Commercialisation: A ‘New Era’ for the Limassol Port

In this respect, the Cyprus Shipping Chamber is of the opinion that the word ‘commercialisation’ is a much more appropriate word to be used in the case of the concessions at Limassol Port. Commercialisation can be defined as the re-organisation of enterprises, wholly and partially owned by the Government, in which such commercialised enterprises shall operate as profit-making commercial ventures without subvention from the Government, and as such, this is exactly the case with regard to Limassol Port.  

As the representative body of the Shipping Industry in Cyprus, the Chamber believes that the Commercialisation Programme of Limassol Port will provide enhanced operational autonomy at enterprise level and evolve a more results-oriented and accountable management, based on performance contracts. This will lead to prudent financial management and to the elimination of bureaucratic bottlenecks and political interference through clear role definitions between the supervising Ministry, the Board of Directors and the Management of public enterprises. Nevertheless, whilst we fully support the Government’s decision to proceed with such a Commercialisation programme, the Chamber would like to reiterate once more that, the safeguarding of the current employees’ rights is of paramount importance and must be seriously considered.

The Invitation for Expressions of Interest for the Commercialisation of Limassol Port marks the beginning of a ‘New Era’ for the port and the city of Limassol itself. This Invitation covers three potential services concession opportunities: a) Container Terminal, b) Marine Services; and c) Multi-purpose Terminal. We believe that these three concessional parts cover the multi-functionality of the port in terms of cargo/container movement, passenger traffic and support services to the offshore oil and gas industry. We are therefore, optimistic that the concessions system will facilitate to Limassol Port’s efforts to regain its place as an important maritime hub in the region. This will also contribute to the further growth of Limassol’s shipping and maritime cluster with a vibrant business community, led by the shipping industry, and an increasingly attractive tourist destination.

The completion of the new Passenger Terminal will also fit-in well with the on-going efforts of the Cyprus Tourism Organisation (CTO) and the Cyprus Ports Authority (CPA), in close co-operation with the Cyprus Shipping Chamber and the Cyprus Shipping Association, to further develop the Cruise sector and promote Cyprus as a Cruise Centre.

In addition, the extension projects can only serve as an expansion to the services that will be offered within the port, allowing the port to accommodate more and larger ships. Such projects will substantially increase the capacity of the port and improve the attractiveness of the country. 

The Chamber strongly believes that the Commercialisation Programme, along a series of upgrade projects, will offer a new dimension to the Limassol Port. Such processes and measures will create investment and trade opportunities not only for Cyprus but also for Europe in general. It will also improve accessibility to EU and other markets, boost the competitiveness of Cyprus’ economy and create jobs. 

Thomas A. Kazakos, Director General of the Cyprus Shipping Chamber