The HCC launched this sector inquiry because coastal shipping is a critical sector for the country's economic and social cohesion. Its importance for connecting the islands, serving residents, and supporting tourism and trade is decisive. Moreover, the sector presents certain characteristics that may restrict competition, such as a high degree of concentration and barriers to entry. The HCC, within the scope of its powers, seeks to identify potential problems and propose solutions that will enhance competition and improve the functioning of the market for the benefit of citizens and businesses.

The HCC's sector inquiry focuses on the maritime transport sector, i.e. the coastal and ferry routes serving the Greek territory. The relevant sector inquiry covers the transport of passengers, vehicles and goods between the islands and the mainland. It examines the structure and functioning of the market, the competitive conditions, prices, quality of service, and the challenges faced by undertakings and consumers in this sector.

Competition in the coastal shipping sector in Greece currently presents oligopolistic characteristics with only a few large companies dominating the market. Despite the full liberalisation of the market, it remains highly concentrated, limiting consumer choice and affecting prices and service quality. The seasonality of demand, the geographic dispersion of the islands and the high investment requirements act as physical barriers to entry for new providers, strengthening the position of incumbent operators. At the same time, the institutional framework and routing procedures give rise to distortions of competition, while the fragmentation of responsibilities hinders effective market surveillance. However, the need to modernise the fleet and the transition to more environmentally friendly technologies are creating a new competition field where companies' capacity for investment and innovation will determine the sector’s future development.

Competition in the coastal shipping industry is significantly affected by the state and operation of port infrastructure. The existence of a fragmented port management system, involving many different bodies (such as Port Funds, Port Authorities, and municipal authorities), combined with overlapping responsibilities and a lack of coordination, creates impediments to the development of a single strategic framework for improving connectivity and service quality. The inadequacy or deterioration of port facilities limits their capacity to provide vessel support services to modern ships and serve new ferry routes, thus raising entry barriers to potential new competitors. Furthermore, understaffing and the lack of technical competence in port management bodies delays the implementation of infrastructure projects, strengthening the position of incumbent operators and maintaining the market’s oligopolistic nature. The upgrading of port infrastructure, particularly on the islands, can serve as a key driver for enhancing competition by facilitating the development of regional hubs and the diversification of routes. Port policy and infrastructure development strategy are therefore critical factors in creating a more open and competitive coastal shipping environment.

The primary objective of the sector inquiry into coastal shipping is to gain a thorough understanding of the functioning of the maritime transport market and identify any distortions or restrictions of competition. It aims at identifying the key issues affecting quality, availability, and cost of services as well as at assessing the effectiveness of the existing regulatory framework. Through this process, the HCC seeks to make well-founded policy proposals that will contribute to improving the market, balancing the need for firm’s economic viability with the role of coastal shipping as a public service of general interest, particularly for island regions.

It is noted that this sector inquiry is independent of the HCC’s ex officio investigations into possible infringements of Law 3959/2011 and Articles 101/102 of the Treaty on the Functioning of the European Union by undertakings operating in the coastal shipping sector. However, the findings of this sector inquiry contribute to better understanding the sector and the prevailing competitive conditions.