Filenews 3 November 2024 - by Angelos Angelodimou
The COO of Eurogate (operator of the container terminal at the port of Limassol), Alexandros Demetriades, talks to "F", in his first interview on the one-year anniversary of taking office.
Among other things, it responds to the issue that arose with the port of Larnaka and the ceiling set on commercial traffic. It reveals the sounding out it has received for the possibility that Limassol will serve the trade of Israel and Beirut in the event of a more generalized conflict.
One year has passed since you took up your duties as Eurogate's Chief Operating Officer. What is your assessment and what goals have you set for 2025?
Certainly, assuming the duties of COO of Eurogate Container Terminal Limassol is a huge challenge and a very big responsibility.
During this time, we sought to strengthen our relationships with our customers, based on the triptych integrity-flexibility-innovation, always with respect to the rules of trade. We extended the service hours for the delivery of goods to the mainland, created new stowage areas, installed satellite ship monitoring programs, and started the process to obtain the Seveso certification, which concerns the proper and safe management of dangerous cargoes at the terminal.
We also invested heavily in training, as well as in health and safety infrastructure.
We also recruited, launched an innovative staff evaluation system and encouraged the continuous training of our employees.
How do the conflicts in the region affect the port of Limassol?
The wars in the region, but also in Ukraine, play their part in trade. This would include instability in the Red Sea from Houthi attacks. To avoid these attacks, large traditional companies, such as MSC, COSCO and Maersk, are forced to travel around Africa to other major transit ports, such as Spain, Morocco and even Italy, while previously passing through Suez they used the ports of Malta and Piraeus.
This resulted in huge delays in cargo arrivals, without, however, affecting us significantly, as the market quickly adapted to the new data. There is also an increase in the docking of warships, which come for 1-2 days for refuelling and supplies.
Regarding the role that the port of Limassol can play, we have been approached by various large companies, exploring the possibility of Limassol serving the trade of Israel and Beirut, in case of a more generalized conflict. We have expressed our readiness to help, although at the moment it does not seem to be needed.
Eurogate has been active in the Cyprus market for the last seven years. Given the criticism that has been levelled at the privatisation of Limassol port, what would you say has changed in the port, trade and economy?
Well-intentioned criticism is always legitimate. The privatization, or rather commercialization, of the container terminal has greatly helped to develop trade and boost government revenues. Suffice it to say that the state's revenues have exceeded EUR 40 million. for 2023. This represents 0.15% of GDP.
After the commercialization, the way of operation in Limassol port has changed quite a bit. The huge investments made, contributed significantly to the improvement of service time, security and the way the terminal, which is technologically upgraded and automated, operates. All work is now done using tablets, through Eurogate software and, as we are connected electronically to customs, containers are delivered in just 20 minutes instead of two days previously. In addition, through infogate we provide full information to our customers and carriers on whether or not their cargo has arrived, thus avoiding unnecessary inconvenience.
Moreover, the new state-of-the-art cranes installed at the port – another huge investment – provide the ability to load and unload two containers simultaneously, thus doubling the speed of service and contributing to proper container management.
Investments for 2025 – '26
Are you aiming to further upgrade the terminal? Could we see the use of artificial intelligence in the future?
In recent years, significant investments have been made in the terminal, exceeding €30 million. in cranes, new types of machinery, but also in terms of infrastructure and technology. The further upgrade of the terminal with new technologies, automation and the use of Artificial Intelligence is definitely in our immediate plans.
For 2025-2026 our design includes, among other things, the installation of OCR (Optical Character Recognition) cameras on cranes and other points, with the ability to identify some damage, container number and many other settings.
Another goal is the implementation of Twin Sim technology, which provides the possibility of interactive visualization of the yard where Greek Cypriots are stacked. This will further reduce service times since ships will dock near the containers received for loading.
At the same time, the automatic gate of entry to the port via X-Rays is expected to be implemented, so that by using a code, trucks can enter to receive or deliver cargoes without having to fill in documents. At the same time, we are preparing a more advanced container-refrigerated management system, enabling the recipient to know (via GPS) where the container is located and control the temperature. All the above upgrades include the use of artificial intelligence.
The cap on cargo and charges
An issue that was recently addressed concerns the payment of compensation to the managing company of the port of Limassol due to the fact that the cargo handled in the port of Larnaka was greater than what had been determined as the maximum. As the matter may reach the European Commission, what is your position?
First of all, I would like to make it clear that the issue that has arisen does not concern Eurogate, but the other managing company in the port of Limassol. The agreement made between the state and DP World, which has undertaken the General Trade Terminal, provides that in case the volume of commercial operations at Larnaka port exceeds the set ceiling of 900,000 tons, then the contractor company in Limassol is entitled to receive compensation. We believe that the ceiling or other similar safeguards are right, since they serve as protection to investors and terminal managers. It is not something that harms competition, but it is related to how we ensure to someone who invested in our country and to the management companies that their investment will benefit.
From these investments, the ports have evolved enormously, with significant benefits for the Cypriot economy. This is an extremely sensitive issue and perhaps a more correct approach should be taken to the safeguards contained in the terms of the agreement, which, I repeat, are right to exist.
Quite often there is talk of fees and charges. Do you think that port fees are capable of attracting more ships and goods? What does the traffic to the port show in recent years?
The fees, as well as the respective increases, are predetermined based on the management agreement made with the state in 2017. The agreement includes the formula and mechanism of Indexation, which determines the increases and tariffs of services at the Terminals, so as a managing company in the port we do not have absolute control over the setting of charges.
Taking into account the level of services provided, the investments made, the competition in relation to the prices of other European ports in the region, I think we are at a very good level. We do not consider prices to be prohibitive at all. Attracting more ships has to do not only with the level of fees, but also with other imponderables, such as security, political stability, geographical location, quality and fast service, areas where I believe Limassol is superior to other ports in the region.
Traffic to Limassol port has been increasing in recent years, reflecting the increase in demand for goods. Indicatively, in 2022, 608 ships visited the port of Limassol with approximately 215,000 containers, compared to 743 ships in 2023 with 215,000 containers. We expect that for 2024 the number of ships will exceed 800 and containers 250,000.
