Renewing Fleet a Challenge for Greece’s Coastal Shipping Sector
Greece’s coastal shipping fleet is getting old and companies are now faced with one of the greatest challenges: renewal, found an annual study released by XTRC Business Consultants.
According to the 22nd “Greek Coastal Shipping” study, 86 percent of Greece’s shipping fleet is on average over 20 years of age, significantly above the European average.
The last renewal of the fleet was carried out some 20 years ago in 2000, when companies chose to replace or add used ships to their fleet instead of newbuilds.
More specifically, according to XRTC, 83 percent of 95-meter ships are over 20 years of age, 88 percent of 96-149-meter vessels, and 91 percent of 150-meter ships.
In the meantime, passenger transport activity in 2022 rose by 36 percent to 17.5 million passengers, and vehicle transport by 12 percent to 3.7 million, XRTC said.
At the same time, renewals will have to include new environmental regulations that affect strategic decisions, including the choice of fuel to operate ships.
In Japan, for instance ships older than 10 years of age serving public interest routes have been prohibited.
“The shipping market is required to find technical solutions for the construction of new environmentally-friendly ships as well as significant capital,” said George Xiradakis, president and CEO XRTC.
In the meantime, the Greek Shipping Ministry announced that it will formulating the criteria for the replacement of coastal shipping vessels with the aim of reducing gas emissions and to accelerate the fleet’s “green” transition.
In this direction, it is aiming to create a private fund for the renewal of the coastal shipping fleet by hiring a technical consultant through an international tender that will be funded by RRF tools.
The appointed consultant will draft a study that identifies the financial needs for the renewal of the fleet and the necessary documents regarding the proposed technology, but also the characteristics of existing fleet.
Under the plan, shipowners eligible for funding through a newly created tool, will be required to run routes exclusively in Greek waters and will not be able to lease or sell vessels to another country.