The Maltese government has approved an extension to the CMA CGM Group's operating concession for the Malta Freeport Terminals at Marsaxlokk.
The port of Marsaxlokk is to be expanded through land reclamation and upgraded via larger gantry cranes, said investments minister Austin Gatt.
The CMA CGM Group took over Malta Freeport Terminals Ltd. in 2004 under a 'privatization deal'.
The initial deal has already committed CMA CGM to spend $421 million over 30 years; the French shipping company is now set to invest a further $190 million, according to Gatt.
Reports say CMA CGM, the world's third largest container carrier, is also to fund an ambitious dredging project.
An industry source explained to Portworld that Malta's position above North Africa at the crossroads of numerous shipping routes, and its South European links, made it strategically-placed for container operations.
“Already there are many new box terminals springing up all over North Africa to capture Mediterranean cargo; if costs can be maintained in Malta, then efficient handling there would mean serious competition for the new projects,” the source explained.
Recent reports have talked about how North Africa's ports could challenge European ports for regional container transshipment traffic.
They say lower labour costs and fewer environmental restrictions are two factors boosting North Africa's competitiveness.
They point to Morocco's Mediterranean port of Tangier as a leading potential rival to European transshipment hubs.
Maersk and the Mediterranean Shipping Company (MSC) are already investing in the Tangier facilities. The port is scheduled to handle up to 8 million TEUs (twenty foot equivalent units) a year when fully operational.
The Egyptian ports of Damietta and Port Said are also being considered as potential transshipment hubs. A $480-million credit line has been agreed by two Bahraini banks to fund new container handling facilities, due for completion by 2009, at the Mediterranean port of Damietta.
Suez Canal Container Terminal (SCCT) has also signed a concession agreement with the Egyptian government for Phase 2 of the East Port Said port development.
Maersk unit APM Terminals BV. holds a 60% controlling stake in SCCT.
Phase 2 development is scheduled to double SCCT container handling capacity by 2011 to about 5.1 million TEUs from the current figure of 2.55 million TEUs per year.
Alexandria International Container Terminals, part of the Hutchison Port Holdings (HPH) group of companies, has also officially opened two new container facilities at Egypt's ports of Alexandria and El Dekheila.
European Sea Ports Organization chairman Giuliano Gallanti has been quoted saying “this is going to become a serious problem and it would seem as if there is not much Europe can do.”
“The threat is mostly in the Mediterranean, though to a certain extent in the Baltic there is competition from the Russian ports too,” said Gallanti.
The port of Marsaxlokk is to be expanded through land reclamation and upgraded via larger gantry cranes, said investments minister Austin Gatt.
The CMA CGM Group took over Malta Freeport Terminals Ltd. in 2004 under a 'privatization deal'.
The initial deal has already committed CMA CGM to spend $421 million over 30 years; the French shipping company is now set to invest a further $190 million, according to Gatt.
Reports say CMA CGM, the world's third largest container carrier, is also to fund an ambitious dredging project.
An industry source explained to Portworld that Malta's position above North Africa at the crossroads of numerous shipping routes, and its South European links, made it strategically-placed for container operations.
“Already there are many new box terminals springing up all over North Africa to capture Mediterranean cargo; if costs can be maintained in Malta, then efficient handling there would mean serious competition for the new projects,” the source explained.
Recent reports have talked about how North Africa's ports could challenge European ports for regional container transshipment traffic.
They say lower labour costs and fewer environmental restrictions are two factors boosting North Africa's competitiveness.
They point to Morocco's Mediterranean port of Tangier as a leading potential rival to European transshipment hubs.
Maersk and the Mediterranean Shipping Company (MSC) are already investing in the Tangier facilities. The port is scheduled to handle up to 8 million TEUs (twenty foot equivalent units) a year when fully operational.
The Egyptian ports of Damietta and Port Said are also being considered as potential transshipment hubs. A $480-million credit line has been agreed by two Bahraini banks to fund new container handling facilities, due for completion by 2009, at the Mediterranean port of Damietta.
Suez Canal Container Terminal (SCCT) has also signed a concession agreement with the Egyptian government for Phase 2 of the East Port Said port development.
Maersk unit APM Terminals BV. holds a 60% controlling stake in SCCT.
Phase 2 development is scheduled to double SCCT container handling capacity by 2011 to about 5.1 million TEUs from the current figure of 2.55 million TEUs per year.
Alexandria International Container Terminals, part of the Hutchison Port Holdings (HPH) group of companies, has also officially opened two new container facilities at Egypt's ports of Alexandria and El Dekheila.
European Sea Ports Organization chairman Giuliano Gallanti has been quoted saying “this is going to become a serious problem and it would seem as if there is not much Europe can do.”
“The threat is mostly in the Mediterranean, though to a certain extent in the Baltic there is competition from the Russian ports too,” said Gallanti.