Tuesday, September 21, 2021

THE PLAN FOR THE FERRY CONNECTION BETWEEN GREECE & CYPRUS

 Filenews 21 September 2021



At the end of October, the new tender document for the maritime connection between Greece and Cyprus is expected to be announced, according to the Capital.gr.

The new document will include, according to the information, some modifications compared to what was presented in the previous tendering procedure, which had become obsolete, in order to attract the interest of the carriers and to proceed with the connection again after 21 years.

The changes

Initially, the connection was converted from regular to seasonal, which was requested by the carriers concerned. Specifically, it is estimated that it will concern 26 trips for the period April, May - September, October.

Thus, the contractor carrier will cover the route for the above period and during the winter season will be able to use the ship on other routes. Besides, the interest of citizens for the connection is mainly found in the summer months.

At the same time, unlike the first tender, the new procedure will not require the carrier to operate commercially.

This does not mean that the transport of cargo will be prohibited, it will simply not be a prerequisite for the appointment of a contractor.

If the carrier is eventually engaged in commercial activity, a mechanism will be activated, under which the subsidy given to cover the route will be reduced to a certain extent.

The state subsidy concerns only the passenger aspect of the route, in accordance with European rules, and is essentially a subsidy for the costs of the carrier for the conduct of the journey. In other words, there will be an expense-recording mechanism and each trip will be subsidised accordingly.

The calculations of the competent authorities working on the tender have shown that the subsidy may not exceed €5 million per year.

Of course, whichever carrier presents a proposal with the lowest potential cost, will also have a lead in the tendering process.

At this point it should be pointed out that there will probably also be a clause, which will be activated in times of increase in fuel prices and will strengthen the subsidy by around 10%.

Another modification lies in the port of arrival of the ship in Greece. Instead of Keratsini, the main terminal in Piraeus was chosen, which is estimated to serve the connection better.

It is noted that most of the changes to the new tender are subject to the approval of the Commission and specifically of the Directorate General for Competition, which seems to have given the "green light" for most key points.

Of course, other parts of the procedure, such as the technical criteria and dimensions of the ship, for example, fall within the competence of the Cypriot Government.

Expectations

As far as the timetable of the tender is concerned, the award of the tenders, provided that there are interested parties, will take place in mid-January, with the final goal of starting the routes in May 2022.

Factors that closely monitor the procedures point out to the Capital.gr that if the line is finally launched, the possibility of extending it to a third state, to a neighbouring country, is open. This is, of course, not provided for in the tender document, which will be published in October.

The interest in such a connection seems to be "hot", especially for Cyprus, which is based exclusively on air transport.

In any case, the routes should last 2-3 years, to see if people will "embrace" the initiative, competent sources note.

However, the different conditions of the second tender, in time and procedure, create optimism among the stakeholders that the project will have a happy ending.