Private firm files protest against Transport Malta direct order

A private company has filed a judicial protest against Transport Malta chairman James Piscopo, for unilaterally granting a lucrative permit for a floating dock in the Grand Harbour, without issuing a call for tender or an expression of interest.
The company, Woman In Management Ltd, have demanded that TM repeal the concession it gave to Melita Shipyard Ltd in breach of competition laws as determined by the European Court of Justice.

The company said it could have possibly shown interest in the regulator’s contract, but that this was not published and therefore prevented them from competing for it.

Transport Malta chief executive James Piscopo had confirmed with MaltaToday that Melita was directly awarded the permit “because this was an immediate, realisable opportunity that ought not to be missed.”

The operation is expected to generate a turnover in the region of €10 million annually, Piscopo said, adding that this would also have a spillover effect for subcontractors and related services.

MaltaToday is informed the permit for the superyacht facility, which will be situated at the Outer Coal Wharf in Kordin, was awarded to entrepreneur Pierre Balzan, who only last month registered a new company, Melita Shipyard Ltd.

However, Piscopo would only confirm that TM had entered into an agreement with a third party operator for the use of Outer Coal Wharf for the berthing and operation of a floating dock and for the provision of repair services on superyachts and marine vessels.

“The initiative is directed towards addressing lack of capacity issues, increasing competition and is thought to be an important step towards the further development of this lucrative industry,” Piscopo said.  

He said the 12-month agreement was similar to other agreements for use of other port areas, and renewable subject to the success of the operation and at TM’s discretion.

However, although TM awarded a 12-month contract, the operator is bound by a series of long-term conditions, including the engagement of four apprentices for three consecutive years.

Piscopo also said the operator will invest €4 million in infrastructure, equipment and upgrading of the area, and must employ 10 additional employees to the current direct compliment in the first year.