The first round of talks is expected to be concluded next week, with the final phase of the privatisation of the Cyprus Ports Authority (CPA) expected to be completed by March 2016.
“At this point we are discussing the terms and conditions of the contract inan attempt to maximise the benefits for Cyprus”, the chairman of the CPA, Alecos Michaelides, told the press.
Limassol port, which handles around 2,000 vessels per year and nearly 18,000 tonnes, has become non-competitive compared with regional rivals such as Piraeus, Malta and Haifa, despite the island’s maritime fleet of around 1,800 vessels being among the top ten in the world.
“We expect that the new investor of Limassol port will use Cypriot facilities for the transport of his own cargo and attract more companies in Cyprus”, Michaelides said.
Earlier this week, Transport Minister Marios Demetriades said there has been immense interest from serious investors, who have spent significant amounts of money on the project.
APM Terminals and China Ocean Shipping Company (COSCO) are among the operators that expressed interest, a source within the ministry of transport told the press.
According to privatisation plan Limassol port services will be offered in three parts: the licensing for the container terminal and licensing for the provision of maritime services for 25 years, and the licensing for a multi-purpose passenger terminal for 21 years.
“We expect that under an experienced investor the Limassol port will grow and help the Cyprus economy to grow with it”, Michaelides said.
Limassol port’s commercial operations are to be privatised under the memorandum of understanding between the government and troika of international lenders.
It is considered one of the easier privatisations. After some slippage in the timetable, the government has pledged to amend the regulatory framework for port privatisation by the end of November.
Port privatisation has been resisted by port workers, but the minister said the dialogue with all Cyprus Ports Authority staff continues and gave reassurances that the government will make sure their rights are safeguarded.
Source: Incyprus
