The Forum welcomes the Minister’s announcement in favour of the setting up of a free-trade zone to serve as a regional logistics hub.  This initiative is consistent with Malta Vision 2050 and has the strong potential of attracting lucrative business and investment from multinational players whilst contributing to consolidate Malta’s position as a centre of excellence in regional trade.

The Forum also noted Government’s declared position in favour of land reclamation for maritime infrastructural projects that are designed and operated by industry stakeholders.  Over the years, the MMF has recognised that land reclamation initiatives have, on the whole, given significant momentum to Malta’s maritime industry and, by extension, brought economic benefits to the country. Looking ahead, the MMF maintains that decisions on similar projects should be firmly grounded in comprehensive studies, including:

• a shipping traffic risk and impact assessment
• an environmental impact assessment
• an economic impact assessment

The Forum welcomed Government’s decision to continue to cushion the economy from the volatility in the cost of fuel and energy at an international level.  This is a positive development in terms of safeguarding the competitiveness of local operators in a fiercely competitive regional market given that fuel and energy are important elements in the cost-structures of maritime business operations over a number of sectors not least transport, logistics, terminal operations, ship repair and ship services.

The MMF looks forward to engaging in consultation and cooperation with the authorities on further initiatives that reflect a shared vision, including those designed to shift a greater portion of road traffic to waterborne transport. In particular, the Forum supports the introduction of a Ro-Ro cargo service between Malta Freeport and Gozo, with potential stop-overs in the Grand Harbour and the north of Malta, with the aim of:

• alleviate traffic on Maltese roads from Birzebbuġa, the Inner Harbour areas and Ċirkewwa, and
• reduce emissions of harmful CO₂ pollutants due to lower generation of CO₂ per tonne-mile generated by one ship compared to multiple trucks.

In conclusion, the MMF recognises the Industry’s strong position whilst acknowledging the severe challenges.  It believes that through open dialogue and by uniting around shared vision and objectives, Malta can ensure that its maritime industry continues to thrive, delivering economic, environmental, and social benefits for generations to come.  That said, the MMF continues to believe strongly that the future needs of the Industry would be better served with a dedicated national authority solely responsible for the Maritime Sector.

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On reading the text of the Bill, the Forum noted that the principle of enshrining the right for the enjoyment of the environment within the constitution is a noble one and deserves full support.

However, the subsequent paragraphs within the bill which give right of action to all persons to take action in case they feel that their right for enjoyment of the environment has been, or is being, or is likely to be contravened, which can lead to the suspension of any activity, including an economic activity, is inappropriate and the implications deriving therefrom are unimaginable.

The Forum has already communicated its concerns through the proper channel and will be expounding further its position in discussions that it has with the Opposition in the coming days.

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Whilst acknowledging with regret that such a suspension shall invariably lead to further delays in the commissioning of this critical infrastructure, the MMF recognizes the opportunity that the situation has presented for a thorough review of the terminal’s design and functionality.

It is deeply concerning that the construction of this terminal was undertaken without any consultation with the industry.  The lack of engagement with the interlocutors of the local maritime community has resulted in alarming developments, including reports that the new terminal will not feature a dedicated RoRo (roll-on/roll-off) berth.  Instead, a floating RoRo ramp is being considered— a decision that raises serious operational concerns and limitations.  The MMF only became aware of this critical issue through unofficial sources, further highlighting the lack of transparency in the planning process.

The need for a dedicated RoRo facility in the Port of Valletta cannot be overstated.  At present, RoRo operations are constrained to Laboratory Wharf, creating congestion and operational inefficiencies. Statistical data clearly indicates a steady increase in trailer volumes to and from Malta, necessitating additional RoRo capacity to accommodate larger vessels and increased traffic. Moreover, the growing demand for transshipment of vehicles at Valletta further underscores the urgency of expanding RoRo infrastructure.

In light of these pressing concerns, the MMF strongly urges stakeholders to utilize this suspension period as an opportunity to engage with Industry with a view to reassess the terminal’s structure. A comprehensive review, in consultation with industry experts, is imperative to ensure that the terminal meets current and future maritime demands effectively.

The Malta Maritime Forum appeals to the relevant authorities to engage with industry representatives to align the development of this key infrastructure with the needs of the sector and the country.

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This year, the IMO commemorates the Golden Anniversary of the International Convention for the Prevention of Pollution from Ships (MARPOL) having started the voyage towards an environmentally sound shipping sector 50 years ago.

The MMF welcomes the IMO’s call for all stakeholders to promote further dialogue on future efforts to enhance sustainable shipping and protect our planet and oceans. Shipping is evolving. Shipping must embrace decarbonization, digitalization and innovative technology, including automation – while ensuring the human element is kept front and centre of the technological and green transition to ensure a sustainable plant for future generations.

At the same time, on this World Maritime Day, the MMF salutes all industry players in maritime transport not least the brave seafarers who keep the globe ticking by ensuring our provisions of food, medicine and energy sources to power our homes and places of work.

