Cargo handling contract awarded

A consortium that includes a Singapore-based company will be awarded the prestigious cargo handling contract and is expected to take over operations in just over a month's time, the government announced last night.

The consortium, TF Shipping Agencies Ltd, is made up of Tumas Group Company Ltd, Portek Ports (Mauritius) Ltd and Portek International Ltd.

It will invest over Lm5.2 million in port infrastructure in Grand Harbour and pay a rent of Lm350,000 a year and a throughput charge of two per cent of merchandise income to the Malta Maritime Authority.

The company has also given a guarantee that it will safeguard the jobs of all the workers, whose contract expires at the beginning of July.

The new contract should bring about a change in mentality and work practices, boost work efficiency, reduce tariffs and generate new port investment and opportunities, the government said.

Competitiveness Minister Censu Galea hailed the agreement as an important step towards a new way of doing business at Grand Harbour.

"We have been talking about inefficiencies for years and finally we have taken the bull by the horns. We need a radical change and will be taking further steps in the coming weeks to make sure that the required changes are carried out," he said.

Efficiency, he added, will be the main thrust of the new agreement and this should drive down tariffs as well as reflect modern working methods.

The maximum tariffs for cargo handling will be cheaper than the present ones even if it was agreed that the new consortium would generate no revenue from the Freeport as is done by the current operators.

While also contributing Lm500,000 for the necessary repairs to the Deep Water Quay at Marsa, the consortium said it has plans to establish Grand Harbour as the logistical port of merchandise in the centre of the Mediterranean.

The tender covers operations at Deep Water Quay and Laboratory Wharf and the bidders have the option of going for a minimum of 10 years and a maximum of 30.

Meetings were held with the two shortlisted consortia and the final report recommending the new cargo operator was submitted to the Cabinet yesterday.

The other shortlisted consortium was La Valletta Terminal Co (Malta) Ltd, made up of Salv. Bezzina & Sons Ltd, Salvu Meli & Sons Ltd and Joseph Paris.

For several years, the cargo handling section of the ports was operated by a subsidiary company of the General Workers' Union, whose contract runs until July.

However, Malta Services Consortium, which included the GWU company, failed in its bid to be awarded the contract. Six consortia had initially expressed an interest but only five had picked up the tender documents.

Portek Group (Singapore) is involved in the rental of port equipment and terminal operations in four ports in Indonesia and Algeria. Based in Singapore, the company has offices in 23 countries.

TF Shipping Agencies is a subsidiary company of Tumas Group, which employs over 1,100 workers.

The Competitiveness Ministry said the criteria on which the shortlisting was based included technical and operational capabilities, the proposals on the engagement of the current work force and the financial investment as well as a reduction in the cost of the tariffs for the handling of cargo.

On April 3, when the tender documents were opened, MMA chairman Marc Bonello had said that cargo handling rates at Grand Harbour were the highest in Europe.

The final deal will be signed during the first two weeks of June and the new consortium is expected to take over the management of cargo handling at the beginning of July.

The cargo handling contract is the first phase of the government's plans to carry out wide ranging reforms in the ports.