The government recently began accepting expressions of interest from companies ready to administer cargo handling operations.

For many years, these have been run by Cargo Handling Co. Ltd, owned by the General Workers Union.

Over the past months, the government has paved the way for such a process, repeatedly pointing out that there is an urgent need for a reform in the ports that will make them more efficient and reliable, as well as possibly less costly.

It has now fully embarked on the project which, according to what was said during the press conference, will completely change the way things are done in the harbour. The reform will come together with alterations to the legal regulations, with the government intending to bring it to life in May.

No doubt, the GWU will not give in without a fight, having interpreted the government’s move as an attempt to weaken the union in financial terms.

Right now, the union is concentrating on other, more pressing matters, such as the situation at Sea Malta and the closing down of Interprint. But it is only to be expected that the union will not accept any change with open arms.

Of course, Cargo Handling can bid to continue running port operations just like anyone else. But, to stand a chance of winning the contract, it must show that it is willing to perform under new conditions and do so with the utmost efficiency.

Cargo Handling’s current contract expires in May. It has been running port operations for some 30 years. But the problem is that the system that was introduced back then might have been suited to the 1970s, but is no longer viable today. As Competitiveness and Communications Minister Censu Galea said during the said press conference, the market has changed.

The law, as it stands now, is no longer suitable for today’s needs and this is why it needs to be updated. One glitch mentioned during the press conference is, for example, that Cargo Handling is paid for services that it does not carry out at the Malta Freeport.

One could point out that changing from one operator to another – if such a change is made – will simply mean that cargo handling will pass from one monopoly to another. Yet, the winner of the new contract will have acquired the right to conduct port operations after a “transparent competitive bid process”. Apart from this, the new contract will be based on the exigencies of today’s market, not those of 30 years ago.

This will make the service provided in Valletta more competitive. These days, it was explained, Cargo Handling’s work has declined considerably, because the service is expensive and slow in comparison with, say, the Malta Freeport. It is also less competitive than similar services provided in ports abroad.

As such, the new contract should set down cheaper charges and a more efficient system, aimed at increasing the workload and at the same time improving the reliability of the service.

A big bone of contention – if Cargo Handling are not awarded the contract – will be the future of the 100 or so workers this company currently employs. This is certainly a matter of concern that should be tackled in the right way.

The government has already stated that there is no clause which binds the would-be new operator to take on Cargo Handling’s employees – again, if this company is not awarded the new contract – or to provide alternative employment.

Past, and more recent, experience has shown that the GWU has always offered resistance on such matters.

On the whole, however, it must be admitted that the reform of the ports is needed. Common sense should prevail in such circumstances, and unnecessary turmoil should be avoided.

Malta, as a whole, cannot afford it.