A view shows the damaged site of the blast in Beirut's port area, Lebanon, August 7, 2020. REUTERS/Mohamed Azakir
by Gus Trompiz (Reuters) – French container shipping group CMA CGM is pursuing a plan to rebuild Beirut’s port within three years, despite political deadlock in Lebanon that has prevented decisions on the port since a blast last August, a company executive said.
A chemical explosion at the port killed 200 people and destroyed entire neighbourhoods, deepening Lebanon’s worst political and economic crisis since the 1975-1990 civil war.
CMA CGM’s plan, first outlined to Lebanese authorities in September, envisages the reconstruction of damaged docks and warehouses, along with port expansion and digitalisation, at a total cost estimated at $400 million to $600 million, Joe Dakkak, general manager CMA CGM Lebanon, said on Saturday.
“Our offer remains on the table,” he told Reuters. “Our project is a realistic one because the situation is urgent.”
On Friday, German companies presented a separate multi-billion-dollar plan to rebuild Beirut’s port and neighbouring districts, confirming a previous report by Reuters.
Dakkak said the German initiative was more focused on longer-term real-estate development but CMA CGM would be willing to contribute to the port part of that project if invited to.
CMA CGM is controlled by the French-Lebanese Saade family and the group joined French President Emmanuel Macron in relief efforts in Beirut following the explosion last summer.
The French government is not part of CMA CGM’s reconstruction plan, Dakkak said, adding French companies and financial institutions had shown interest, and that the Lebanese state would have a role through a public-private partnership.
As well as devastating the bulk section of Beirut port, last year’s blast destroyed equipment in the container terminal. This has doubled waiting time for vessels, adding to longstanding inefficiencies at the port, according to Dakkak.
CMA CGM is the leading shipping operator at Beirut port, accounting for 60% of volumes, and remains a candidate in partnership with Swiss-based MSC for the concession to run the container terminal, Dakkak said.
It has been told a tender process to run the container terminal, held up by the political crisis, will be relaunched in two weeks, he added.
(Reporting by Gus Trompiz; Editing by Pravin Char)
Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.
Join the 110,168 members that receive our newsletter.
Have a news tip? Let us know.
The U.S. Department of Transportation’s Maritime Administration (MARAD) has unveiled a significant investment of nearly $580 million to bolster port infrastructure across the nation. The funding, part of the Bipartisan...
Chinese President Xi Jinping launched a week-long diplomatic blitz of South America on Thursday by inaugurating a massive deep-water port in Peru, a $1.3 billion investment by Beijing as it seeks to expand trade and influence on the continent.
The Port of Long Beach handled nearly 1 million twenty-foot containers in October, setting new record as the port’s busiest month in its 113-year history. Fueled by soaring demand for...
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
Sign Up
Maritime and offshore news trusted by our 110,168 members delivered daily straight to your inbox.
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
