The Greek cabinet, meeting after a shipping disaster in which at least 79 people died, on Thursday drew up a plan to withdraw some 105 ageing vessels from the island ferry business by 2006.
It also agreed to open up the market to foreign operators in 2002, two years earlier than planned.
''The government has a steady target of improving commercial shipping policy -- people's safety, services and the creation of a modern coastal shipping industry,'' government spokesman Dimitris Reppas told reporters.
The Express Samina ferry sank last week with more than 500 passengers aboard when it hit a well-charted islet just before reaching the Aegean Island of Paros.
Shipping officials have partly blamed the disaster on the near-monopolies that have developed in the Aegean, saying competition would improve the quality of ships and services. Reppas said that the cabinet meeting decided to end the ban on foreign operators from the local market earlier than previously planned.

''Within November the government will submit a bill to liberalise sea transport. We aim the liberalisation to begin in 2002,'' he said.

The government will also gradually lower the age limit of ships to 30 years by 2006, set up a committee to oversee quality control for ships, upgrade seamen's education and boost rescue programmes.
The disaster prompted a ban on dozens of ferries and cruise ships from sailing as of Monday for not meeting safety standards. They were given 20 days to shape up or lose their licences.
Prosecutors have ordered the express samina's captain and second officer to be jailed pending trial on manslaughter and other lesser charges.
Captain Vassilis Yannakis testified he was unwell and taking a nap shortly before the ferry struck the islet. His number two, tassos psychoyios, said bad weather prevented him from steering away from the rocks.

Bureau Report