Cosco Wants Controlling Stake Piraeus
Though the new Greece government has canceled the port of Piraeus’s privatization, Chinese group COSCO's interest in expanding its activity in the port remains strong.
There have been local media reports saying that investment in Greece's Piraeus Port by China's shipping carrier China Ocean Shipping Company (COSCO) will not be affected by the country's move to halt privatization
COSCO was the main suitor for the 67.7 percent stake in Piraeus Port Authority (OLP), which privatization fund TAIPED had planned to sell off. Denmark’s APM Terminals was also trying to get the contract.
Chinese group COSCO has had a strong presence over the past five years in the Piraeus port. Its subsidiary Piraeus Container Terminal (PCT) manages Piers II and III at Greece's largest port of Piraeus since 2009 under a 35-year concession agreement.
Greek officials reassured that, in particular in China's case, the future of Sino-Greek cooperation was sound and that the developing strategic relationship between the two countries would not be disrupted.
According to a report in Kathimerini, Cosco is satisfied enough with the recent expansion of its concession contract for Terminals II and III, which has not been disputed by the SYRIZA-led government.
The government has not yet expressed its intention as to how it will proceed with the utilization of the port of Piraeus, as it has only ruled out the sale of the stake. Now Cosco sources say it wishes to continue to invest in Greece through “win-win” agreements of mutual benefit, and that it has “already drafted an investment strategy – in cooperation with a team of experts – for the vertical development of every OLP business unit that will lead to the immediate utilization of investments.”
Meanwhile sources from London cite communications with APM Terminals saying that the Maersk subsidiary is worried that OLP may be conceded to Chinese management through a bilateral state agreement.
