| Code: 87241 |

TIN news:   The consortium of Eurogate International GmbH (majority participant), Interorient Navigation Co. Ltd and East Med Holdings S.A received the concession for the container terminal, and the consortium of DP World Ltd (majority participant) and G.A.P Vassilopoulos Public Ltd received two separate concessions for the operation of marine services and of the multi-purpose terminal.
“Our country’s economy has gained a new gateway for future growth. A new era begins for Limassol Port,” Demetriades said on Monday at the signing ceremony at the Presidential Palace, just ten months after the process was launched.
Regarding the concession agreements, the state retains ownership of Limassol Port, with the operators capitalising on their experience and know-how to ensure the future development via growth of commercial activities and the implementation of best operational practice.
“The estimated economic benefit to the State, in proceeds and investments, during the tenor of the agreements (25 years) is approximately 1.9 billion euros, based on the business plans of the concessionaires,” he stressed, noting that the amount exceeds the initial expectations of the government, while the beneficial consequences to the Cypriot economy from increased activity at Limassol port for the economy cannot be understated.
On his part, Transport Ministry Permanent Secretary, Alecos Michaelides, said this project is the second largest public private partnership (PPP) in Cyprus, following the construction and operation of Cyprus’ airports.
“The commercialisation of the activities of Limassol Port is more than a project that offers significant financial benefits to the Cypriot economy and the taxpayer. It is a project of strategic importance for our country, which will not only improve the port’s competitiveness in the next decades, but it will also help revitalise the economy and accelerate its return to higher percentage growth.”
Thomas Heinrich Eckelman, President of Eurogate International said the organisation aspires to increase its capacity to 500,000 TEUs over time.
Noting that the corporation capacity in the Mediterranean is 5 million TEUs in 2015, Eckelman said he aspires to increase the volume to 5.5 mln TEUs after operating the Limassol container terminal in the years to come.
On his part, Sultan Ahmed bin Sulayem, President of DP World, said the company believes it can add value and growth to Limassol port, on the southern coast.
“One thing about DP World, we always like to see growth and unless we see growth in any case we would not be interested to be here,” he said.
The transfer of the activities of the port to the consortia is expected to be completed in nine months. In parallel, the efforts to upgrade the regulatory framework of the Cyprus Ports Authority and its transformation to a modern, independent regulatory body continue apace.
The consortia representatives were Thomas H. Eckelmann, President and CEO of Eurogate Group and Head of the Consortium, Adonis Papadopoulos, Chairman of Interorient-Group and Demetrios Mouskos, representing consortium partners Interorient Navigation Co. Ltd and East Med Holdings S.A. for the container terminal.
Heading the second consortium was Sultan Ahmed Bin Sulayem, accompanied by Anil Wats, Ganesh Raj Jayaraman and Rado Antolovic, representing the consortium of companies consisting of DP World Limited and G.A.P. Vassilopoulos Public Ltd for the multi-purpose terminal and the marine services.
Proceeds exceeding original estimates
Under the terms of the concession agreements, the Republic of Cyprus retains ownership of the Limassol Port, while the consortia capitalise on their experience and know-how to ensure the future development through growth of commercial activities and the implementation of optimum operational practice. The estimated economic benefit to Cyprus, in proceeds and investments, during the tenor of the agreements is 1.9 billion euros, based on the business plans of the consortia, exceeding the initial expectations of the government.
Limassol and the Cypriot economy will benefit from the modernisation and operational upgrade of the port as the consortia have undertaken to invest in infrastructure and systems that will deliver improved connectivity and better service to the users.
Next steps
The transfer of the activities of the port to the consortia is expected to complete in nine months. In parallel, the efforts to upgrade the regulatory framework of the Cyprus Ports Authority and its transformation to a modern, independent regulatory body continue apace.
Strategic partnerships
The concessionaires are consortia representing partnerships between strong international and local companies that will work together with the Transport Ministry and the Cyprus Port Authority, in its new role as the Independent Regulator, to develop the activities and the assets of Limassol Port.
Eurogate Group, based in Germany, is an independent operator of 11 container terminal stations from the Baltic to the Mediterranean Sea namely in Germany, Italy, Morocco, Portugal and Russia. It is a leading shipping line, independent container terminal operator in Europe with a total throughput of more than 14.5 million TEUs in 2015.
A privately held company established in 1999 by the merger of the container activities of BLG Logistics Group AG & CO. KG, Bremen (Germany) and the container activities of Eurokai GmbH & Co KGaA, Hamburg (Germany). BLG Logistics is owned by the City of Bremen.
Interorient is a global provider of marine transportation services established in 1979 with offices in Cyprus, Germany, Philippines, Latvia, Ukraine and Russia. Key activities include ship owning, ship management, shipping investments and commercial operations. Interorient is ultimately owned by the family of Adonis Papadopoulos.
East Med Holdings S.A. is a company incorporated under the laws of Luxembourg as of 1988 as a Private Wealth Management company. East Med holds shares in several companies operating in shipping, logistics and marine services.
One of the main shareholders in East Med is D.C. Mouskos Holdings Limited which is 100% owned by the family of Mr. Demetris Mouskos.
DP World plays an important role in the global commerce, with activities ranging from terminal stations, to marine services, logistics and auxiliary services. The consortium includes DP World Limited and G.A.P Vassilopoulos Public Ltd.
DP World is a leading enabler of global trade and an integral part of the supply chain. It has a portfolio of 77 operating marine and inland terminals supported by over 50 related businesses in 40 countries across six continents with a significant presence in both high-growth and mature markets.
DP World has significant experience in operating and developing multi-purpose ports in the Middle East, Europe, Asia and the Americas, where the company’s multi-purpose operations handled 15.6 mln tonnes of bulk/general cargo; 28 mln tonnes of liquids (oil and ammonia); almost 1 mln Ro-Ro units; and 800,000 passengers in 2014.
DP World, operates marine services through its subsidiary, P&O Maritime, a global provider of maritime solutions to governments and leading port operators, commodity traders, mining companies and oil and gas majors. The company operates a fleet of 140 vessels across the EMEA region, South America and Australia.
DP World is a publicly listed company with 20% of its shares traded on NASDAQ Dubai.
G.A.P. was established in Cyprus in 1964 and is listed on the Cyprus Stock Exchange. It is a diversified service group with significant expertise in the transport and logistics sector. G.A.P. is controlled by the Vassilopoulos family.
Advisers to the Ministry of Transport
Financial Advisers: A consortium led by N.M. Rothschild & Sons Limited comprising David Wignall Associates (ports and technical), Deloitte Cyprus (financial and accounting) and V&O (public relations).
Legal Advisers: Pinsent Masons LLP and Ioannides Demetriou LLC.

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