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A number of us have followed this story very closely hoping to hear and see urgent “breaking news” announcing the Titan was located and its passengers safe. Regrettably, at around 9pm that same day, we witnessed a news conference given by the US Coast Guard. We heard that a “debris field” had been located close to the Titanic by a sophisticated ROV and that five major pieces of debris indicated they were the remains of the Titan.

The contents of the “debris field” were consistent with a catastrophic implosion of the submersible. The passengers would have had no chance of survival. The only thing which can possibly console the families is that the passing of their dear ones must have been immediate and must have occurred in seconds.

No noise consistent with such a catastrophic implosion had been heard since those providing rescue services had put up sonar buoys intended to pick up sound. This would indicate that the submersible suffered the catastrophic implosion prior to the mobilisation of the rescue operation and the Titan most probably met its fate when connectivity was lost a couple of hours after the descent on Sunday.

The human perspective of this story is poignant and heart-breaking and no words can bring any form of comfort or solace to the family and friends of the five who lost their lives.

They clearly knew the extent of the danger that they were getting themselves into and, from the various reports available, it is understood that they probably signed off all sorts of acknowledgments of the danger involved and waivers exonerating the owners of this submersible OceanGate from the state of Washington in the US.

However, this is precisely the point which has intrigued me. The burning question which appears to have been absent from the various reports we have been presented with is: How can a company like OceanGate offer such a “tour” on commercial terms, in the region of $250,000, to the wreck of the Titanic, at a depth of 2,800 metres, in a 6.5-metre submersible without, apparently, such a craft falling within the regulatory safety regime of any state or country?

If it does, we have not seen any comments or declarations by such a flag state or registrar from the flag state registry with information regarding the registration of this craft and the safety regulatory regime which it ought to answer to.

Those of us involved in the maritime sector know full well that when a commercial vessel carrying goods or passengers is involved in any form of incident, the regulatory regime of the flag state holding the registration of the vessel immediately comes forward with its observations.

It also comes under the spotlight; immediate investigations are launched into the safety standards of such a flag state with questions raised regarding whether the vessel concerned observed these safety standards.

Yet, in this case, the “regulator” is conspicuous by its absence and we appear to be facing a situation where the Titan does not appear to have been “registered” anywhere. We are informed that she was loaded on board another vessel,  the Polar Prince, a support vessel registered in St John, Newfoundland, Canada on June 16. The Polar Prince departed St John and took the Titan to the environs of the Titanic wreck where it was then lowered into the water.

The Polar Prince is reportedly owned by Miawpuek Horizon Maritime Service Ltd and the vessel is chartered for educational and research expedition use. The Titan, therefore, is not part of the “kit” of the Polar Prince and does not belong to the Polar Prince but appears to be a totally separate and distinct “vessel”.

Remarkably, we have not been provided with any information which would remotely suggest that the Titan was registered with a flag state subject to the safety regulations of that flag state.

In an article appearing in The Guardian (June 21), it appears that, in the past, OceanGate had, in some marketing material that was provided, declared that “Titan design would meet or exceed the DNV – GL safety standards”. Yet, the submersible had never been classed by DNV or any other classification society, for that matter.

The article goes on to say that “the ability of the sub’s full design to withstand such depths was questioned in a 2018 lawsuit filed by OceanGate’s former director of marine operations, David Lockridge who said he was fired after he raised safety concerns about the vessel”.

The article details the concerns experts had regarding the safety credentials of this craft.

The burning question, therefore, remains, irrespective of the desire and willingness of the paying passenger to embark on this clearly dangerous adventure.

Is it possible that we are witnessing a scenario where a commercial entity appears to be able to provide a significantly high-risk expedition without operating within the realms of any form of safety regulatory regime?

No doubt, we will hear more about this going forward.

by Dr Ann Fenech, Head of the Marine Litigation Department, Fenech & Fenech Advocates and president of the Comite Maritime International.

Source: Times of Malta

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The Malta Maritime Forum (MMF) has considered a public document entitled ‘Exclusive Economic Zone – A Sea of Opportunities’. This document followed the enactment of the Exclusive Economic Zone Act 2021 (Chapter 625 of the Laws of Malta).

The Act enables the Government to declare and designate by legal notice as being in the Exclusive Economic Zone (EEZ) of Malta an area that extends beyond the country’s territorial waters and that partially or fully coincides with the continental shelf of the country, without prejudice to a final designation of the zone itself. The zone has the potential to extend to an area of 71,446 square kilometres.

The MMF examined the document in detail, carried out additional research and formulated a position paper with its views. The position paper is divided into four main sections as it sets out to identify:

a) The economic activity that takes place at Hurds Bank, which to a large extent (albeit not entirely) is situated outside of the country’s territorial waters; and who are the beneficiaries of that economic activity.

b) The opportunity cost of a designated (and, therefore, regulated) exclusive economic zone.

c) The effect of potential designations on international navigation routes.

d) The legal framework which necessarily must be put into place for the purposes of enforcement and control of a designated area.

