Sliema Buġibba Gozo high speed ferry €32m bid moves forward

The operators behind Malta’s existing fast ferry link to Gozo have emerged as the only bidders for a new multi million euro public tender to operate a high speed scheduled ferry service between Sliema, Buġibba and Mġarr Harbour in Gozo. The development follows the unexpected withdrawal of a legal objection that had effectively placed the procurement process on hold for several months.

The bid was submitted by Gozo Highspeed Ltd, a consortium that already operates the Valletta to Mġarr route under a public service obligation framework. With the legal challenge now withdrawn and no competing offers on the table, the government is expected to move ahead with the evaluation and adjudication process.

The proposed service represents a significant extension of Malta’s sea transport network and reflects a broader policy direction aimed at improving maritime connectivity between Malta and Gozo.

Background to the tender process

The tender for the Sliema Buġibba Gozo route was announced in 2024 by Transport Minister Chris Bonett. At the time, the government indicated that the service would commence operations by August 2025, subject to the completion of the procurement procedure and operational preparations.

The call for proposals was issued in July 2024. Shortly thereafter, a formal objection was filed before the Public Contracts Review Board by Supreme Travel, a Żejtun based transport operator also known as Ta’ Cancu. The filing of this objection automatically suspended the adjudication process pending review.

Under Maltese public procurement rules, such objections are a recognised legal remedy available to economic operators who believe that a call for tenders may not comply with applicable legislation or principles of transparency and equal treatment.

Gozo Highspeed Ltd and its consortium structure

The sole bidder, Gozo Highspeed Ltd, is a joint venture involving several established players in Malta’s maritime and transport sectors. The company operates the existing Valletta to Mġarr fast ferry route under contract with the government.

Among the entities associated with the consortium are Virtu Ferries, widely known for operating international ferry services between Malta and Sicily, as well as the owners of Captain Morgan Group, the Bianchi Group, Spanish transport operators linked to Malta’s public transport concession and the OZO Group.

Virtu Ferries has long been active in the Maltese maritime sector and operates high speed catamaran services between Malta and Pozzallo in Sicily. The broader consortium structure reflects a blend of local maritime experience and international operational expertise.

The consortium submitted a bid valued at approximately €32 million. This figure is understood to be around €5 million lower than the contracting authority’s estimated value of the tender.

The legal objection by Supreme Travel

Supreme Travel’s objection before the Public Contracts Review Board centred on allegations that the tender conditions were discriminatory and structured in a manner that favoured operators already providing subsidised fast ferry services under public service obligation arrangements.

The company argued that the timeframe for the submission of bids was unduly short and that certain technical and financial requirements were disproportionate. It also raised concerns regarding compliance with European Union public procurement principles, including equal treatment and proportionality.

In its preliminary reply to the Board, the Ministry responsible for transport acknowledged that the timetable did not strictly follow standard procurement timelines. The Ministry cited pressing public interest considerations and the urgency of launching the service as justification for the accelerated schedule. It denied that the tender was designed to favour any particular operator.

Earlier this month, Supreme Travel withdrew its objection. The reasons for the withdrawal have not been publicly disclosed. When contacted for comment, a spokesperson for the company indicated that it did not wish to issue any public statement on the matter.

As a result of the withdrawal, the suspension on the tender process was lifted and the contracting authority may now proceed to evaluate the sole remaining bid.

Public service obligation framework and subsidies

The proposed Sliema Buġibba Gozo service will operate under a public service obligation framework similar to that governing the existing Valletta to Mġarr route. Under such arrangements, the operator provides a defined level of service in exchange for financial compensation from the state.

Public service obligation contracts are commonly used across the European Union to ensure connectivity to regions or islands where market forces alone may not guarantee sufficient frequency or affordability. In Malta’s context, they are particularly relevant to the inter island link between Malta and Gozo.

The financial structure of the new contract is expected to involve substantial public funding over its duration. As with the current fast ferry service, taxpayer funds will be used to bridge the gap between operational costs and revenue generated through ticket sales.

Government officials have consistently framed the investment as necessary to strengthen economic integration between Malta and Gozo, facilitate commuting and support tourism flows.

Commercial viability and passenger demand

Industry observers note that the proposed northern Malta link could attract meaningful demand. Sliema and Buġibba are among Malta’s most densely populated and touristic areas. A direct sea connection to Gozo may appeal to daily commuters, students and visitors seeking a faster alternative to land based travel to Ċirkewwa.

