Call for port cargo tenders to be issued next month

A call for tenders for the liberalisation of cargo handling at Grand Harbour will be issued by March in order to give operators enough time to prepare themselves and procure equipment before the current contract expired in 2006, Transport Minister Censu Galea said in Parliament yesterday.

He regretted that some were seeking to scare the workers over port reform, saying that once efficiency improved, so would turnover and workers' pay. The prospects for increased throughput were good especially because of the forecast growth of exports from Asia and from North Africa to Europe, Mr Galea said during the debate on the financial estimates of the Malta Maritime Authority (MMA). He was sure the workers would realise that change would be good for them and would work to bring it about.

The reforms, he said, were not restricted to cargo handling but to all port operations. Clearly, unless there was reform, activity would decline, and the workers would feel the income worst.

At the opening of the debate Mr Galea made a brief overview of the MMA's activities. He said the authority was shortly expected to move its corporate office to new premises, making way for the Viset cruise liner project.

He said that construction work on the Cirkewwa and Mgarr harbour facilities had slowed this year, a decision has been taken to continue the Mgarr project as of next week and this would be ready by next year.

The emphasis would continue to be on the safety of passengers and vessels. Every year, more than three million passengers and 250,000 vehicles cross between Malta and Gozo.

Sea works and the quays at Cirkewwa were completed last year.

It was expected that by 2006/2007, the authority would receive Lm2.5 million in EU funds for a number of projects, including a transshipment service between Marsaxlokk and Grand Harbour. As a result of EU funds, short sea shipping would be developed to link Malta with more Mediterranean ports.

With regards to yachting, the minister said that all the 1,600 berths were occupied and there was a waiting list for another 400 berths. Plans for the development of a marina at Xemxija had been reactivated and a consultation paper would be issued. Possible extensions to the existing facilities were being studied.

The MMA Ports Directorate would soon introduce a vessel tracking system, financed through EU funds.

During 2004, an increase of six per cent in the number of vessels visiting Malta was registered. This, apart from vessels which availed themselves of Maltese services while still in the vicinity of the island. Mr Galea said that plans would continue to ensure efficiency and raise productivity at the ports. Cargo handling would be liberalised following a call for tender which was expected to be issued next month, well in time for prospective operators to consider their bids and purchase equipment.

It was futile for certain individuals to try to instil fear in the workers with regards to their job security. Improving efficiency would result in increased activity. He was sure that the workers themselves would acknowledge this need and work for a successful outcome.

Turning to the Shipping Directorate, Mr Galea said the accent remained on having high quality shipping flying the Maltese flag. Around five million tonnes of shipping were struck off the register over the past year but some 3.5 million on new tonnes were added. He augured that Malta would soon be taken off the black list of the Paris Memorandum of Understanding.

Replying to comments by the opposition later in the debate, Mr Galea said that the Ports Directorate was projecting a loss of Lm740,000 in revenue and an increase of Lm600,000 in expenditure . The expenditure was related to a number of projects, including to the Port Safety Manual which would also address port safety. This expenditure was one-off.

The building of the new Maritime Trade Centre was to be partly financed by Viset.

Although it was true that there was no particular capital vote with regard to the development of yacht marinas, Mr Galea said that after the development of Manoel Island and Cottonera, the next in line would be a new marina at Xemxija. Further studies would be made on other sites. Mepa would draw up the development criteria which developers would have to follow.

He said total expenditure on the Cirkewwa project was expected to be in the region of between Lm14 million and Lm15 million.

The total number of vessels registered under the Maltese Merchant flag rose from 3,365 in 2003 to 3,660 last year. The number of bulk liquid cargo carriers dropped from 303 to 291, mainly through the phasing out of single-hull carriers.

Mr Galea said the MMA was ensuring that Malta's harbours were safe. A survey was currently being conducted on the state of breakwaters.

Following agreement between the Pilotage Corps and the UHM, efficiency by the corps had improved remarkably, and so had the income of the 16 people concerned.

On the risk of marine oil pollution, Mr Galea said there was no doubt that a risk of such accidents existed but contingency planning had been updated.

Mr Galea said in reaction to remarks by Joe Mizzi (MLP) that the lights at the Cirkewwa lighthouse were correct. It was true that lights at St Elmo were not what they should be. This was temporary and a notice to mariners had been issued. The authority was also guaranteeing the necessary draught for operations at Malta Freeport.

Opposition speakers are being reported separately. The estimates were approved after a division, the opposition voting against.