French company wins contract to develop Lebanon’s devastated port

France’s container transportation and shipping company CMA-CGM was awarded a contract to manage, operate and maintain the container terminal in Lebanon’s Beirut Port for ten years yesterday.

The Lebanese Public Works and Transport Minister, Ali Hamieh, told reporters that the contract included “rebuilding and expanding the port’s infrastructure, which was damaged in a massive chemical explosion in 2020.”

According to a statement released by the company: “A $33 million investment will be made in the container terminal of Beirut Port, including $19 million over the first two years.”

This will be used to “complete infrastructure upgrade: refurbishment, replacement, and acquisition of new port equipment. The construction of a new technical facility for maintenance and spare parts storage. A digital transformation of the terminal… Environmental performance improvements, through the purchase of greener and ecofriendly equipment.”

“We will be launching shortly an ambitious investment plan that will transform Beirut port’s container terminal into a state-of-the-art facility that meets the best international standards. It will be at the service of the Lebanese people and will revitalize the economic exchanges between Lebanon and the rest of the world,” Chairman and CEO of the CMA CGM Group Rodolphe Saadé said.

READ: Families of Beirut port victims protest to demand ‘faster justice’

More than 200 people were killed, 6,000 were injured and some 300,000 made homeless after a massive explosion in Beirut port ripped through the capital on 4 August. The blast destroyed parts of the city and intensified the economic and political distress which has engulfed Lebanon for months.

The explosion happened when 2,750 tonnes of ammonium nitrate, stored unsafely in Beirut port’s warehouse 12 for six years prior to the explosion, ignited. Nearly 200 people were killed in the blast which injured thousands more and made at least 300,000 of Beirut residents homeless.

In the aftermath of the blast, letters written by Daher and sent to Lebanon’s “judge of urgent matters” were unearthed, detailing how the custom chief was aware the highly explosive substance was stored unsafely in the port.

In letters sent in 2014, 2015, 2016 and 2017, Daher warned of the “dangers if the materials remain where they are affecting the safety of (port) employees”, according to the Associated Press (AP).

It was later revealed both Aoun and caretaker Prime Minister Hassan Diab were warned by security officials the dangerous substance was stored in the port but failed to take action.

In a secret letter to the pair sent on 20 July, Aoun and Diab were warned of the security risk the chemical posed. The pair admitted they knew the substance was stored in the port but claimed the port was not under their authority when asked why they took no preventative action.