New Agreement with French Company to Operate Syrian Port of Latakia
The Syrian Public Authority for Land and Sea Ports has announced the signing of a new contract with the French company CMA CGM for the operation of the container terminal at Latakia Port.
The authority, through a statement released on Wednesday and reported by Reuters, confirmed that previous financial obligations between the parties have been settled, and a new agreement has been established with revised terms and mechanisms. This was discussed during a meeting between the head of the authority, Quteiba Badawi, and Joseph Dakaak, the French company’s representative and Middle East director.
CMA CGM had initially signed its first contract back in 2009, which included a clause allowing for a five-year renewal with mutual consent. Upon the contract’s expiration in 2019, it was renewed under the previous regime.
The company’s investment in the terminal amounts to $45.9 million, part of which is allocated for maintenance and equipment purchases that will eventually be owned by the port authority after the contract term ends.
The new agreement also mandates the company to employ 160 port staff along with an additional 550 workers from the labor market.
Revenue distribution under the deal gives the port 61.05%, while the operating company receives 38.95%.
The container terminal covers an area of 33 hectares in its first phase, featuring four berths, twelve refrigerated container slots, and operational equipment that includes four quay cranes, five mobile cranes, 26 stackers, 17 straddle carriers, 55 forklifts, and 33 tractors.
The contract aims to achieve a global level of operation, implementing a comprehensive electronic control system to manage revenues and operational activities.
This development with CMA CGM marks a significant step towards enhancing the operational efficiency and international standing of Latakia Port, amidst ongoing efforts to rebuild and modernize Syrian infrastructure.
