An economic and financial study into a regular maritime connection between Madeira and mainland Portugal has concluded that none of the six scenarios examined would be financially or economically viable without public funding. The document was released today by the JPP.
Under every scenario, projected revenue would be insufficient to cover the investment and operating costs. The study also found that fares considered acceptable to passengers would not cover the cost of providing the service, leaving a significant deficit in all six options.
Of the scenarios examined, Scenario 5 produced the least negative financial and economic results. It proposes a fortnightly service during the high season, initially operating between Madeira and Portimão before transferring to Setúbal in 2031. However, it would still produce a negative net present value of approximately €18.59 million.
Scenario 6 envisages a weekly, year-round service and offers the best results in terms of continuity, passenger demand served and accumulated revenue. However, it would involve substantially higher operating costs and require considerably more public funding, with a negative financial net present value of approximately €144.21 million.
The study concludes that, should the maritime connection be introduced, it would need to operate under a clearly defined model establishing public-service obligations, the allocation of risks and a compensation mechanism.
“It is not possible, within the period analysed, to achieve a balanced operation through operating revenue alone,” the study states.
It adds that the final decision will depend on achieving a political balance between the desired level of service, the number of passengers to be served and the corresponding level of public investment required.
The analysis acknowledges that the connection could strengthen territorial cohesion and improve accessibility between Madeira and the mainland, while providing an alternative to air travel. However, it notes that any environmental benefits would depend on factors including the vessel’s energy efficiency, the frequency of sailings and the extent to which passengers transfer from air to sea travel.
The JPP believes the findings reinforce its position that the maritime connection should be regarded as a public policy supporting mobility and territorial cohesion, rather than solely as a commercial venture.
JPP deputy in the Assembly of the Republic Filipe Sousa said: “The maritime connection between Madeira and the mainland is not merely a commercial matter. It is an issue of territorial cohesion, mobility and equality among Portuguese citizens.”
The party has also questioned why only the Sousa Group was consulted among potential shipping operators during the preparation of the study, arguing that this should be taken into consideration when assessing its conclusions.
The publication follows repeated requests from the JPP for the study to be released. Filipe Sousa submitted his first request to the Assembly of the Republic on the 3rd of June, raised the matter again in August, after an additional deadline requested by the Government had expired.
He submitted a further request demanding the study’s immediate release on the 13th of August.
The study is available on the JM website.
Samantha Gannon
info at madeira-weekly.com
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