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Concession contract for Piraeus Port privatization approved by shareholders

Xinhua, June 10, 2016 Adjust font size:

The contract for the concession of a 67-percent stake in Piraeus Port Authority (PPA) was ratified by its shareholders on Friday, moving one step closer to PPA's acquisition by China's COSCO Shipping this summer.

During a meeting at the premises of the Athens Stock Exchange, the general assembly of PPA's shareholders approved the concession contract between PPA and the Greek state, to clear the way for the sale of shares from Greece's privatization fund, the Hellenic Republic Asset Development Fund (HRADF), to COSCO Shipping Group, Greek national news agency AMNA reported.

For the completion of the landmark transaction sealed earlier this year, the concession agreement needs to be ratified by the Greek parliament.

Under the deal, COSCO will pay 280.5 million euros (about 317 million U.S. dollars) to HRADF for the initial acquisition of a 51-percent stake, and another 88 million euros within five years for the remaining 16 percent, provided it has implemented the agreed investments in the port.

COSCO has committed to investing an extra 350 million euros over the next decade in infrastructure works at Piraeus port.

Greece estimates the overall benefit of the transaction for the Greek economy until 2052, when the concession agreement expires, will reach 1.5 billion euros, according to HRADF.

Since autumn 2009, China COSCO Shipping's subsidiary Piraeus Container Terminal (PCT) has been operating Piers II and III at Piraeus port under a 35-year concession agreement, posting impressive results.

In 2015, the container throughput of Piraeus Port increased to 3.36 million TEU (twenty foot equivalent unit) from 880,000 TEU in 2010, while the global ranking of Piraeus Port also increased significantly from 93rd to 39th place in terms of container capacity, according to maritime industry information service Lloyd's List. (1 euro = 1.13 U.S. dollars) Endit