Lucrative superyacht permit granted without issuing tender

Transport Malta chief executive James Piscopo has confirmed that TM awarded a lucrative superyacht permit in the Grand Harbour, without issuing a call for tender or expression of interest.

Transport Malta executive chairman James Piscopo: no tender for 12-month superyacht facility because there was ‘immediate, realizable opportunity that ought not to be missed’
Transport Malta executive chairman James Piscopo: no tender for 12-month superyacht facility because there was ‘immediate, realizable opportunity that ought not to be missed’

Transport Malta has awarded a lucrative permit for a floating dock in the Grand Harbour, without issuing a call for tender or an expression of interest.

Transport Malta chief executive James Piscopo confirmed with MaltaToday that a private company 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.