ATHENS, Aug 10 (Reuters) – China’s COSCO Shipping , owner of the world’s fourth largest container fleet, took a 51 percent stake in Greece’s largest port on Wednesday.
The sale of Piraeus Port had been suspended by the leftist-led government when it won elections in January 2015 but talks resumed after Greece agreed an 86 billion euro bailout deal with its euro zone partners.
COSCO agreed to buy 51 percent of Piraeus Port (OLP) in April for 280.5 million euros ($312.51 million) under a deal signed with the HRADF, Greece’s privatisation agency.
COSCO bought 51 percent of Piraeus Port (OLP) for 280.5 million euros ($312.51 million), acquiring a block of 12.75 million shares in OLP.
COSCO Shipping executive Wan Min rang the opening bell at the Athens bourse at a ceremony to mark the agreement.
Privatisation has been a priority of Greece’s bailouts since 2010, but political foot-dragging and a highly unionised public sector workforce have slowed progress.
Shares in Piraeus Port, which has a current market value of 350 million euros, were down 0.4 percent to 13.90 euros as of 1016 GMT lagging a Athens share index up 0.46 percent.
COSCO is expected to increase its stake in Piraeus Port to 67 percent over the next five years, HRADF said.
“Should Cosco fulfil certain conditions set out in the agreement, including the successful completion of the mandatory investments up to 300 million euros, it will pay HRADF an additional 88 million euros and increase its stake by 16 percent to 67 percent,” it said.
Greece’s parliament ratified the sale in June, overcoming some last-minute snags which triggered complaints from the local COSCO representative.
Last month COSCO said it would invest up to 500 million euros in Piraeus Port to upgrade cruise and shipping container facilities.
Operator of one of Piraeus’s container terminals since 2009, COSCO has boosted the port’s competitiveness.
The port’s container throughput stood at 3.36 million 20-foot equivalent units (TEUs) last year, up from 880,000 TEUs in 2010. (Reporting by George Georgiopoulos; editing by Jason Neely)
Dive into a sea of information with our meticulously curated weekly “Dispatch” email. It’s more than just a newsletter; it’s your personal maritime briefing.
Dive into a sea of information with our meticulously curated weekly “Dispatch” email. It’s more than just a newsletter; it’s your personal maritime briefing.
CAIRO, March 2 (Reuters) – The Houthi Transport Ministry in Yemen said on Saturday there had been a “glitch” in undersea communication cables in the Red Sea as a result of actions...
by Captain John Konrad (gCaptain) In the current American labor landscape, the stark contrast between the assertive strides of transportation unions and the maritime sector’s unique labor challenges is striking....
By Mikhail Flores MANILA, Dec 2 (Reuters) – Evacuations were under way in the Philippines after a quake of at least magnitude 7.5 struck the southern region of Mindanao on Saturday night,...
December 2, 2023
Total Views: 2150
Why Join gCaptain Club?
Be Informed: Stay updated with the latest maritime news and trends.
Connect: Network with a community of maritime professionals and enthusiasts.
Gain Insights: Receive exclusive content and personal perspectives from our CEO.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.