Circles close to Chinese shipping giant Cosco told “N” this week that the state-affiliated and Shanghai-based multinational will invest 250 million euros more than foreseen in a recently ratified concession contract for the Piraeus Port Authority (OLP).
Circles close to Chinese shipping giant Cosco told “N” this week that the state-affiliated and Shanghai-based multinational will invest 250 million euros more than foreseen in a recently ratified concession contract for the Piraeus Port Authority (OLP).
Cosco picked up 67 percent of OLP’s shares for 350 million euros and the port’s management, a landmark agreement and the biggest privatization in Greece since the economic crisis emerged in 2009.
The pledges for higher capital investment at Greece’s busiest and biggest port came during a high-profile official visit to China by Greek Prime Minister Alexis Tsipras over the past week. The embattled leftist government invested heavily in the trip, seeking more strategic investment from the Chinese state and its affiliated multinationals.
Both sides, Athens and Cosco, have repeatedly cited interest in expanding the latter’s presence in the Thriasio industrial district, west of the port, in the form of a major transport and logistics hub connected with the port and the national rail network.
An international tender is reportedly in the works for the Thriasio site.
Nevertheless, according to information gathered by “N”, the tender is not an imminent development, given that several steps and further study by both sides is pending.
The same sources said Athens is very eager to attract Chinese investment at the Skaramangas (Hellenic) shipyards, also located west of Piraeus in the Perama industrial zone. The specific complex has desperately struggled with profitability over the past decade and remains dependent on Greek state contracts, mostly linked to the Hellenic Navy.
However, Cosco has reportedly made it clear that it will first concentrate on building up the ship repair component within the port of Piraeus before expanding to adjacent facilities.
The Chinese multinational is also waiting to see what the EU’s policy vis-à-vis major shipyards will be in the coming period, along with a settlement of all labor-related issues in the sector.
Cosco president Xu Lirang directly cited the issue of labor relations in his meeting with Tsirpas, as the former was quoted as saying that “we hope, that on the part of the Greek government as well, that a favorable climate will be created, and it would be best if we didn’t have so many strikes.”
He added that Cosco will have contacts with labor unions and will comply with all Greek laws governing labor relations.