Bidders to submit proposals soon

The six organisations that have expressed an interest in managing cargo handling at Grand Harbour will shortly be asked to submit detailed proposals, according to Malta Maritime Authority chairman Marc Bonello.

The applicants, both companies and consortia, are Carmelo Caruana Company Ltd, Farrugia, Gatt and Falzon, Kuwait and Gulf Link Transport Company, PD Port Services, Malta Port Terminals Ltd and TF Shipping Agencies.

Competitiveness Minister Censu Galea had expressed satisfaction with the number of tendering consortia, especially with three foreign companies: Portia, the overseas arm of Mersey Docks and Harbour, PD Port Services, and Kuwait and Gulf Link Transport Company.

"The response shows the potential of the ports, and the fact that even foreigners have expressed an interest shows that many are looking at the operation's long-term viability," Mr Galea had said.

Dr Bonello said the adjudication committee had found all the interested bidders to be valid. The contract will be for 10 years.

The call for tenders is expected to be made shortly and those interested would have to provide detailed information about the companies involved, the kind of investment and development they would be making, how they intend to boost business as well as the fees they would charge for handling cargo.

"We'd want to see feasibility studies to ensure we do not end up giving the contract to sham companies. We want to have an operator with whom we'd have no problems from day one," Dr Bonello said, adding that it was still intended to award the tender before July, when the current contract expires.

"There is a lot to be done but the adjudication committee is confident we will be on track," he said.

For the sake of economies of scale, it is envisaged that the tender will be granted to a sole operator or consortium.

When the process was launched last year, Dr Bonello had said the cargo handling rates at the Valletta port were the highest in Europe and hoped these would be cut as a result of competitive fees resulting from the award of the contract.

The high cost of cargo handling is reflected in higher prices for the consumer and Mr Bonello is expecting the charges to go down.

"The tender would go to the company that has the experience and that will guarantee the necessary investment in equipment and quays, renders the most efficient service and charges the lowest prices for handling cargo.

"Reforms are about moving ahead not going back in time. With the right development and pricing, cargo handling can increase and the amount of workers would eventually go up too," he had said.