The VGT Group plans to turn the land formerly occupied by Marsa Shipbuilding into a container storage facility if privatisation talks with the government are successful.

On Thursday, the government announced VGT was the preferred bidder for the privatisation of one of the business units of Malta Shipyards, which includes the shipbuilding and steel fabrication facilities in Marsa.

The  Group plans to use a 600-metre stretch along the coast in Grand Harbour to connect the Marsa area to the quayside at Ras Hanzir in Kordin.

VGT chairman George Fenech said when contacted that the company wanted to take advantage of the upswing in container transhipment business in the Mediterranean and expand its operations in the Grand Harbour. “ We intend using the area as a container terminal. We will retain the dock but we will be using it to stack containers. We will also retain the sheds for storage and intend strengthening the overhead cranes,” Mr Fenech said. Leaving the dry dock intact was a condition imposed by the government and this meant its architectural value would be preserved. Only small ships would be able to dock alongside the quay at the shipbuilding site but VGT would be using a 600-metre stretch of road along the coast to connect the Marsa area to the quayside at Ras Hanzir in Kordin, where the company already has cargo operations. “Container activity has dropped slightly worldwide but it has seen an upturn in the Mediterranean and we intend capitalising on this. North Africa is growing and so is the transhipment of containers,” Mr Fenech said.

VGT is a consortium made up of the Tumas Group and Singaporean interests. The shipbuilding facility is just one of the four principal business units that belonged to Malta Shipyards, which the government wants to sell. Talks will also start with the Manoel Island Yacht Yard Consortium for the sale of another asset, the yacht repair yard at Manoel island. The consortium, which includes Midi plc, was also identified as preferred bidder by the Privatisation Unit. Attempts to contact representatives of the consortium proved unsuccessful. No progress has yet been reported on the sale of Malta Shipyards’ two other business entities, the super yacht facility and the ship repair facility. Bids for these two units fell below the government’s expectations and new submissions have been requested.

The original Document from the Sunday Times of the 6th June 2009 can be found here.