The fleet of Greek ferry companies is old but safe, according to company representatives and regulators. However, the average age of ships hovers around 30.8 years, an increase of about 10 years since the mid-2000s, with several large companies, namely the Italian companies Minoan Lines and Greece-registered Attica Holdings, as well as several smaller companies controlling the fleet with a significant junior profile.

On the contrary, there are companies that have launched ships in the Aegean that are more than 40 years old, and in some cases even 50 years old.

Given the large number of passenger ships, both conventional and high-speed, over 30 years old, the Department of Shipping and Island Policy ordered last week, in addition to its roughly 300 annual inspections, an additional 300 inspections by Palm. Sunday to maximize their seaworthiness. At the same time, the taxonomists who monitor these vessels have been mobilized to step up and tighten their own inspections. This is explained by leading sources in the Ministry of Shipping to Kathimerini, noting that in addition to about 90-100 coastal ferries connecting the island to the mainland, as well as to other states, there are about 210 more ferries in Greek waters. ships on ferries and small local routes. “Inspections will be carried out on all 300,” they say, noting that this is in addition to the inspections that are carried out annually on all these boats anyway.

The focus is on strict adherence to crew schedules to keep them as calm as possible.

Last Friday, as well as during the week, consecutive meetings were held between the political leadership of the ministry and the leadership of the Coast Guard – the Hellenic Coast Guard on an issue that was also on the agenda of Maximos. At these meetings, it was also decided to further strengthen control over the strict adherence to crew schedules so that they always get as much rest as possible. In particular, companies are required to give crews a total of 8 hours of rest after the completion of each 10-hour shift. For this reason, large ships with cabins have on board a staff sufficient for rotation, as well as a second staff of officers, including the captain. However, this is practically impossible on the cabinless fast boats that operate seasonally and start next month. Thus, during their flights, when they last more than 10 hours, they must change crews. One solution taken by some companies is to rent hotel rooms on the islands so that crews can rest there. However, information reached the ministry that some companies “do not have time” to replace the crews. The Panhellenic Maritime Federation has also intervened in this matter, and given the atmosphere in recent weeks, the political and military leadership of the Ministry of Shipping says they will make every effort to keep to the schedule.

However, the self-evident observance of working hours and the tightening of controls cannot change the fact that the fleet of most companies is aging. The decade-long crisis in the Greek economy and the complications of the pandemic, combined with internationally set emission targets from 2030, have delayed the replacement of older ships, market sources said. Also, with the Passenger Transportation Association estimating the cost of fleet upgrades needed to comply with carbon emissions at $3 billion, it’s clear that few companies can afford to generate the cash flow and raise the loans needed to finance new construction. At the same time, some shipping companies have turned to buying cheaper used ships from abroad, either to replace old ones or to grow them organically, which means the quality and safety of the services offered.

On the other hand, there are companies that have already launched the modernization of the existing fleet. Minoan Lines, owned by the Italian Grimaldi Group, is expected to benefit from the parent company’s extensive shipbuilding program of more than 20 ships, sources from Naples say. The largest Greek shipping company, Attica Holdings, despite the fact that the three brands it works with has a fleet with a relatively low average age, launched a one billion investment program initially to modernize, and in the second year to build new ships compatible with with new environmental regulations, and already in 2022 it replaced the aging Hellenic Seaways fleet of flying dolphins with three new catamarans. At the same time, in its investment plan, it provides for the modernization of ANEC ships, which it plans to absorb and whose average fleet age exceeds the average age of the entire fleet. Other companies also have plans, but Greece, unlike Italy, has not yet managed to withdraw funding for new shipyards from the state subsidy ban.

At 3 billion euros, the cost of modernizing the fleet

According to the Association of Passenger Shipping Companies (SEEN), by 2035, 50% of Greek coastal ships currently sailing will be over 40 years old. Thus, renewal of the coastal fleet is one of the biggest challenges the industry has to face. And this is due to the fact that, in addition to safety issues, with the established deadlines for achieving the reduction of pollutants, technologically sustainable solutions for their replacement with renewable sources, such as electricity, biofuels, ammonia, hydrogen, have not yet been achieved. methanol, etc. “Today, no shipping company plans to build ships, with the exception of the Attica group, which recently completed the construction of three modern ships of the Aero Catamaran type, which were launched on argosaronic lines,” notes XRTC in its latest annual report on Greek shipping. Business consultants. According to its head, Giorgos Hiradakis, it is expected that the renewal of the Greek coastal fleet by the end of this decade will require funding of about 3 billion euros. These investments are deemed necessary, both because of the prospect of further aging of the fleet, and because of the need to comply with new regulations on emissions of exhaust gases and other pollutants. It is estimated that part of the necessary funds may come from European funds, and the other from state support, but companies will bear a greater burden at their own expense, relying, in turn, on loans from banks and investors. “Funding for fleet renewal investments with low and zero emission vessels should come in the form of subsidies for the green part of the investment with access to affordable financial instruments through the Recovery and Sustainability Fund, NSRF and New Development. law, but also possibly through the creation of a special fund under the European Emissions Trading Scheme (ETS) to reinvest ETS revenues directly into the industry, XRTC suggests. At the same time, some companies are hoping that multi-year public service contracts can be used as a tool to support bank financing. Meanwhile, the European Union approved a plan by the Italian government in late 2022 to subsidize Italian private shipping companies with $500 million to modernize the fleet.

Newest

The oldest ship on the Aegean lines is 51 years old and it runs on the Lavrio-Kea line. The newest ships in the Greek seas are less than a year old, and these are three fast catamarans heading for the Argosaronic Sea. 70% of coasters are over 20 years old.

100 “mails”

There are currently 25 small and very small ferry companies operating in Greece. Together, they control a fleet of about 60 ships that sail the Aegean and Ionian seas, along with other 40 ships of large companies. These 100 “posts” serve the country’s 115 islands daily, connecting them either to the mainland or between the islands.

hybrid ships

At the same time, in Europe, one of the largest liners, Stena, recently ordered three hybrid LNG-electric vessels (Stena E-Flexer Ro-Pax). The first will be the largest hybrid to date and will be delivered in 2024. Stena will also operate the world’s first line of non-fossil fuel powered ships. It will be carried out by two battery-powered Stena Elektra vessels to be built by 2030.