Zero Hour for Greek Ferries

Zero Hour for Greek Ferries

Lloyd’s List

Time has run out for urgent action to rescue Greece’s embattled ferry operators, a senior industry figure has warned, as fears mount over whether the system can maintain regular sea connections with the country’s numerous islands this year.  “Today is zero hour,” said Association of Greek Passenger Shipping Companies president Apostolos Ventouris. “All the companies are in the red, whether they are publicly listed, multi-shareholder companies, popular-based operators or family-owned companies.”  The sector racked up losses of €215m ($279m) in 2009, rising to €345m in 2010, and is expected to declare an even larger loss for 2011, with traffic down due to the recession and soaring fuel bills that now account for 60% of conventional ferries’ operating costs, rising to 75% for fast ferries.

Among industry demands, the association says, are full liberalisation of domestic ferry routes.  Other longstanding demands included reducing the obligatory minimum terms that ferries have to serve on their routes to four and six month periods for particular ship types. Owners also want the freedom to deploy smaller vessels during winter months.  The industry wants to abolish Greek manning rules and introduce international safe-manning requirements and to drop the requirement for Greek language tests for all crew.  Owners are also proposing cuts in VAT, port dues and other third-party levies.

Dennis Vernadakis, managing director of passenger vessel broker Masters Shipping, has proposed that island communities get together and time-charter ferries for their own needs, possibly through joint ventures with traditional owners and investors.   “I don’t think these people have their feet on the ground,” Mr Vernadakis said. “The issue at the moment is survival.  We do not know if certain islands will be served by spring.”