Filenews 23 February 2026 - by Angelos Nikolaou
The Government is proceeding with a strategic shift for the future of Larnaca, adopting a new development model based on the functional separation of the port from the marina. After years of setbacks, the Minister of Transport, Communications and Works, Alexis Vafeadis, clarifies the landscape around the long-suffering project, ruling out the revival of the contract with Kition and favouring solutions that ensure sustainability and the public interest.
The Minister, in his statements to "F", appeared categorical regarding the legal framework and the requests for the restoration of the previous situation. As he explained, the Legal Service set clear red lines that do not allow a return to the past. "From a legal point of view, it is not possible to revive a terminated agreement, so this possibility cannot be considered. Regarding the direct award of a new contract, the requirements of the law are not met, and, therefore, the request could not be accepted," said Mr. Vafeadis. He underlined that the government must move through transparent procedures, noting that: "The State cannot circumvent the legal framework. Given that there are economic operators that can undertake the project, the process must proceed through a notice, in accordance with the Legislation."
According to Mr. Vafeadis, "from the beginning, we have been dealing with all options for the development of the port and marina of Larnaca openly and without prejudice. Especially when it comes to such important infrastructure, it is necessary to have a complete and objective picture before any decision."
The most important news concerns the decision to abandon the model of single growth. According to the Minister, the experience of the last 20 years (the project failed three times due to financial changes) and the failures of the past showed that the coupling of the two projects increased the risk. "Specialization in the design and operation of ports and marinas requires separate bodies for each use, in order to ensure quality and the public interest. Joint development leads to sustainability problems, since interdependencies are created between the two sectors, which can be detrimental to the progress of the project and increase the State's exposure to risks," he said.
He even added that the separation allows the State to intervene correctively in one of the two sectors without jeopardizing the overall investment.
The plan for the Marina: Expansion for 200 vessels
In the new era, the marina of Larnaca is destined to become a modern tourist pole. The plan includes immediate interventions to meet the increased demand. According to the study, the substantial upgrade of the Larnaca marina is preferred, in order to meet current and future demand and strengthen its role in the local economy. "It is planned to expand the facilities, utilizing the existing breakwater, in order to ensure, at an initial stage, the ability to accommodate an additional 200 vessels, thus meeting the immediate requirements of the market."
According to Mr. Vafeadis, this upgrade will enhance the competitiveness of the city, taking into account that the existing infrastructure suffered from "incomplete maintenance in previous years".
He added that in case a further need for expansion is identified, this will be considered as a new or complementary action. "It is estimated that the upgrade and expansion of the marina will contribute to attracting more tourist boats and visitors, strengthening local economic activity, while at the same time taking into account environmental data and ensuring rational management of the area. Overall, the study concludes that this is a strategic investment for Larnaca, enhancing the city's competitiveness and its stable development prospects", the Minister noted.
The Port as a commercial and tourist hub
For the port, the study of the experts favours a functional reorganization. The southern part will take on a tourist form with a new terminal that will be directly connected to the city, while the northern part will focus on commercial activity.
In this context, he said, the southern quay will serve tourist purposes, while a new terminal is planned with a direct connection through the marina to the city, enhancing safety and passenger experience.
"The northern quay will host commercial activity, with new, efficient equipment and infrastructure upgrades, so that it can accommodate more and larger ships. This choice becomes necessary, as the current layout and the existing infrastructure of the port are not sufficient to meet the growing demand," said Mr. Vafeadis.
"This choice becomes necessary, as the current layout and the existing infrastructure of the port are not sufficient to meet the growing demand of the coming years, even if part of the loading and unloading is transferred to Vasiliko. Without substantial changes in infrastructure, the prospect of developing port activities will remain limited.
This direction is in line with the initiatives already launched by the Government to strengthen the supply chain and modernize port facilities, through digitization of procedures and improvement of transport coordination," he explained.
The Minister emphasized the importance of the port in the supply chain, noting that the goal is to reduce costs for merchants through the utilization of land space. "With this reorganization, the port of Larnaca acquires a clearer operational role, enhancing the competitiveness and overall efficiency of port services," he noted.
Answering a question about the role of the port in the country's supply chain, Mr. Vafeadis said "The port of Larnaca has an important role in both tourism and the country's supply chain. Although emphasis is often placed on its tourist character and cruise ship docking, it has become clear that, without its function as a home port, this activity remains limited, especially due to the difficulty of serving large ships."
Developments in global trade and the geoeconomy offer new opportunities for Cyprus, especially in the area of transit trade and e-commerce support. In this context, he added, the port of Larnaca can play a complementary and strengthening role in the national port network, contributing to the faster and more efficient movement of goods.
The ports of Larnaca and Limassol have the potential to leverage their geographical and economic advantages. "In combination with the strengthening of bilateral and regional cooperation that the Republic of Cyprus has developed in recent years, additional prospects are created for upgrading the country's role in the field of transport and transit trade. The upgrading of the operation of the port of Larnaca is a prerequisite for the country to strengthen its position as a reliable hub in the regional supply chain and to take full advantage of the new trade and geoeconomic opportunities," he added.
The role of ALK and the next steps
The implementation of the projects passes into the hands of the Cyprus Ports Authority (CPA), which will act as the institutional arm of the state. "The implementation, the Minister said, will be entrusted to the Cyprus Ports Authority, due to its specialized experience in the management, construction and upgrading of ports, as well as the available funding. The Ports Authority operates as the institutional arm of the State in the field of port infrastructure, ensuring immediate coordination, institutional supervision and continuous control of the progress of projects. The human resources of the Ports Authority will be strengthened with specialists, such as project managers, architects, engineers." Mr. Vafeadis concluded by stating that a Monitoring Committee will be created in collaboration with the local community of Larnaca, ensuring that the project will finally enter a stable implementation trajectory without further delays. "More details on the timeline will be announced after the submission of comments by the Larnaca Monitoring Committee, the finalization of the options and the approval of the Ministry of Finance. This process is estimated to limit the implementation time and investment risk, as the involvement of the State allows for more effective management of the technical and financial parameters of the project", concluded the Minister of Transport.
