The renewal is the second for the company, whose first renewal ended in October, as reported by Syria Report on Tuesday, October 29.
The company signed its first renewal contract in 2019 after its initial contract expired in the same year. The original contract, signed in 2009, allowed for a five-year renewal with the consent of both parties.
In February 2009, the General Company for Lattakia Port signed a contract with the French company CGM-CMA, Terminal Link, and Syria Holding to manage the Lattakia Port Container Terminal for a period of ten years, renewable for five additional years by mutual agreement.
The three investing companies later established the Lattakia International Container Terminal Company (LICT) as a Syrian limited liability company to manage and operate the terminal. LICT commenced operations on October 1, 2009.
45.9 million
According to the contract, the operator’s investment totals $45.9 million, which includes $6.2 million for maintenance and infrastructure rehabilitation at the terminal, as well as $6.2 million for the purchase of equipment owned by the port company after the contract expires.
The contract requires the terminal to utilize surplus labour from the port, employing 160 workers at the terminal and 550 from the labor market. Revenue from the container terminal is distributed as follows: 61.05% to the port and 38.95% to the operating company. The terminal must also achieve operational standards that meet global levels, particularly in terms of electronic control of the production process to ensure accurate revenue tracking.
This arrangement ensures that no revenue due to the port is lost. Additionally, the terminal is responsible for supplying essential equipment, including incubators, container handling equipment, and specialized forklifts for cargo management.
The terminal spans 33.38 hectares in its first phase and features four berths, 12 refrigerated container outlets, four quay cranes, five mobile cranes, 26 incubators, 17 staff, 55 forklifts, and 33 locomotives.
This article was translated and edited by The Syrian Observer. The Syrian Observer has not verified the content of this story. Responsibility for the information and views set out in this article lies entirely with the author.
