Hellenic Coastal Lines: Ferry Companies are Seeking for Financial Support

By 2020 Newsletter week 13

According to the latest data the coronavirus gives a major hit to the Hellenic Coastal Lines. More specifically, traffic on March 18, 2020 decreased by 70% in the North Aegean, 56% in the Dodecanese, 74% in the Cyclades, 75% in Heraklion and 83% in Chania.

Indicative figures released from the Association of Passenger Shipping Companies (23.03.2020) shows that passenger traffic for the period 16-22/3, had a major decrease of 77,33%, compared with 2019!

The highest decrease is recorded in the Cyclades from both Piraeus and Rafina ports (82,46%) while the second and third place goes to the lines of Crete (75.85%) and the North Aegean (72.46%).

The Association underlines that the burden on ferry companies is already high, as the March-May period covers 20% of the annual passenger traffic.

In fact, the reduction in passenger traffic – in the last few days- is expected to be even higher after the restrictive measures were taken on March 21 by the Ministry of Shipping which only allows permanent island residents to travel with some exceptions for health, education and military personnel.

Moreover, the Hellenic Ministry of Shipping and Island Policy has already been informed about the failure of some ferry operators to return prepaid fares that were already booked for the Easter and the summer season.

Fortunately, their only ally –so far- against this severe crisis is the oil prices which have fallen by about 60% (25,9$) since the beginning of the year, otherwise the majority of them would have been forced to halt sailings and laid up their ferries.

In order to face that major decrease, Greek Ferry Companies call for financial support by the State as they have been severely affected by the pandemic. Some have already sent an official letter to the Minister of Shipping and Island Policy with a notification to the Minister of Development. Among their demands are:

  • Cancellation or temporarily suspension the annual ferry services’ statements (ferries introduced for the 2020 period) at least until the global pandemic alarm ends
  • Further reduction of the passenger service staff
  • Subsidization or reduction current insurance liabilities
  • Exemption of the ferry companies from paying port dues
  • Provision interest-free working capital
  • Reduction of the VAT rate on passenger tickets from 24% to 13%
  • Intervention–by the government- in the management of Piraeus Port Authority SA in order to maintain temporary repair posts of ships within the main port without further increases for ships under forced holiday.

Italy: More Hospital Ferries Are Being Considered in the Ports of Gioia Tauro and Ancona

By 2020 Newsletter week 13

Following the example of the ropax SPLENDID where 25 cabins were fitted with some specific equipment and services to accommodate Coronavirus-affected people, a second unit from Grandi Navi Veloci might be used as hospital ship in Southern Italy.

The major of Gioia Tauro wrote a letter to Gianluigi Aponte asking for a ferry to be moored in the port and the founder of MSC Group (which also operates a big terminal container there) replied positively. Matteo Catani, CEO of GNV, said they would be ready to send a ship there if required by the health authorities.

A third example of accomodation vessel for infected people may take shape in the port of Ancona where the Italian Protezione Civile, the public body in charge for managing the coronavirus emergency, is considering whether to use a ship or a hotel ashore in case of lack of beds in the hospitals to receive patients. In Ancona a passenger vessel from the Adria ferries fleet would be the most likely option in case.

P&O Ferries

By 2020 Newsletter week 13

P&O Ferries (1)

Larne – Cairnryan route will be running on a revised schedule, due to increased demand for unaccompanied traffic. (since 23 March 2020)

The Teesport – Europoort service will permanently move from the Riverside terminal in Teesport to the main terminal. The first ship, WILHELMINE, will call at the main terminal at 06:00 on Sunday 29 March.

P&O Ferries (2)

P&O Ferries is strengthening its freight operations on the Calais-Dover crossing as part of its commitment to maintain the flow of goods during the Covid-19 crisis.

The shift to meet the challenge of the Covid-19 crisis is made possible thanks to the commitment and hard work of P&O Ferries’ workforce in the Port of Calais, who are taking on new roles in freight handling to keep food, medicines and other goods flowing. P&O Ferries is following the guidance of health authorities on both sides of the channel to protect the health and well-being of employees and customers. The check-in and loading process has been modified to avoid direct contact. Cleaning protocols have been intensified on ships, which have also switched from air-conditioning to fresh air.

Polferries

By 2020 Newsletter week 13

From 25 March till 02 April, the following changes will be introduced in the Polferries ferry traffic:

Swinoujscie – Ystad: MAZOVIA and CRACOVIA will operate according to timetable, but BALTIVIA will be transferred.

Nynäshamn- Gdansk: NOVA STAR ferry will not operate the line. BALTIVIA, intended only freight traffic goes into the NOVA STAR timetable.

All transports of cars and trucks without driver until further notice are suspended. The above decision does not apply to the carriage of semi-trailers which will be operated in the normal manner.

Polferries write they are not able to guarantee single cabins for freight drivers.

Stena Line Closes the Oslo-Frederikshavn Route Permanently

By 2020 Newsletter week 13

Coronavirus and travel restrictions imposed by Norway and Denmark created a drastic decline in travel bookings on the Stena Line Oslo – Frederikshavn route. On Thursday 19 March the decision was made to permanently close the route after more than 40 years in operation.

The decision means Stena Line will close their office in Oslo which will affect 30 shore-based employees.

The 1981-built ferry STENA SAGA is currently in lay up in its port of registry, Gothenburg.

Tallink

By 2020 Newsletter week 13

Tallink (1)

Tallink Grupp has been commissioned by the Estonian Ministry of Economics and Communication to operate the group’s vessel STAR on the Paldiski-Sassnitz route. The route has been commissioned to ensure continuing movement of goods between the Baltics and the Nordics and Western Europe during the coronavirus situation.

