The state will gain as much €2 bn within the next 25 years from the privatization of commercial activities of the port of Limassol, according to transport minister.
The minister, Marios Demetriades, who attended the meeting of the parliamentary commission of transport to analyse the financial aspect of the agreement for the commercialization of the port of Limassol, said that the total revenue for the state based on the current net value and the preferred bidders’ business plans will be €1.16 bn.
“It is a particularly beneficial agreement and based on investors’ projections, revenues for the state will rise to €2 bn in the next 25 years” said the minister.
He pointed out that initial estimates referred to lower revenues.
As Mr. Demetriades said, the state will receive €9 mn annually from rents and €50 mn in total income.
The minister of transport stressed that according to the business plan, revenues are expected to reach €40 mn. When the taxes, rents to the state and investors’ infrastructure are included, revenues reach €50 mn compared to €28 mn that is the current amount of the Port Authority’s income.
The state, based on a decision by the cabinet, granted three contracts for an equal number of services, to two consortiums.
The minister of transport said that the container terminal was granted to Eurogate consortium for the amout of €7,5 mn.
DP World took over marine services for the amount of €500 thousand.
The same company will take over the terminal of general trade with the amount of €2 mn.
He added that the state will receive a total upfront amount of €10 mn.
The state will receive 62% of revenues from the contractor’s annual turnover from container services, 10,1% for marine services and 52,1% from the multipurpose terminal.
He said that the port of Limassol will serve as a hub for regional needs.
He called the parliament to pass the regulations in order to sign the contracts before April and added that there will be a transitional period of 6-9 months before the investors take over.
The number of workers necessary based on the new organizational structure of the port authority, stands at 160 according to the minister, against 300 workers today. A voluntary retirement plan is expected to follow, he said, adding that employees want the voluntary retirement plan.
Mr Demetriades said that, investors asked for a list of the port authority’s workers as they are interested in hiring Cypriot employees.
The minister, Marios Demetriades, who attended the meeting of the parliamentary commission of transport to analyse the financial aspect of the agreement for the commercialization of the port of Limassol, said that the total revenue for the state based on the current net value and the preferred bidders’ business plans will be €1.16 bn.
“It is a particularly beneficial agreement and based on investors’ projections, revenues for the state will rise to €2 bn in the next 25 years” said the minister.
He pointed out that initial estimates referred to lower revenues.
As Mr. Demetriades said, the state will receive €9 mn annually from rents and €50 mn in total income.
The minister of transport stressed that according to the business plan, revenues are expected to reach €40 mn. When the taxes, rents to the state and investors’ infrastructure are included, revenues reach €50 mn compared to €28 mn that is the current amount of the Port Authority’s income.
The state, based on a decision by the cabinet, granted three contracts for an equal number of services, to two consortiums.
The minister of transport said that the container terminal was granted to Eurogate consortium for the amout of €7,5 mn.
DP World took over marine services for the amount of €500 thousand.
The same company will take over the terminal of general trade with the amount of €2 mn.
He added that the state will receive a total upfront amount of €10 mn.
The state will receive 62% of revenues from the contractor’s annual turnover from container services, 10,1% for marine services and 52,1% from the multipurpose terminal.
He said that the port of Limassol will serve as a hub for regional needs.
He called the parliament to pass the regulations in order to sign the contracts before April and added that there will be a transitional period of 6-9 months before the investors take over.
The number of workers necessary based on the new organizational structure of the port authority, stands at 160 according to the minister, against 300 workers today. A voluntary retirement plan is expected to follow, he said, adding that employees want the voluntary retirement plan.
Mr Demetriades said that, investors asked for a list of the port authority’s workers as they are interested in hiring Cypriot employees.
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