Greek shipping is trying very hard to survive, even given the new environmental measures set by the International Maritime Organization (IMO) to decarbonise shipping and the imperative renewal of the already aging fleet.
This is what the authors of XRTC Business Consulting's annual research on the shipping market point out, stating that the current state of shipping can actually be characterised as extremely worrying as in recent years, and especially in the last five years, the accumulated negative financial results of companies they do not currently allow the specific project but also limit the survival of the companies themselves.
They argue that the numbers for the EBITDA margin and the revenue per cruise ticket that will allow a company to proceed with a particular investment program are shrinking.
Between 2018 and 2022, it fluctuated steadily at 10%. However, the research highlights that any investment planning for a new build assumes the profit margin per ferry ticket to be at least 25%.
According to XRTC Business Consulting data, at the moment, the average age of ships in the Greek market may reach 28 years and is younger than the European one, which comes 35 years. However, 86% of the Greek coastal ships currently launched in the Aegean are more than 20 years old, a much higher percentage than the corresponding European one, which reaches 65%.
He emphasises that the renewal of the coastal shipping fleet should be carried out through newly built ships and not with used ships of old technology.
The New Beginning - Financial Tools
Regarding the issue of the construction of new ships, according to the research, the assistance of the shipbuilding industry in our country will be needed with dynamic investments and financial tools from the Greek state with parallel utilisation of know-how.
He emphasises that the main problem in developing the European shipbuilding industry is more space and human resources. However, he adds that both can be found in Greece if the necessary educational structures are created.
He notes that the development of research and technology departments of Greek universities and research centres, as well as the vital interest of the maritime cluster in finding a new way of propelling ships, is an additional strong advantage of the Greek shipping market that can help the development and construction of newbuilds.
The design of the ships
Passenger-ferry ships that operate in the port infrastructures of the Greek islands must be of specific specifications in terms of size and capacity, but also in terms of attractiveness, XRTC Business Consulting underlines.
It is also added that the plans to build new ships by the shipping companies are minimal, as only the Attica group completed 2022 the construction of three small state-of-the-art Aero Catamaran ships, launched on the Argosaronic lines, marking the end of the era of "flying dolphins ».
Regarding the Ministry of Shipping planning regarding the fleet renewal with green criteria, he states that establishing the rules for replacing the ships is now underway.
The creation of a private fund is already underway for the renewal of the coastal shipping fleet with the recruitment of a technical consultant through an international tender financed by the Recovery Fund (RRF).
The consultant should proceed with drafting a study that identifies the financial needs for the fleet's renewal, accompanied by the necessary documents concerning the proposed technology and the characteristics of the existing fleet.
The central idea of the design is that any shipowner who receives financing through the special fund that will be created will be obliged to route the ship for all years in the Greek area and will not be able to lease or sell it to another country.
Finally, the companies hope that multi-year public service contracts can be used as an instrument to help bank financing in combination with the funding mentioned above tools.
Rise of the transport project
The development of our islands relies exclusively on coastal shipping that connects 115 habitable islands on which 14.6% of the country's population lives. Of these, only 25 have an airport, cabotage services are only served by sea, while 85% of the islands' freight needs and all of their supply are covered by coastal ships.
According to the statistics published by the Hellenic Statistical Service (ELSTAT) and XRTC, 17,525,674 passengers were transported in 2022 compared to 12,846,371 in 2021, an increase of 36%.
Regarding vehicles as a whole (cars and trucks), in 2022, 3,660,290 were traded, compared to 3,278,165 in 2021 (12% increase).
The 36% increase in passengers in 2022 compared to 2021 is a considerable percentage, translating to 4.7 million more passengers.
Besides, the increase in traffic in 2022 for vehicles may not be as spectacular as for passengers, but it is considerable since it reaches 12%, which translates into 382 thousand cars more than in 2021.
The most significant development, The complete transfer of Attica under the control of Piraeus Bank through its related company Strix Holdings SA, and the official approval of the Competition Commission for the absorption of ANEK by Attica is characterised by the authors of the research as the most significant recent development in the shipping market.
It states that the unified Attica group will leave behind the burdens of the past to move forward in planning the new era.
He will have to deal with enormous borrowing but have the advantage of the "fraternal" relationship with the leading financier who now joins the mighty banks of Greece.
This fact alone will be able to attract the interest of investors for the next day, which is emphasised by only meeting the strategic goal of renewing the group's fleet.
It is noted that worldwide, coastal ships are the first to adopt alternative energy sources, such as electricity and wind, or burning hydrogen methanol or other alternative fuels.
READ MORE: Foreign financial institutions give a vote of confidence in Athens stock exchange and Greek banks.
