How much does green transition cost?
The CEO of Attica Group, Panagiotis Dikaios, spoke about the renewal of the ferry fleet and the upcoming increase in the price of ferry tickets as of 2025, due to the use of more expensive fuel.
In an interview with “Naftemporiki”, the head of the largest, in terms of passenger carrying capacity, ferry group in the world, unfolds the Group’s ambitious development plans, stressing that not only Attica has not increased its tickets since July 2022, but it has proceeded with a special policy for vulnerable social groups by providing discounted tickets corresponding to 30% of all tickets issued.
He referred to the Group’s plans regarding the hotel activity, while on the issue of alternative fuels for ships, he pointed out that the Group has established a specialized decarbonisation working group with executives who monitor regulatory and technological developments and evaluate optimal solutions.
After ordering two newly built ships that will be launched in 2027 in the Adriatic, the next “step” is the construction of ships for the Aegean and the Saronic, he noted
Extroversion and openness to new markets is in Attica Group’s DNA
The company recently sold its stake in Africa Morocco Link (AML) which operates on the Morocco-Spain line. Regarding the Group’s new investment considerations, Mr Dikaios emphasized that extroversion is in the company’s DNA as confirmed by the activity in the Baltic and the North Sea during the period 1998-2008 until the creation of AML, in 2016, upon invitation by the Government of Morocco. He underlined that in the case of AML, value was created from a zero base, which crystallized with the successful completion of the divestment.
More specifically, he stated: “We always have our eyes open to identify opportunities that create added value.”
In this direction, in addition to opening new lines, we are expanding our business activities by investing in the hotel industry. So far, we have acquired two hotels in Naxos and one in Tinos. Our goal is to create a significant number of rooms in destinations where we are active, in order to develop synergies with the shipping activity, through the provision of integrated services for the passenger public.
Innovation in shipbuilding
The investment in innovation, according to Mr Dikaios, follows the history of the Group, which until today has designed and built 30 ships with a total investment of approximately €2 billion, having acquired unique experience and high-value know-how.
Implementing its dynamic business plan and demonstrating its commitment to creating superior value for its shareholders and passengers, Attica Group announced the signing of an agreement with Stena RoRo for the construction of 2 new E-Flexer vessels, with a length of 240 m. These are the largest ever ordered by a Greek passenger shipping company. As he noted, the new ships that will be active in the Adriatic in 2027, are part of the Group’s commitment to the green transition and the upgrading of the fleet, they will be certified methanol ready and battery ready, with engines designed to operate with 3 different types of fuel, reducing gas emissions by 60% per transport project.
The innovative and modern design will further improve the quality of the transport services provided, contributing to the overall upgrade of the travel experience, while with a transport capacity of 1,500 passengers and 3,320 linear meters of garage (about 200 trucks), the Group’s total transport capacity is significantly enhanced.
The investment has multiplier benefits as it creates the conditions for fleet realignment by redeploying 3 ships (Superfast XI, Superfast III and Hellenic Spirit) that will cover the domestic lines replacing older ships, thus reducing the average age of the fleet.
Based on the Group’s planning, the next step will concern the construction of ships for the Aegean and the Saronic.
“Green inflation” will inevitably lead to an increase in the cost of tickets
On the road to decarbonisation, the interaction of European regulations (EU ETS, Fuel EU) with their IMO counterparts (CII, EEXI) creates a binding regulatory framework to which the shipping industry must adapt rapidly. Asked about this, Mr Dikaios explained to us:
Based on the ETS, every company for every ship that will approach European ports will have to buy, for every ton of fuel it consumes, the market value of the carbon dioxide it emits. From 01/01/2024 this corresponds to 40% of emissions, from 2025 to 70% and from 2026 to 100%.
Also, from 01/01/2025, the Fuel EU Maritime regulation comes into force, creating an additional financial burden depending on the carbon intensity produced by the type of fuel used.
