Gozo Ferry MV Nikolaos Replacement Costs €10,600 Daily Lease

The Maltese government is preparing to lease a replacement for the aging MV Nikolaos ferry, which has served on the Gozo Channel route for six years under controversial temporary arrangements. Through Gozo Channel, an international tender was issued to hire a modern roll-on/roll-off passenger ferry under a two-year time charter agreement with options for extension. The estimated contract value indicates that taxpayers will bear a daily cost of approximately €10,600 before VAT, excluding fuel and other operational expenses. This move aims to finally retire the 40-year-old Greek-built vessel, which was introduced in 2019 as a temporary solution while plans for new ferries were being developed. The prolonged reliance on this aging ship has drawn significant criticism regarding transparency and cost-effectiveness over the years.

Since its introduction in 2019, ministers described the MV Nikolaos as a stopgap measure pending the arrival of new vessels. However, procurement attempts failed repeatedly, forcing the ferry to remain in service until at least April 2027 if a suitable replacement is found through the current tender. The Shift has previously exposed that the government paid between €10,000 and €13,000 daily for leasing the vessel through opaque arrangements. Despite repeated Freedom of Information requests, the government has refused to publish the original contract details, fueling public skepticism about the financial management of the channel.

The operational efficiency of the MV Nikolaos has also been questioned due to its age. Reports revealed that the certified passenger capacity was drastically reduced during winter months because the vessel was too old to handle rough seas safely. Despite this reduction in service quality and capacity, Gozo Channel continued to pay the full lease price to the owners. This discrepancy between paid costs and actual service delivery has been a major point of contention for passengers and critics alike who argue that public funds are being wasted on an inefficient asset.

Previous procurement exercises by Gozo Channel failed to attract any bidders, leaving the company with no choice but to continue relying on the aging MV Nikolaos. The latest tender carries similar risks, as there is no guarantee that suitable bids will be received this time either. If the current tender also fails to yield results, the MV Nikolaos could remain in service for an even longer period, further delaying the modernization of the Gozo Channel fleet. The uncertainty surrounding these procurement processes highlights the challenges faced by the state-owned company in securing reliable maritime transport solutions.

Earlier this year, the government announced a €130 million investment program to renew the entire Gozo Channel fleet, a pledge also included in the ruling party's electoral program. The plan involves constructing two new passenger ferries and converting one existing vessel into a cargo ferry to create a four-vessel fleet capable of meeting future demand. However, these long-term plans are still in their very early stages. No procurement process for the construction of the new ferries has been launched yet, and they are not expected to enter service before 2029, leaving a significant gap in the interim.