Chairman said that “the Maltese Maritime industry is part of an international industry in which we have to compete, innovate and focus.  Those of us who are directly involved know what strong competitive challenges we face continuously from other jurisdictions.  Our ports are facing challenges from neighbouring non-EU ports which are not constrained by regulations that impede growth.    Once again, I reiterate the importance of a clear vision and a realistic strategy especially because our position is strengthened by the presence of prime stakeholders who, notwithstanding our geographical limitations, stand out exceptionally even at international levels.  We are endowed with a surrounding sea that holds huge potential for blue economy activities that can be developed without harming the environment.  We have the highest of professional educational entities that are willing and able to train our future generation to take this industry to levels higher than what we have achieved so far” concluded the MMF Chairman.

The MMF Annual General Assembly which took place on 17th May was further addressed by the Forum CEO, Kevin J Borg and two guest speakers – Mr Kenneth Farrugia, CEO of Bank of Valletta and Col Dr Mark Mallia, CEO of Transport Malta.

The latter declared his commitment to work closely with the maritime community and said that “Transport Malta’s ongoing maritime projects are significantly enhancing our infrastructure, solidifying Malta’s status as a key leader in the maritime industry.”

On his part, Mr Kenneth Farrugia outlined the latest initiatives undertaken by Bank of Valletta to facilitate business and enhance banking relationships with maritime clients.  He praised the Malta Maritime Forum for its work and for organizing a a full-day training seminar for the Bank’s executives last February with the aim of enhancing mutual understanding between the two highly regulated industries.  He underlined the importance of maritime operators embracing ESG practices for both competitiveness and regulatory purposes especially those which engage with gatekeepers at an international stage.

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