Syria's New Regime Renews CMA CGM's Terminal Lease at Latakia

The new governing power in Syria, Islamist group Hay'at Tahrir Al-Sham, has renegotiated CMA CGM's container terminal lease at the port of Latakia and will allow the French liner to continue to operate the facility under modified terms. 

CMA CGM signed a contract to run Latakia’s container terminal back in 2009, under the regime of then-President Bashar Al-Assad. The initial lease was for a period of ten years, renewable for five years upon mutual agreement. Upon expiration of the contract in 2019, CMA CGM renewed it until 2024, despite the intense international pressure on Syria over the ongoing civil war. In 2024, CMA CGM was invited by the Assad regime to renew once more, this time for a far longer term of 30 years. 

Assad's Ministry of Transport favored allowing CMA CGM to renew the contract, and noted at the time that CMA CGM did not withdraw its investment when sanctions and economic collapse hit Syria. By contrast, Philippine operator ICTSI backed out of its long-term lease at the Tartus Container Terminal in 2013, after the start of the Syrian civil war. After ICTSI's departure, the Tartus lease was transferred to a Russian operator (since revoked by HTS). 

According to Reuters, HTS' ports authority has decided to keep CMA CGM on at Latakia, with changes. The authority announced Wednesday that it had reached terms on a revised contract for the French liner's participation at Latakia. The changes are said to include a revised lease duration and revised revenue split between the operator and the government. 

The European Union is moving gradually to lift sanctions on the Syrian economy, allowing EU shippers to resume regular cross-Mediterranean trade with Latakia and Tartus for the first time in a decade. The prospects of economic renewal in a peaceful Syria may be attractive for business interests and for CMA CGM; Karam Shaar Advisory, a consultancy specializing in the Syrian economy, noted that CMA CGM founder Jacques Saade's family had ties to Latakia, potentially giving the firm an additional reason to stay.