A signing ceremony will take place in Athens on Friday afternoon to finalize a contract transferring the majority of the Piraeus Port Authority's (OLP) shares and the port's management to Chinese multinational Cosco.
A signing ceremony will take place in Athens on Friday afternoon to finalize a contract transferring the majority of the Piraeus Port Authority's (OLP) shares and the port's management to Chinese multinational Cosco.
Greek Prime Minister Alexis Tsipras, among others, is expected to attend the ceremony.
The privatization of the port authority, Greece’s largest and most profitable, was included in provisions of the latest bailout agreement between the Greek government and institutional creditors, which was signed last August.
Although vehemently against the prospect of the port's privatization while in the opposition, the ruling SYRIZA party now views the development as a proof that the memorandum is being implemented and that it heralds the creation of a more favorable environment for strategic investors in Greece.
Meanwhile, stevedores and other port workers protested through downtown Athens on Friday morning to express their opposition to the privatization.
Small-scale scuffles broke out when riot police used tear gas to block protesters’ march towards the Zappeion Hall – adjacent to Parliament – where the contract between the Greek privatization fund (TAIPED) and Cosco will be signed.
The protesting workers demanded that a delegation be allowed to enter the building, something that was not accepted. The rally continued towards Parliament.
Based on the agreement, Cosco Shipping Corporation will acquire 67 percent of OLP, with the entire deal totaling 1.5 billion euros – 368.5 million euros for the shares; 350 million euros in guaranteed investments; 410 million euros in expected revenues for the Greek state from concession contract and 400 million euros from expected dividends emanating from the remaining 7 percent of OLP shares that the privatization fund will continue to hold.
The agreement is expected to be tabled in Parliament in the coming period for approval. If passed, the shares will change hands in June.
In a bid to allay opposition, including from within SYRIZA, government sources insisted that the state still retains ownership of the port, rather the company managing port facilities is being sold off, not the real estate itself.
The same sources said OLP holds the master concession of the port until 2052, while its privatization essentially began in 2003 with its listing on the Athens Stock Exchange (ASE).