Development projects at Larnaca port and marina and works at Vasiliko port will be going ahead, the transport ministry has said, while concerns have been voiced regarding a private company taking over Larnaca port temporarily.
In a written statement on Wednesday in reply to Akel spokesman Giorgos Koukoumas, the ministry said it would be continuing works as agreed, through legal and transparent procedures, to the benefit of the people of Cyprus.
Koukoumas had issued a statement on Tuesday, asking if the ministry would continue development works, as agreed with the ad hoc committee on Larnaca, as well as Vasiliko and Polis Chrysochous.
“All this infrastructure is necessary for the sustainable development of local societies and the economy of the country,” the ministry said.
It added that the government would be using all means at its disposal to achieve this end, using financial resources from the state budget and the private sector.
The transport ministry said the government had stated from the onset that taking over the administration of Larnaca’s port and marina would be a temporary arrangement and would be cooperating with the ad hoc committee to draft a strategic plan.
It had also said that by the end of July 2024 it would be announcing the projects to be implemented until an investor took over, which is what happened, the ministry added.
Meanwhile, the Cyprus Shipping Association expressed its concern over a cabinet decision to delegate the management of Larnaca port to a private company.
The association said this “sudden decision” was taken in the middle of an ongoing public debate, bypassing plans for the management and development of the port.
It added that this decision served no one and “the only reasonable explanation” would be an effort to roll the cost of exceeding the ceiling which corresponds to millions of euros per year from the state onto the private administrator of the multiple use terminal at Limassol port.
This cost, according to the terms of the tender, would be undertaken by the private company to assume the temporary administration of Larnaca port, or would reduce the port’s volume of business so that it did not exceed the annual ceiling of 900,000 tonnes.
Furthermore, the association said, the new private administrator would be obliged to hire the employees of the outgoing company.
“All this is happening while most of the modern ports around the world are developing and proceeding with investments on an annual basis, so that they can serve [their customers] and be viable,” the association added.
On the other hand, it seems that over the next five years the port will be working at a lesser capacity and would be sailing towards collapse with a captain focused on short-term profit, it said.
The Cyprus Shipping Association suggested that the Cyprus Port Authority could assume control of Larnaca and Vasiliko ports, expressing doubt over the government’s ability to manage the facilities effectively.
