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.

The 3 Consortiums

For clarity to all interested parties, please see below a breakdown of the 3 Consortiums currently in the tender race for the Larnaka cruise port and Marina.

Consortium A
Led by Cypriot based A Vouros Investment and its partners include Singapore CruiseCentre Pte, DP Architects, Joannou & Parakevaides and J&P Avax SA.

Consortium B
Named the Larnaka-Zenon Consortium and its partners include French construction company Bouygues Batiments International, Iacovou Brothers, Amsterdam Logistics Group BV, Lievense Consulting Engineering, Louis Private, Petrolina (Holdings) Public and Marinaman. This consortium also features Costa Crociere, Europe's largest Cruise Line.

Consortium C

Spearheaded by Cypriot based DJK Group and includes Camper & Nicholsons Marinas, Parsons Brickenhoff, Odell International LLC, Viset Malta, Economic Research Associates, WATG, DEPFA Bank, Colliers CRE and McGuireWoods LLP. This Consortium is also supported by RCCL.

by Grant Holmes

Vouros Consortium

Led by Cypriot based A Vouros Investment and its partners include Singapore CruiseCentre Pte, DP Architects, Joannou & Parakevaides and J&P Avax SA.

Zenon Consortium

Named the Larnaka-Zenon Consortium and its partners include French construction company Bouygues Batiments International, Iacovou Brothers, Amsterdam Logistics Group BV, Lievense Consulting Engineering, Louis Private, Petrolina (Holdings) Public and Marinaman. This consortium also features Costa Crociere, Europe's largest Cruise Line.

DJK Group Consortium

Spearheaded by Cypriot based DJK Group and includes Camper & Nicholsons Marinas, Parsons Brickenhoff, Odell International LLC, Viset Malta, Economic Research Associates, WATG, DEPFA Bank, Colliers CRE and McGuireWoods LLP. This Consortium is also supported by RCCL.

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.

Trio vie for chance to put Larnaca in top spot

Bids close in race for huge development project

BIDS have closed from three parties interested in the massive development project to turn the Cyprus port of Larnaca into the eastern Mediterranean’s leading cruise hub.
This is the largest single development project yet undertaken in Cyprus with the cost estimated, conservatively, at €2bn ($2.6bn).

The decision on the preferred bidder is expected at the end of December, with the project then taking five years to complete from award of the contract. There are three international consortia fighting for the 35-year contract to manage and operate Larnaca port.

This is not just a new port construction and operating contract. It involves a massive project that will not only see Larnaca transformed into the area’s top
cruise port but also involves a large scale marina project coupled with a five-star hotel, leisure and retail development linking all areas via a promenade to central
Larnaca and its beaches.

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

Consortium A is led by Cyprus company A Vouros Investment and its partners
include Singapore Cruise Centre, DP Architects, Joannou & Parakevaides and J&P Avax.

Consortium B is called the Larnaka-Zenon Consortium and its partners include French construction company Bouygues Batiments International, Iacovou Brothers, Amsterdam Logistics Group, Lievense Consulting Engineering, Louis Private, Petrolina (Holdings)
Public and Marinaman. This consortium is also believed to include Costa Crociere.

Consortium C is led by Cyprus company D J Karapatakis & Sons and its partners include Camper & Nicholsons Marinas, Wimberly Allison Tong & Co, ERA Economic Research Associates, Spanopoulos Group and Odel International of the US in a joint venture with Parsons Brickenhoff.

Also believed to be involved with the three consortia are Dubai Ports World
and a leading US cruise operator. Capt Pambis Vassiliou, Cyprus Port Authority’s port manager for Larnaca, told Lloyd’s List that the government decided to make Larnaca the country’s leading cruise port a few years ago.

Now, with the bids closed the project has reached the reality stage and the
vision is about to be realised. At present Larnaca does not have any cruise business — that is all going to Limassol. It did have a regular calling in the Israeli-owned Dream, but this ship also now calls in Limassol.

Larnaca port can at present accommodate cruiseships up to 290 m at its South Quay with an alongside depth of 11.4 m. Smaller vessels use the North Quay, which is close to the port’s existing passenger terminal. The critical factor today in accepting
larger cruiseships is a vessel’s manoeuvrability.

The port’s inner turning circle is for 300 m vessels, but the new project expects to increase this to 450 m. Exact details of the proposals submitted to the development of the port as a cruiseship hub are confidential at present. But Lloyd’s List has learnt from one of the bidders that their plans include multiple cruiseship berths, each of more than 300 m length, besides a dedicated cruise terminal.

Although not known as a passenger port, Larnaca showed that it could handle a lot of people earlier this year when the crisis in the Lebanon saw 50,000 pass through the port in a very short time.

The three bids are now being studied in details by the Municipality of Larnaca, the Cyprus Public Works Department and the Larnaca Town Planning Department. Larnaca’s deputy mayor, Alexis Michaelide, believes that this massive project will not only put Larnaca firmly on the international cruiseship map, both for transit calls and turnround calls, but will also turn the city into a world-class tourist destination for pre and post-cruise tourists.

The present extensive expansion of nearby Larnaca International Airport, just 10 minutes from the port, will also play an important role in attracting cruiseship business to the new port.

Mr Michaelides told Lloyd’s List: “we are very happy that the whole project will be privately funded and not involve government money.”