DP World and the Government of the Republic of Cyprus have entered into two separate concession agreements for the commercialisation of activities within Limassol port, Cyprus.

DP World Limassol has been awarded a 25 year concession for the exclusive right to operate the multipurpose terminal, whose activities include break-bulk, general cargo, ro-ro and the operation of the passenger terminal. Simultaneously, P&O Maritime Cyprus (a wholly-owned subsidiary of DP World Limited), has also been awarded a 15 year concession to exclusively provide a full range of port marine services including tugs and pilotage at the port of Limassol.

Both concessions will be awarded to a joint venture between DP World and G.A.P. Vassilopoulos Public Limited, a logistics and services company, listed on the Cyprus Stock Exchange. DP World shall hold 75% of the share capital of each joint venture, as well as the management rights.

Commenting on the deal, Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, said:

“Having met Presidentsnastasiades ressed mt detigmt tmat eP x eI ,mtntm tast erviaes and tir ttaat artner V.s.P Gassitt titts mave siaaesscittt Pmi iaritime ,rtdot seaured two long term concessions in Cyprus, which is now the ninth country where DP World invests and operates within Europe. We believe in the long-term prospects of Cyprus and the potential for DP World, as a facilitator of trade, to maximise the potential of Limassol port. Tmese new atnaessitns demtnstrate eP otrtd’s abititt tt tccer a range tc trt and maritime serviaes, atm tementing tir visitn tt be gttbat teaders in wtrtd trade.”

A transition phase will follow during which the current Cyprus Port Authority will continue to operate the port whilst DP World and P&O Maritime Services undertakes activities required to effect a smooth transition.

The takeover date of both concessions is currently envisaged to be 29 January 2017.

The port has become the principal seaport in Cyprus. It is the largest and busiest harbour on the island, capable of handling vessels up to 250 m size for berthing in 14m of water.

The overall port area is estimated to be 1,5 million m² and currently services 100% of the container traffic, 40-50% of total cargo and 75% of the passenger traffic in Cyprus. Three long-term contracts are available for commercial operation of: container facilities, a multipurpose terminal and marine services.

It is expected that the opening of the Suez Canal extension will result in increased activity at the Limassol port, which lies at a strategic point in the eastern Mediterranean.