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Major International companies bid for the Larnaca Port and Marina redevelopment tender

Four international and local consortia and a Chinese state-owned company have submitted proposals for the redevelopment of Larnaca port and marina.

A decision on invitation to tender for the work will be made by the end of April, with a view to receiving proposals by autumn, according to the Ministry of Communications and Works. The privatisation of the port facilities is an obligation under the memorandum of understanding signed with international lenders in 2013.

The new Larnaca marina would be the largest in Cyprus, with capacity for as many as 1,000 boats – up from the current 350 – and a total area of 510,000 square metres, including the port, marina, and the undeveloped surrounding area.

US-UAE consortium IGY Marinas and Dubai Ports (DP) World submitted the first proposal. Florida-based IGY Marinas focuses on acquiring, managing and servicing luxury-yacht marinas and their surrounding real estate, while DP World, one of the winners of the competition for the commercialisation of Limassol port, has a portfolio of 77 operating marine and inland terminals supported by over 50 businesses in 40 countries across six continents

The second interested consortium is made up of four companies – UK-based international consultancy and construction group MACE, Cypriot MGE Mopany Ventures Ltd, Joint Venture VTS EMS and FRS, and Gibraltar-based Sea Alliance Ltd. Sea Alliance provides services world-wide for yacht owners, charter companies, marina owners and shipyards. It also manages the Karpaz Gate Marina in the north, the only marina in Cyprus to have a 5 Anchor rating.

China’s largest port construction and design company, state-owned China Communications Constructions Company (CCCC) Ltd, submitted the third proposal. The company is the world’s largest container crane manufacturer, and it also builds ports, terminals, roads, bridges, railways and tunnels.

Two Israeli companies, Ampa Ltd and Israel Shipyards Ltd, make up the consortium that submitted the fourth proposal. Israel Shipyards, a former state-owned corporation that was privatised in 1995, operates the only privately owned port in Israel and is one of the largest shipbuilding and repair facilities in the eastern Mediterranean. Ampa Ltd develops and manages shopping centres, office complexes and buildings through subsidiaries.

The fifth proposal came from Era Consortium, comprising Cyprus-based AVI Giant Corporation Ltd and affiliates. Avi Giant’s registered director is Antonis Vouros, whose company A Vouros Investments Ltd was part of the Zenon consortium that signed the 2012 agreement with the government for the same project that fell through in 2015 after the companies could not secure financial backing for the reportedly €700m project. Zenon consisted of the Paraskevaides Group, Iacovou Bros, Petrolina and Vouros.

Original Source: Cyprus Mail

Off Radar Comment
The Cruise Industry is slow at the moment in Cyprus as a whole and the attractive new Cruise Terminal of Limassol is pretty much under utilized, due to the fact that Cruise ships left Turkey, Egypt, Lebanon and Israel on security grounds. Without strong itinerary it's difficult for Larnaca or any Cyprus port to generate a high volume of Cruise calls. A strong regional strategy is required to make it happen, but there does not seem to be much appetite or sufficient know how to make that happen.

Therefore, the winner of the port project will not be able to count on Cruise too much, at least in the next 5 years. The Yachting market on the other is buoyant and there is a waiting list for the existing marina.

The project could however work if the Real estate element is attractive and well designed as well as costed. Hence Yachting and Real Estate in the surrounding area are the best hopes.

The residents of Larnaca however, will believe in this project only when they see it as 2 decades of promises have not yet amounted to anything.
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