The inclusion of Buġibba as a departure point may broaden the service’s catchment area across the northern region of Malta. In principle, this could reduce travel times for residents who currently need to cross the island to access the traditional Gozo Channel ferry.

However, projections regarding passenger volumes remain subject to operational variables including ticket pricing, frequency, seasonal demand and integration with other transport modes. As with all publicly subsidised services, long term sustainability will depend on maintaining a balance between public funding and revenue generation.

Wider plans for maritime connectivity

The Sliema Buġibba Gozo route forms part of a broader strategy to expand Malta’s fast ferry network. Government plans have also included a proposed Marsascala to Valletta service, which has generated debate within the sector.

Some stakeholders have expressed scepticism about the viability of certain routes, particularly where projected passenger volumes may be limited. Concerns have been raised that underperforming routes could increase the burden on public finances if subsidy levels need to be maintained or increased.

Officials, for their part, have emphasised the social and economic value of improved maritime links. They argue that enhanced sea connectivity can reduce road congestion, shorten commuting times and diversify transport options.

Procurement transparency and governance considerations

The fact that only one bid has been submitted may attract scrutiny in the context of public procurement best practice. Competitive tendering processes are generally designed to encourage multiple bids in order to secure value for money and ensure fair competition.

At the same time, the existence of a single bidder does not in itself invalidate a procurement process, provided that the call for tenders complied with applicable legal standards and the evaluation is conducted in accordance with published criteria.

The earlier objection by Supreme Travel underscores the importance of clear and proportionate tender documentation. Public contracting authorities are required to strike a careful balance between ensuring technical competence and avoiding requirements that could unnecessarily restrict competition.

With the legal hurdle now removed, attention is likely to focus on the evaluation phase and on the contractual terms that will govern the service.

Expected timeline and next steps

With no outstanding legal challenges, the government is expected to finalise the evaluation of the €32 million bid in the coming months. Subject to contract award and operational preparations including vessel allocation, crew recruitment and infrastructure readiness, the service is now projected to commence during the summer season.

Any final contract will be subject to standard public law and regulatory oversight. The operator will be required to meet defined service standards relating to frequency, safety, reliability and passenger experience.

As Malta continues to invest in maritime transport, the Sliema Buġibba Gozo route may become a key test case for the expansion of high speed sea links within the archipelago.

Conclusion

The advancement of Gozo Highspeed Ltd as the sole bidder for the Sliema Buġibba Gozo fast ferry service marks a significant step in Malta’s evolving maritime transport landscape. The withdrawal of the legal objection has cleared a procedural obstacle and reopened the path toward implementation.

At the same time, the circumstances surrounding the tender highlight the complexities inherent in publicly funded infrastructure and transport projects. Issues of procurement fairness, proportionality and value for money remain central to public confidence in such initiatives.

If successfully implemented, the new route could enhance connectivity between Malta’s urban centres and Gozo, support commuter mobility and contribute to tourism development. Its long term success will depend not only on operational efficiency but also on sustained passenger demand and prudent management of public resources.

In a context where public investment decisions are closely scrutinised, the coming months will be decisive in shaping both the contractual framework and the broader perception of Malta’s expanding fast ferry network.

FAQs

What is the purpose of the new Sliema Buġibba Gozo ferry service?
The service is intended to improve maritime connectivity between Malta and Gozo by offering a high speed alternative to existing routes and expanding access points in northern Malta.

Who submitted a bid for the tender?
Gozo Highspeed Ltd submitted the only bid for the tender following the withdrawal of a competing operator’s legal objection.

How much is the bid worth?
The consortium submitted a bid valued at approximately €32 million which is lower than the government’s estimated value of the contract.

Why was the tender process delayed?
The process was delayed due to a formal objection filed before the Public Contracts Review Board which temporarily suspended the adjudication procedure.

What is a public service obligation contract?
It is a contractual arrangement under which an operator provides a defined transport service in exchange for financial compensation from the state.

Will the service be subsidised?
Yes the service is expected to receive public funding under a public service obligation framework.

When is the service expected to start?
Operations are currently projected to begin during the summer season subject to contract award and preparations.

Why did Supreme Travel withdraw its objection?
The company has not publicly explained the reasons for withdrawing its legal challenge.

How could the new route affect commuters?
The route may reduce travel times for residents in Sliema and Buġibba and provide an alternative to road travel to Ċirkewwa.

What factors will determine the service’s long term success?
Passenger demand ticket pricing service frequency operational efficiency and responsible use of public funds will all play a role.