Dep. Minister cites Cosco interest in two Greek shipyards

By A. Tsimplakis
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Chinese multinational Cosco's perceived intent to enter Greece's shipbuilding and ship-repair sector was cited by a deputy economy and development minister this week, during a meeting with members of the Piraeus chamber of commerce, whose jurisdiction includes the country's biggest port and related facilities.

The comments by Deputy Minister Stergios Pitsiorlas acquire increased weight, given that he headed up Greece's privatization fund (HRADF) when the latter oversaw the sale of a majority stake in the Piraeus Port Authority (OLP) to Cosco. The Shanghai-based shipping giant also assumed the port authority's management. The landmark privatization was finalized last August, but begun under the previous governments.

Pitsiorlas cited what he called Cosco's interest in the shipyards of Elefsina, west of Athens proper, and on the island of Syros, both struggling industrial conglomerates amid the increasingly cut-throat competition that characterizes the sector worldwide.

In terms of the Neorion shipyard on the Cyclades island of Syros, Pitsiorlas said a different procedure will be followed for its sale, one that does not include the appointment of a special conservator, as is the case with the Skaramangas yard.

The key to any successful deal for the Neorion yard is a three-part agreement between the main creditor of the business, Alpha Bank, the Greek state and Cosco. According to reports, three issues must be resolved for the sale to proceed: the level of a "haircut" that the bank is willing to extend on loans owed by the shipyard; a relevant law passed by Parliament in order to forgive a portion of the debts owed to the state, and finally, a "green light" by the unions representing the yard's workers on the island.