Tug of war on ship fares
It’s all or nothing, say coastal shipowners, who refuse to submit timetables for next season starting in November 2006 unless the government proceeds to liberalize all fares in coastal shipping. Shipowners warned Merchant Marine Minister Manolis Kefaloyiannis that anything short of the complete opening up of economy fares will mean the government has to subsidize all coastal shipping routes, as provided by law. This has worried the ministry, but the shipowners’ front is probably not as strong as it appears. Sources suggest there are companies not listed in the stock market that are considering the submission of route plans to secure access to the high-profitability lines such as those to Crete, Rhodes, Kos and some Cycladic islands. «If some companies choose to go it alone, then they should know that they must have the appropriate fleet, with ships that are new, quick, safe and with high standards of service,» shipping sources told Kathimerini, adding, «But do they have such a fleet?» Coastal shipowners suggest that if the ministry does not fully deregulate domestic maritime transport as it has to, it should propose a rise in fares by 10 to 12 percent in order to have the huge losses caused by the high prices of fuel and lubricants covered. There is, however, a third choice too: the immediate abolition of non-compensative levies for third parties that burden the fares by about 20 percent. Companies had until now been reluctant to express their views, but from now on they are expected to voice their worries more freely. The recent statement by the president of the Coastal Shipowners Union, Stelios Sarris, that «shipowners will de facto apply the EU legislation,» is indicative of their intentions. Government sources suggest that the competent ministers (for economy and finance, merchant marine and Aegean and island policy) are not in favor of raising fares, particularly at this time. They do say a 3 to 5 percent rise in fares might be granted, although this would not satisfy the shipping companies. Merchant Marine Ministry sources argued that «we should not go to the extreme while the dialogue continues,» and stressed that «all measures required will be taken to ensure that there are no problems in coastal shipping transport and that all Aegean islands are covered by boats with low fares.» The Merchant Marine and the Aegean and Island Policy ministries are making lists of the liberalized routes and the subsidized ones. It seems the two ministries’ approaches diverge, but with the intervention by the economy and finance minister the final lists of islands will be completed.
