La quiebra del puerto de MALAGA
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- Published on Saturday, 25 January 2014 19:37
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La quiebra del puerto de MALAGA
Bankrupt Málaga bailed out by Spanish government
23 Jan 2014
The Port of Málaga, which has been criticised by the National Ports Authority, has been thrown a lifeline by the central government, which has offered it €1.9m to offset its 2013 deficit. However, the port authority has accumulated debts of nearly €24m. Port authority president, Paulino Plata, the third to hold the post in the last 12 months, recently conceded: “It is true that we are in trouble, but in the coming years I think ... we will be in a much better situation.”The financial mismanagement is linked to Spain's property bubble, which prompted the port authority to try and pay for civil works in the commercial port through leisure and cultural development in the urban area. Both the cruise liner terminal and the deepening of the draft at the container terminal to 14 metres relied heavily on these investments. However, following completion of the work, a vessel attempting to dock at the container terminal was unable to do so, since the available draft did not correspond to the expected 14 metres. At the cruise terminal, the actual dock gave way. Subsequent investigations revealed that the piling work did not correspond to what had been agreed. Both contracts had cost the port authority €400m and are now the subject of litigation. –
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