Nicosia: The Cyprus-Greece passenger ferry link is set to operate without disruption until 2027, with a decision regarding continued state subsidies post-2027 to be made within that year, as stated by Kyriakos Aliouris, Acting Director of the Shipping Deputy Ministry, to CNA.
According to Cyprus News Agency, the current contract, initiated in 2022 with an initial three-year term and an extension option, has now been extended to cover operations until 2027. Aliouris confirmed that the contractor is mandated to adhere to the contract terms, ensuring the ferry route functions as expected. "There is no current issue affecting the route, which will operate normally next year," he assured.
The future of the state subsidy remains undecided. Aliouris highlighted that the Shipping Deputy Ministry has gathered significant data over the past five years to inform a responsible decision on the subsidy's continuation. This data will be crucial in framing a new proposal for the Council of Ministers, which may necessitate a new tender to select a contractor if the subsidy continues.
"It's premature to predict the subsidy's future," Aliouris noted, emphasizing that an informed decision will be made within 2027 after reviewing the current year's data. He praised the route's performance, noting strong public support and increased usage.
Addressing concerns raised by Scandro Holding Ltd CEO Charalambos Manolis about the necessity of the subsidy for the route's viability, Aliouris acknowledged these concerns. He explained the subsidy's initial purpose was to address the lack of data on demand, as there had been no maritime link between Cyprus and Greece for years. The route serves significant social and humanitarian purposes, catering to passengers with specific travel needs.
The five-year data collection has provided a clearer understanding of demand, showing annual growth in passenger and vehicle traffic. Aliouris noted that if the government opts to continue support and initiate a new tender, factors like fuel prices and regional conditions will influence the subsidy level.
Reassuring the public, Aliouris stressed that the ferry link will not be interrupted during the current or next periods, with the existing contract ensuring operations through 2027. The Deputy Ministry will finalize its recommendations regarding post-2027 operations and subsidies within next year.