Poland is preparing to retake the Baltic Sea from Western competition

• In 2015, Polish shipowners on the western flank of the Baltic Sea, between Świnoujście and Sweden, held approximately 80 percent of the market. Today, our share has fallen below 60 percent.
• Worse still, Polish carriers were poaching each other's passengers and cargo, offering departures from Świnoujście within an hour of each other. As a result, ferry capacity was never higher than 40 percent.
• - On the one hand, we are boldly investing in new units to defend and expand the Polish market share, and on the other, we support broad-based cooperation between Polish shipowners - says Arkadiusz Marchewka, Deputy Minister of Infrastructure.

The position of Polish shipowners Polferries and Unity Line was undermined by the failure to replenish their fleets with new, modern vessels on time. This was prompted by foreign competition entering the routes served by our ships. This was symbolized by the launch of the Świnoujście-Trelleborg route in May 2022, operated by the German TT-Line .

Fleet expansion project rewritten

According to the Deputy Minister of Infrastructure, Arkadiusz Marchewka , responsible for maritime affairs, this is a result of the fact that the Batory program promoted by the previous government ended in failure .

"The idea of building a ferry at the Szczecin shipyard has been reduced to a rusting keel. If in 2017, experts had decided to build ships in Gdańsk instead of staging a political stunt, we wouldn't have the problems we face today, including the loss of market share in the Baltic Sea ," he said in an interview with WNP.PL.

He added that building ferries is not an end in itself. Ferries are meant to be a tool in the hands of shipowners to ensure that as much cargo as possible is transported on our ships between Poland and Scandinavia.

"Around 2014, a plan to create a Polish ferry group was developed. It was scrapped in 2015. At that time, Polish shipowners on the western flank of the Baltic Sea, between Świnoujście and Sweden, which provides the shortest connection between the north and south of the continent, held approximately 80 percent of the market. As a result of the failure to implement the much-talked-about program, foreign competitors took cargo on board. Today, our share has fallen below 60 percent. Why? Because bunglers took on ferry investments ," the deputy minister assessed.

He recalled that construction of the ferries began without secured funding. It was boasted that the ferry had already been launched, but no one had paid for it.

" We had to secure additional financing. A total of PLN 1.3 billion from the Capital Investment Fund. Part of it was allocated to recapitalize the Polish Ferry company established for this project, and part to repay the loans the previous government had granted it. To regain market share and strengthen the competitive position of shipowners, we made the important decision not only to finance this project but also to rewrite it, preparing a completely new business plan based on specific calculations. According to the original concept, these ferries had no chance of earning their own money," stated Arkadiusz Marchewka.

Following the company's recapitalization, commercial financing was also launched with banks. In June, a commercial financing agreement was signed for the second entity.

" We have the situation under control. It took us several months and required very decisive and specific actions. We did this because we consider the shipbuilding industry and shipowners to be the foundation of the maritime economy. It is in our national interest for it to be strong. If the ferry construction project had been carried out immediately, from 2017, on market terms, we would not have lost the Baltic market," said the Deputy Minister of Infrastructure.

Poland will help in competing with global giants

As he lists, there are two state-owned and one privately owned Polish shipowners operating in the Baltic Sea . Unity Line has four vessels, Polferries has three, and Euroafryka has three (both sailing under Unity Line's colors).

"We're not competing with companies that have two or three ferries, but with global giants who would love to take over the entire market. We can't afford that, so on the one hand, we're boldly investing in new vessels to defend and expand Poland's market share. On the other, we advocate for broad-based cooperation among Polish shipowners, so that with a total of 10 ferries, and ultimately as many as 13, we can not only operate in places where we already are on the Baltic Sea, between Poland and Sweden, but also make the bold decision to expand and provide services from other ports, " he added.

This is to be achieved by establishing the company Polsca - Pol - like Polska, and Sca - like Scandinavia, which would connect Polish ferry carriers at the operational level.

" The point is to manage the fleet wisely . Let me give you an example. There have been situations where a Unity Line ship, owned by the state-owned Polish Steamship Company, departed Świnoujście 40 percent full, and an hour later, according to schedule, a Polferries ship, owned by the state-owned Polish Baltic Shipping Company, set sail, also approximately 40 percent full. This is utter nonsense. The fleet must be managed wisely to minimize costs and maximize revenue," said Arkadiusz Marchewka.

In his opinion, we need to improve the fleet's operational efficiency, especially as more ferries are planned and cargo volumes are expected to increase. Following a visit by government representatives to Prague and bilateral consultations, the Czechs announced tenders for the construction of a road that will be an extension of our S3 expressway. This will create a convenient transport route connecting the ports of Szczecin and Świnoujście not only with their Polish hinterland, but also with the Czech Republic.

And what effect will such an operational merger have on customers?

"They will certainly benefit from this, as we will have greater opportunities and greater flexibility. Foreign players compete with us on price because they can afford it. Now we will be able to respond to them. We are not interested in integration for the sake of integration. We want to reach out to forwarders and carriers with a good offer to demonstrate the new quality of ferry services. I personally view this with great hope, as I want the consequences of poor decisions, or lack thereof, in recent years to be corrected so that we can regain the market, " the deputy minister concluded.