Malta ferry concession dispute over Comino services

The tranquil island of Comino, famed for its crystal-clear waters and the iconic Blue Lagoon, has once again become the center of controversy. What was meant to be a regulated concession for passenger transport has instead escalated into a full-fledged legal dispute, raising broader concerns about governance, transparency, and the future of sustainable tourism in Malta’s most visited natural attraction.

A formal challenge has been filed before the Public Contracts Review Board (PCRB) regarding the exclusive concession awarded in 2020 to Comino-Ferries Cooperative. The concession, which spans 15 years, gives the Cooperative the right to operate scheduled passenger services between Malta, Gozo, and the Blue Lagoon. However, a rival operator, Blue Waves Marine Company Ltd, is contesting the validity of this concession and alleging that its terms have not been respected.

The core of the legal challenge

Blue Waves Marine Company Ltd, a private operator that has long transported visitors to Comino, is seeking annulment of the concession. Represented by lawyers from Ganado Advocates, the company contends that the concession awarded by Transport Malta should be declared null and void. According to their case, the process has been flawed and the implementation has departed significantly from the commitments initially established under the contract.

The complaint highlights two main issues:

• The Cooperative’s alleged failure to introduce two eco-friendly vessels, which were a requirement of the concession.
• The alleged failure to provide ferry services to Santa Maria Bay, another area of Comino, instead focusing exclusively on the more profitable Blue Lagoon.
• The challengers maintain that these failures represent a breach of the concession’s terms and should warrant the issuing of a new public tender.

Allegations concerning government obligations

Blue Waves’ legal claim does not only address the actions of the Cooperative but also criticizes Transport Malta for failing to meet its obligations under the concession. One of the key contractual commitments was the upgrading of berthing facilities at the Blue Lagoon, which was to include the construction of new quays. According to the complaint, these upgrades have not been delivered.

The complainants argue that the lack of infrastructural improvements has compounded the operational imbalance and left the Cooperative in an advantageous position compared to smaller operators, many of whom lack equal access to secure berthing facilities.

Visitor caps and alleged discriminatory practices

Beyond contractual matters, Blue Waves is also opposing the recent introduction of a visitor cap at the Blue Lagoon. The government measure, introduced in the summer season of 2025, was presented as an effort to manage overcrowding and protect Comino’s fragile ecosystem. However, Blue Waves contends that the practical implementation of the cap has unfairly favored the Cooperative.

Under the current system, passengers using services provided by smaller operators must secure a pre-arranged permit to travel to Comino and disembark at the Blue Lagoon. By contrast, passengers traveling with the Cooperative do not require such permits, as the necessary arrangements are included directly in the tickets issued by the Cooperative.

According to Blue Waves, this creates a discriminatory system and fosters unfair competition, placing smaller and independent operators at a disadvantage while effectively granting the Cooperative a monopoly over the most lucrative routes.

Compensation claims

In addition to seeking annulment of the concession, Blue Waves is requesting compensation for losses allegedly suffered due to what it describes as Transport Malta’s failure to uphold the terms of the agreement. These losses, they argue, stem from diminished business opportunities caused by unequal treatment and the Cooperative’s dominant position in the market.

The 2019 tender process

The concession at the heart of the dispute was awarded following a public tender process in 2019. Notably, Comino-Ferries Cooperative was the sole bidder. The absence of competition during the tender stage has been cited by critics as a factor that weakened transparency and left the arrangement open to future contestation.

The lack of alternative bids meant that the government’s evaluation of value-for-money, environmental commitments, and service guarantees relied solely on the Cooperative’s proposals. Critics argue that this limited competition and potentially undermined the public interest in securing the best possible operator for such a sensitive and high-demand service.

Broader concerns over Comino and Blue Lagoon

The legal battle comes against a backdrop of longstanding governance challenges on Comino. Over the past decade, the Blue Lagoon has become both a major tourist draw and a flashpoint of controversy. The site’s natural beauty and commercial potential have combined to create a volatile environment where enforcement has frequently lagged behind economic pressures.

Reports have highlighted issues such as unauthorized land encroachments, unregulated kiosks, and a proliferation of temporary structures selling food and beverages. Many of these businesses have operated without formal permits, raising questions about oversight and compliance in a protected area.

