The French shipping company “CMA CGM” has renewed its contract with the regime government for investing in the container terminal at Latakia port.
This renewal marks the second time for the company, following the end of its first renewal in October of this year, according to the Syria Report on Tuesday, October 29.
The company had signed the first renewal contract in 2019, after the end of its initial contract in the same year. The first contract signed in 2009 included the possibility of renewal for five years with the consent of both parties.
The General Company for Latakia Port signed in February 2009 a contract with both the French company “CMA CGM” and Terminal Link company along with Syria Holding to manage the container terminal at Latakia port for a duration of ten years, renewable for another five years upon agreement from both parties.
The three investing companies later established the Latakia International Container Terminal (LICT) as a limited liability Syrian company tasked with managing and operating the container terminal. It began its operations on October 1, 2009.
According to the contract, the operator’s investments amount to $45.9 million, including $6.2 million for maintenance and rehabilitation of the terminal’s infrastructure, and another $6.2 million for purchasing equipment that will remain the property of the port after the contract ends.
The contract obliged the terminal to benefit from the excess labor at the port by employing 160 workers at the terminal and 550 workers from the labor market, with the terminal’s revenues distributed at a rate of 61.05% for the port, and 38.95% for the operating company, and to ensure that the operational level of the terminal is up to global standards, especially regarding electronic control of the entire production process, which regulates the revenues, thus preventing the loss of any amounts due to the port, in addition to providing machinery at the terminal’s expense, mainly container handlers and forklifts for handling goods.
The terminal area is 33.38 hectares in the first phase, featuring four docks and twelve refrigerated container inlets, as well as four berth cranes, five mobile cranes, 26 container handlers, 17 “staffas”, 55 forklifts, and 33 trailers.
Latakia port is considered one of the oldest ports in Syria. The Syrian government established the Latakia Port Company as a joint sector (private and public) in 1950, according to legislative decree No. 38 which mandated the establishment and investment of a maritime port in the city of Latakia with its associated structures.
The company became affiliated with the Ministry of Transport from 1974 and later transformed into a public company (public sector) under law 17 of 1982.