Limassol Port Commercialisation to Bring in Revenue of €1.9 Bn 

A new page opens for the Limassol Port, as its commercial management will be taken over by private operators on January 29, 2017, based on the three contracts, signed on April 25, 2016. 

The Permanent Secretary of the Ministry of Transport, Communications and Works, Alecos Michaelides, spoke about the start of this collaboration, stressing that the experience of the managers and the willingness of the Ministry and the Cyprus Ports Authority create prospects for success and benefits for the country. 

He further notes that the port’s commercialisation represents the beginning of a new era for both the port and the country in general, as it is expected that the contribution of new operators, will result in strong growth in the years ahead which will also affect positively the Cypriot economy. 

“It is no coincidence that the operators involved have an international presence and manage large ports worldwide while they also have links with many companies which distribute loads globally,” says Michaelides.

He adds, in fact, that through their network of collaborations, the Limassol Port will enter the world map more dynamically and it is expected to attract significant additional work, thus creating additional jobs and income. It is also estimated that both Eurogate International GmbH and DP World, which manage the container terminal and multi-purpose terminal respectively, will contribute to its further development.

For as long as the contract lasts, the expected revenue for Cyprus is estimated at €1.9 billion. The state is expected to receive 63% of the gross income of the container terminal and 52.1% of the gross income of the multi-purpose terminal. In practice, this means that more than half of the amount which will be collected by the two operators, will end up in the state.

The duration of the contract for both the container terminal and the multi-purpose terminal is 25 years. Moreover, the third 15-year contract, signed by the government, relates to maritime services while the revenue to be received by the state will account for 10% of the operators’ gross revenue.

As regards the government, it is noted that the revenues to be received by the state from maritime services, will not be of particular importance, which is also acknowledged by the operators themselves.