Malta Freeport is reviving Malta’s maritime history by stimulating transhipment trade within its shores. Being centrally located on the main trade routes in the Mediterranean with a minimal deviation of just six nautical miles between Gibraltar and the entrance to the Suez Canal, shipping lines calling at Malta Freeport are able to serve both east and west Mediterranean markets with a single main line call. Having been established in 1988, the Freeport was the first transhipment hub in the Mediterranean and presently amalgamates the activities of container handling and industrial storage. Malta Freeport ranks amongst the key players in the transhipment business in the region, handling around 1.5 million TEUs with circa 93% of this traffic being for transhipment.

Terminal Link, a joint venture between CMA CGM Group and P&O Ports has been running Malta Freeport Terminals with increasing success since the 30-year concession agreement was signed in October 2004. During this period, CMA CGM is solely responsible to make all the necessary investment to improve the facilities and equipment in order to consolidate Malta Freeport’s leading position among the region’s transhipment terminals. The concession agreement obliges the Group to ensure that Malta Freeport remains a common-user facility allowing different clients to avail themselves of the Port’s services.

The Freeport is comprehensively resourced to meet the complexities of transhipment. It offers clients safe maneuverability of vessels, an ease of access to markets and all-year advantageous weather conditions with minimal stoppages in operations. Other determining factors of the Freeport’s sustainability are high quality standards compliant with ISO 9001:2000, trained personnel, ongoing investment in information technology enhancements and good industrial relations with minimal strife being registered. Malta Freeport is also fully compliant with the requirements of the ISPS Code. Amongst the most renowned shipping carriers have chosen the Freeport as their transhipment hub and the company is presently linked by regular carrier services to 85 ports worldwide, 53 of which are in the Mediterranean and the Black Sea.

Since its inception, Malta Freeport has invested heavily in state-of-the-art facilities dedicated to transhipment. The Freeport now offers over 2.6 km of quay, a water depth at all mainline berths of 15.5 metres and over 549,000 sq.m of yard space on two Terminals. The Container Terminals are equipped with 9 super post-Panamax Quayside Cranes, 6 post-Panamax and 1 Panamax together with all the supporting yard equipment. Malta Freeport is presently undertaking a heavy investment programme for brand new equipment and expansion of its yard facilities. The various expansion initiatives being undertaken at the Port are aimed at raising capacity from the present 1.7 million TEUs to 3 million TEUs over the next seven years. Within this scenario, Malta Freeport is investing in four super post-Panamax Quayside Cranes capable of reaching 22 containers across the vessel, giving them the capacity to service 10,000 TEU to 12,000 TEU vessels. These Cranes are expected to be on our quays in July 2006. In the meantime, upgrading works are presently well underway on another post-Panamax Quayside Crane of Terminal One to be able to handle effectively containerships stacking 18 containers across on this Terminal. Moreover, as part of this investment programme, Malta Freeport has purchased ten Rubber-Tyred Gantries with the option of another six, two Lift Trucks for stacking empty containers and one Forklift Truck, in addition to modernisation services. Moreover, to further enhance the importance of productivity, twin-lift spreaders will also be installed on the Quayside Cranes. This will permit these Cranes to lift two twenty feet containers simultaneously.

Parallel to this investment, the capacity of the Terminals is also being increased through the development of 70,000 square metres of the hinterland which will be utilised for the stacking of local containers. In turn, the area presently used for the local market will be released for transhipment business. This development complements the Main Gate project undertaken recently. As Malta Freeport is an important gateway to the European Union trade bloc, a border inspection post with both veterinary and phytosanitary laboratory facilities was constructed close to the new Main Gate to ensure free and smooth circulation of goods once these have been cleared and certified in Malta. Malta Freeport is also participating in the project for the screening of containers before entering other ports through the use of a mobile vehicle and cargo inspection system at its facilities. The installation of such equipment backs the Freeport’s effort to stem the flow of contraband.

Malta Freeport's distripark facilities represent an important link in the transhipment chain as they support logistic providers in their efforts to achieve a better quality and more efficient regional distribution depot. The Freeport's round-the-clock industrial storage operations are supported by a highly developed customised infrastructure as well as an extensive transport network which links Malta to various important markets on a regular basis. Since the warehousing facilities lie only six kilometres from the Island's international airport, Malta Freeport opens up excellent opportunities for sea and air links stretching worldwide. Moreover, since Malta Freeport is a free zone, substantially all goods imported by a licensed company are exempt from customs duty, however, goods transferred out of the Freeport into the ‘EU’ are subject to duty. These factors, coupled with the fiscal incentives in terms of the Business Promotion Act (BPA) and other vital business services, offer logistic providers a solid business environment to set up a regional distribution centre. Following Malta’s entry into the European Union, logistic providers can enjoy the free flow of goods upon the payment of the relevant duties in Malta. Through the utilisation of these facilities clients can engage in an extensive range of handling operations including cargo consolidation, break-bulk, storage, re-packing, relabelling and onward shipping. In addition, Malta Freeport also offers assembly and processing possibilities and in some instances, goods finished or partly finished in Malta may qualify for a certificate of origin from the Freeport Authority, provided that certain criteria are met. Clients may also set up their own controlled temperature facilities.

Malta Freeport believes strongly in the future developments of the container transhipment trade. On the strength of the strategies being pursued, the Company is confident that it will continue to sustain its strong growth and emerge with an enhanced reputation as one of the premier ports in the Mediterranean region for many years to come.