Mr. Michael was asked by CNA to comment on the issue which arose following a recent letter from KEBE General Secretary Marios Tsiakki and the meeting held last Friday at the Ministry, with the participation of the three operators (DP World Limassol, Eurogate Container Terminal Limassol, P&O Maritime Cyprus) and other stakeholders such as KEBE, OEB and the Association of Shipping Agents.
"The increase which comes out of the formula is very high, amounting to 16%, so I immediately called a meeting at the Ministry at the request of the KEBE and the OEB, because it is a big increase at a difficult time of inflationary pressures and this will cause a disruption in the market," the DG of the Ministry of Transport said.
According to Michael, DP World Limassol has stated that it is determined to proceed with 100% of the increase it is entitled to on the basis of its contract as well, namely 16%, while the other two companies will come back as their Boards of Directors have not made a specific decision.
At the meeting, Stavros Michael added, "both we and the organizations tried to convince the companies to think very seriously about the financial problems that will be created, we ask them to think about the negative impact on the economy and not to put increases or at least they should be within reasonable limits."
In addition, he continued, it was agreed that the formula by which the increases are calculated should be examined, indicating that the KEBE has expressed an opposing view on the way this calculation is done.[/B]
"But for this to happen, all three companies must agree, to see if what is in the contract can be changed to make it, in our view, more rational," he added.
The companies, according to the DOT DG, will report back within days on their final decisions and a meeting is expected to be reconvened at the ministry "to see how to handle it with the existing contract and try to make changes, next time, to the calculation formula."
[BRB][BRB]At the same time, he expressed the hope that, following the views heard, second thoughts will be given by the companies, and in the event that increases of such magnitude are imposed, Stavros Michael noted that "all parties involved, shipping agents, freight forwarders, etc. should prepare themselves, for how they will handle the issue."
Source: CNA
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