Cyprus Mail

Process begins for commercialisation of Larnaca port (Updated)

Transport minister Marios Demetriades said that the government will resume its effort to commercialise Larnaca’s port and marina after a previous attempt ended in failure.

The government already met with the advisory team – led by Ernst and Young – on Monday which will consult with the government through the process, Demetriades told reporters according to a transcript of his comments emailed by the press and information office.

“It is a project that has been delayed in past years however we are resuming the procedure and want it to be successful as it is important to see at last the project go ahead, as promised,” Demetriades said.

Last July, the government cancelled an agreement signed with the Zenon consortium in 2012 to develop the port facilities as part of a more than €600m project citing the joint venture’s failure to meet commitments and obligations.

The minister’s comments come a day before he briefs lawmakers about the outcome of a tender for the privatisation of the operations of the Limassol port, where hydrocarbon companies are expected to move after the Larnaca municipal council decided to evict them from the town’s port.

The Cyprus News Agency reported on Wednesday that the government selected a consortium led by Ernst & Young Société d`Avocats which includes Greece’s consultancy firm Salfo and Associates who will prepare the necessary documents to attract investors.

“The reason we hired a new consultant group is because we have explored the experience and knowhow required,” Demetriades said. “We included experts on marinas and land development in order to ensure the project’s success. We will first contact potential investors in order to offer them something that is attractive to them”.

“Be certain that like the Limassol port procedure ended up in a success, so we will do everything possible to succeed also with this procedure,” the minister added. “The environment is favourable for Cyprus at this moment because it takes financial and political stability in order to find foreign investors.

Demetriades, a former fund manager at Cyprus’s Bank of Piraeus, was appointed transport minister a year after the government under President Nicos Anastasiades had to deal with a severe banking crisis as a result of which depositors at the two major banks lost all or almost half of their uninsured deposits, all part of a €10bn cash-for-reforms programme.
“As the government completes its third year, we have to say that Cyprus is better off compared to three years ago,” he said. “There is political and financial stability and we are exiting the adjustment programme and foreign investors have come to our country”.

After attracting some of the world’s largest companies to the port of Limassol, “we intend to do the same for the Larnaca port,” he said.

The government ratified on February 25 the outcome of the Limassol port procedure according to which, Germany’s logistics company EuroGate will lead a consortium handling the container terminal in Limassol while two consortiums led by Dubai Ports World Ltd will be in charge of maritime services and the container terminal.

Related Posts

Bird flu identified at two locations in Famagusta area, poultry owners warned to be alert

Kyriacos Nicolaou

Mandatory road-safety messages to be included in ads for cars and alcohol

Kyriacos Nicolaou

Paphos police book 26 for traffic violations, one arrest

Kyriacos Nicolaou

Investigation into string of burglaries leads to three arrests

Kyriacos Nicolaou

Cringe Town to take over Visual Space

Eleni Philippou

Justice minister receives damning prisons report, will ‘act accordingly’

Kyriacos Nicolaou


Comments are closed.