At the same time, from 1/5/2025 the Mediterranean becomes a SECA area (sulphur emission control area), and the use of fuels with a sulphur content of 0.1% becomes mandatory from the current 0.5%. In other words, we are talking about an increase in fuel costs by approximately 30%.
He noted that the islands with less than 200,000 inhabitants are excluded from the first two measures until 2030 and only apply to the lines of the Adriatic and Crete.
According to Mr Dikaios, the decarbonisation regulatory framework further increases the cost of tickets, creating so-called “green” inflation, which is added to the intense inflationary pressures of the last two years.
“Objectively, the ticket price is high, especially for financially vulnerable groups,” Mr Dikaios said, pointing out that the Attica Group has not increased prices since July 2022, while at the same time it has proceeded with extensive discount policies for vulnerable groups and members of the Group’s loyalty program, Seasmiles. Especially for vulnerable groups, discount tickets correspond to approximately 30% of all tickets issued.”
Therefore, in order to have a fair green transition that will not only burden consumers and companies, it is a top priority that the funds raised be channeled directly and with the appropriate tools to the necessary investments to adapt the entire ecosystem (building new green ships, subsidizing the use of green fuels, incentives for research and development at scale of the supply chain of alternative fuels, as well as adaptation of port infrastructures).
On the road to decarbonization, the Group has set, as early as 2022, a target of reducing carbon emissions per mile by 14% until 2030 compared to 2019. This is achieved through the tripartite: a) installation of technologies to improve energy efficiency of the fleet. The relevant investments to date have exceeded €10m. b) conversions to middle-aged ships for the use of alternative fuels and c) investments in new ships, which is also the essential solution for reducing carbon emissions.
Thoughts on PPPs and time slots
Regarding the initiative of the Ministry of Shipping for the disbursement of European funds for the barren lines with the partnership of the public and private sectors, the CEO of Attica Group noted: “This initiative is a positive effort to use in coastal shipping the already available EU financial instruments concerning other sectors (e.g. motorways). However, the adaptation of these tools to the particularities of the shipping industry creates challenges that render their successful application doubtful. A new financing framework is needed at the EU level that will respond to the requirements arising from the regulations for the green transition of shipping, as also reflected in the Draghi report.
Regarding the reform of the management of Greek shipping itineraries by the Ministry of Shipping and especially the way in which this will be done in the country’s ports with the so-called Sea Ports slots, Mr Dikaios estimated that “it is in the right direction for the systematization of arrivals and departures, however, the complexity of the Greek coastal ferry network should be taken seriously. We haven’t seen the full design yet so we can position ourselves accordingly.”
We invest in our people and the digitization of our services
Our services are human-centred, Mr Dikaios stressed. Our people are our main priority. We invest in continuous education and training in new practices, upskilling and further encouragement to improve and continually become better, both at the level of processes and operations and at the level of services provided.
Their digitization is expected to bring a significant upgrade of services. For 2 years now, the Group has proceeded with the implementation of a large digital project to be completed at the beginning of 2025. Through the use of different communication channels, a personalized experience is formed based on the needs and preferences of each traveller.
“Through the use of technology and data, we seek to better understand the needs of our passengers so that we are able to respond to them in every interaction related to their journey. From the time they begin their search for the trip to the time they return home.”
We need crews, the financial incentives are strong
“Internationally, the industry is called upon to manage the problem of adequate staffing of crews. Mr Dikaios stated: “We must protect the Greek navy for which we are proud and known internationally. As a Group, we have been implementing a campaign to promote the positive characteristics of the maritime profession since May, and we had very good results. With financial benefits which, indicatively for the newly entering unskilled seafarer, start at €2,350/month and modern working conditions, the incentives are now strong.”
“The 42 ships in our fleet currently employ 2,500 seamen. In a constantly changing environment, our priority over time is the continuous development and upgrading of the skills of our seamen through their training. In fact, for this purpose, we implement a series of specialized training in cooperation with competent bodies.”
This interview was first published in Greek, in Naftemporiki.
Click image below