Government reforms and future regulation

Earlier in 2025, the Tourism Ministry introduced new regulations designed to address the growing chaos on Comino. These reforms included measures to limit visitor numbers, with the stated aim of preserving the environment while balancing the interests of operators and tourists alike.

Looking ahead, the government has committed that from the summer of 2026 onward, all encroachments and kiosks will be regulated through a transparent tendering process. Furthermore, the number of such establishments will be reduced. The Ministry has presented this as part of a long-term strategy to restore order and sustainability to Comino.

Unregulated activities at sea

Even as authorities attempt to manage the situation on land, growing problems at sea have attracted attention. Visitors and residents have reported a surge in small rented boats, often operated by inexperienced individuals. Accounts describe daily disturbances from alcohol-fueled parties, loud music, and reckless navigation, creating risks for swimmers and other users of the Blue Lagoon.

The absence of regular patrols by Transport Malta enforcement dinghies, once a consistent feature of the area, has further heightened concerns about safety and compliance with maritime rules.

Balancing economic interests with environmental protection

The dispute between Blue Waves and the Cooperative underscores a wider dilemma faced by Malta: how to balance the economic opportunities presented by tourism with the urgent need to safeguard natural heritage. Comino’s fragile environment and limited capacity make it a unique case study in sustainable tourism management.

Stakeholders, including environmental groups, local businesses, and government agencies, agree on the importance of protecting the site. However, the methods and priorities often diverge. While operators emphasize market access and fair competition, environmentalists call for stricter limits on visitor numbers and stronger enforcement against encroachments.

The road ahead

The outcome of the PCRB proceedings will be closely watched. If the Board decides in favor of Blue Waves, it could trigger a re-tendering of the concession and potentially open the market to new bidders. On the other hand, if the Cooperative retains the concession, questions will remain about whether the terms of the agreement are being properly enforced.

Whatever the result, the case highlights a broader need for transparent governance, effective regulation, and fair competition in Malta’s tourism sector. It also signals the growing importance of ensuring that commercial concessions align with environmental sustainability and the public interest.

Conclusion

The dispute over the Comino ferry concession has grown into more than a contractual disagreement between operators. It has become a reflection of the wider challenges Malta faces in balancing commercial interests, environmental sustainability, and fair governance. While Blue Waves Marine Company Ltd seeks redress through legal means, the case ultimately underscores the importance of transparency in public tenders, accountability in government contracts, and equal opportunities for all service providers.

At the same time, the growing pressures on Comino and the Blue Lagoon illustrate the need for stronger regulatory enforcement and long-term planning to safeguard one of Malta’s most treasured natural landmarks. Whether through annulment, compensation, or stricter oversight of existing concessions, the outcome of this challenge will shape not only the ferry services to Comino but also the broader approach to managing Malta’s tourism economy. The resolution will therefore serve as both a legal decision and a test of the country’s commitment to sustainable development and fair competition.

FAQs

What is the legal challenge about?
The challenge concerns a 15-year concession awarded to Comino-Ferries Cooperative to operate scheduled ferry services. Blue Waves Marine Company Ltd claims the concession terms have not been respected.

Who filed the legal challenge?
Blue Waves Marine Company Ltd filed the challenge, represented by Ganado Advocates.

What are the main allegations?
The allegations include failure to introduce eco-friendly boats, failure to provide services to Santa Maria Bay, and unfair competitive advantages granted to the Cooperative.

Why is the visitor cap controversial?
Blue Waves argues the visitor cap favors the Cooperative since its passengers do not need separate permits, unlike those using smaller operators.

What role does Transport Malta play?
Transport Malta awarded the concession and was responsible for upgrading berthing facilities, which the complaint alleges has not been done.

What compensation is being sought?
Blue Waves is seeking compensation for business losses it claims to have suffered due to the alleged unfair treatment.

Why is the 2019 tender process criticized?
The Cooperative was the sole bidder in the tender, raising questions about transparency and competition.

What wider problems exist at the Blue Lagoon?
Issues include unauthorized kiosks, unregulated encroachments, overcrowding, and unsafe activities at sea.

What reforms has the government introduced?
New regulations limit visitor numbers and commit to regulating and reducing kiosks and encroachments from summer 2026.

What could happen next?
The PCRB may decide to annul the concession and call for a new tender, or it may uphold the current arrangement with the Cooperative.