Limassol’s new cruise terminal inaugurated amid port tariffs criticism

The new cruise passenger terminal building of Limassol Port was inaugurated on Wednesday by President Anastasiades who said in his speech that it marked “a new era for the Limassol Port and the tourist and maritime industry at large”.

Limassol port’s new 7,000 sq. terminal was inaugurated in the presence of Sultan Ahmed Bin Sulayem, CEO of DP World Group, parent company of DP World Limassol, which as of January is the operator of the 25-year concession for the terminal. At the same time, P&O Maritime – a DP World subsidiary – was awarded an exclusive 15-year concession to provide the Port of Limassol’s full range of marine services. The container terminal business part of the port was given to Eurogate.

The port’s new terminal inauguration was also hailed by the Cyprus Shipping Chamber that that said “new passenger terminal is considered as an important advancement in the services and facilities offered towards the further development of cruise tourism, which contributes to the overall purpose of opening up new opportunities and revitalising the cruise industry in Cyprus and the eastern Mediterranean region in general.”

Angelos Loizou, Chairman of the Cyprus Tourist Organisation, said “We have seen today the rebirth of Cyprus cruising thanks to DP World. The new passenger terminal is wonderful.”

Speaking at the cruise terminal’s inauguration, Ansastasiades said that it is the outcome of efforts started in April 2016 and that it marks a new page in the Cypriot economy in general. As stated, the signed agreements “not only provide an important source of revenue for the country but constitute the culmination of an important project for our country’s growth prospects, through the upgrading of the role of Cyprus in the South East Mediterranean, a major regional centre for tourism, shipping and commerce, in the Eastern Mediterranean and more.”

Meanwhile, the government has come under criticism for its handling of the privatisation process of the Limassol port from the opposition parties. Speaking at a House committee meeting in the presence of Auditor General Odyseas Michaelides, AKEL spokesperson Stefanos Stefanou said that the agreements of the Anastasiadies administration have turned the Cyprus Ports Authority from a profitable to a lossmaking institution.

“State revenues from Limassol port have dropped, the port has not become more competitive than the ports of the region as the government had claimed, nor has the cargo movement to the port increased,” said Stefanou.

The Small Shopkeepers Association (POVEK) reported that the costs of the port have risen, especially after DP took over its administration. The excuse presented, it said, is that the CPA also imposes some fees.

The issue was also picked up by AKEL’s official daily Haravgi that estimated that tariffs have risen by 25%. According to the newspaper, Auditor General Odysseas Michailidis said that prior to privatisation, CPA revenues amounted to around EUR 55 mln a year, while private revenues after privatisation increased to around EUR 70 mln, while cargo movement measured in TEUs dropped from 363,000 in 2016 to 356,000 in 2017.