1 - 7 June 2000

Possible long lease of Freeport to global terminal operator

by Franco Aloisio

Malta Freeport chairman Marin Hili was reported by the international press to have said that he hopes the privatisation of the freeport terminal will be in the form of a long lease to one of the global terminal operators.

The International Freighting Weekly, which is published in the United Kingdom, said Mr Hili stated that the decision on the privatisation of Malta Freeport is in the hands of the Maltese government and not himself.

It continued: "...he (Marin Hili) is nevertheless hoping that the privatisation will be in the form of a long lease to one of the global terminal operators which, he believes, would best ensure the port's future."

In a special 12-page report on Malta published last week, the International Freighting Weekly said discussions on the upcoming privatisation of Malta Freeport have taken place with several foreign companies such as Hutchinson, Port Singapore Authority and P&O Ports. The report said the latter company is considered an unlikely candidate in the light of its commitment to the nearby port of Cagliari, Sardinia. As already reported by The Malta Business Weekly last April, another company with French and German interests, CMA-CGM, could also be another candidate. Regarding this particular company, the International Freighting Weekly said the company could be interested in the post-privatisation operation of the terminal itself.

The report quoted the local general manager of CMA-CGM, Lawrence Farrugia, as saying: "We have the same information as the man in the street but I think CMA-CGM would be interested just as other big carriers to operate their own terminals."

The report said that recently the Malta Freeport received a further boost by the signing of a slot-sharing agreement between CMA-CGM and China Shipping.

Last year the Freeport recorded a throughput of 1.4 million teu. Now that Terminal 2 is fully operational, the transhipment hub is turning its attention to landside infrastructure, said International Freighting Weekly.

"We shall be issuing a tender very shortly for the construction of 34 new warehouses," Mr Hili said. These will be completed within the next 12 to 16 months.

These developments, coupled with the Freeport's recent agreement for the running of the Brindisi port, will boost the corporation's ambition to be the major transhipment hub in the Mediterranean.