State to earn € 19 mln in first year from commercialisation of Limassol Port
The two main consortia that have won the three tenders for the commercialisation of Limassol port will pay a license fee of EUR 10 mln, and an additional 9.1 mln in annual royalties.
Last Thursday, Transport Minister Marios Demetriades announced the preferred tenderers of the commercialisation of activities of the Limassol Port, who will work parallel to the Cyprus Ports Authority until the final handover.
The winning consortia are EUROGATE International GmbH (majority participant), Interorient Navigation Company Ltd and East Med Holdings S.A for the container terminal, who will pay a EUR 7 mln initial license fee and then a further EUR 7 mln a year fior the 25-year duration o fthe contract.
The consortium headed by Dubai-owned DP World Limited (majority participant) and G.A.P Vassilopoulos Public Ltd will pay EUR 500,000 upfront and a further 150,000 a year for the 15-year license for Marine Services.
The same consortium of DP World Limited (majority participant) and G.A.P Vassilopoulos Public Ltd will pay EUR 2 mln for the initial license and an annual 2 mln for 25 years for the multi-purpose terminal.
“We are very satisfied with the process conducted and the end result since through a transparent and demonstrably competitive procedure we have three operators with a detailed plan to develop the port operations for the development of most of the commercial activities of the most important port in Cyprus”, Demetriades said.
He added that after almost two years of intensive work and a competitive international tender which attracted the interest of reputable port operators globally, the process for the commercialisation of the activities of Limassol Port was concluded successfully with the selection of the operators.
The Minister said that the procedure needs the approval of the House of Representatives, adding that the Ministry’s goal is for the contracts to be signed by the end of March, while there will be a transitional period of six to nine months.
EUROGATE International GmbH is a leading shipping line independent container terminal operator in Europe with a total throughput of more than 14.5mln TEUs in 2015. It is a privately held company established in 1999 by the merger of the container activities of BLG Logistics Group AG & CO. KG, Bremen (Germany) and the container activities of EUROKAI GmbH & Co KGaA, Hamburg (Germany).
EUROGATE is active at 11 container terminal locations from the Baltic to the Mediterranean Sea namely in Germany, Italy, Morocco, Portugal and Russia.
Interorient is a global provider of marine transportation services established in 1979 with offices in Cyprus, Germany, Philippines, Latvia, Ukraine and Russia. Key activities include ship owning, ship management, shipping investments and commercial operations. It is ultimately owned by the family of Adonis Papadopoulos.
East Med Holdings S.A. is a company incorporated under the laws of Luxembourg as of 1988 as a Private Wealth Management company. It holds shares in several companies operating in shipping, logistics and marine services. One of the main shareholders in East Med is D.C. Mouskos Holdings Limited which is 100% owned by the family of Demetris Mouskos.
DP World and its subsidiary P&O Maritime is a leading enabler of global trade, active in marine and inland terminals, maritime services, logistics and ancillary services and technology-driven trade solutions.
DP World is a publicly listed company with 20% of its shares traded on NASDAQ Dubai and is ultimately controlled by the Government of Dubai.
DP World operates 70 terminals in 31 countries across six continents with a significant presence in both high-growth and developed markets. The company operates ports through long term concession agreements. It has significant experience in operating and developing multi-purpose ports in the Middle East, Europe, Asia and the Americas, where the company’s multipurpose operations handled 15.6mln tonnes of bulk/general cargo; 28mln tonnes of liquids (oil and ammonia); almost 1mln RoRo units; and some 800,000 passengers in 2014.
P&O Maritime was founded in 1968 in Australia for the offshore oil and gas market and is a global provider of maritime solutions to governments and leading port operators, commodity traders, mining companies and oil and gas majors. The company operates a fleet of 140 vessels across the EMEA region, South America and Australia.
G.A.P Vassilopoulos Public Ltd. G.A.P was established in Cyprus in 1964 and is listed on the Cyprus Stock Exchange. G.A.P is a diversified service group with significant expertise in the transport and logistics sector. G.A.P. is controlled by the Vassilopoulos family.