Greece to Move Forward with €2bn Investment in Maritime Transport, Island Policy

Greece is set to invest 2 billion euros in maritime transport and island policy, sourced from public European funds and private investments, with a focus on the green transition, fleet renewal, and improved connectivity, according to Greek Maritime Minister Christos Stylianides.

During a press conference on Syros on Tuesday, the maritime minister presented the Greek government’s comprehensive plan for maritime transport, which includes a key proposal for fleet renewal through public-private partnerships (PPPs), as well as the optimization of port operations, ensuring safe departures and arrivals at island ports.

“The strategic goal of the Greek Ministry of Maritime Affairs and Insular Policy has always been to align the green transition of shipping with safety,” the minister said.

Addressing professionals and journalists, Stylianides outlined the ministry’s objectives, which include effective management of European resources and the mobilization of private investment to improve coastal shipping connectivity for the Aegean islands and upgrade their port infrastructures.

The minister highlighted that the public-private partnerships for the replacement of outdated vessels in the coastal shipping routes for remote islands (also referred to as “barren routes”) were initially budgeted at 80 million euros. However, following successful negotiations with the European Commission, this amount has increased to 265 million euros.

These funds will be allocated by the European Union, and the Ministry of Maritime Affairs and Insular Policy is also expecting an additional 300 million euros in EU resources for further infrastructure development at island ports.

Total investment in maritime transport, island policy to reach €2 billion

Deputy Maritime Minister Stefanos Gkikas, Maritime Minister Christos Stylianides. Photo source: Maritime Ministry

With the involvement of the private sector, the total investment in the Aegean Master Plan and the replacement of ferries is expected to reach 2 billion euros, sourced from public European funds and private investments, Stylianides announced.

He also shared details on the proposed connectivity solution for the Cyclades islands, which includes a 12-year contract through a Public-Private Partnership (PPP) for remote island routes, alongside shorter, four-year contracts for other ferry lines.

Regarding ferry ticket prices, which are expected to rise due to the green transition efforts, the minister informed that the Greek government and the Ministry of Maritime Affairs are actively working with relevant stakeholders to prevent excessive price increases.

“We are looking for sustainable solutions,” he explained, highlighting ongoing discussions with coastal shipping companies.

Addressing the ‘Transportation Equivalent’ for island areas

Photo source: Maritime Ministry

Minister Stylianides further discussed the concept of the “transportation equivalent”, a mechanism designed to offset the higher transportation costs faced by island residents and businesses compared to the mainland.

“This initiative is crucial for supporting economic development in these areas,” he noted, stressing that it should not be seen merely as a tool for balancing prices but as a catalyst for growth.