Yachting Archives

A way forward for Malta’s maritime industry – William Vella

November 21, 2022 Leave a Comment

The government’s mission is to further support the yachting industry in Malta

The maritime industry has historically been a long-standing pillar of the Maltese economy. Admittedly, it became more so once Malta joined the EU. The challenge remains in keeping abreast of regulatory and legislative developments while remaining competitive with other jurisdictions.

The exponential growth experienced by the Malta flag over the last 32 years is a feather in the cap of successive government administrations that have always recognised the importance of this economic activity, which generates over €24 million annually. This does not include the total amount generated by private stakeholders involved directly and indirectly in ship registration services, which amounts to circa €200.27 million. The new Merchant Shipping Act came into force on April 6, 1973. Early 1977 saw further changes to the legal and administrative side of shipping. The collective effort of the various stakeholders in the sector, including Transport Malta, has put Malta on the map as the leading jurisdiction in shipping and yachting, with the biggest register in Europe and a leading register globally.

Along the years, there have been amendments to the original legislation to render it more receptive to operational adjustments and circumstances, including the payment of fees; provisional registration; priority of mortgages; ranking of credits; and bareboat charter registration among others. Such resilience has encouraged and supported the recent impressive expansion in the superyacht registration context.

Notwithstanding these achievements, this success should not serve as an alienation from the necessity to continuously review and adjust to ensure that the level of service being provided by both the private sector and the authorities is maintained and improved.

Earlier this year, the Ministry for Transport, Infrastructure and Capital Projects, headed by Minister Aaron Farrugia, launched the idea of a first National Policy for Superyachts during the Malta Superyacht Symposium jointly organised by the Malta Chamber and the Malta Maritime Law Association. The policy is expected to be released in the coming months. A steering committee, comprising prominent industry experts, among which the Malta Chamber and the MMLA, has been set up to evaluate several proposals by key industry players to identify how this industry can be further developed. These same key industry players, together with the steering committee, tackled several areas within the yachting sector. The policy is expected to be released in the coming months

The prime focus was that of achieving a more robust and clearer regulatory framework. Another area that was discussed was how to better equip and maintain the current infrastructure and cost structure. Additionally, the matter of how government departments and the private sector can work in tandem in an efficient manner was explored.

Government support was another topic of discussion and was considered at length. The discussion evolved on how the government can be of support to its agencies and authorities and to the private sector. Ultimately, green investment was also on the agenda of the steering committee where several proposals taking in consideration the environmental aspect in yachting were put forward and discussed.

It was made clear that the government’s mission is to further support the yachting industry in Malta and to consolidate Malta’s position as a leading yachting jurisdiction and as an international centre of maritime excellence in the Mediterranean. This will eventually lead to the contribution and creation of quality jobs in Malta. The need for such a policy is key for achieving and retaining excellence in the making is the outcome of consistent determination over the years, together with the outstanding quality and competence emanating from both the public and private sectors.

However, given the cutthroat competition, there’s no resting on one’s laurels. The National Yachting Policy is the way forward for Malta to achieve its objectives and remain the relevant go-to jurisdiction.

William Vella is a legal and compliance manager at Dixcart Management Malta Ltd and a member of the Malta Chamber of Commerce, the European Maritime Law Organisation and Malta Maritime Law Association.

Source: Times of Malta

Malta introduces new Passenger Yacht Code

November 15, 2021 Leave a Comment

In response to the needs and realities of the yachting industry and heeding the advice of numerous stakeholders in the business, the Merchant Shipping Directorate has introduced the Passenger Yacht Code (PYC). This code, which entered into force on 25 May 2021, lays out a pragmatic approach to an increased demand for larger yacht operators that wish to carry more than 12 passengers, while simultaneously ensuring that the highest safety standards, which are more suited to these kinds of vessels, are applied and maintained.

Applicability
The scope of the PYC’s applicability is passenger yachts that:
• carry more than 12 and up to 36 passengers, and no more than 200 persons overall (the master, crew or other persons employed on board are excluded from the definition of “passenger”);
• do not carry cargo; and
• are engaged on international voyages.
The PYC exclusively caters for the yachting sector and clearly lists the scenarios that fall outside scope. Pleasure yachts not employed for commercial use are excluded from its scope; however, private and pleasure yachts that carry at least 13 guests are encouraged to voluntarily comply, as far as is practicable, with the standards laid out therein.

Purpose
The PYC was developed with an awareness of the challenges involved in applying certain international convention standards that were originally intended for merchant vessels, to modern passenger yachts or superyachts. Prior to its introduction, yachts carrying more than 12 passengers, and that fell outside of the Malta Commercial Yacht Code’s scope (which caters for yachts engaged in commercial operations that do not carry more than 12 passengers), had to satisfy similar requirements to those applicable to passenger ships. These requirements were often regarded as being too disproportionate and onerous when considering a passenger yacht’s design and general operations. The PYC also aims to better safeguard the protection of life and property at sea, and it strives to continue to promote the prevention of marine pollution from yachts.

