Cosco Pacific to invest in Piraeus capacity to 6.2 million TEU

By Finance

COSCO Pacific has decided to invest in Piraeus port to boost the capacity to 6.2 million TEU. A Memorandum of Understanding has been signed and COSCO Pacific will give €230 million ($303 million) in order to add a fourth pier to the Greek port.

COSCO Pacific is at 5th place in the business of container terminal operators and took under concession contract the Greek port in 2009 for 30-35 years.
Soon it is expected that the state that has 74% of the Piraeus port will sell a majority stake.

Piraeus Port Authority chief executive George Anomeritis was against this action, the port governance to go in private hands. This contract in his opinion was bad for the port. But he changed his and in the moment Mr Anomeritis thinks that the deal would "boost public assets, raise the port’s competitiveness and help establish the port as one of the most important in Europe".

Greece’s Minister of Shipping Miltiadis Varvitsiotis is working on the contract and wants the deal for the investments in the Piraeus port to become fact for a short period. Mr Varvitsiotis is also for the development of "strategic relationship with China".

Piraeus Port Authority are hoping new investors to come and boost the development of a large logistics centre inland and even a manufacturing area to support its role as a major European distribution gateway for China.

Background information:
COSCO Pacific became the 5th biggest container terminal operator in the world and 3rd biggest container leasing company. The company receives help from COSCO and subsidiaries to stay competitive and to expand its activities around the world. The strategic planning of COSCO Pacific is to acquire major stakes in terminals. At the moment the company operates and manages about 103 berths at 18 ports.