The transport ministry announced on Monday it reached an agreement with the companies running the commercial activities at Limassol port to significantly reduce their freight and handling fees after lengthy talks.
Earlier this year, the operators announced an average 16 per cent increase in their charges, citing their own rising electricity, fuel and labour costs.
The proposed hike was within the companies’ contractual right to re-adjust charges, based on an index included under the 2017 agreement with the state for the port’s privatisation.
However, they also sparked concerns about inflation, as importers would inevitably pass on their higher costs onto consumers.
The agreement announced on Monday reduced the increased fees from 16 to 5.87 per cent for operations carried out in container terminals and to 9.8 per cent in those carried out in commercial terminals.
“The agreement reached covers all charges affecting the import and export of goods and, consequently, the entire local economy,” Transport Minister Yiannis Karousos said in an announcement.
“I want to thank the companies operating at the Limassol port for the successful conclusion of the consultations between the parties involved, carried out with collaborative spirit.
“In the framework of the cooperation that has been developed, the two parties will remain in contact, with the aim of resolving other issues that might arise in the future to safeguard the smooth operation of Limassol port,” the announcement concluded.