Although the negotiations went smoothly for the greater part, its ease of passage was much facilitated by last minute agreement to the privatisation by the Union Haddiema Maghqudin.

In fact, CMA CGM director general Farid Salem pledged that all port workers currently employed at the Freeport would retain their employment. “And once outdated work practices are removed and we have higher efficiency and better productivity, we will develop the port further. And that will mean more jobs for Maltese people,” he said.

Investment Minister Austin Gatt said that CMA CGM had been at the Freeport since 1998 anyway. “We have now become business partners. We are proud to be associated with one of the largest and fastest growing shipping companies in the world. We are also extremely happy to be working with P&O who will be running the Freeport,” said Dr Gatt.

Dr Gatt confirmed that just a few minutes before agreement was reached, the UHM conceded to the privatisation of the Freeport. Asked by The Malta Independent, Dr Gatt said the clinching factor to UHM’s agreement was: “Goodwill as always. A meeting of minds around a table along with the realisation that with all things taken into account, there can be no losers,” he said.

Dr Gatt said this was not a conventional privatisation agreement, terming it as a long-term strategic decision for the future of the country. “We entered into this agreement with our eyes open. We know there is vast competition in this sector, but I am sure we can make it. The future looks good,” he said with a characteristic smile.

Dr Gatt said the venture was not just about the money “although $421 is not a figure to be sneezed at”, but it was also about the long-term benefits which Malta will reap. “Let us not forget that after 30 years, the Freeport, which did not even exist until 1989, will be back in the government’s hands,” he said.

He reminded that the Malta Freeport Corporation will be the Freeport’s regulator. “I believe we have made a very good deal.”

Mr Salem also addressed the media following the signing of the agreement and said that he looked forward to a very rosy future. “We want Malta to become one of our major hubs along with ports like Kingston, Khor Fakkan and Kelang. We will be able to service the whole of Europe, and of course the rest of the world from here,” he said.

He said that CMA CGM was the fifth largest shipping company in the world. “We are expecting a E4 billion turnover for 2004 and we link Malta with no less than 82 countries around the world. We also want to increase the amount of containers handled in Malta to 2.3 million from 1.3 million,” he said.

Mr Salem said that CMA CGM pledged to not only bring new equipment and technology to the Freeport, but also to increase the storage space and to increase the number of gantry cranes to 18.

The company owns 174 vessels with an average tonnage of 383,000. In 2007, they are expected to purchase an additional 43 vessels. The company also has plans to make use of feeders in Malta to service emerging markets such as the Baltics, the Black Sea and established ones such as Italy, Greece, North Africa, Turkey and the Middle East.

Speaking about his dealings with Maltese trade unions, Mr Salem said: “The meetings were very open, frank and fair. We want to improve these relations.”

Concluding before the official signing of the agreement, Mr Salem said: “Malta is going to become one of the most important ports there is. Everything that comes from the Far East or the US will be handled through here. We look forward to long years of success and cooperation.”

The Union Haddiema Maghqudin yesterday gave the green light to the Malta Freeport privatisation process after its members employed with the freeport approved the agreement.

CMA CGM also agreed to salary and allowance increases, the introduction of parental leave and better shift and overtime arrangements as well as promotion opportunities, the union said in a statement.

The union said that late on Monday it held negotiations with the company after the ministry responsible did not take heed of the queries it had over the deal.

The union accused the government of covering up the company’s losses over the past two years. While government officials always boasted that everything was going well with the company, figures released yesterday show that the Freeport had made losses of over Lm3 million during the past two years, the statement said.

The workers voted for the privatisation process to continue yesterday afternoon, during a meeting held at the Freeport itself. There are still points to be discussed further. UHM will now hold meeting with the workers’ groups to explain the clauses and procedures related to the collective agreement in detail.