Competitiveness and Communications Minister Censu Galea yesterday toured the upgrading port operations carried out by the Valletta Gateway Terminal (VGT). As part of their concession agreement with the Malta Maritime Authority, VGT is to provide new machinery and equipment in order to improve and further develop cargo operations at this terminal.

Last year, the company purchased various new equipment, including four RTGs (rubber tyre gantries). Now it is continuing to add other new equipment, with the arrival of a quay crane which will help to facilitate and hasten cargo operations.

During the visit, Mr Galea complimented the VGT on the acquisition of the quay crane, the first of its kind for the Grand Harbour. He said the investment and the extensive work carried out at the port augured well, and would certainly be an asset for cargo handling operations. This was also another step forward with the aim of attracting more operators to go through Malta’s channels, having a ripple effect by creating more work at Grand Harbour and in local industry.

While touring the preparatory works at Laboratory Wharf, it was explained that the Rail Mounted Container Gantry Crane weighing 990 tons was purchased from Le Havre Port in France. The crane was placed on temporary rails and will commence cargo operations as soon as possible. It was also announced that the VGT is currently in the process of acquiring a second similar crane which should be in Malta in 2008.

Mr Galea said the investment by the new cargo handling operator in Valletta was a direct result of the port reform process. “It is clearly stipulated in the agreement, which was the fruit of the reform process, that the operator embarks on a process to upgrade the facilities in order to meet the challenges in the market and face competition in the sector.

“On the other hand, investment in machinery alone does not make us competitive. The efficiency of our workforce makes a lot of difference. In this regard I am pleased to note that the port workers, led by the Malta Dockers Union, have understood this well, and in contrast with the past, not only have they accepted changes in work practices, but have gone as far as being proactive in upgrading their work practices and undergoing training to meet new challenges. This is a break from the past and augurs well for the future.”

The Minister said that the ongoing port reform process was resulting in a win-win situation, which was leading to lower charges and higher throughputs which in turn, was increasing income for the workers and reducing port costs. While some tried to give varying interpretations as to the real scale of the reductions in regulated costs, if one were to compare like with like, costs have all been reduced substantially.

Mr Galea said that a comparison of port cost reductions (for regulated charges only) as at August/September 2007, compared to June 2006 was available for both ports. It should be noted that, in June 2006, the port costs in both ports were different.