Maritime Minister Announces Overhaul of Ferry Subsidy System and Fare Relief at OT Forum
Greece’s Minister of Maritime Affairs and Insular Policy, Vassilis Kikilias, unveiled a series of significant measures aimed at improving ferry services to remote islands, promoting green shipping, and addressing the rising cost of ferry tickets at the 5th OT Forum on Tuesday.
Four-Year Contracts for Remote Ferry Routes
Minister Kikilias announced the launch of a public tender for new four-year public service contracts for subsidized (so-called “non-profitable”) ferry routes, a move aimed at providing greater stability and attracting higher-quality vessels.
“The government, through the Finance Ministry and the Presidency, has agreed to increase funding for these routes so we can attract more modern and better ships,” Kikilias said during his speech at the forum.
While ferry operators have responded positively to this shift, concerns remain over the current fuel clause, which caps reimbursements at 2.5%—a sticking point that the government may need to revisit.
These four-year contracts are separate from the longer-term strategic plan to offer 10- to 12-year concessions in exchange for the construction of new vessels. That initiative remains under review due to outstanding fiscal obligations linked to Greece’s post-memorandum commitments.
Support for Green Shipping
In an effort to modernize Greece’s ferry fleet and support the transition to greener technology, Kikilias outlined a government-backed plan in collaboration with Deputy Prime Minister Kostis Hatzidakis. The plan involves negotiating with the European Investment Bank and domestic lenders to secure financing for the retrofitting or replacement of aging vessels with environmentally friendly alternatives.
“We are working on a program for green shipping—leveraging emissions compensation funds and potential financing from both European and Greek banks—to help shipowners modernize decades-old vessels into safer, more modern, and more sustainable ships,” Kikilias stated.
Ferry Ticket Prices and Fee Reductions
Amid public concerns about ferry fare hikes, Kikilias emphasized that the ferry market operates under free-market principles, with prices set competitively by the companies themselves. However, he noted proactive steps taken by the government to alleviate passenger costs.
“We have already reduced port fees by 50% in cooperation with the Minister of State Stavros Papastavrou, Thanasis Petralias, Nikos Tsafos, and Deputy PM Hatzidakis. This applies to both ports and private port concessionaires,” Kikilias said.
He also assured the public that earlier-announced price hikes due to fuel costs, scheduled to take effect on May 1, would now be suspended for the summer season. In fact, he revealed that “high-speed vessels—an important part of the equation—will proceed with significant fare reductions in the coming days.”
€43 Million for Island Transport Subsidy
Kikilias concluded by announcing that, with the approval of Prime Minister Kyriakos Mitsotakis, €43 million will be allocated in May for the transport equivalent scheme (Μεταφορικό Ισοδύναμο), which offsets the high cost of ferry transport for island residents and island-based businesses.
He also reiterated the government’s broader commitment to maritime safety and underlined the strategic importance of Greece’s shipping sector, calling it “a cornerstone of national economic and geopolitical strength.”
