China, Greece agree to push ahead with COSCO's Piraeus Port investment

Holding Admie Ipto SA

11/11/2019 12:29

ATHENS, Nov 11 (Reuters) - China and Greece agreed on Monday
to push ahead with a 600 million euros investment by COSCO
Shipping into Greece's largest port, Piraeus, as part of efforts
to boost its role as a hub in rapidly growing trade between Asia
and Europe.
    The agreement, part of 16 trade deals signed between Greece
and China, came during an official visit by Chinese President Xi
Jinping to Athens on Monday. 
    The two countries have drawn closer since 2009 when COSCO
won a 35-year concession to upgrade and run container cargo
piers in Piraeus  OLPr.AT . COSCO Shipping  601919.SS  bought a
majority 51% stake in Piraeus port in 2016.
    COSCO plans to turn Piraeus port into the biggest commercial
harbour in Europe, spending about 600 million euros ($660
million) to boost operations, including mandatory investments of
300 million euros by 2022 which once concluded will allow it to
acquire an additional 16% stake in the port.  urn:newsml:reuters.com:*:nL5N26V1DS
    But opposition from local communities prompted Greece to
reject COSCO's proposals for a new container terminal in Piraeus
last month, saying that conditions "were not ripe"
yet. urn:newsml:reuters.com:*:nL5N26V1DS 
    Xi met Greek Prime Minister Kyriakos Mitsotakis on Monday
and the two countries signed a memorandum of understanding,
stating their mutual will to overcome any obstacles in the
implementation of COSCO's investment in Piraeus, a Greek
government official said.
    Both sides sought to play up Greece's strategic location at
the crossroads of Europe, Asia and Africa, saying it could
become a hub for channeling goods from the world's
second-largest economy and top exporter into Europe.
    "We want to strengthen Piraeus' transhipment role and
further boost the throughput capacity of China's fast sea-land
link with Europe," Xi said after meeting Mitsotakis.
    Xi was set to visit COSCO's facilities in Piraeus, Europe's
sixth biggest container port, later on Monday.
    During a visit to Shanghai last week, Mitsotakis said he
wanted Piraeus to become Europe's No.1 port and that COSCO's
spending there could reach 1 billion euros.
    The European Investment Bank (EIB) on Monday agreed to
extend a 140 million euro ($154 million) loan to help COSCO with
its investment plan in Piraeus.
    Xi said that China also wanted to expand its investments in
the energy, transportation and banking sectors.
    China's State Grid holds a minority stake in Greece's power
grid operator ADMIE. On Monday, State Grid expressed interest in
taking part in ADMIE's one billion euro scheme to build an
undersea power cable to link the island of Crete to the mainland
by 2023.
    In the banking sector, Greece's central bank Chief Yannis
Stournaras met with executives of China's Industrial and
Commercial Bank. The Bank of Greece has told the bank that it
can set up a representative office in Greece.
    Another Chinese bank, Bank of China Europe, set up a branch
in Athens this month.     
    ($1 = 0.9 euros)

 (Reporting by George Georgiopoulos, Angeliki Koutantou and
Renee Maltezou)
 ((george.georgiopoulos@thomsonreuters.com; +30210 337 6437;
Reuters Messaging:
george.georgiopoulos.thomsonreuters.com@reuters.net))