greek coastal shipping
Greek coastal shipping vessel built in 2000 (Credit: aeginalight.gr)

Greek coastal shipping faces the fleet renewal challenge

New study finds 86% of Greece’s shipping fleet is on average over 20 years of age

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A main challenge facing the Greek coastal shipping sector now is the urgent need to renew fleet, an annual study released recently by Piraeus-based XTRC Business Consultants reveals.

More specifically, 86% of Greece’s coastal shipping fleet is on average over 20 years of age, significantly above the European average (65%). More specifically, 83% of 95-meter ships are over 20 years of age, 88% of 96-149-meter vessels, and 91% of 150-meter ships, the 22nd “Greek Coastal Shipping” report found.

The last renewal of the fleet was carried out in 2000, when companies replaced or added second-hand vessels to their fleet instead of newly built ones. Renewals will have to meet new environmental standards.

Last year, passenger transport activity grew by 36% to 17.5 million passengers while vehicle transport by 12% to 3.7 million.

During the summer months, around 150 coastal ships sail daily in the Greek seas, which can carry up to 104,000 passengers per day. At the same time, 60-70 cruise ships operate daily with an average of 1,000 passengers per ship, bringing the total number of people carried by sea to over 150,000 at any given time during the high summer season, XRTC said.

Greece is ranked second in the European Union in terms of ferry traffic, with an average of 35 million passengers and 149 million tons of goods handled annually, over the period between 2015 and 2019. Coastal shipping has an essential role in the country’s economy. In 2019, it accounted for 7.4% of the national GDP and provided 332 thousand direct, indirect and induced jobs, the Foundation for Economic and Industrial Research data showed.

In Greece there are 12 regions bordering a sea. The Region of Attica, where Piraeus – the largest port of the country and the main hub for coastal shipping – is located, has the largest volume of passenger and vehicle traffic. The Region of South Aegean is the most touristic region of the country. Greece’s coastline reaches 15,000 km and the islands cover 18.7% of the total terrestrial area as per the University of Piraeus Research Center (2021). The Greek coastal shipping sector is a complex network with many parameters to be considered for its restructuring and improvement of the adequacy and quality of the services it provides.