French shipping company CMA CGM said on Thursday that its subsidiary signed an agreement with Lebanon on the modernization of the container terminal of the Beirut port with a target to increase its capacity to 1.4 million twenty-foot equivalent units (TEUs).
BEIRUT (Pakistan Point News / Sputnik - 17th February, 2022) French shipping company CMA CGM said on Thursday that its subsidiary signed an agreement with Lebanon on the modernization of the container terminal of the Beirut port with a target to increase its capacity to 1.4 million twenty-foot equivalent units (TEUs).
"Following the bidding process, CMA Terminals, a fully-owned subsidiary of the CMA CGM Group, a world leader in shipping and logistics, has been chosen to manage, operate and maintain the Port of Beirut's container terminal for a 10-year period starting in March 2022," the company said in a statement.
The $33-million modernization project will leverage the use of technologies for environmental performance improvements and upgrade of infrastructure, among other enhancements listed in the contract.
"As a result of the agreement reached, based on new prices, we will be able to replenish the treasury with additional tens of millions of Dollars. This means that we can launch the capacities of sea harbors without intermediaries if desired and based on common interests," Lebanese Public Works and Transport Minister Ali Hamieh told a press conference.
The contract stipulates that Lebanon pays $19.4 million in the first two years of works at the port, the minister added.
A powerful explosion occurred in the port of Beirut on August 4, 2020. At least 280 people died, and more than 6,000 were injured. Hundreds of houses and cars were destroyed or damaged. According to the authorities, the explosion resulted from the detonation of 2,750 tonnes of ammonium nitrate seized by customs in 2014 and stored in a warehouse. The Lebanese capital was declared a disaster area following the blast.
