Portek International, a strategic partner in the consortium carrying out cargo handling at Grand Harbour, seems to have fallen on hard times since taking on the contract to run Grand Harbour’s cargo handling operations

The company issued a profit warning to its shareholders this week indicating that earnings for the second half of the financial year ended 31 December 2006 would fall by some 50 per cent.

The second half of the financial year coincides exactly with the date it took up operations in Malta – 1 July 2006.

While the company is set to issue its full financial results next week, it blamed the slump on increased expenses from its new operating units in Malta and Italy, as well as on back taxes imposed on its companies in Indonesia.

The port terminal operator’s share price on the Singapore Stock Exchange fell by 12.2 per cent to a 43-month low.

The company is a turnkey provider of equipment, services and solutions to the global port industry, and is currently running cargo handling operations at Grand Harbour after a tender exercise carried out last year as part of a long-awaited port reform removed the General Workers’ Union company from the arena.

Portek International forms part of the consortium that was awarded the contract for cargo handling operations at Grand Harbour. Other members of the consortium, TF Shipping Agencies Ltd, include the Tumas Group Company Ltd and Portek Ports (Mauritius) Ltd. The tender covers cargo handling operations at the Deep Water Quay and Laboratory Wharf and was expected to see a reduction in port charges, a common gripe among Malta’s importers and exporters.

The consortium is to invest some Lm5.2 million in Grand Harbour’s port infrastructure, pay an annual rent of Lm350,000 and give a two per cent cut from its cargo handling income to the Malta Maritime Authority.

The TF Shipping Agencies Ltd consortium’s bid had beaten stiff competition for the tender put up by competing interests such as the Hili Company Limited, a consortium made up of the General Workers’ Union (Holding) Limited and Port Workers Investments plc; Kuwait & Gulf Link Stevedoring Company Ltd; La Valletta Terminal Co (Malta) Limited represented in Malta by Farrugia, Gatt & Falzon with the consortium including BLG Consult based in Bremen, Germany, Salv Bezzina and Sons Limited, Salvu Meli and Sons Ltd and Joseph Paris and Malta Ports Terminals, a consortium composed of stevedores and foremen, ship agents and British Portia Management Services Ltd as the strategic operating partner.