Marsaxlokk harbour had been identified in the 1960s as a potential major harbour in view of the lack of hinterland space at The Grand Harbour.

Construction and land reclamation commenced in the late 1970s. The Breakwater and Terminal 1 were financed through funds originating from Saudi Arabia and Italy while the Republic People of China provided technical support for the building of the Breakwater.

Works on the Breakwater commenced in the early 1980s. Moving on one reads how in October 2004, Malta Freeport Corporation awarded CMA CGM a 30-year concession to operate and further develop the container terminals, other facilities and the Freeport Centre office complex.

Privatisation brought with it an ambitious expansion and modernisation programme that eventually led to CMA CGM being granted an extension of this initial concession from 30 years to 65 years in February 2008. In November 2011, Terminal Link, which is the port operator arm of CMA CGM, transferred half of its shares in the Freeport to the Yildirim Group of Turkey and in 2013, Terminal Link sold 49% of its shares to China Merchant Holdings (International) Company Limited with CMA CGM retaining a 51% shareholding interest.

Since its privatisation, Malta Freeport Terminals has invested over €275 million in its facilities. The Freeport, which now handles almost three million TEU containers per year, provides direct employment for more than 1,500 people and contributes €170 million - 2% of GDP.

The CEO of the Malta Freeport Terminals, Alex Montebello, expressed satisfaction with the progress achieved so far on the new project to expand the terminal. End of 2025, saw around half of the required works completed. He explained that while the land reclamation project posed significant challenges, these were successfully overcome thanks to the dedication and professionalism of all those involved. During last year's visit, the Prime Minister, together with Ministers Silvio Schembri and Chris Bonett, was also shown the new crane simulator.

This is a state-of-the-art facility able to provide safe and effective training for both new recruits and existing employees. It serves as a key node for major alliances like the Ocean Alliance (CMA CGM, Cosco, Evergreen, and OOCL), as well as lines such as Maersk, MSC, and Hapag-Lloyd. Competition in the Mediterranean transshipment market is intense, driven by factors like geographic location, infrastructure capacity, operational efficiency, and connectivity to global trade routes.

Malta Freeport competes primarily with other specialised hubs for east-west cargo flows, where shipping lines seek minimal deviations, deep drafts for mega-vessels, and quick turnaround times. Key competitors include Gioia Tauro, Taranto, and Cagliari (Italy).

These ports are direct rivals in the central Mediterranean, with Gioia Tauro historically a top transshipment player. Taranto, under Yilport management, has seen cargo growth through integrations with networks linking Turkey, Tunisia and Malta itself.

Next in line, comes Algeciras and Valencia (Spain). Both positioned at the western gateway, Algeciras benefits from proximity to the Strait of Gibraltar and handles significant volumes, while Valencia mixes transshipment with gateway traffic. One cannot omit the challenges from Greece Piraeus. More competition arises from Damietta, Port Said and East Port Said (Egypt).

These Suez Canal adjacent ports capture traffic from Red Sea routes and have invested heavily in capacity, posing strong competition for eastern flows. Equally dominant is Morocco with a massive expansion, one integrated into global networks and benefiting from North African trade growth. Other emerging or niche competitors to Malta include the ports of Naples, Haifa and Ashdod in Israel, or Mersin in Turkey. All add pressure via Chinese-backed projects under initiatives like the Belt and Road. While last year business was brisk, there has been a fly in the ointment concerning challenges of passage via the Red Sea.

These involve intense Houthi attacks, which has led many operators to reroute via the Cape of Good Hope, bypassing the Suez Canal and reducing volumes at eastern Mediterranean hubs. To better prepare itself for future growth in the Mediterranean, Malta Freeport Terminals have (as stated earlier) embarked on an expansion programme.

This measure is strategically designed to future-proof operations amid regional competition from ports like Tanger Med and Gioia Tauro, addressing capacity constraints as the port currently operates near full utilisation. In turn, Gioia Tauro, has concurrently undergone significant expansion and investments in recent years, driven by management changes, infrastructure upgrades, and strategic partnerships. Operated primarily by Medcenter Container Terminal (MCT), a subsidiary of MSC's Terminal Investment Limited (TIL), the port achieved a record 4.5 million TEUs in 2025, a 14% increase from 2024, marking the first time it exceeded 4 million TEUs annually. Such impressive growth at Gioia Tauro, builds on a resurgence since MSC's full acquisition of MCT in 2019. Currently, it has also invested on rail development which includes a terminal with 750-metre tracks meeting European standards.

In conclusion, the expansion of facilities at Malta Freeport comes at a critical time, given the fierce competition from other ports in the Mediterranean. With rivals vying aggressively for new business, securing an early advantage is essential.

George M. Mangion is a senior partner at PKF Malta