Particular reference is made to point (b) of the position paper. Of concern to MMF – from an industry and macroeconomic perspective − is the effect of a hindrance to legitimate business activity, and ensuing multiplier effect, resulting from a potential limitation of anchorage at Hurds Bank, even by means of an anchorage fee that could be seen as prohibitive. Such a limitation could potentially be detrimental to the business of bona-fide service providers, with negative impact on the local economy in terms of:

(i) jobs;

(ii) indirect business activity through the multiplier effect;

(iii) investment;

(iv) foreign currency earnings; and

(v) direct and indirect tax revenue.

A comprehensive (though non-exhaustive) list of sectors which would be affected is highlighted in the position paper.

“From a legal perspective, MMF maintains that there are a number of matters which would require consideration”

Another important issue to dwell on is the movement of shipping in the centre of the Mediterranean. A huge concentration of shipping traffic moves along Area 1 (Hurds Bank, as denoted in the diagram) that is directions E to W and E to SE within the Malta Channel (the sea between Malta and Sicily) when compared to the relatively sparse shipping traffic south of Malta.

Even for these reasons, MMF firmly believes that Area 1, that comprises Hurds Bank, should be assigned exclusively for shipping purposes, that is marine traffic and anchorages, under the control of the Malta authorities.

As regards Area 2, MMF is of the view that any regulated allocation of an EEZ should always respect the rhumb lines and navigation routes so as to ensure that maritime traffic may still flow freely, avoiding disruption and costly delays to shipping lines. Because of this concern, MMF recommends that a thorough risk assessment should be carried out prior to any decision regarding the area in question.

Despite the less advantageous bathymetry, Area 2 still lends itself well to marine projects in the area of floating alternative energy-generation installations, aquaculture projects and refuelling infrastructures.

Locating projects of this nature in Area 2 to the west of the coast of Malta would ensure less disruption to maritime traffic and mitigate risk on the east coast of Malta, which is crucial to other pillars of the economy, not least tourism.

From a legal perspective, MMF maintains that there are a number of matters which would require consideration, quite apart from residual risk and the overarching idea that the country must assess its legal rights and obligations, which in turn would translate into financial burdens.

MMF contends that any declaration of an EEZ needs to follow a number of elaborate and technical studies not least: a shipping traffic risk and impact assessment; an environmental impact assessment; and an economic impact assessment.

With reference to the last consideration, it would be of paramount importance, crucial for the authorities, to estimate the net financially-balanced benefits to the country as a whole less the deduction of forecasted costs that would derive from the economic exploitation of a designated area in the EEZ. This crucial exercise would need to incorporate costs that the country would need to incur in shouldering added responsibility, together with rights and obligations related to monitoring and enforcement in the designated area in question.

The authorities have an obligation to examine the projects carefully to ensure they are compliant with ecological and environmental standards. This point is vital, taking into account the declared intention to fast-track PA and ERA permits of EEZ-related projects.

MMF underlines the importance of ensuring that projects sited in the EEZ do not create negative environmental and/or economic externalities which are detrimental to other economic sectors and/or the common good.

Judge Emeritus Joseph Zammit McKeon is the Chairman of the Malta Maritime Forum

The article was published in The Times of Malta

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Palumbo Malta Shipyard has won a contract to refit three vessels of French shipping company Corsica Linea with a fuel cleaning system that meets new environmental shipping rules. The company beat off competition from shipyards in Italy and France.

The contract comes on the back of another €6 million international contract to refit three Ro-Ro passenger ferries with the Greek Shipping company Minoan Lines.

Palumbo Group president Antonio Palumbo said: “This is a contract that is nearly double the one with Minoan Lines and we’re honoured to have been chosen by Corsica Linea who are choosing to divert from their trade route to have the job done in Malta — this is a clear vote of confidence in our work.”

The Cottonera-based shipyard is investing in green technology and expertise that enable it to remain agile and proactive in a volatile industry, while helping vessels meet the UN’s International Maritime Organisation 2020 targets. The IMO is lowering the maximum allowable sulphur content in bunker fuel to 0.5 per cent from 3.5 per cent, starting from next year, as a step towards controlling emissions and achieving cleaner air.

For shipping companies running on heavy fuel oils, the options to meet the new, tighter limits are to either switch to low-sulphur fuel or refit the vessels with scrubbers — systems that clean exhaust gases.

The IMO regulations have opened up a new niche for the yard as ship owners and operators turn to retrofitting to comply with the sulphur limit, and Palumbo Malta Shipyards is investing is looking to exploit this opportunity.

Work on retrofitting Corsica Linea’s three ships — the MV Pascal Paoli, MV Jean Nicoli and MV Paglia Orba — are expected to start towards the end of this year.

The scrubbers work by showering seawater, which in turn converts emissions from gaseous to a more manageable aqueous state. The systems being installed by Palumbo Malta Shipyards meet and exceed the IMO limits for both gas emissions and wash quality.

The shipyard is focusing on a quick turnaround of the job and each of these massive vessels can be refitted within 30 days.

Palumbo general manager Joseph Calleja said: “Projects such as these put us and Malta on the map… We are constantly working to be ahead of the game and our next focus will be on investing to service the next generation of LNG-fuelled vessels to the highest standard.”

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