Monday, January 28, 2008

Decision due on Larnaka Cruise Port

Cyprus port has ambition to become eastern Mediterranean’s leading tourist hub

A DECISION is imminent on which of three international consortia will undertake the massive development project to transform the Cyprus port of Larnaka into the eastern Mediterranean’s leading cruiseship hub. The successful bidder, however, is not expected to be announced until after the Cyprus presidential elections in mid February.

Whichever consor t ium wins the ‘design–build–finance–operate’ contract will take Larnaka forward into a new era, managing and operating the new facility for the next 35 years. Coupled with the construction of a new airport just 10 minutes from the port, the most advanced in the region, the project will place Larnaka firmly at the forefront of cruise tourism.

Running in parallel with the cruise port project is the building of a new marina, five star hotels, leisure and retail development, all linked by a promenade to Larnaka town centre and its beaches.

The ambitious project is expected to be completed five years from contract award. Phase One, the new cruise port and marina is costing €1bn ($1.46bn), but the final bill for all areas is expected to be around €3bn.

A vision of the new cruise and tourism era for Larnaka was given to 200 delegates
at a conference in the city during which Progress Cyprus Tourism & Business Services
chief executive Grant Holmes, outlined the port’s plan to become a homeport for cruiseships and the area hub.

He said Larnaka possessed the ideal conditions to become a home port serving the eastern Mediterranean, Greek Islands, Black Sea and the Holy Land, with particular
attraction to British, German and Cypriot cruise lines. Homeporting in Larnaka offered obvious advantages such as close proximity to the airport, walking distance from the port to the town centre, proactive cultural events organised by the Larnaka Municipality and an excellent strategic location.

The Larnaka cruise message is already reaching the industry, as an unnamed British operator is expected to operate three cruises out of the port in April. The decision on the winning bidder will be made by the government, and details of the proposed development of the port are under wraps, although Lloyd’s List has had a sneak preview of some of the ideas, one of which includes two modern cruise
terminals and alongside berths for seven ships up to the size of Royal Caribbean’s
Genesis-class.

The three consortia bidding for the project involve some of the biggest names
in the shipping and cruise industry, including Louis Cruise Lines, Costa Crociere
and the specialist divisions of Amsterdam Port and the Port of Singapore Authority.