ZTE launches logistics center in Greece at COSCO-run port

Chinese leading global provider of telecommunications equipment and network solutions ZTE and Chinese shipping giant COSCO on Wednesday signed an agreement for using Greece's Piraeus Container Terminal (PCT) as a European logistics center for ZTE products for the wider Southern European region.

Under the deal, from now on ZTE's deliveries in 12 major South-Eastern European markets will be routed via PCT, the largest port of Greece run by COSCO under a 35-year concession agreement. These markets are Croatia, Czech Republic, Slovakia, Slovenia, Austria, Hungary, Bulgaria, Romania, Italy, Spain, Portugal and Cyprus.

Wednesday's agreement is the first phase of ZTE's long-term investment plan in Greece, which is expected to create around 600 jobs until its completion over a three-year period, according to ZTE Vice President Zhou Jianfeng.

The next phases of the investment include the construction of a repair center for the region and the establishment of an assembly line.

The pillars of Wednesday's deal were set during Greek Prime Minister Antonis Samaras' official visit to China last May.

The deal between ZTE and COSCO marks an important step in the cooperation between the two companies, as well as in the strategic collaboration between China and Greece, supporting the country's efforts to exit the financial crisis, dignitaries who attended the event stressed.

"Piraeus port is a strong development vehicle for Greece. It is a key gateway, an international hub, connected with Greece's rail infrastructure, with Eastern and Central Europe. It has become a significant global hub of transport networks," Samaras said, addressing the signing ceremony at PCT's premises.

Since the start of PCT's operations at the port's Pier II in 2009 a series of infrastructure works and business deals between COSCO and other multinationals, such as the American technology and communications solutions giant Hewlett-Packard and the Chinese Huawei, have upgraded Piraeus' standing internationally.

The deal signed on Wednesday is viewed as a further boost in this direction and a vote of confidence to the prospects of Greek economy.

"Today, we welcome the signing of the cooperation agreement between ZTE and COSCO, two giant companies which exploit effectively this infrastructure and operate successfully in this new context of confidence and stability we are building in our country," Samaras stated.

The Greek prime minister, as well as Development and Competitiveness Minister Kostis Hatzidakis and Shipping Minister Miltiadis Varvitsiotis who also attended the event, added that such investments contribute to efforts to tackle unemployment and improve the competitiveness of Greek economy.

Addressing the event, Chinese Ambassador to Greece Zou Xiaoli said he is convinced that the agreement will help Greece attract new investors and create more jobs.

"I sincerely hope that, under the auspices of the great spirit of friendship and cooperation between China and Greece, the ZTE Logistic Center, the COSCO PCT, the Huawei Logistic Center, and the other children of Piraeus port will grow up strong so as to bring prosperity to the big family of Piraeus port," Zou stressed in a reference to a famous Greek song "The Children of Piraeus port".

Zou said as Chinese ambassador to Greece, he has a number of dreams.

"I dream that, in the near future, COSCO, ZTE, Huawei and other Chinese companies will be able to expand their investment on large scale in Piraeus Port and its surrounding areas. I dream that a Chinese Culture Center will be established soon in Athens. I dream that Greek universities and academic institutes will be more open and easily accessible to Chinese students and scholars.

"I dream that hundreds of thousands of Chinese tourists will come in Greece annually. I dream that archaeologists from our two countries will jointly explore and restore underground and underwater art treasures. I dream that flights will go direct between big cities in China and Greece. I believe these are also dreams shared by our two peoples. So, let's join hands and push these dreams to set sail from Piraeus port," Zou told the audience enthusiastically.

"Your dream is our dream," Samaras told Zou after he presented China's vision for the further enhancement of bilateral ties in all fields.

Welcoming ZTE to enter into the cooperation agreement with COSCO Greece, PCT CEO Fu Chengqiu said this step brings COSCO's goals -- developing Piraeus port into the Mediterranean Sea container transport hub, transforming it into a distribution center for the EMEA (Europe, the Middle East and Africa) region, and making it the Southern Europe gateway.

On his part, ZTE Vice President Zhou Jianfeng noted: "We believe that through the execution of this project, we will stimulate more logistics companies to expand their business in Greece, and that this will lead to the further improvement and enhancement of the local employment environment."