Beirut Container Terminal Management contract

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In July of 2004, International Port Management Beirut (IPMB), a consortium composed of U.S.-based International Maritime Associates (IMA) and the British Mersey Docks and Harbour Company (MDHC), won the international public tender to manage the container terminal at the Port of Beriut for 10 years. IPMB beat out a total of five bidders that participated in the tender by submitting the lowest bid, offering to process container cargo for 39.6% of handling fees with 60.4% of revenues going to the state-owned Port Authority. The Port Authority, along with the private Dubai Port Authority (DPA), had built the US$150 million container terminal, which had with a berth 600 m in length, 15.5 m in depth and 23 Hectares of backup area. The Port was completed in 2000 but had never become fully operational. Full operations were cut short in 2001 when manager DPA withdrew over allegations of over-pricing. Since then it had been run by a politically affiliated group of contractors that had profited from a 65% commission on handling costs. The Port handled 5.15 million tons of cargo in 2002, of which around 35% was general cargo, 32% was in containers, 24% was liquid fuel, and 9% was dry bulk cargo. Over 90% of the cargo handled at the Port was imported. IPMB was to manage the terminal for 10 years with an option to renew for an additional 5 years provided the Port was not privatized. Under the contract, Mersey Docks was to take day-to-day control of the Beirut operation with IMA providing a consultancy role. The company committed to invest US$3 million and pay a performance bond of US$3 million for the duration of the contract. The contract period was to officially begin in January of 2005. None None