The shipping industry should become the “flagship” of Cyprus` economic growth, and privatisation could bring that about, said the Cyprus Ports Authority (CPA) vice president Photis Panayides.
Panayides, a professor, is also head of the department of commerce, finance and shipping at of Cyprus University of Technology (TEPAK).
In an interview with the Cyprus News Agency, Panayides rejected criticisms over selling-off Cyprus’ ports under the bailout memorandum.
He said that the studies being conducted by the ministry of communications and works with the three consulting firms hired on technical, economic and legal issues were being implemented as scheduled.
He did not rule out that agreements relating to Limassol port would be reached by the end of the year. On Larnaca, he said, issues relating to the signing of an agreement with the strategic investor were expected to conclude, and assured that every effort would be made to safeguard jobs.
Panayides said the challenges for 2015 would focus on exploiting the opportunities ahead, which largely derive from “the policies of competitive ports as well as the profound changes and developments in international maritime,” he said. He clarified that all efforts and objectives were in line with the EU norms.
Panayides said the global economic recession from 2009 onwards had affected maritime traffic at Cypriot ports and the revenue from CPA commercial activities.
However, he added, “the strategy followed as well as the exploitation of the new opportunities arising from the hydrocarbons sector, in conjunction with other activities, ensure the financial robustness and profitability of the Authority, which has acted as a catalyst in order not to affect development planning”.
Referring to the works underway at the ports, Panayides said the expansion of Limassol Port was underway, with the 500-metre extension of its western basin quay. It is estimated the project will be completed by April 2016.
Meanwhile, a new pilot boat will be purchased in order to enhance the commercial prospects of the port and the Authority is planning to buy a new tug with increased horsepower, a mobile crane and three super post-Panamax gantry cranes.
He said the construction works for the new 6,800 square metre passenger terminal at Limassol was expected to be completed before the end of this year.
Panayides said the oil storage terminal facilities of VTT Vasiliko Ltd (VTTV) at Vasiliko port had recently been put into operation, adding that the Authority would see significant revenue from its operation.
Referring to the old Limassol Port, which has been revamped, he said the premises at the old port – 20 buildings covering some 6,000 square meters – include a fish market and fishing club, laboratories and offices for the department of fisheries, fish tavern, cafeterias, restaurants, bars and offices.
He also said the Authority would invite anew tenders to bid for the management of the ground facilities of the old port after failing to ratify a single bid submitted by a Cypriot investor.
Referring to the shipping, cargo and passenger traffic in 2014, Panayides said that around 4,195 ships docked in Cypriot ports during the year. Around 64 per cent were cargo ships. In the same year around 220 cruise ships served a total of 182,000 passengers, including 107,000 passengers in transit.