Port efficiency strategy talks 'in advanced stage'

Discussions on a strategy aimed at enhancing the efficiency of Malta's ports were at a very advanced stage and the idea is to implement a "good chunk" of the reform in the first few months of the year, Competitiveness and Communications Minister Censu Galea said yesterday.

The economic/financial model for the port of Valletta was nearing completion, he said.

The government's strategy would result in a competitive work environment and increase the workload by attracting more vessels to Malta and generate more income, Mr Galea explained.

A steering group has been appointed to lead negotiations with the various sectors of the ports.

Mr Galea said the terms of reference of the steering group were the conclusion of an agreement to revise and reform current work practices, conditions, organisations, licences, tariffs, regulations and other legal provisions pertinent to operations at Valletta port.

The group has been instructed to conclude negotiations within a reasonable time frame and was already at an advanced stage, he said. Mr Galea was delivering the closing address in a seminar on Hong Kong: Bringing You To China's Markets, held by the Federation of Industry and Malta Enterprise in collaboration with the Hong Kong Trade Development Council.

He said that in 2003 trade between Malta and Hong Kong exceeded Lm6 million worth of imports and over Lm22 million worth of exports.

A yearly study of the trade flows since 1999 shows a slow but steady increase in figures. Between January and March last year, trade was already hovering in the Lm1.2 million region in the case of imports and Lm7.2 million with regard to exports.

Mr Galea was confident that the HKTDC and other Hong Kong authorities would ensure that Hong Kong would have a pivotal role in bringing China to the Mediterranean and European markets - through Malta.

Stressing on the "excellent" bilateral relations between Malta and Hong Kong, he said that, with the opening up of the North African market, Malta's connecting route would be a valuable asset to the Hong Kong import-export industry.

The HKTDC regional director for Western Europe, Lawrence Yipp, insisted that Hong Kong was the "best platform for buying and selling in China and beyond" due to its unique, strong relations and vast experience in dealing with the mainland - the world's sixth largest economy and third largest importer. The Pearl River Delta was, indeed, the fastest growing region of the fastest growing large economy worldwide.

With Hong Kong as a partner, Maltese companies had a better chance of success, Mr Yipp said, Hong Kong handling 30 per cent of China's trade and providing over half of its foreign direct investment.

Hong Kong could act as a risk manager for Maltese companies, he continued.

Echoing Mr Yipp's words, Malta Enterprise chief officer of enterprise support, Raymond Muscat, said Hong Kong represented an "excellent stepping stone" into mainland China for Maltese companies.

Moreover, for companies in Hong Kong, Malta offered the potential of being a centre for international business in the Euro-Mediterranean region, a reality that was clearly emerging as witnessed by the growing number of companies using Malta as the base for operations in North Africa, particularly Egypt, Tunisia and Libya.

By establishing their trading, distribution and manufacturing operations in Malta, Hong Kong and Chinese firms targeting the North African, Middle Eastern and European markets would benefit logistically and economically, Mr Muscat said.

"Chinese companies interested in gaining market share in North Africa and Southern Europe would do well to form strategic alliances with Maltese companies and traders that are active in these regions," he said. And Malta Enterprise is prepared and ready to assist Chinese companies do business in Europe and in the Mediterranean.

Mr Muscat said Malta and Hong Kong mirrored one another by offering ideal staging posts, with access to large and growing markets. He said it was a win-win situation for both Malta and Hong Kong.