The new schedule is effective from 27 March until 18 April 2020.

The vessel’s cargo capacity is 100 lorries and 10 passenger vehicles. If there are less lorries, more passenger vehicles may be taken on board. Passengers without vehicles will not be allowed on board. Food and medical supplies transport will be prioritised during the booking process.
Accommodation for all passengers will be provided in cabins.

Tallink (2)

Tallink is rerouting its vessels BALTIC PRINCESS and GALAXY back to the Turku-Stockholm route, via Långnäs in Aland. The rerouting is vital to ensure maritime transport of supplies and goods between Finland and Sweden continues as normal during the current coronavirus situation.

Tallink (3)

Members of the Tallink Grupp Supervisory Board Enn Pant, Ain Hanschmidt, Kalev Järvelill, Toivo Ninnas, Eve Pant and Raino Paron have this week unanimously decided to waive their Supervisory Board remuneration. According to the initial decision, the remuneration has been waived by the Board members for the next three months.

Commenting on the decision, Mr Enn Pant, Chairman of the Supervisory Board said:

“In the current economic crisis resulting from the coronavirus outbreak, which the whole world is faced with and in which everyone is looking for solutions to ensure survival and sustainability of operations, waiving the remuneration is the least the Supervisory Board members can currently do and it is the most logical step.

FERRY FINANCE

By 2020 Newsletter week 13

STEF, Owner of La Méridionale, Celebrates 100 Years with 100 Million

One-century old Groupe STEF has for the first time exceeded a net result of EUR 100 million. Compared with 2018 this is a 6.2% improvement.

However, ferry subsidiary La Méridionale didn’t do so well, after having lost its main routes between Marseille and Ajaccio, and Marseille – Bastia.

The operational result was EUR – 6 million on a revenue of 94 million.

The company has set up an ‘industrial project’ with Corsica Linea for the 2021 – 2027 public service contract. The Corsican ‘Collectivities’ will create a ‘SemOp’: The SemOp are Institutionalized public-private partnerships, which have been introduced into national legislation in 2014. They give the local authority the opportunity to choose at least one private partner, which can hold between 15 and 66% of its capital. They are created for one single mission and are therefore time limited.

This SemOp will be created for the five ports included in next DSP. The Corsican ‘Collectivities’ will own 50.1%, and 49.9% will be owned by one ferry operator, or a group of operators.

LIVERPOOL SEAWAYS has been acquired from DFDS (EUR 30.6 million) but the ship is still in service in the Baltic. The ship will join the fleet in April.

The company is looking at several scenarios.

  • New routes, such as Marseille – North Africa, or Spain – UK.
  • Bareboat charter.

FERRY PORTS

By 2020 Newsletter week 13

“Tilbury-Zeebrugge Route to Rival Calais-Dover as a Gateway to Britain within 10 Years”

In less than a month’s time, a new port will come to market. The new terminal on the outskirts of London, Tilbury2, will inject a transformational amount of ferry capacity into the south east of England.

Tilbury’s owners, the Forth Ports group, are investing £250m in a new 160-acre site to create the UK’s largest unaccompanied freight ferry port and the biggest construction processing hub to feed the burgeoning domestic housing market.

Occupying the old Tilbury Power Station site just outside the M25, P&O Ferries will start operating the new terminal with significant headroom to grow their network of ferry connections to northern Europe. “They expect the Tilbury-Zeebrugge route to rival Calais-Dover as a gateway to Britain within 10 years,” writes Charles Hammond, CEO of Forth Ports, owner of the Port of Tilbury.

“Harnessing the best-in-class border processes, Tilbury2 will be Brexit match fit when the first ship docks at the start of April. Alongside other internationally oriented port operators, we have extensive experience of non-EU trade, and look forward to embracing the market opportunities on the horizon,” says Mr Hammond.

“The Tilbury2 project concludes our £1bn investment programme which was started eight years ago.”

In less than a month’s time, a new port will come to market. The new terminal on the outskirts of London, Tilbury2, will inject a transformational amount of ferry capacity into the south east of England.

Tilbury’s owners, the Forth Ports group, are investing £250m in a new 160-acre site to create the UK’s largest unaccompanied freight ferry port and the biggest construction processing hub to feed the burgeoning domestic housing market.

Occupying the old Tilbury Power Station site just outside the M25, P&O Ferries will start operating the new terminal with significant headroom to grow their network of ferry connections to northern Europe. “They expect the Tilbury-Zeebrugge route to rival Calais-Dover as a gateway to Britain within 10 years,” writes Charles Hammond, CEO of Forth Ports, owner of the Port of Tilbury.

“Harnessing the best-in-class border processes, Tilbury2 will be Brexit match fit when the first ship docks at the start of April. Alongside other internationally oriented port operators, we have extensive experience of non-EU trade, and look forward to embracing the market opportunities on the horizon,” says Mr Hammond.

“The Tilbury2 project concludes our £1bn investment programme which was started eight years ago.”

INDUSTRY ASSOCIATIONS

By 2020 Newsletter week 13

EU Tries to Keep Goods Flowing with Green Lanes

European Commission President Ursula von der Leyen has announced so-called “green lane” measures to make sure goods keep flowing throughout the whole of the single market.

Member States are requested to designate all the relevant internal border-crossing points on the trans-European transport network (TEN-T) as ‘green lane’ border crossings. The green lane border crossings should be open to all freight vehicles, whatever goods they are carrying. Crossing the border, including any checks and health screening, should not take more than 15 minutes.