Hili defends his interest in the Port of Venice

Malta Freeport chairman Marin Hili yesterday insisted that Malta Freeport and the Port of Venice operated in separate markets and for completely different purposes.

Mr Hili strenuously denied claims of conflict of interest being made by Labour Party exponents and the MLP media after his company Mariner SpA bought a 50 per cent shareholding in a port terminal in Venice.

He told The Times that he had declared his interest in the Port of Venice to the Freeport's shareholders - the government - at the very early stages of negotiations.

"I was and am still ready to relinquish my post as Freeport chairman should they feel there is a conflict of interest."

He said Malta Freeport was involved in the transshipment market, whereby big vessels carrying around 5,000 to 6,000 containers discharged a large number of their containers destined for Mediterranean ports in Malta. These containers are subsequently loaded onto smaller vessels (around 1,000 container capacity) and distributed to the various ports in the Mediterranean.

"The fulfilment of a transshipment hub cannot be achieved without a strategic location. Malta is such a location. Being in the centre of the Mediterranean makes it an ideal choice for hubbing. After all, capitalising on this unique feature has been the Freeport's main financial and organisational objective for over a decade. This, together with our high level of efficiency, has made Malta Freeport the success story it is today."

On the other hand, Mr Hili said, the Port of Venice was located in the northern part of the Adriatic Sea.

"Its role is to serve the local region and the neighbouring areas in northern Italy, Slovenia and southern Germany. Therefore, the Port of Venice can never be the Freeport's competitor in the transshipment business."

Large vessels with a carrying capacity of 5,000 to 6,000 containers operate through the main transshipment hubs in the Mediterranean, making one or two calls at such hubs. Vessels of this kind sailing on the main trade route between the Suez Canal and Gibraltar are prepared to make only minimal diversions to call at hubbing ports.

"A diversion of thousands of miles to a place like Venice is therefore out of the question. In addition, other physical limitations - most importantly a water depth of only 12 metres - do not permit vessels of this capacity and size to make a call at the Port of Venice."