The Ex Siremar concession in danger

Palermo - The Region of Sicily is ready to revoke the license given to Compagnia delle Isole, for breach of contract. The company, which took over the brand and services of former public ferry operator Siremar, previously Tirrenia, for the maritime connection between Sicily and the smaller islands, must demonstrate by December 31 to have resolved a number of serious problems pointed out by the authorities.

Otherwise, there will be a new tender. The prospect of the concession’s withdrawal has already raised serious concerns amongst the mayors of the islands, but also at Uiltrasporti. But behind the scenes there is also a tug of war between departments within the Sicilian regional government: the Infrastructure department which awards the grant, and the Economy department, which is the majority shareholder of the company through Mediterranean Holding.

This department has already said it wants to sell its stock, but at the moment it maintains a 43% share, together with the group Lauro of Naples (34 %). The mayor of Santa Marina Salina (Aeolian Islands), Massimo Lo Schiavo, wrote to the Head of the Infrastructure department, Anthony Bartolotta, asking him not to proceed with the withdrawal.

Then the mayor of Favignana (Egadi islands) intervened with concerns that the archipelago risks being isolated from the mainland. According to Pagoto, “such a decision, if confirmed, equals a death warrant for our islands, at a time when authorities and tour operators are beginning to plan the 2014 tourist season.”

Pagoto is also questioning the way this decision came to pass, since there was no official involvement of the municipalities directly affected: “The fact that a decision of such gravity was taken without consulting the mayors of the islands involved is quite frustrating. We cannot understand how anyone could revoke an agreement with a carrier that provides maritime links to all the islands of Sicily.”

Another fear expressed by Pagoto is the loss of jobs: “the impact of this decision on local businesses and employment was greatly underestimated.” Claudio Tarlazzi , General Secretary of the National Uiltrasporti is also concerned about employment, writing in a statement: “If the Region of Sicily decides to revoke the concession given to the Compagnia delle Isole, it would greatly harm the employees of the Company but it would also cause serious problems to the region itself, from a touristic and financial point of view.”

Uiltrasporti, is ready to take action “and all necessary steps to protect employment and citizens.” The Region is trying to put out the fire of controversy, all the while confirming the possibility of termination of the contract with the Compagnia delle Isole.

Salvina Severino, Director of Infrastructures for the Region, explains: “We are still in the consideration stage. But even in the unlikely event of termination, the maritime services will continue and the staff’s jobs will be secure. From this point of view there is no danger”.

The Region has had to handle a hot potato inherited by the Ministry of Infrastructure and Transport after an Action Decree transferred all maritime transport issues to the Region’s jurisdiction.

Back in March last year, the ministry had sent an initial warning to the shipping company reporting serious and repeated breaches of contract and threatening to trigger a termination clause: they were being accused, among other things, of using a ship unfit for service on the Lampedusa link, after the fire aboard the Palladio; of failing to respect timetables and of using a smaller number of vessels than expected.

When no response had been received within the 30 days period, required by law, the ministry had sent a second notice which requested that the issues raised were resolved by 31 December. The issue was then passed over to the Region, but as yet, there has been no adequate response.