Italian ferry giant undercuts PAMA boss by 45% in Gozo Channel charter race

After years of failed attempts to replace the ageing MV Nikolaos, Gozo Channel has finally received two bids for a fourth ferry charter. The breakthrough came with offers from Italian ferry giant Caronte & Tourist SpA and Ragusa Xpress Ltd, a company controlled by PAMA and PAVI supermarket magnate Paul Gauci.

According to The Shift News, Caronte & Tourist submitted the cheapest offer at approximately €7.6 million, broadly in line with the government's estimated €7.738 million cost for the initial two-year charter.

Ragusa Xpress submitted a substantially higher bid of around €11 million – approximately €3.4 million, or 45%, more than its Italian competitor.

The submission of two offers is a significant development for Gozo Channel.

Two previous tenders issued between 2022 and 2023 failed to attract a single bid, leaving the state-owned company dependent on the Nikolaos through a costly direct arrangement.

The existing charter for the Nikolaos expired on 30 June, according to the tender documents.

Gozo Channel has not publicly explained the terms under which the vessel has continued operating, whether its €10,600 daily rate has changed, or how long the interim arrangement will remain in force.

Caronte & Tourist is one of Italy's largest private ferry operators, headquartered in Messina.

Formed in 2003 through the merger of Caronte and Tourist Ferry Boat, the company is controlled by the Franza and Matacena families with infrastructure investment fund Basalt holding a minority stake.

Its extensive experience operating conventional and double-ended ferries appears closely suited to Gozo Channel's requirements.

Ragusa Xpress, on the other hand, has very limited experience.

The company launched its passenger service between Valletta and Marina di Ragusa in May 2025, following several delays.

It currently operates the San Giorgio, formerly Virtu Ferries' San Gwann.

Paul Gauci, the principal shareholder behind the publicly listed PG Group which operates PAMA and PAVI supermarkets and holds the local Zara franchise, also controls the concession for the 750-berth Marina di Ragusa in Sicily.

The almost 40-year-old Nikolaos has been criticised over its limited winter passenger capacity and suitability for the Malta-Gozo route.

Its charter costs taxpayers an estimated €10,600 a day, excluding fuel.

The breakthrough arrived soon after Chairman Joe Cordina was replaced by Minister Clint Camilleri.

The entry of a major Italian operator into the Gozo Channel tender signals shifting competitive dynamics in Malta's maritime transport market.

With a 45% price gap between the two bidders, the evaluation process will weigh cost against experience and operational reliability.

For Maltese taxpayers, the outcome could determine whether the costly Nikolaos arrangement finally comes to an end.