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PORT NEWSLimassol to be privatisedCyprus’s largest container port is to beprivatised, and interest from global terminaloperating companies is expectedto be keen.The decision to move forward witha bidding tender for the port followsthe approval in early June of a timetableand framework structure for the process.Initially, the Cyprus Ports Authoritywill offer documents inviting companiesto express their interest in the project,a shortlist of candidates will then bedrawn up and further information ontheir business plans requested, afterwhich a concessionaire will be appointed.It is hoped that the process will becompleted by the end of Q1 2016.In all, three tenders will be issued, withone covering operations and investmentin the container terminal, another forthe multipurpose facility and the thirdfor maritime/port services. While thefirst two are for 25-year periods, withfive-year options, the latter is a 10-yearcontract.The past 30 years have seen Limassollose market share to its rivals in theMediterranean region, particularly in thetranshipment stakes, with volumes nowhovering in only the 300,000/350,000TEU range.The Cypriot government believesprivatisation can resurrect the port’sfortunes and allow it to claw back fromports, such as Piraeus, Marsaxlokk andPort Said.Transnetprivatisationmove?The Development Bank of SouthernAfrica (DBSA) has agreed to help adviseand fund private sector investmentin joint ventures between South Africantransport utility Transnet and privatecompanies. South Africa has toyed withthe idea of port, rail and road privatisationover the past 15 years. Private companieshave now built and operate somehighways, but the country’s powerfultrades’ union movement has blockedoutright privatisation of most port andrail infrastructure or operations.However, the government has nowsanctioned the company to form morepublic-private partnerships (PPPs). Likelybeneficiaries include the new containerport planned near Durban, theproposed Ekurhuleni inland containerterminal and new manganese handlinginfrastructure. It will be interesting tosee how much of Transnet’s R336B(US$27.7B) seven-year infrastructuralbudget is actually spent with the privatesector, or indeed whether the companyor government are prepared to publishsuch information.The acting CEO of Transnet Group,Siyabonga Gama, said: “Finding innovativefunding solutions is a key elementof the market demand strategy (MDS).Partnerships with the private sector willnot only broaden our sources of fundingfor capital investments, they [DBSA] willgive us access to private sector skills andexpertise.“At the same time, they will help usmanage risk and provide alternative procurementtools for large infrastructureprojects. In addition, PPPs provide entitieslike Transnet with mechanisms toensure black participation in large-scaleprojects.”The agreement is perhaps recognitionthat private sector companies inSouth Africa have difficulty in securingfunding from private banks. DB-SA’s participation is easier to secure as,in common with Transnet, it is ownedby the South African government. TheCEO of DBSA, Patrick Dlamini, said:“This partnership speaks to one of ourcore objectives of supporting economicgrowth through investing in economicinfrastructure – with transportation beingone of the four key focus sectors toachieve this objective.”Limassol is set to be privatised via three separate tenders within a yearNEXT GENAUTOMATEDCONTAINERHANDLINGINAUGURATED IN SURABAYA, INDONESIAThe Lamong Bay Terminal in Surabaya, Indonesia, was recentlyinaugurated. It’s the jewel in the crown of Indonesian state-ownedterminal operator “Pelindo III”. Its Konecranes automated containerhandling system consists of 20 Automated RMG cranes (ARMGs),Remote Operating Stations (ROSs), and associated container yardinfrastructure. Konecranes also provided 10 Ship-to-Shore (STS)cranes and 5 straddle carriers.The future is very bright for Lamong Bay Terminal and Indonesia.PLEASE VISIT WWW.KONECRANES.COM/LAMONG-BAYFOR MORE INFORMATION.Teesport capacity boostPD Ports Teesport has completed a £22Minvestment project, including reconstructionof 305m of the quay, enabling it toaccommodate fully laden Panamax vesselsat any level of tide.The 12-month project, which is part ofPD Ports’ wider growth plans, was undertakenby McLaughlin & Harvey and supportedby consultants Royal HaskoningDHV and Turner & Townsend.The next phase of the upgrade projectis due to commence in July and, over aseven-month period, an additional 245mof quay will be upgraded. As reported onWorldCargo News Online, PD Teesport isnow using Navis N4 to manage its lolo,rail and ro-ro business. “Over 70% ofcontainers handled at the port can nowbe tracked to their owner, along withany specific requirements the owner hasfor their goods,” the company stated.Using a TOS in this way, claimed PDPorts, is the “UK’s first cross-platform terminaloperating system”, covering container,rail and ferry operations.Teesport can now handle laden Panamaxvessels at any level of tideJune 2015 9

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