Only unity can protect our transport and logistics sector, association chairman says

30 January 2025

A year ago, JOSEPH BUGEJA was appointed chairman of ATTO, the association that represents Maltese tractor and trailer operators that connect Malta to mainland Europe daily. One of ATTO’s principal commitments was to raise awareness of the transport and logistics sector and its importance to Malta’s economy. Bugeja speaks to this newsroom on challenges and progress.

It has been a very challenging year but it was also a year of renewed political collaborations and very important achievements for the transport and logistics sector, Joseph Bugeja, chairman of the Association of Tractor and Trailer Operators, said.

“Our campaign to highlight the logistics sector’s importance to Malta’s economy has been highly successful,” Bugeja said.

“We’ve made progress through dialogue with political leaders and engagement with MEPs after last year’s elections. Key efforts include local media outreach, our first newsletter, plans for networking and an international conference to be held this year. At EU level, we are strengthening our strategy through strong ties with the International Road Transport Union (IRU) and the Island Nations Advocacy Group (INAG).”

To date, ATTO represents 15 members who collectively, have all been facing the same challenges both on the local front and EU-level challenges.

“Locally, operational inefficiencies and process improvements remain key concerns,” he added.

“At EU level, new directives often overlook the unique needs of island economies. Strength in unity has driven our growing membership, as trailer operators recognise the value of a collective front for stronger business foresight. Our international affiliations further reassure members by supporting efforts to safeguard our business interests.”

 
One such major challenge was resolved last year in October when an EU court ruling overturned a law requiring trucks and heavy vehicles to return to their country of origin every eight weeks, bringing an end to a four-year dispute over the ‘return of vehicles’ rule.

“The return of vehicles provision is effectively closed unless the European Commission introduces new legislation. The Commission opposed it, issued a statement after the Mobility Pack’s approval, and remained neutral during court proceedings. In a recent technical meeting, it confirmed no plans to revisit this issue. We can confidently say the return of vehicles requirement is gone for good,” Bugeja noted.

At the same time, Bugeja also pointed out that the EU’s ETS Directive remains one of the biggest challenges for ATTO with major implications on an island state like Malta.

“Starting 1 January, the European Directive (EU) 2023/959 requires all shipping companies to offset their CO2 emissions by buying Emission Unit Allowances (EUAs), with each EUA covering 1 ton of CO2 emitted. This regulation applies to 100% of emissions on routes within the EU and 50% for routes that go beyond the EU,” he said.

“The application of this regulation will be gradual namely 40% for emissions produced from 1 January 2024, 70% for emissions produced from 1 January 2025 and 100% for emissions produced from 1 January 2026. Therefore, this year, the EU ETS Directive meant an increase in the phase in period from 40% to 70%. Additionally, as of 1 January, the Fuel EU Maritime Regulation also came into force for all vessels with a Gross Tonnage higher than 5,000 Tons and calling at European ports,” he added.

The implication of this is that “shipping companies will soon face a choice: purchase expensive alternative biofuels or pay penalty fees. While the regulation aims to reduce GHG intensity of fuels by 2050, it imposes a significant surcharge on operators.”

“For instance, a round trip to Genoa would add €408 per trailer in shipping costs. This places an unfair burden on Malta, an island reliant on maritime transport for essential imports and exports. We are fighting this measure, as it disproportionately impacts our economy and penalises operators serving island nations like ours, where alternatives to maritime transport are non-existent.”

As an issue that affects so many different sectors, ATTO’s resolve was always aimed at ensuring that this issue should never be politicised.

“Indeed, this has always been one of ATTO’s strongest opinions. The transport sector is fundamental to us and we simply cannot afford to lose valuable and strategic time on political twists. We are happy that this matter is being given due attention by both sides of the House thanks to our constant approach, communication and relation,” he remarked.

As such, throughout 2024 ATTO was particularly active in its lobbying efforts and managed to meet with practically all the leading political exponents.

“Our strategy of open dialogue led to regular, constructive meetings with Deputy Prime Minister Ian Borg, responsible for our sector through his Foreign and EU Affairs portfolio, and Transport Minister Chris Bonett, who is keen to support our industry.”

“We also engaged with Shadow Minister Mark Anthony Sammut, Malta’s MEPs and the Malta Business Bureau. In Brussels, we coordinated meetings between our affiliations and MEPs.”

“I believe that this engagement was instrumental in fostering a common understanding of how the ongoing international challenges are impacting Malta’s businesses and citizens.”

Locally, ATTO is now also pushing for better infrastructure in the Grand Harbour area.

“This is an extremely crucial and important point because the constant growth in trailer traffic continues to bring a greater need for better and more appropriate infrastructure. Luckily, we are already registering progress thanks to the Transport Minister’s direct involvement as well as the CEO’s Office at Transport Malta. But more needs to be done and expeditiously,” Bugeja said.

ATTO is now looking forward to the outcomes of a specific study, which will focus on the trailer service sector to and from Malta.

“This study was fully commissioned by the Ministry of Transport following a formal request by ATTO which was endorsed by Transport Minister Bonett. It will be the very first study of its kind conducted for the sector in 49 years of trailer operations which will seek to address the importance of the road haulage industry for Malta’s economy, in particular the connectivity linkages to Europe and beyond within the context of an island state.”

Another challenge that is being faced by practically all transport and logistics operators is the lack of drivers.

“A 2023 report on driver shortage carried out by the IRU across 36 countries found a gap of over three million truck drivers. Without significant action, this situation is only going to get worse.”

“Our members are no strangers to this critical issue and we are currently in an open dialogue with Identità that are supporting us wholeheartedly in addressing this pressing matter.”

“To address the issue, we are pushing for a streamlined or special mechanism for issuing work permits for TCN drivers, prioritising national interests and trade efficiency,” Bugeja said.

Source: Malta Business Weekly, The Malta Independant online