COSCO's investment in Greek port unhampered, ambassador says

(ECNS) - Greece's new government will continue to expand bilateral relations with China, and investment in Greece's Piraeus Port by China's shipping carrier China Ocean Shipping Company (COSCO) will not be affected by the country's move to halt privatization, the 21st Century Business Herald reported Tuesday.

Through its Piraeus Container Terminal (PCT) arm, COSCO manages the two main container terminals at the port – one of Europe's busiest – under a 35-year concession signed in 2008. According to a deal with the Piraeus Port Authority last year, COSCO also began expanding Pier III of the COSCO Container Terminal at the Greek port this January.

The new Greek government's halt of privatization and push for debt relief has alarmed investors.

Greek Prime Minister Alexis Tsipras' Syriza party pledged to halt privatization of the port and the smaller Thessaloniki docks. Deputy Maritime Minister Thodoris Dritsas also said on Jan 27 that the government will not sell the majority stake of the port, to which COSCO is one potential contender.

Citing a source from COSCO, the newspaper says investment has not been affected at all, much less suspended, as some media have said.

The Greek government's review of some projects at the port is not targeted at Cosco, which is just one of five potential bidders, the source emphasized.

COSCO has only conducted some feasibility research through agencies, and the end of privatization will incur no significant loss or affect its investment, the source added.

COSCO's confidence seems to be backed up by statements from government officials too.

During a meeting with Greek politicians Giorgos Stathakis and Thodoris Dritsas, Chinese Ambassador to Greece Zou Xiaoli was assured that the new government will respect and fulfill the agreements reached by the previous government.

The two ministers and the ambassador also agreed to engage in a constructive dialogue to enhance mutual cooperation.

Greece still welcomes investment from China and wishes to explore new ways of cooperation in the port, the newspaper reported.

The ambassador also said Greek's new government will usher in a new phase of bilateral relations, and support China's initiative to construct the China-Europe Land-Sea Express Line to advance cooperation between the two countries.

COSCO launched operations in Greece at Pier II in 2009, with a plan to turn Piraeus Port into a leading container terminal in the Mediterranean Sea region, and has since built Pier III. Piraeus was the fastest growing port worldwide in 2012 and 2013, and the fastest-growing in Europe in 2014.