Freeport stops operations in Brindisi

The Brindisi Terminal Italia SpA, owned by the Malta Freeport Corporation, has officially stopped operations and terminated the employment of its 100 workers, the government said yesterday.

The Department of Information said in a statement yesterday that in 2004, Malta Freeport Corporation had decided to stop operations at the Brindisi terminal by December 31, 2005, if the concession to operate the terminal was not bought by another company.

On March 18, 2005, the government had sent out an information document to a number of companies which had shown interest in buying the right to operate the terminal from Malta Freeport Corporation. Until April 2005, two companies had expressed interest in operating the terminal but no deal had been struck. This month, other investors expressed an interest in the right to operate the terminal and their offer is being considered by Malta Freeport, the government said.

"Until 2003, the exposures of Malta Freeport at the Brindisi Terminal amounted to Lm26.6 million. Thanks to the government's decisions over the past two years, the exposures did not increase and will be financed by Malta Freeport Corporation over a number of years and not, as the Opposition Leader has claimed, through the sale of Pender Place and Mercury House in Paceville," the government said.

The statement said the failed Brindisi investment had been started by a Labour government.

"Between February 2004 and October 2005, Malta Freeport Corporation worked hard to curb losses from this failed investment," the government said.