Cyprus takes in €1.57bn from airports and Limassol port

Cyprus has generated a reported €1.57 billion in concession revenue from Larnaca and Paphos airports and Limassol port over the past two decades, with new figures showing that port receipts continued to provide substantial income in 2026. According to figures reported by philenews on Friday, the total includes more than €1bn attributed to airport concessions between 2006 and 2025, alongside €574 million from Limassol port between 2016 and July 2026. The latest figures, provided by the Transport Ministry to parliament, show that the port alone generated €44.6m during the first seven months of 2026, with full-year receipts expected to exceed €80m. This follows government income of €81.1m in 2025, compared with €72.8m in 2024 and €70.3m in 2023, continuing a substantial increase in receipts since the port’s commercial operations were transferred to private operators. In 2017, the first full year of private management, government revenue stood at €37.9m, meaning annual receipts had more than doubled by 2025. Under the concession agreements signed in April 2016, three operators assumed responsibility for different commercial activities at Limassol port, with the government receiving quarterly payments linked to their revenues. Eurogate Container Terminal Limassol Ltd, controlled by Eurogate International, 60 per cent, and Zirando Investments, 40 per cent, manages the container terminal, with the state’s revenue share set at 62.71 per cent. Meanwhile, DP World Limassol Ltd, jointly owned by DP World Limited, 75 per cent, and GAP Vassilopoulos, 25 per cent, operates the general cargo terminal, with a government revenue share of 52.1 per cent. The same shareholders control P&O Maritime Cyprus Ltd, which provides marine services under an agreement setting the state’s share at 10.1 per cent. Beyond the concession payments, private operators have invested in upgrading the port’s infrastructure and expanding its commercial capacity. According to earlier reporting, Eurogate had invested more than €36m in equipment, safety improvements, service upgrades and digital transformation by April 2025. The company had also completed an expansion of the container terminal yard, increasing its capacity to approximately 12,000 twenty-foot equivalent units (TEUs). At the time, Eurogate reported that its concession payments to the Republic had reached €313.91m between 2017 and 2024, representing a substantial proportion of the government’s total receipts from the port’s three operators. Further investment remains under consideration, including additional storage facilities and the modernisation of cargo-handling systems. However, not all infrastructure projects have progressed at the same pace. As reported earlier this week, plans to supply electricity to ships at Limassol port remain dependent on securing a connection to the national electricity grid and European funding, despite progress on technical studies. The proposed system would allow vessels to use electricity from shore rather than running their engines while berthed, reducing emissions and noise in the surrounding area. Turning to the airports, Hermes Airports has managed Larnaca and Paphos since May 2006, assuming responsibility for their financing, operation, maintenance and development. The concession was revised in December 2024, extending the company’s management agreement until late 2032 and resolving longstanding financial disputes between the company and the government. The settlement involved €30m in compensation and a €20m loan arrangement, alongside the withdrawal of claims that had exceeded €430m, including those related to the operation of the illegal airport at Tymbou. The agreement also allowed the second phase of airport development to proceed, involving €170m in investment financed by Hermes Airports. Construction began in March 2025, with works at Paphos scheduled for completion in April 2027, followed by Larnaca in September 2027. Once completed, Larnaca airport’s annual passenger capacity will increase from 7.5m to 12.4m, while Paphos will be able to accommodate 5m passengers, compared with 2.7m previously. The expansion follows substantial growth in passenger traffic over the past two decades, although 2026 has proved more challenging than the record-breaking previous year. According to Hermes Airports’ official passenger statistics, the two airports handled 10.36m passengers between January and September 2026, compared with 10.66m during the corresponding period of 2025, representing a decline of approximately 2.8 per cent. Of this year’s total, 7.23m passengers travelled through Larnaca and 3.13m through Paphos, as the aviation sector continued to face challenges arising from regional instability and disruptions to international travel. Nevertheless, passenger traffic remains considerably above historical levels, with the two airports handling a record 13.75m passengers in 2025, compared with approximately 6.7m in 2006. In a statement marking 20 years of operations in May 2026, Hermes Airports said the original development of the two airports involved investment exceeding €640m. The company also estimated that the total direct and indirect contribution of airport operations to the Cypriot economy reached €789.4m in 2025 alone, reflecting their wider importance to tourism, employment and business activity. However, the reported airport concession revenue requires clarification. In an official statement issued in May, Hermes Airports said direct revenues paid to the state through concession fees had exceeded €715m over 20 years, while Transport Ministry budget figures presented to parliament in October 2025 placed the total above €1bn for the period from 2006 to 2025.