An increasingly clear two-tier ferry industry is emerging in Greece. The gap between the major groups and smaller operators is no longer simply a matter of fleet size or passenger volumes, but increasingly of access to financing.

On one side are the largest companies, with stronger capital bases and the ability to secure bank loans, raise capital, and finance new vessels or major refits. On the other are dozens of smaller operators, many of which serve subsidized and inter-island routes and are being asked to renew aging fleets without access to the same financial tools.

A highly concentrated market

Market concentration is already significant. Attica Group, Minoan Lines and Seajets together operate 72 vessels, representing roughly 44% of the total number of vessels in the Greek ferry sector, but they account for more than 61% of total passenger capacity and nearly 69% of vehicle capacity.

The picture is even more pronounced on medium- and long-distance routes. XRTC, headed by George Xiradakis, describes this segment as oligopolistic, with two major groups controlling approximately 60% of the fleet operating on these routes. Despite the liberalization of the market in 2002, new entrants remain limited because of the high cost of acquiring vessels, strict technical requirements, and difficulty securing capital.

At the other end of the market are 30 smaller companies operating 75 vessels, of which 66 are conventional ferries and just nine are high-speed vessels. Their fleet has an average age of around 30 years, while their combined capacity is limited to 36,409 passengers and 5,234 vehicles.

The result is a market in which companies serving many of the most critical local connections are simultaneously in the weakest financial position.

This picture is highlighted in XRTC Business Consultants’ 25th annual study of the Greek ferry industry, titled “Time for Responsibility and Decisions.” XRTC is headed by CEO George Xiradakis, while Katerina Fitsou is responsible for editing and analysis.

The issue is particularly important because ferry transport is critical infrastructure for Greece. More than 115 islands depend on maritime connections, while only 27 have airports. Islands are home to 14.6% of the population, and ships handle approximately 85% of their freight needs.

The real problem is equity capital

The difficulties faced by smaller operators are not simply a question of whether a bank is willing to provide a loan. The fundamental obstacle is their ability to cover the required equity contribution.

According to XRTC, almost all small ferry companies operating primarily on subsidized and inter-island routes are unable to approach banks for new vessel construction without strong guarantees or public-service contracts. This is because bank financing never covers 100% of the cost of a newbuild.

For a large group, the equity contribution can come from available liquidity, capital increases, intra-group financing or other sources. For a small company, however, the equation is much more difficult.

Banks assess the company’s capital base, cash flows, contract duration, additional guarantees and financial transparency. XRTC also records limited interest from Greek banks even in cases where companies can offer guarantees exceeding the value of the vessel itself.

The problem is compounded by the lack of publicly available financial data for a large part of the market. XRTC’s financial analysis focuses primarily on Attica and Minoan Lines because the financial and passenger-traffic data of many medium-sized and smaller companies are not publicly disclosed.

The study directly links the financing difficulties of the 30 smaller companies both to their limited equity capital and to a lack of corporate transparency.

This creates a vicious cycle: companies cannot invest in newer and more efficient vessels because they lack sufficient capital, while at the same time they struggle to obtain financing because they operate older vessels, face higher operating costs and have limited collateral.

The major players have already started preparing for the future

On the other side of the market, the stronger groups have already begun renewing and upgrading the energy efficiency of their fleets.

Attica has invested in installing scrubbers on eight vessels, at a total cost of €22.6 million. With the addition of Superfast V and two new E-Flexer vessels in 2027, the average age of its Adriatic fleet is expected to fall to 8.6 years, from 24.8 today.

Minoan Lines, meanwhile, is participating in the Grimaldi Group’s program for nine new vessels worth a total of $1.3 billion, two of which are intended for the company. A €26 million capital increase was carried out to cover the required down payment.

This is precisely the essence of the two-tier ferry industry: major operators have access to capital and can plan for the next decade, while smaller companies are often struggling simply to secure the resources needed to remain competitive in the current environment.

€874.5 million in revenue, but costs are rising faster

The fact that the major groups have better access to financing does not mean they are immune to pressure.

The combined revenue of Attica and Minoan Lines reached €874.5 million in 2025, up 2% from €858.2 million in 2024. Operating expenses, however, increased by 7%, reaching €764.4 million.

Combined EBITDA fell 5% to €110.3 million, while the companies’ combined pre-tax result went from a €18.3 million profit in 2024 to a €26.6 million loss in 2025. Attica posted a pre-tax loss of €33.7 million, while Minoan Lines remained profitable, with a €7.05 million profit.

The difference compared with smaller companies is that the major groups have more options for absorbing these pressures while continuing to invest.

