The government of Cyprus has changed the legal framework of the Cyprus Ports Authority (CPA), which will allow commercial operations at Limassol port to be privatised.
The Cyprus Ministry of Transport will call for tenders by the end of this week to attract investors for the use of Limassol Port`s commercial activities, announced Minister Marios Demetriades on Monday, who said the aim is to significantly expand port operations and transform Cyprus into a transit hub for port services.
Demetriades said he's confident interest will be shown because of the island's close proximity to the Suez Canal, one of the world's busiest shipping traffic routes.
Demetriades said that the commercialization of the port of Limassol is of strategic importance for Cyprus, as it provides another opportunity for development and it is a task that cannot be delayed for even a single day.
Authorities said three long-term contracts would be available for commercial operation of container facilities, a multipurpose terminal which includes passenger facilities, and sea services.
Dubai’s DP World and Netherlands-based APM Terminals have both shown interest in operating container terminals at Limassol. The government aims to find investors for Limassol by the end of 2015 and sign an agreement in the first three months of 2016.
The tender will call for bidders for the three services offered at Limassol port, the island’s main port of call that accounts for 80% of passenger traffic and 70% of all commercial activity.
Limassol port, on the island's southern coast, currently handles 4,000 ships — both container ships and cruise liners. But authorities are looking for new management to invest and expand its services, boosting its competitiveness.
Cyprus hopes to raise €1 billion by 2016 by privatizing several state enterprises, Limassol port being one of them, in order to pay down a €10billion bailout.