Piraeus Port U-turn Not to Stop China Investment
Even though Greece's new left-wing government set alarm bells ringing in Beijing when it halted the privatization of the port this week, analysts say Athens is merely posturing, reports South China Morning Post.
China will remain as "privileged partner for Greece". Cosco officials in Piraeus and China are playing down concerns over the new government’s plans for the port of Piraeus.
When the new Greek Government led by Prime Minister Alexis Tsipras made halting the privatization of the Port of Piraeus one of its first initiatives, there were immediate concerns in China that it might take further actions that could impact the operations of Piraeus Container Terminal (PCT), which is operated under a 35-year concession by Cosco Pacific.
China urged Greece on Friday to honor an investment contract made with Chinese shipping giant China Ocean Shipping (Group) for a 35-year concession on two piers at Greece's biggest port, Piraeus.
To clear the air, a meeting between Greek Economy, Infrastructure, Shipping and Tourism Minister Giorgos Stathakis, Deputy Maritime Minister Thodoris Dritsas, Chinese Ambassador Zou Xiaoli and a delegation of Chinese diplomatic officials was held yesterday in Athens.
The two Greek Ministers allegedly attempted to appease their concerns, clarifying that the bilateral cooperation will continue. “The two Ministers and the Ambassador agreed to engage in a constructive dialogue to enhance mutual cooperation” the Ministry’s announcement said.
China sees Piraeus as a vital to its plans to move exports into central and Eastern Europe. Further, a number of Chinese companies have established in Greece to better facilitate the movement of containers by rail into Europe.
Analysts note that posturing aside, the New Greek government is unlikely to try to dislodge China from Piraeus.