Attica, for example, has debt of €611.6 million, with interest expenses covered 3.2 times by EBITDA. Minoan Lines has had no bank debt since 2018, although it has €20 million in long-term liabilities to the Grimaldi Group.

The transition bill exceeds €5 billion

The financial cost of the sector’s transition to the next generation of shipping is substantial.

XRTC estimates that the overall financing gap for the green transition exceeds €5 billion over a 25-year period. Around €3 billion relates to newbuilds, vessel conversions and technological equipment, while more than €2 billion concerns additional operating costs.

The challenge is even greater because companies are being asked to invest before it is clear which technology will ultimately prevail. Electricity, biofuels, methanol, hydrogen and ammonia are all at different stages of development, while port infrastructure is not yet ready to support all of these solutions on a large scale.

At the same time, the age of the fleet is increasing pressure to invest. Only 20% of Greek ferry vessels are under 20 years old. Among vessels up to 95 meters long, 75% are more than 20 years old; for vessels between 96 and 149 meters, the figure rises to 81%, while among vessels over 150 meters it reaches 90%.

EU ETS and FuelEU squeeze margins

New environmental regulations are turning fleet renewal from an option into a necessity.

Under the EU ETS, the obligation to cover verified emissions increased from 40% in 2024 to 70% in 2025 and reaches 100% in 2026. At the same time, the FuelEU Maritime regulation is being implemented, while since May 2025 the Mediterranean has been designated a Sulphur Emission Control Area.

For Attica alone, EU ETS costs reached €40 million in 2025, up from €18.9 million in 2024. Another €6.5 million was added for biofuels and €3.6 million for pooling.

Meanwhile, fuel costs came under renewed pressure in 2026. The average price of VLSFO increased by 29.8% during the first half of the year, while HSFO rose by 31.8%. The sector’s additional monthly burden from the energy disruption was estimated at €18 million, rising to as much as €25 million per month during periods of increased summer services.

For smaller operators, the equation is even more difficult: older vessels mean higher fuel consumption, greater maintenance costs and increased investment needs, precisely when access to capital is limited.

€668 million for subsidized routes

One of the key tools that could improve the financing position of smaller operators is the new system of public-service contracts.

The state subsidizes 57 vessels serving 73 subsidized routes. Since November 2025, the contracts have had a four-year duration, with a total value of €668 million for the 2025–2029 period. The annual budget has increased from €148 million to €167 million.

The longer contracts provide greater revenue predictability and can help companies in negotiations with banks. They do not, however, solve the equity problem.

And this is the central weakness of the current system: a company may have a secure four-year contract, but if it lacks the necessary capital base or additional collateral, financing a new vessel remains difficult.

There is funding, but not yet a functioning mechanism

In theory, substantial resources are available. Greece is expected to draw approximately €1.5 billion by 2030 from the European Modernisation Fund. In March 2025, the European Investment Bank approved the first four Greek investments worth €208 million. At the same time, the government has announced a €300 million National Modernisation Fund, intended to support investments exceeding €1 billion.

The problem is that these announcements have not yet been converted into a comprehensive, functioning mechanism capable of delivering the funds to individual companies.

XRTC points out that the €300 million National Fund remains inactive and that a management body has not yet been established.

For smaller companies, this is crucial. It is not enough for European or government resources to exist. What is needed is a financing scheme capable of absorbing part of the risk, strengthening the equity contribution and making an investment project acceptable to banks.

The risk of further market consolidation

The current financing imbalance could lead to even greater concentration in the market.

The major groups have the ability to renew their fleets, reduce fuel consumption, invest in new technologies and gain access to green financing. Smaller companies risk being left with older vessels, higher operating costs and lower financing eligibility.

XRTC estimates that the most likely scenario for 2027–2035 involves gradual progress in investment, but also selective access to financing and further market concentration through partnerships, acquisitions and mergers.

Under the unfavorable scenario, high energy prices and a prolonged inability to raise capital could force smaller operators out of the market, accelerating consolidation and increasing the risk of reduced connectivity for certain island regions.

XRTC therefore recommends the creation of special guarantee mechanisms, technical support for smaller companies in preparing credible investment plans, and the use of green bonds, ESG loans and specialized Green Shipping Finance products.

The stakes go beyond the companies’ finances. Greek ferry transport is not an ordinary commercial market. It is a fundamental part of how the country’s island communities function.

If smaller operators cannot gain access to the new investment cycle, Greece risks ending up with a system in which modern, energy-efficient vessels serve the major commercial routes, while older ships remain on smaller and more remote connections.