Economic experts call for single cargo terminal operator

It would not be viable for the Valletta ports to have more than one cargo terminal operator, according to an economic report drawn up on the ports and presented to the government this week.

Considering the size of the port and the current operations, the only option worth considering was having a sole terminal operator, the report by American port experts International Maritime Associates concluded.

Between three and four consortiums are expected to tender for the operation of port services, sources told The Times.

Competitiveness Minister Censu Galea has set the ball rolling to overhaul the ports in an effort to make them more competitive and eliminate obsolete work practices in the process.

The ministry has appointed a steering group to lead the discussions with various port sectors to ensure the exercise is concluded within the next few months.

The port experts were asked to draw up an economic and financial model to try and hammer out the best possible uses of the Grand Harbour.

The report identifies the potential of the Valletta port as an additional facility for trans-shipment operations in line with Malta's trans-European network project submitted to the European Commission in 2003.

The report suggests that the new contract will not only bind the operator to upgrade existing quays but also to purchase new equipment in order to facilitate the trans-shipment operations within the Valletta port.

The report says it is high time the two government regulatory bodies - the Malta Maritime Authority and the Freeport - are consolidated into one national port authority and regulator.

"The reforms are proceeding according to schedule and we are optimistic they will eventually lead to an increase in cargo, port work and traffic," a spokesman for the ministry said.

The tender document is expected to be presented to the Cabinet shortly and a call for expressions of interests will be issued in March.

The General Workers' Union's Cargo Handling Co. Ltd holds a monopoly for various port operations until July 2006. The union had asked Mr Galea to extend its contract but the request was turned down.

One of the consortiums expected to bid for the operator contract is made up of several port service providers, including stevedores and foremen.