Cyprus entered a major debt crisis in 2012. The European Union extended emergency funds but required the Cypriot Government to improve the use of key assets as part of the earn out process.

For Cyprus as an island the port sector is critical to the economic success and it had underperformed for over 50 years. Costs were high and lack transparency. The Port Authority and Government had invested in inappropriate and unnecessary infrastructure. But new investment in tugs, new container cranes, information technology were all required on an urgent basis to enable the island to catch up and compete with other regional players.

Commercialization of Limassol Port has provided the

The operation of the port had to be “cleaned”: legacy leases (licenses), historic non-contractual arrangements, regulatory capacity/capability needed development.

The tariff book had to be re-written to fit a new commercial arrangements and be transparent

Laws had to be changed and a new set of “Cyprus Port Authority” regulations prepared

Parliamentary enquiries, EU bureaucrats and the Troika overseeing the rescue of Cyprus had to be managed.

In addition 3 major concession tender processes had to be run in parallel with the reforms. The over 30 bidders had to be managed in line with EU Procurement Rules

David Wignall Associates were responsible for developing and implementing the strategy. They developed and then executed a market orientated plan that removed ineffective legacy arrangements for cargo handling and replaced them with a:

• World Class Container Terminal with transshipment potential

• A Multipurpose Terminal targeting new industrial users and the development of an industrial free trade zone

• A marine services company focused delivering new service offerings

In 2014, KPMG valued the port assets at Limassol, the main port in Cyprus at € 350m, the Seaport restructuring saw the companies to whom the ports were sold valuing them at over € 1,900m as the deal