Greece’s competition authority is calling for a major rethink of how the country’s coastal shipping sector is regulated, managed, and modernized.
The Hellenic Competition Commission (HCC) this week released the Interim Report of its ongoing sector inquiry into coastal shipping, launched in April 2025. The report paints a detailed picture of a market that is essential for Greece’s economic and social life — connecting hundreds of islands with the mainland — but one that also suffers from aging fleets, weak competition, and outdated rules.
A Market of Strategic Importance
Coastal shipping is the backbone of island connectivity and tourism. In 2023 alone, ferries carried around 17 million passengers and 3.3 million vehicles on domestic routes. But despite more than 200 operators, the market remains highly concentrated — with Attica Group and Seajets controlling about 60% of total passenger capacity.
The report highlights how strong seasonality, old vessels, and rising fuel costs continue to strain the sector. The average ship is around 25 years old, and investment in greener, more efficient fleets remains limited.
“The challenge is balancing economic viability with the public service role of coastal shipping,” the HCC notes. Many routes to smaller or remote islands are unprofitable but vital for local communities.
Weak Competition and Governance Gaps
Although Greece liberalized its coastal shipping market back in 2002, the Commission finds that loopholes in current regulations still dampen competition.
Procedures for approving ferry routes and schedules can unintentionally allow coordination between rivals — an issue the HCC has already addressed in two past decisions (759/2021 and 793/2022). The watchdog warns that such practices risk reducing competitive pressure and raising prices.
It also raises concerns about the governance of advisory bodies in the sector, where industry associations sit alongside government representatives. The HCC calls for clearer rules, greater transparency, and a more modern, adaptive regulatory framework.
Ports, Green Investment, and New Network Design
The report points to long-standing weaknesses in port infrastructure, especially on the islands. Many ports still lack proper docks, depths, or passenger facilities. Upgrading them is essential, the HCC says, not only for safety but also for better service and smoother operations.
One novel idea under discussion is a “Sea Ports Time Slots” system, similar to airports, where berthing times at peak hours could be allocated or auctioned to reduce congestion.
The HCC also sees a need to redesign ferry routes. Greece’s current “star-shaped” network, centered on Piraeus, often forces island-to-island travel to pass through Athens. A hub-and-spoke model, with regional hubs and better inter-island connections, could make services more efficient and affordable.
Public Service Obligations Under Pressure
The report highlights a steep rise in the cost of Public Service Obligation (PSO) contracts — from €10 million in 2001 to €150 million in 2025, a fourteen-fold increase. While these subsidies keep lifeline routes running in winter and to small islands, the Commission questions whether the system is efficient or transparent enough.
It urges a complete review of how PSO routes are chosen, tendered, and monitored, so that public funds go where they are truly needed.
A Call for Modernization and Dialogue
Beyond diagnosis, the HCC wants to open a broad consultation with all stakeholders — from ferry operators and port authorities to island municipalities and passenger associations.
Comments on the Interim Report can be submitted until 14 November 2025 by email at shipping@epant.gr, or during an online consultation session scheduled for early November.
The Commission argues that only through joint efforts — including fleet renewal, greener investment, and better regulation — can Greece’s coastal shipping sector become both competitive and socially fair.
A Vision for the Future
In its closing message, the HCC calls for a “dynamic, responsive, and forward-looking” approach to regulation. It envisions a sector where healthy competition, modern infrastructure, and environmental sustainability work together to ensure that every Greek island remains connected — efficiently, safely, and affordably.
