Breakthrough on Nikolaos replacement: PAMA boss targets Gozo Channel service as Messina ferry giant is cheapest

Gozo Channel has finally received two bids for the charter of a fourth ferry, marking a breakthrough after years of failed attempts to replace the ageing and costly MV Nikolaos.

The two offers were submitted by the Italian ferry giant Caronte & Tourist SpA and the Malta-based Ragusa Xpress Ltd, owned by PAMA and the PAVI supermarket magnate Paul Gauci.

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 – which has very limited experience – 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, the company was formed in 2003 through the merger of the historic Caronte and Tourist Ferry Boat operators, both of which began ferry services across the Strait of Messina in the 1960s.

Controlled by the Franza and Matacena families, with infrastructure investment fund Basalt holding a minority stake, the company operates a large fleet of ferries serving the Strait of Messina and Sicily’s smaller islands.

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

The second bidder, Ragusa Xpress, is controlled by Maltese businessman Paul Gauci through his privately held PG Holdings.

Gauci is the principal shareholder behind the publicly listed PG Group, which operates the PAMA and PAVI supermarkets and holds the local Zara franchise. His private business interests also include stakes in BNF Bank and the Westin Dragonara Resort.

Ragusa Xpress launched its passenger service between Valletta and Marina di Ragusa in May 2025, following several delays. Gauci also controls the concession for the 750-berth Marina di Ragusa in Sicily, acquired through a multimillion-euro investment.

The company currently operates the San Giorgio, formerly Virtu Ferries’ San Gwann.

Built in 1987, 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 breakthrtough arrived soon after Chiarman Joe Cordina was replaced by Minister Clint Camilleri.