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Greek Market Report XRTC
Greece's Athens Stock Exchange-listed ferry operators will continue to struggle unless new investments are made and this will only happen with further liberalisation of the domestic ferry network. While the government's cautious moves towards liberalisation show a willingness to harmonise Greek legislation with European Union legislation, more has to be done to stop the Greek passengership fleet shrinking.
Unless new investments are made, the number of ships controlled by the six largest companies - Attica Enterprises, Anek Lines, Blue Star, Hellenic Seaways, Minoan Lines and Nel Lines -could dwindle to just 47 by 2015 from the 131 ships controlled by them in 2002. With the exception of Hellenic Seaways the companies are listed on the Athens Stock Exchange (ASE).
In its annual analysis of the ferry sector, business consultant XRTC calculates the number of ships the six will have in service this year is 87 with reduction of 18% annually over the next two years. XRTC says the need to phase out ships over the mandatory 30-year withdrawal age under Greek law plus the need to sell because of increasing financial pressure will see "many communications problems due to the shortage of ships", says XRTC.
Between 1999 and 2002, the six companies invested $3.5bn in new ships but no big order in the passengership sector has been placed in the past five years, says the report.
Investments were made as owners anticipated full liberalisation of the sector from the beginning of 2004, a move that has still not been completed.
The report says the government's failure "to take the necessary daring decisions" has lead to the lack of new investment. The support of the banks which realised loans could only be serviced if the ships were operating has helped the situation.
However, even if the ships are full the price charged has still to justify investment in new ships. The report notes that the age of the fleet has come down from 17.7 years to 12 years. It also says that a reduced fleet means less competition thus offering companies an easier operating climate.
XRTC welcomes the growing presence of reefer operator Panos Laskaridis, who now holds a 17% share in Hellenic Seaways, and a 5.2% stake in Minoan Lines, which in turn has a 33.3% share in Hellenic Seaways. It also notes the presence of another newcomer, Ioannis Arvanitis, who has a 20.8% stake in Nel Lines.
XRTC calculates passenger movements shared by the companies was down 7%, car traffic by 12% and trucks by 3%. On top of that, bunkers and lubricants rose by 30%. But still, XRTC says, the aggregate net results of the five listed companies showed a 38% increase.
Unless new investments are made, the number of ships controlled by the six largest companies - Attica Enterprises, Anek Lines, Blue Star, Hellenic Seaways, Minoan Lines and Nel Lines -could dwindle to just 47 by 2015 from the 131 ships controlled by them in 2002. With the exception of Hellenic Seaways the companies are listed on the Athens Stock Exchange (ASE).
In its annual analysis of the ferry sector, business consultant XRTC calculates the number of ships the six will have in service this year is 87 with reduction of 18% annually over the next two years. XRTC says the need to phase out ships over the mandatory 30-year withdrawal age under Greek law plus the need to sell because of increasing financial pressure will see "many communications problems due to the shortage of ships", says XRTC.
Between 1999 and 2002, the six companies invested $3.5bn in new ships but no big order in the passengership sector has been placed in the past five years, says the report.
Investments were made as owners anticipated full liberalisation of the sector from the beginning of 2004, a move that has still not been completed.
The report says the government's failure "to take the necessary daring decisions" has lead to the lack of new investment. The support of the banks which realised loans could only be serviced if the ships were operating has helped the situation.
However, even if the ships are full the price charged has still to justify investment in new ships. The report notes that the age of the fleet has come down from 17.7 years to 12 years. It also says that a reduced fleet means less competition thus offering companies an easier operating climate.
XRTC welcomes the growing presence of reefer operator Panos Laskaridis, who now holds a 17% share in Hellenic Seaways, and a 5.2% stake in Minoan Lines, which in turn has a 33.3% share in Hellenic Seaways. It also notes the presence of another newcomer, Ioannis Arvanitis, who has a 20.8% stake in Nel Lines.
XRTC calculates passenger movements shared by the companies was down 7%, car traffic by 12% and trucks by 3%. On top of that, bunkers and lubricants rose by 30%. But still, XRTC says, the aggregate net results of the five listed companies showed a 38% increase.
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