Number of consortia showing interest

At least four consortia are being formed with the aim of bidding for the handling cargo contract at the Valletta harbour, industry sources said yesterday.

The Malta Maritime Authority has invited expressions of interest from those who wish to participate in a public tendering process leading to the award of the cargo-handling terminal management concession in the port.

Applications have to reach the authority by September 15 and the tender, for a period of at least 10 years, is expected to be awarded early next year.

Cargo at the Valletta harbour is currently handled by the Cargo Handling company, owned by the General Workers' Union. The union is known to be involved in talks with Carmelo Caruana Shipping and port workers to form a consortium to bid for the award of the tender.

It is also known that a number of ship chandlers are forming a consortium with ship agents while some stevedores are trying to form an alliance with a person involved with the cargo handling company.

The sources said some of those interested in the tender have strategic partnerships with a foreign company experienced in cargo handling. Some of those interested, however, yesterday contacted The Times arguing that because of both the rather low volume of work handled at the Valletta port as well as the pay structure that port workers have to receive, which is stipulated by law, it was unlikely that anyone could offer lower tariffs and invest the money necessary to attract new business.

Another issue was whether Viset had the rights to use the deep water quay by giving 36 hours notice, sources added.

Contacted yesterday, MMA chairman Marc Bonello said Viset had the right to use, the deep water quay at 36 hours notice only if the operator was not using it himself.

Another issue raised by those interested was whether the space formerly occupied by Malta Shipbuilding could be made available for cargo handling, as the space at Laboratory Wharf was rather restricted.

The last issue raised was how much the government expected for the lease of the land and whether, because of the amount of money that had to be invested, such a concession would be for just 10 years. It was pointed out that the practice abroad was to have such a concession for at least 30 years. Dr Bonello said these issues would be tackled at the negotiation stage.

"We want the new operator to be able to attract work for the domestic market and to concentrate on roll on roll off and transshipments.

"We will discuss the financing mechanisms and who will shoulder the costs as well as what government would get from the lease.

"We definitely have to move away from current practices and need innovative proposals. If we are having more of what we already have, then we might as well not change anything," Dr Bonello said.