Despite growing attention on Malta’s role as a Mediterranean transshipment hub, Valletta Gateway Terminals (VGT) says its business remains overwhelmingly driven by Malta’s domestic economy.
According to VGT Chief Executive Officer Nicholas Tan, approximately 70% of the terminal’s activity is generated by roll-on/roll-off (Ro-Ro) cargo linked directly to Malta’s import and export requirements, while vehicles, containers, conventional breakbulk and bulk cargo account for a further 20%.
“One of the biggest misconceptions is that VGT is primarily a transshipment operation when the reality is that our core business remains firmly tied to Malta’s economy and around 70% of our activity is Ro-Ro cargo supporting local imports and exports, which continues to be the backbone of our operations.”
Operating from Grand Harbour, VGT functions as a multipurpose terminal handling a broad mix of cargo types, distinguishing it from larger Mediterranean facilities that are predominantly focused on container transshipment.
While transshipment activity remains an important part of the business, Mr Tan stressed that it plays a complementary role.
“We are not structured as a large-scale transshipment hub. Our strength lies in being a flexible multipurpose gateway capable of supporting Malta’s domestic supply chain while also responding quickly to regional opportunities when they arise.”
One such opportunity emerged following the disruption of Red Sea shipping routes. The rerouting of vessels away from the Suez Canal and through the Strait of Gibraltar resulted in a noticeable increase in vehicle transshipment activity through Malta over the past two years.
“The Red Sea situation demonstrated what Malta can offer as a logistics platform. We were able to support shipping lines by providing a reliable hub connecting mainland Europe, North Africa and the Eastern Mediterranean,” added Mr Tan.
However, he cautioned that some of these volumes could prove temporary if global shipping routes normalise.
“If trade routes return to pre-crisis patterns, some transshipment activity may reduce. Nevertheless, we believe VGT has demonstrated its value proposition. Shipping lines have seen first-hand the advantages of Malta’s location, operational flexibility and stable business environment.”
Mr Tan also argued that Malta’s competitive advantage extends beyond geography.
“Location gets you on the shortlist, but it is when you show reliability that customers keep coming back,” he said.
“Clients value the fact that Malta offers a responsive port environment, lower congestion levels and the ability to make operational decisions quickly.”
Referring to the island’s long-term success, Mr Tan said that this will greatly depend on investment and strategic planning.
“The biggest challenge for Malta is balancing growing competition with our infrastructure limitations. To remain competitive, we need a strong national maritime strategy focused on digitalisation, operational excellence, workforce development and targeted infrastructure investment.”
While transshipment opportunities may continue to emerge, Mr Tan believes VGT’s future remains rooted in its role as a critical gateway for Malta’s economy.
“Our priority remains serving Malta’s trade requirements while selectively pursuing regional opportunities that align with our strengths as a multipurpose terminal.”
