A major client lost by Malta Freeport just a few weeks ago, Grand Alliance, is thinking about moving some or all of its business back to Malta out of frustration with congestion at the freeport in Gioia Tauro, Italy, shipping newspaper Lloyd`s List reported.
Since the Grand Alliance left, the Freeport has managed to attract a new international consortium made up of K Line and Yang Ming Line.
However, prising Grand Alliance back would be a major feat.
When contacted, Freeport chairman Marin Hili yesterday said the Freeport was focusing very much on strengthening its products and certain tangible results had already been achieved.
The Freeport was also continuously in contact with potential new clients, irrespective of what was happening in other ports, he added.
Lloyd`s List reported that the new contracts clinched by Gioia Tauro may prove to be a short-lived bonanza. The port, it said, seemed to be a victim of its own strategy, with congestion rife at its terminal.
It said that the common perception was that it had bitten off more than it could chew, and that Malta Freeport would benefit if operational problems persisted.
Ship agents were already forecasting increased ad hoc calls by Gioia Tauro traffic at the Malta Freeport and elsewhere to avoid problems.
Lloyd`s List said that the Mediterranean marketplace widely perceived the arrangements arrived at with the Grand Alliance and New World Alliance to be bargain basement deals that broke new ground. The international newspaper quoted some unconfirmed reports as speaking of discounts of up to $20 per move.
While no line wants to admit that price is the single most important criterion, it is certainly a major attraction in lean times, the newspaper said.
Lloyd`s List said that with Eurogate, the owners of Gioia Tauro, there had been speculation about `another agenda` to meet the requirements of the company`s planned stock market listing.
"This is coming soon and could, it is suggested, underpin the decision to pack the business in."
Mr Hili told Lloyd`s List that the Freeport was "keeping its nerve" in the current volatile climate in the central Mediterranean.
"We have won new business from Yang Ming and K Line, and expect other lines to be joining their grouping in the near future - plus we are actively talking to other potential clients."
Mr Hili would not comment on particular competitors` operations, but emphasised that it is in the interest of all the region`s operators to maintain sensible pricing so they can continue to reinvest at the required level.
"Short term gain leads to long term pain in my book," he was quoted as saying.
Meanwhile, Mr Hili told The Times he was satisfied that the Freeport`s new clients, K Line and Yang Ming Line, were gathering momentum at the freeport.
Yang Ming Line was established in 1972 and operates a fleet currently made up of 43 ships including full container ships, huge bulk carriers and super tankers. The line is ranked among the world`s leading containerised marine service companies.
K Line is a worldwide integrated transportation enterprise. The line occupies a significant place in the Trans-Pacific and North America cargo trade, and serves 26 liner routes between the Far East and Europe, Central and South America, Australia, Africa and North America.