Zenon Consortium is preferred bidder for Larnaka cruise port development deal

The massive development project to transform the Cypriot port of Larnaka into the eastern Mediterranean’s leading cruise ship hub has taken a significant step forward with the Government’s Ministry of Communications and Works awarding the €1bn first phase preferred bidder contract to the Zenon Consortium, which includes the two leading cruise lines Costa and Louis.

Zenon beat off intense competition from two other international consortia to secure this DBFO (Design – Build –Finance – Operate) contract for the new cruise/tourism project, which will take Larnaka forward into a new era, managing and operating the new cruise facility for the next 35 years.

Louis plc has a 22 per cent share in the consortium, with Costa Cruises holding 10 per cent. Other partners in the Zenon Consortium include French construction company Bouygues Batiments International, Holland’s Amsterdam Logistics Group BV and Lievense Consulting Engineering, and the Cypriot companies Iacovou Brothers (construction), Petrolina (Holdings) Public Ltd (fuel oil) and Marinaman Ltd (marina specialist). Lievense Consulting Engineering will prepare a port master plan for the new cruise facility, marine and Superyacht port.

Coupled with the construction of a new airport just 10 minutes from Larnaka port, the most advanced in the region, the project will firmly place Larnaka at the forefront of cruise tourism.

Running in parallel with the cruise port project is the building of a new marina, five start hotels, leisure and retail development, all linked via a promenade to ‘down town’ Larnaka and its beaches. Construction work is expected to start at the end of 2009 and the ambitious project is expected to be completed by 2016. Phase One of the project, the new cruise port and marina, is costing €1bn. However, the final bill for all areas is expected to be around €3bn.

Commenting of Larnaka’s ambitious expansion plans, Grant Holmes, CEO of leading cruise industry marketing and training specialists Progress Cyprus Tourism & Business Services (or Progress International) said: ‘Larnaka possesses 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. The home port advantages of Larnaka are: close proximity to the most advanced airport in the Eastern Mediterranean; walking distance from the port to the town centre; proactive cultural events organised by the Larnaka Municipality and an excellent strategic location.’

Larnaka port can currently accommodate cruise ships up to 290m at its South Quay with an alongside depth of 11.4m, with smaller vessel using the North Quay which is close to the port’s existing passenger terminal. The critical factor today in accepting larger cruise ships is the ship’s manoeuvrability. The port’s inner turning circle is for 300m vessels, but the new project expects to increase this to 500m.