Port Authority Takes Over Larnaca Port Operations, Adds Staff and Machinery

Larnaca’s port and marina underwent a shift on May 27 as management reverted to state control. This marked a turning point after the ambitious €1.2 billion development project with Kition Ocean Holdings collapsed.

Ensuring the continuity of crucial services was paramount. The Port Authority has taken over operations, deploying additional staff and private machinery services to maintain smooth operations. As the Chairman of the Port Authority, Zenonas Apostolou, told Phileleftheros, Kition is handling some pending issues, such as the “Amalthea” aid initiative, with the full recovery of the port’s operations dependent on the departure of an American ship bound for Gaza.

The Port Authority has already started procuring machinery services from private companies and has reinforced its staff at the port by deploying employees from its Nicosia headquarters and the Limassol port. “Wherever we identify a need for reinforcement, we will bring in additional personnel from Nicosia and Limassol. However, there was already Port Authority staff at the port, including a director,” Apostolou noted.

The Marina’s Uncertain Future

The marina’s future management, however, remains undecided, with the Deputy Ministry of Tourism emerging as a potential frontrunner. Beyond the immediate transition, a critical question looms: how should Larnaca move forward?

Both the government and local stakeholders are re-evaluating the path ahead, with a growing consensus that the initial plan may require revision. The idea of separating the port and marina projects is gaining traction. Larnaca’s Chamber of Commerce and Industry believes the port can function effectively on its own, while the marina presents a more attractive prospect for investors.

Larnaca Mayor Andreas Vyras echoed this sentiment, proposing the formation of a joint committee with the Ministry, local authorities, and business representatives to develop concrete proposals within a month. The Minister of Transport acknowledged the possibility of separating the projects but emphasised the need for a fresh feasibility study.

Regarding potential legal proceedings initiated by Kition Ocean Holdings, the Minister was reassuring, stating that the Law Office’s position is that the state can proceed with further planning and implementation once the contract is terminated. The initial unified development plan, dating back to 2005, may no longer reflect current realities and local aspirations, he noted. The Minister also highlighted the importance of incorporating the Larnaca community’s evolving needs into future plans.

Employment Concerns and Political Ramifications

While the government navigates the project’s future, the fate of Kition Ocean Holdings’ 80 employees hangs in the balance. Trade unions are advocating for their rights, and initial assurances have been given that a solution for continued employment will be found. A meeting on Thursday involving the Ministers of Labour and Transport is expected to shed more light on their future.

The government intends to follow established labour law procedures, likely resulting in continued employment for those directly involved in port and marina operations. However, the future of administrative staff remains unclear.

The project’s collapse has inevitably become entangled with politics, with DISY calling for an immediate meeting to address the situation and AKEL raising questions regarding “the handling of large investments by the DISY-Anastasiades government.”

Larnaca’s port and marina find themselves at a crossroads. While the state ensures continuity in the short term, a critical period of re-evaluation and planning lies ahead.

Larnaca's port and marina are now under state control following the collapse of a major development project
Following the collapse of a major development project, Larnacas port and marina, now under state control, will focus on modernizing infrastructure, enhancing tourism facilities, and attracting private investment to boost economic growth and create job opportunities.

Can the government ensure the smooth operation of Larnacas port and marina now under state control following the collapse of a major development project?

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