Chinese to Acquire Greek Port as Gateway to Europe

By Aiswarya Lakshmi
Wednesday, January 13, 2016
Image: Port Of Piraeus

 China's state-owned shipper China Ocean Shipping (Group), also known as Cosco Group and owned by China COSCO Holdings,  is on track to acquire Greece's largest container port, gaining a key foothold to expand China's economic and military presence in Europe and Africa under the "One Belt, One Road" trade route initiative.

 
There were no other bidders, which suggests that China’s strategic aims of using the Greek port of Piraeus as getaway to Europe is one step closer to realization.  
 
Greece's privatization agency board said that Cosco was the only confirmed bidder for a binding stake in the country's biggest harbour. It had asked Cosco for an improved financial offer which Cosco would consider during the next week.
 
The Hellenic Republic Asset Development Fund, which handles state asset sales, didn’t reveal the value​of the bid.
 
According to sources  Cosco’s bid for a 67 percent stake in the Mediterranean port was seen at around 700 million euro (US$758 million).  Cosco already runs container operations at two piers in Piraeus Port Authority SA.
 
Cosco, the Hong Kong-listed, Chinese state-owned company, had always been considered a front-runner for the stake, given its foothold in the port. APM Terminals, owned by Danish shipping conglomerate AP Moller-Maersk A/S and Philippines-based port operator International Container Terminal Services Inc. were also short-listed to bid, but in the end only Cosco put in an offer.
 
Analysts see Chinese investment in Piraeus as a key part of China's One Belt, One Road policy, which envisages creating the 21st century equivalent of the Silk Road.
 
The winning of the bid would give China the complete control of one of the fastest-growing container ports in the world, raising concerns about competition at the busiest Greek container gateway. 
 
China is thinking far into the future. Piraeus is the closest port in the northern Mediterranean to the Suez Canal. From here, it can conquer the EU domestic market. Recently, three freight trains began leaving the port each week.  
 
China's major interest in Greece is its strategic assets, such as ports and railways. It is already an important investor. The jewel in the crown is the Mediterranean port of Piraeus, which has served as Athens' shipping base for more than 2,500 years. 
 
However, opinions differ on whether Cosco will be able to grab market share from northern European ports by providing an alternative route into the European interior or would merely provide additional competition for other Mediterranean ports. 
 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

Milton to Replace Retiring Kelly, President, ExxonMobil

Alan Kelly, president of ExxonMobil Fuels, Lubricants & Specialties Marketing Company, has announced his intention to retire effective Aug. 1, 2016, after more than 34 years of service.

UASC Fully Compliant VGM Lift Now

United Arab Shipping Company (UASC) announced today the conclusion of a 100% compliant Verified Gross Mass (VGM) lift of 159 UASC containers on board CSCL’s Saturn.

Netherlands Opts for ‘Flexible’ Container Weighing

As of July 1, shippers and freight forwarders are required to verify the weight of a container before the container is loaded onto a ship.   The Netherlands’

Ports

India's Iran Oil Imports Surge in June

India's Iran oil imports rose about 39 percent in June year on year, preliminary data obtained by Reuters shows.   In the first half of 2016 India's Iran oil

Lerwick Welcomes its Largest Ever Cruise Vessel

June 30 was a big day for GAC UK’s Shetlands office, as Offshore Manager Adrian Henry welcomed the P&O Cruises ship Azura to the port of Lerwick, the islands’ capital and home to GAC’s local office.

India: Big Push on Coastal Shipping of Thermal Coal under Sagarmala

The State Government of Odisha will partner the Ministry of Shipping for taking ahead the ‘port-led development’ agenda under Sagarmala, the flagship program of the Ministry.

Finance

Baltic Index Up for Eighth Straight Session

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, continued its rise on Friday, for an eighth consecutive session,

Asia-N.Europe Box Rates up 77 pct

Shipping freight rates for transporting containers from ports in Asia to Northern Europe rose 77.4 percent to $1,206 per 20-foot container (TEU) in the week ended on Friday,

Euronav Share Buyback

Euronav NV (NYSE: EURN & Euronext: EURN) (“Euronav” or the “Company”) today announces that the Company has purchased 192,415 of its own shares on Euronext Brussels for an aggregate price of EUR 1,

News

US Oil Drillers Add Rigs for 4th Week in 5

U.S. drillers this week added oil rigs for a fourth week in five, according to a closely followed report Friday, in the best month of producers returning to the

Vale Sells 3 Valemax Iron Ore Ships to ICBC

Brazil's Vale SA said it has sold three of its giant "Valemax" iron ore ships to a group led by Industrial and Commercial Bank of China, continuing efforts to unload

Fincantieri Launches Silver Muse

Silver Muse, the new ultra-luxury cruise ship which Fincantieri is building for the ship owner Silversea Cruises, was launched at Fincantieri’s shipyard in Genoa Sestri Ponente.

Mergers & Acquisitions

PALFINGER Finalizes Harding Acquisition

The PALFINGER Group closed the acquisition of 100 percent of the shares in Herkules Harding Holding AS, i.e. the globally operating Harding Group, supplier of lifesaving

NAT Takes Delivery of Suezmax, Earnings Capacity Up

Nordic American Tankers Limited ("NAT" or "the Company") announced that it today took delivery of a Suezmax vessel, the Nordic Sirius, built at a shipyard in Japan.

UASC and Hapag-Lloyd Merger in the Last Leap

A merger between United Arab Shipping Company (UASC)  and German container shipping line Hapag-Lloyd will create a shipping group that is the 5th largest in the

 
 
Maritime Careers / Shipboard Positions Maritime Security Naval Architecture Navigation Offshore Oil Pod Propulsion Salvage Ship Repair Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1036 sec (10 req/sec)