Greece experienced a desperately needed fillip on Friday with the signing of an agreement to sell a majority stake of the Piraeus Port Authority (OLP) to Chinese multinational Cosco, with the latter also acquiring the port’s management.
The landmark deal also marked a milestone for the current leftist government, as the majority SYRIZA party was vehemently against the privatization of the port authority – which runs the largest and busiest port in Greece and one of the biggest in the eastern Mediterranean – when in the opposition. However, with nearly a year and a half in power, the Tsipras government appeared to have eagerly embraced the agreement as a beacon for economic recovery and proof that the country is attracting foreign direct investment.
Not that the signing went off unopposed, as a protest rally, mostly by port workers at the now formerly state-run authority, snaked through central Athens on Friday afteroon. At least one minister, in fact, the relevant shipping minister, Thodoris Dritsas, also reiterated his long-standing opposition to OLP’s privatization, even taking to the airwaves over the weekend to question the benefits of the deal and to promise a new public entity at the port.
The political opposition mostly welcomed the agreement but also reminded of SYRIZA’s previous hostile stance.
In statements at the Zappeion Hall, where a ceremony followed on Friday, Chinese ambassador to Greece Zou Xiaoli said the Cosco project in Piraeus is connected with a Chinese investment plan extending on to central Europe, including Serbia-Hungary rail link set for completion in 2017, part of what he called a “one belt, one road” transport network beginning in Piraeus and continuing on to the rest of Europe.
Cosco president Xu Lirong referred to Greece’s dominating position in international shipping and Piraeus’ importance as a car terminal and its surrounding shipbuilding and repair zone, while he promised to ensure the port’s role as a hub for coastal shipping transports to Greece’s dozens of islands in the Aegean.
During the signing ceremony, Greek Prime Minister Alexis Tsipras received a message from his Chinese counterpart Li Keqiang to visit Beijing, an invitation that was accepted, with a June date envisioned.
In a related development, four out of the eight consortia that qualified for the second phase of a tender for the sale of a majority stake of the Thessaloniki Port Authority (OLTh) have submitted relevant documents and other commitments; the port authority’s managing director, Dimitris Makris, said on Friday.
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 last week that the state still retains ownership of the port, rather the company managing port facilities is being sold off, not the real estate itself.
