30 March - 5 April 2000

Freeport likely to be privatised by end of summer

by Franco Aloisio

The Malta Freeport Corporation is likely to be privatised by the end of next summer, sources close to the corporation said yesterday. Discussions between the government and foreign port operators and multinational shipping lines are at an advanced stage.

The sources said no official decision has been taken yet over which company will be buying shares in the Freeport Corporation.

However discussions are underway with the Singapore Port Authority, the company with which the former Labour administration was already holding talks with in 1998.

At least another two companies, both based in Europe, are also being considered for the privatisation of the company. Local interest in the freeport has been also expressed recently and the decision to privatise the freeport could be linked to this.

The sources said it more likely that government, when deciding the privatisation strategy for the freeport, will be opting for a company which manages a port, rather than a shipping line, as this would provide the Freeport Corporation with a strategic ally.

In fact the equity-based privat-isation of the freeport will be coupled with a strategic alliance agreement.

The schedule of negotiations indicates that the government will be arriving at a decision on the matter by September or October 2000. No decision has been taken yet whether the freeport will be totally or partially sold.

In the privatisation White Paper published with last November's budget, the Malta Freeport together with Bank of Valletta, Lafico,

Public Lotto Department and Malta International Airport were

mentioned as potential entities which could be privatised immediately.

The freeport employs 146 workers. Last year was a record year for the freeport with over one million containers handled. Terminal 2 was inaugurated in 1999 and the corporation expects a higher turnover this year.