local news

Malta Freeport under threat from Sardinia facility
CMA setting its sights elsewhere

CMA CGM, one of the Malta Freeport’s main customers, is reportedly holding discussions with Britain's P&O Ports over taking a major stake in the Cagliari International Container Terminal in Sardinia.

CMA CGM is allegedly interested in acquiring a 70.3 per cent stake held by TCP, an Italian company that is 50 per cent-owned by P&O Ports.

However, if CMA CGM takes control of the terminal, speculation is running rampant to the effect that it would move the bulk of its 750,000 TEUs a year in transshipment traffic that it currently handles at the Malta Freeport.

CMA CGM currently provides the Malta Freeport with approximately half the Freeport’s annual business, which last year amounted to just over the one million container mark.

It is thought that if CMA CGM were to move the bulk of its operations to Sardinia, the loss of business could be severely detrimental to the Malta Freeport, bringing the number of containers handled per year down to levels last seen in 1995.

The proposal is likely to activate a shake-up of European hub operations by other principal carriers.

Zim Israel Navigation, a probable partner of CMA CGM on several routes, and Norasia Line, are also expected to move to Cagliari, which is said to be offering attractive berthing and crane rates.

P&O Ports acquired its stake in the Sardinian facility three years ago but has failed to win any business and risks losing its 30-year operating concession if it does not sign up customers by the end of June. The company sees the sale of an equity stake as a way to attract and secure long-term business.

On a separate issue, CMA CGM and Maersk Sealand are considering the establishment of hub operations at a planned container terminal at Le Havre alongside Mediterranean Shipping Co.

MSC is already committed to boosting annual throughput to 500,000 TEUs by 2005 in return for the use of two berths at the facility, which will open in 2004.