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Croatia urged to reform ferries

Date: 20 Aug 2007 00:00 Source: Lloyds List

AS Croatia prepares to enter the European Union, strategic reforms and structural change are necessary if the country’s ferry operators are to compete effectively, writes Sandra Speares.

In a paper presented in the Maritime Policy and Management journal, Heidi Cottam, Michael Roe and Jonathan Challacombe of Plymouth University’s centre of international shipping and logistics say that Croatian fleets are suffering from “obsolete vessels with inferior technology, operating regional networks with point-to-point routings instead of global service activity”.

According to the paper, EU enlargement “has changed the meaning of the Adriatic as a traffic corridor for tourism.

“Today, Croatian maritime transport systems must be considered in relation to the interconnectivity of regional transit networks.”

The paper urges Croatia to seek to improve the standard of passenger transport to that of the Single European Transport Policy.

The paper also advocates a return to the cruise industry by Croatian shipping companies, initially by means of state concessions, but in the longer term through private funding and financing initiatives.

The authors suggest that “Croatian operators should develop a modest fleet of contemporary cruise liners on the Adriatic, to niche markets that are not in direct competition with the leading operators”.

The European Bank for Reconstruction and Development agreed a €26.5m ($35.5m) loan to modernise the port of Dubrovnik at the beginning of 2005, to ensure that the port would be able to accommodate three 300 m ships at one time, although the authors say that more investment is needed to improve Croatia’s traffic network.

While Croatia has the chance to move back into the international cruise market, the paper says, capital remains in short supply, as is the case with the short sea ferry fleet where investment has been limited.

It recommends that short sea ferries “should now be directed towards the international cross-trades with increased emphasis on geographical and product niches”.

Government support, the paper says, will be needed to “overcome the conflict between the interests of the shipping and tourism industries and that of the national citizen”.

If you are interesting in travelling to Croatia by ferry, please visit our Ferries to Croatia page.

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