ETS Directive should not be politicised

29 January 2024

1,300 trailers are handled to and from Malta every week.

Malta has no option but to rely on regular maritime connections to and from Europe to import most of its essentials. This is why, in a recent interview, Joseph Bugeja, the newly elected chairman of the Association of Tractor and Trailer Operators (ATTO) described the EU’s ETS Directive as ‘unjust on Malta and the Maltese economy’. “At the same time, however, this is a crucial issue of a complex nature that should not be politicized and where the national interest should be sought,” he says.

As of January 1, the EU’s new environmental tax on shipping known as the ETS Directive came into effect. Locally, however, importers and exporters have been voicing their concerns about how this new Directive unjustly penalizes Malta as an island and how this is set to force an increase in prices.

At the same time, operators are also concerned with the fact that nothing seems to be happening at the highest political levels to address this crucial issue – at least that is the impression being given.

“In my opinion this impression is wrong and whilst I am not here to defend the Government, let us not forget that the nature of the issue is qualified as QMV – Qualified Majority Voting. Yes, the situation is a delicate one but at this very sensitive junction, all stakeholders need to handle this issue with the appropriate and most professional approach.”

“First and foremost, there needs to be a clear and unanimous understanding that the ETS Directive has a direct bearing on the two most fundamental logistics pillars namely Malta Freeport and Valletta Grand Harbour’s Ro-Ro operations – two pillars with common factors but with distinct roles.”

Bugeja explains how while Malta’s Freeport drives economic growth through container trade and serves as a crucial Mediterranean transhipment hub that connects the country to over 170 global ports, the Valletta RORO services, together with trailer services provided by ATTO’s members, are a fundamental connection for all essentials that need to move to Malta.

“Malta’s international trailer operators have been investing huge money over the past 35 years placing the sector on the forefront with the highest, professional and reliable service. The fact that every week, an average of 1300 trailers are handled to and from Malta, is tangible proof of this success story,” outlines Bugeja.

What could be done?

“First and foremost, we need to make sure that this issue is not politicized, join forces and assess what additional options, reasoning and strategies can be adopted. We all saw how over the many years, issues of a maritime and/or logistics nature, have always been embracement by both political parties and this approach has been fundamental for the great success achieved by Malta.”

“A typical example is the Malta flag, which from a Flag of convenience, became one of the most reputable flags in the world and today, with the continuous support of both political parties, the Flag continues to enjoy its number one position within Europe and the sixth position in the world.”

“Secondly, we have sufficient professional and specialised people at EU level who can guide us through this challenge both through our team of MEPs and possibly, by engaging with the International Maritime Organisation, especially given the high reputation that Malta enjoys within this organisation. I firmly believe that through a structured approach, we have the clout to push and to ensure a level playing field.”

Potentially, the ETS Directive could be a defining issue for ATTO, highlighting its relevance in the local sector. So, what is ATTO planning to do to address this issue?

“ATTO has already been engaging in discussions within the appropriate channels. As a registered member of the world road transport organisation IRU, we are making our views known and meantime, we are re-organising our administrative setup to be able to deliver all our support during the challenging time ahead.”

Having commenced his career in the sector in 1971, Mr Bugeja brings with him long years of experience in the transport and maritime industries and was also one of the founders and eventual the CEO of the Malta Maritime Forum. And now, having just been appointed as the new Chairman of ATTO he already has clear priorities for the Association.

“I consider myself a builder of bridges where I always advocate for cooperation between entities within the industry through open dialogue. As such, whilst ATTO’s success depends on a dynamic approach and teamwork by all those involved, engagement with stakeholders especially at the Government level is already high up on our agenda so that we foster better communication. We intend to raise the bar to secure the desired recognition.”

“Strengthening public awareness of the essential role of Malta’s trailer operators is going to be another important priority. We already saw the value of trailer services to and from Malta during the unfortunate pandemic period, services that were fundamental for the island to keep supplies running without fail.”

“And whilst we will continue to focus on collaborations with educational institutions to introduce young individuals to our profession, we also plan to develop further safety and training programs and promote stronger values related to environmental sustainability by pushing for cleaner and more responsible practices through eco-friendly technologies and practices,” added Bugeja.

ATTO currently represents 80 per cent of tractor and trailer operations in Malta.

“There is a collective desire to achieve more constructive results especially now, with this current challenge of the ETS Directive that the country is facing. This is why unity is fundamental and within ATTO, there is space for everyone because even the smallest trailer operator is as important. In fact, I am pleased with the prospect of three new operators potentially coming on board,” concluded Bugeja.

News Source: https://timesofmalta.com/article/ets-directive-politicised.1080324