Key provisions and acceptable equivalences
The PYC is divided into a number of sections, each containing provisions that address aspects of a passenger yacht’s technical specifics and overall operations, including parts on:

• construction and stability;
• machinery and equipment;
• safety of navigation;
• fire protection, detection and extinction; and
• manning and crew certification.

The PYC outlines several dedicated equivalences to international convention requirements, including those emanating from provisions in the International Load Line Convention, as amended in relation to plimsol markings, sill or coaming heights and glazing. There are also numerous equivalences to requirements in the International Convention for the Safety of Life at Sea (SOLAS), as amended – requirements which, in view of the passenger yachts’ technical specifics, design, size, and operational pattern, may be considered impracticable.

In parallel, and without compromising overall safety or weakening standards, the PYC provides for requirements enhanced beyond several of the SOLAS provisions, as well as additional equipment and requirements that are deemed appropriate and more suitable for these kinds of vessels. For instance, the PYC provides for enhanced safety and survivability requirements in lieu of the carriage of lifeboats, subject to conditions laid out in therein.

As far as the Merchant Shipping (Maritime Labour Convention) Rules 2013 (MLC) are concerned, the PYC dedicates a section to certain acceptable equivalences relating to crew accommodation, stores and recreational facilities that passenger yachts of less than 1,250 gross tonnes may opt to comply with in lieu of the provisions laid out in part IV of the MLC, “Accommodation and Stores”. The PYC also lays down additional requirements in a separate section for personnel protection.

The PYC includes a section on marine pollution prevention and it reiterates the requirements that all PYC compliant vessels are to meet under:
• the International Convention for the Prevention of Pollution from Ships (MARPOL), as amended;
• the International Antifouling System Convention; and
• the Ballast Water Management Convention.

In this regard, passenger yachts will be surveyed and certified in line with the relevant international conventions, and they must carry the relative MARPOL manuals, plans and records (as applicable) on board.

The applicable requirements for surveys, audits and certifications are also covered. Passenger yachts will be classed by a recognised organisation and surveyed, certified, audited and issued with the class and statutory certificates applicable to passenger vessels. Additionally, the recognised organisation will issue a certificate confirming compliance with the PYC.

Another notable addition in the PYC is the set of guidelines for the static chartering of passenger yachts, whereby a passenger yacht that is berthed or anchored at sea is allowed to carry more than 36 passengers. An application must be filed with the Merchant Shipping Directorate – Yachting Section and, if successful, the passenger yacht is issued with a statement from Transport Malta that allows static charters to be held on board. Local port authorities must be kept informed when such a static charter is planned, and the conditions laid out in the guidelines must be upheld. As a growing market trend, this is a welcome addition for passenger yachts flying the Malta flag.

Comment
With the PYC, the Merchant Shipping Directorate has taken a significant step in attracting more yachting tonnage to its fleet and to maintain its status as a quality flag of confidence that is respectful of the demands of this fast-evolving industry. The Merchant Shipping Directorate is committed to the growth of this sector, as has also been seen more recently with the introduction of the Commercial Yacht – Pleasure Yacht Changeover Guidelines on 2 September 2021. These guidelines aim to assist all stakeholders by clarifying the salient features and procedural aspects of the changeover in yacht status from pleasure to commercial and vice-versa under the Malta flag – an option often availed by Malta-flagged yacht owners.

by Stephanie Farrugia, Fenech & Fenech

Source: Lexology

Commercial Yacht – Pleasure Yacht Changeover Guidelines – 2 September 2021

September 6, 2021 Leave a Comment

On the 2nd of September 2021 the Merchant Shipping Directorate of Transport Malta issued the “Commercial Yacht – Pleasure Yacht Changeover Guidelines” (the Guidelines). The Guidelines serve both to lay down certain important considerations with respect to the change of registration of a Malta flag yacht from pleasure to a commercial (and vice versa) and to set out the procedural steps to be followed when yacht owners intend to carry out this change.

While the change in status of Malta flagged yachts has to date been readily accepted and processed by the Malta Ship Registry, the Guidelines now provide clear guidance on the steps to be followed in achieving the changes, in line with the Malta Commercial Yacht Code. The Guidelines clarify that the Merchant Shipping Directorate at Transport Malta imposes no limits on the number of changes made to the registration status of a Malta flagged yacht. The Guidelines further confirm that there is no limit on the duration of the change of registration, thereby offering yacht owners a considerable degree of flexibility with respect to changing their yacht’s registration.

Whilst this degree of flexibility is offered to the yacht owners, the Guidelines recommend that the same survey and certification regime as required for commercial yachts is retained when changing from a commercial to a pleasure registration. This is intended to facilitate a change back to commercial status. Additionally, the Guidelines specify that an undertaking to be signed by the owner or the manager of the yacht attesting that they will return the current certificate of registry of the yacht is to be filed immediately together with the request to change registration of the yacht.

