Aaron Farrugia, CEO Of Malta Freeport Corporation, spoke about the role of Malta's maritime industry in attracting Foreign Investment in an interview given to MIMLink. CSB Group lifted the main elements from the interview about the key factors that can help develop Malta's maritime sector, prominent among which, according to Farrugia, is logistics.

When asked about the role and daily operations of the Malta Freeport Corporation, Mr. Farrugia stated that "Over its 25 year history, the Malta Freeport Corporation has evolved into a trade catalyst to enable business as an international logistics hub." Looking forward, he said that "Our vision is for Malta to become an international trade and commerce centre by being a leading logistical warehousing and distribution hub that can serve Europe, North Africa and beyond."

Commenting about the current scenario with regards to Malta's maritime sector, Farrugia stated that Malta has always been an important centre of trade and commerce in the Mediterranean region, particularly due to its strategic location. More recently, Malta successfully managed to capitalise on its location through being close to key markets, successfully attracting the cruise lining industry and international conferences, transshipment services, yacht servicing and also the development of the Grand Harbour Marina.

In view of all this, Malta can successfully establish itself as an international Logistics hub and gain competitive advantage as it has the right credentials to do so. This can be done by leveraging best practice and expertise from international countries and ogranisations as it will help strengthen Malta's connectivity and enable the island to become a key driver as a result.

What makes Malta so successful in attracting and retaining foreign direct investment (FDI) in a rapidly-changing marketplace? Responding to this question, Farrugia stated that Malta's competitive advantage is not limited to its location. He outlined the work ethic of the Maltese, along with a highly skilled local workforce, the Euro currency as well as a tax efficient regime. In addition, Malta as home port is deemed secure, stable and efficient to operate from.

Farrugia pointed out to an increased demand for warehousing facilities within the Freeport's Free Zone and to the fact that there is widespread consent within the industry that Malta would benefit from the expansion of regional logistics, warehousing and distribution facilities, when asked about any infrastructural projects that may be in the government's pipeline. In developing the point regarding the need to improve logistics, Farrugia stated that Malta needs to learn and understand first hand best practices from Dubai, Singapore, Morocco and Texas oil industry experiences. Malta needs to gain more understanding of logistics, even on a policy and legislative level.

A new logistics policy would help establish Malta as a Mediterranean logistics hub and a new logistics institute or faculty focusing on logistics is also needed and would support the policy. In addition, although the services offered by Customs are proving to be efficient, certain procedures would need revising in order to meet the demands of developing Malta into a logistics hub.

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