.
The release of the tender last week for the management of the three concessions at Limassol Port seems to have produced the ideal model with a perfect balance between the need for privatisation and de-nationalisation on the one hand, and on the other, satisfying union demands for the eternal continuity of “jobs for the boys” in public service – a political win-win for the incumbent administration.
The fact that as many as 70 potential investors have shown interest to submit a bid for one or all three of the concessions – container terminal, passenger terminal and marine services – goes to show that the port, that handles 80% of cruise passenger traffic and 70% of all trade, has great potential, despite its rigid management and archaic work rules.
What the government has achieved, with little resistance from opposition parties, is that the current owner-operator Cyprus Ports Authority will become a landlord and regulator, hence, its staff numbers will eventually decrease or, on the upside that private management boosts business, the workforce will remain in place, as their responsibilities will double, in the least.
This is what should happen with the other major utilities that will be “denationalised”, for fear of using the “privatise” term just eleven months from the next parliamentary elections, as part of the economic adjustment programme imposed by the Troika of international lenders and the 10 bln euro bailout plan.
So, as suggested by (then opposition) DISY leader Averof Neophytou a decade ago, Cyta should be split into two – the state network owner and the commercial operator – similar to electricity provider EAC – the grid owner and the commercial operator. Already, in the case of the EAC, the noisy unions are preparing to trouble consumers again by planning strikes because the strategy here is to transfer all assets (the grid) to the energy regulator, which makes great sense, just as Britain did when it split BritRail by holding on to the rail lines and maintenance, while privatising all passenger services.
With Finance Minister Haris Georghiades doing a superb job of bringing the economy back on track, he should now do the smart thing and reallocate the surplus from the bailout fund to invest in infrastructure to improve the electricity and telecommunications grids, making it easier to find investors for both commercial services and thus improving connectivity, lowering costs for the private sector and truly supporting innovation and competitiveness.