The Guidelines set out that in the event of multiple changeovers during a single year the fees due to Transport Malta for a change from a pleasure to a commercial registration of the yacht shall be paid only once during the said year and not with each changeover.

The Guidelines are a welcome development since they provide yacht owners, managers and representatives clarity on the salient considerations for yacht registration changeovers and the procedural aspects linked to changeovers under the Maltese flag.

The Guidelines including the procedural steps for the changeover process may be found here.

by Matthew Cassar, Fenech & Fenech Advocates

Source: Lexology

The new Malta Passenger Yacht Code

May 31, 2021 Leave a Comment

On the 24^th May 2021 the Merchant Shipping Directorate of Transport Malta published Merchant Shipping Notice 171 notifying the industry that the Malta Passenger Yacht Code (PYC) will enter into force on the 25^th May 2021. The code was drawn up following consultation with industry stakeholders.

Prior to the entry into force of the PYC, commercial yachts registered under the Malta flag and carrying more than 12 passengers were required to satisfy requirements similar to those for passenger ships since they fall outside the scope of the Malta Commercial Yacht Code. Due to the increasing size of commercial yachts and the onerous requirements applicable to passengers ships, the Merchant Shipping Directorate recognised the need to develop a code which specifically caters for larger commercial yachts carrying more than 12 passengers. The PYC caters for a number of equivalencies specifically designed for passenger yachts which carry more than 12 passengers and up to 36 passengers, do not carry more than 200 persons, do not carry cargo and are engaged on international voyages.

This is a welcome development since it addresses technical issues and concerns faced by whoever wishes to register larger commercial yachts under the Malta flag.

The PYC may be found here: https://www.transport.gov.mt/Passenger-Yacht-Code-PYC.pdf-f6340

By Lara Saguna Axiaq, Fenech & Fenech Advocates

Source: Lexology

Commercial Yacht Code 2020

December 1, 2020 Leave a Comment

We are pleased to announce that the Merchant Shipping Directorate within the Authority of Transport in Malta has rolled out its 4th edition of the Malta Commercial Yacht Code 2020 (Code) which updates and replaces the Commercial Yacht Code 2015 (CYC 2015).

The substantial increase in the number of superyachts which the Malta flag has continued to lure to its Register has seen the Merchant Shipping Directorate being sensitive to the fast-changing technological developments which this particular industry attracts. Drawing on its own experience of an already well established yachting industry and heeding the technical and commercial advice of yacht builders, repair yards, Classification Societies and industry stakeholders at large, the Merchant Shipping Directorate has come up with an improved Code that mirrors the yachting industry’s realities and ensures a greener and safer commercial yacht fleet for the Malta flag.

The Code comes into effect as of the 1st January 2021 however for existing yachts certificated in accordance with the CYC 2015, compliance with the new Code shall be by not later than the yacht’s first periodical survey carried out after the 1st June 2021.

The amendments and additions introduced by the Code are several and varied and largely seek to enhance the safety aspects of commercial yachting as well as to cater for the particular technological market demands of the industry – all this in conformity with safety and international regulations and standards.

The revisions, all of which are conveniently listed in Annex 1 of the Code, provide, inter alia, for improvements on the safety of passengers at sea, the well-being of the seafarers engaged onboard, the enhancement of the structural aspects of yachts, the provision for innovative designs and requirements covering electrically powered and/or hybrid engines and plants. The Code further provides for the improvement of the protection of the marine environment by introducing the requirements of the Ballast Water Management Convention and furthermore dedicates a section of the Code to the design, construction and safety of Helicopter Landing Areas.

More specifically, amendments made relate to the following sections:

• Definitions (Section 2), • Application and Interpretation (Section 3), • Structural Strength and Watertight Integrity (Section 4), • Rigging on Sailing Yachts (Section 5) • Machinery (Section 6), • Electrical Installation (Section 7), • Intact and Damage Stability (Section 8), • Life Saving Appliances (Section 10), • Fire protection (Section 11), • Equipment (Section 12), • Maritime Labour Convention 2006 (Section 13), • Protection of Personnel (Section 14), • Navigation and Communication (Section 15), • Marine Pollution Prevention section (Section 16), • Manning and Crew Certification (Section 17), • Medical Stores (Section 19), • Survey and Certification (Section 20), • Tenders and Ancillary Craft (Section 22), • Static Chartering (Section 23), • Helicopter Landing Areas (Section 24).

By Rowena Grima and Stephanie Farrugia, Fenech & Fenech Advocates

Source: Lexology

Member of the Comité Maritime International

A way forward for Malta’s maritime industry – William Vella

Malta introduces new Passenger Yacht Code

Commercial Yacht – Pleasure Yacht Changeover Guidelines – 2 September 2021

The new Malta Passenger Yacht Code

Commercial Yacht Code 2020

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