On Friday, the tender for the ferry connection between Greece and Cyprus comes out

By George George

Next Friday, November 26, the tender for the sea connection of Greece – Cyprus is expected to be announced, according to information from Capital.gr.

The decision of the Cyprus Ministry of Shipping, which “runs” the procedures, has been taken. It is noted that the publication of the tender document took a few days, in order to complete the consultation with the carriers.

In fact, the information states that in the first days of December the Cypriot Deputy Minister, Vassilis Dimitriadis will be in Piraeus and will present the project to transporters and other competent bodies, in an open event.

The basic elements of the competition

Recently, the Ministry of Shipping of Cyprus published a document intending to announce a European tender for the ferry connection.

The service, as mentioned in the document, will cover a period of three years with the possibility of extension. Specifically, there will be 26 return trips per year during the period April / May – September / October from Piraeus to Limassol or Larnaca and vice versa.

The contractor of the tender process will cover the route for the above period and during the winter season will be able to use the ship on other routes. At the same time, unlike the first tender, in the new procedure the carrier will not be required to carry out commercial activity.

The contractor will also have the opportunity to extend the trip to a third country, with Israel imagining the most likely destination, if it is finally decided. However, it is noted that such an extension will not be covered by the state – Cypriot – subsidy.

The Cypriot subsidy concerns only the passenger aspect of the Greece-Cyprus route, in accordance with European rules and is essentially a subsidy of the carrier’s expenses for the trip.

In fact, last week, the Cypriot cabinet decided to increase the subsidy from 5m euros to 5.5m euros, taking into account rising fuel prices. It is noted that whichever carrier submits a proposal with the lowest potential cost, will have the lead in the bidding process.

One of the interesting elements recorded in the intention document is the prices for the Greek Cypriot connection. The maximum fare on an airline for one person is estimated at 50 euros and with a return at 80 euros. In a cabin, the respective prices are close to 80 and 120 euros.

Hesitation

Shipowners in Greece and abroad have been informed in detail about the tender, without it being clear whether any company will show interest.

Stakeholders directly involved in the proceedings note that they can not predict what will happen, adding that every effort has been made to present a competitive bidding document.

Greek coasters, however, report that there is a reluctance to participate in the tender, as the high cost of fuel increases the costs even more, which, as they say, can not be covered by the subsidy. According to their estimates, at the end of the year, fuel costs will increase by 35-40% on an annual basis, burdening the companies’ balance sheets.

At the same time, it is uncertain whether there will be passenger traffic that will bring profits to the contractor. Of course, in Cyprus it seems that they are “asking” for the sea connection, in order to present an alternative in air transport, but it is unknown how many will eventually choose to travel by ship.

In case of interest, the award of the bids is expected within January, with the final goal in May 2022 to start the routes.