French container shipping group CMA CGM is pursuing a plan to rebuild the port of Beirut within three years, despite a political stalemate in Lebanon that has prevented decisions on the port since an explosion last August, a company executive said.
A chemical explosion at the port killed 200 people and destroyed entire neighborhoods, aggravating Lebanon’s worst political and economic crisis since the 1975-1990 civil war.
CMA CGM’s plan, first presented to Lebanese authorities in September, calls for rebuilding the damaged docks and warehouses, along with expanding and digitizing the port, at a total estimated cost of between $400 million and $600 million, Joe Dakkak, CEO of CMA CGM Lebanon, said Saturday.
“Our offer is still on the table.” “Our project is realistic because the situation is urgent.”
On Friday, German companies presented another multimillion-dollar plan to rebuild Beirut port and neighboring districts.
Dakkak said the German initiative was focused more on long-term real estate development, but that CMA CGM would be willing to contribute to the port part of that project if invited.
CMA CGM is controlled by the French-Lebanese Saade family and the group joined French President Emmanuel Macron’s relief efforts in Beirut after last summer’s explosion.
The French government is not part of CMA CGM’s reconstruction plan, Dakkak said, adding that French companies and financial institutions had shown interest, and that the Lebanese state would have a role through a public-private partnership.
In addition to devastating the bulk section of Beirut port, last year’s explosion destroyed equipment at the container terminal. This has doubled the waiting time for ships, which has added to the port’s long-standing inefficiency, according to Dakkak.
CMA CGM is the leading maritime operator at the port of Beirut, with 60% of volumes, and remains a candidate, in partnership with Swiss company MSC, for the container terminal concession, according to Dakkak.
It has been told that the bidding process to manage the container terminal, which has been delayed by the political crisis, will be relaunched in two weeks, he added.
