Port capacity increases with signing

International companies signing business deals will increase capacity of Magusa port's free trade zone in North Cyprus.

A second warehouse will be constructed by Port Isbi, the company which leased the free trade zone this month.

Port Isbi was established as the partner company of Istanbul Free Zone Enterprises (Isbi) in April 2007.

Isbi also operates on the 150 donums of land within the free zone of Ataturk Airport in Istanbul, where over 503 foreign companies have presence and are engaged in production and trade.

A 'free zone' is the outside of a country's economic borders, but still inside its political ones. Foreign investment and trading in this zone is being encouraged by government incentives including exemptions from VAT, income and corporation tax.

There are 28 free zones in Turkey but only a few of them, including Istanbul Ataturk and Port of Mersin, are profitable, according to director of Port Isbi Metin Yalcin.

The land of Cyprus Mining Corporation (CMC) site at Gemiknoagi, near Lefke, was leased by Port Isbi in addition to Magusa Port's free zone. The Magusa Free Zone encompasses an area of 100 donums located on the northern part of the port.

The leasing of the area by Port Isbi will cost $206,000 a year but 80% of the annual rent must be spent on infrastruction, according to their contract.

And to this point, 650m of electricity infrastructure has been lad in addition to 1150m of telephone cables, 19 street lights, 1150m of sewage, 600m utility water drainage system and 900m of rain water drainage system. 4,780 square metres of roads has also been laid.

The first warehouse was completed in 2009 and had a 2000 square metre sheltered area, and its own heat insulation system and lighting system, and ramps to unload and load goods.

Port Isbi has signed contracts with eight companies, two of which are local firms dealing with production for export.

An additional three or four more warehouses are expected to be constructed, according to Port Isbi. The company is also looking into constructing concrete buildings with 50 office lots and a 3000 square meter warehouse on the ground floor.