The Greek government is seeking ways to shield ferry passengers from ticket price hikes, driven by mounting operational costs and stricter European environmental regulations.
Top officials, including Maritime Minister Christos Stylianides, gathered at Maximos Mansion on Friday to evaluate strategies for keeping fares affordable.
The implementation of new emissions regulations, such as SECA-compliant fuels and the FuelEU directive, is expected to raise operating costs by 12-15% on various routes. These measures aim to reduce maritime carbon emissions but create financial pressure on ferry operators, who fear rising fares could dampen demand and jeopardize their economic viability.
Stylianides plans to explore European funding options to alleviate the industry’s burden. Proposals include extending public service route (nonprofit line) contracts to 12 years for greater financial stability and leveraging revenues from the EU’s carbon emissions trading scheme (ETS). Officials are also examining interventions to lower fuel costs directly at the source, including adjustments for biofuel pricing.
The ferry sector, which recovered from a crisis-induced cycle of bankruptcies only last year, is facing renewed strain.
Labor costs under new union agreements have risen by 5%, and operators report elevated expenses for maintenance, supplies, and upgrades to meet forthcoming environmental standards.
According to a study by the Foundation for Economic and Industrial Research (IOBE), operating costs could total €320 million by 2031, potentially cutting passenger demand by 10.4%.
While ferry operators prefer to avoid fare increases, some, like Minoan Lines, have already announced impending adjustments.
Others are expected to follow without swift action to offset costs.
Further meetings with stakeholders will continue next week, underscoring the government’s commitment to safeguarding an essential lifeline for Greece’s economy and its islands.