The president of Sines port authority, João Franco, has warned that the existing container terminal concessionaire, PSA, could leave the port if the government does not agree to its proposal for a concession extension and to extend the breakwater.
In the case of Terminal XXI, the state originally invested €75m, leaving PSA to find €200m to build the terminal. However, with box traffic continuing to grow, the concessionaire says it needs more space, which it is prepared to fund, although will only do so in return for a longer concession period. In addition, the port authority will have to finance construction of a longer breakwater – and this remains the sticking point.
While PSA does have the necessary €130m to create the additional terminal area, the government has said no to finding €65m to build the breakwater. Instead, it has suggested spending just €40m, making use of the north side of the existing terminal to create more space, albeit only boosting capacity from 1.7m teu to 2m teu.
“There is currently an impasse,” said Mr Franco. “[It] is the worst possible solution. The operator and the shipping line need space to accommodate growth, to compete internationally, but they are unable to do so, so they [may] leave.”
