articles | 25 January 2016

China and Dubai among bidders for Cyprus’ port

China’s Cosco and DP World of Dubai are among the 14 companies that submitted bids for the commercialisation of Limassol port this week, government sources have told the press.

The Ministry of Transport, Communications and Works announced that six submissions were received for the container terminal, three for the marine services and five for the multipurpose terminal.

“The commercialisation project now enters its next phase of detailed review and evaluation of the submissions, which is expected to last a few weeks,” the Ministry said.

The tender is in three parts: the licensing for the container terminal, licensing for the provision of maritime services and the licensing for a multi-purpose passengerterminal.

The licence for the container terminal and multi-use terminal is expected to range from 25 to 30 years and the licence for maritime services from 10 to 20 years.

“Following the selection of the preferred tenderer, relevant announcements will be made; until that stage no further announcements should be expected,” said the Ministry.

“We are very satisfied both by the number of participants and the quality of operators that submitted bids,” said Alecos Michaelides, Permanent Secretary of the Ministry of Transport, Communications and Works.

“They are financially sound companies, internationally recognised for their experience in operating similar terminals and services.

“Our vision is to transform the Limassol port into a gateway to development for the future.”

The government plans to name the preferred bidders before the end of the first quarter of 2016.

As part of the process to upgrade port operations, the Cyprus Ports Authority has introduced a new tariff framework for all commercial services. This new tariff framework will apply from the date the operators take over the operation of the port.

China interested in Greece

China’s Cosco will doubtless be looking for synergies with the Piraeus port in Greece. The government of Greece received an improved bid from Cosco on Wednesday of €368.5 million for a 67% stake in the country’s largest port, Reuters reported.

The board of the country’s privatisation agency (HRADF) met on Wednesday and evaluated Cosco’s offer. Privatisations are a key element of an international bailout Greece obtained in 2015.

HRADF’s board of directors declared the aforementioned company as the highest bidder and invited it to submit the documents required, in order for it to be designated as a preferred investor, according to the terms and conditions of the, HRADF said in a statement.

The agency announced last week that Cosco was the sole bidder for Piraeus Port Authority (OLP), the manager of the country’s biggest port which is a gateway to Asia, Eastern Europe and North Africa. The agency had asked Cosco to improve its bid.

Source: InCyprus

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