Greece trims Piraeus Port investment plan

Piraeus Port Authority SA

10/10/2019 10:24

ATHENS, Oct 10 (Reuters) - Greece has trimmed an investment
plan by Piraeus Port Authority (PPA) to boost operations at one
of Europe's largest harbours, rejecting proposals for a new
container terminal.
    PPA  OLPr.AT , majority owned by China's COSCO Shipping
 601919.SS , had submitted to Greece's shipping ministry an
800-million-euro plan, which included a new cruise ship
terminal, a mall and four hotels in the port.
    PPA had also proposed to build a fourth container terminal
that would boost Piraeus' total throughput to 10 million TEUs
(twenty-foot equivalent units) a year from 7.2 million TEUs now
and a new car terminal.
    Greece's shipping ministry had approved the new cruise ship
terminal, the mall and the hotels at a previous meeting last
month, referring the issues of the new container and car
terminal to another meeting which took place on Wednesday.
    The shipping ministry approved a plan by PPA which amounted
to 611.8 million euros ($673.22 million) but rejected the part
for a new container terminal, it said in a statement late on
Wednesday after a meeting.
    The ministry said that conditions for a new container
terminal "were not ripe at this moment."
    "There is some bitterness for the part of the plan which
didn't go ahead," a PPA official told Reuters on condition of
anonymity. "In any case, we believe that the government will
reconsider those proposals."
    PPA's plan, which includes mandatory and voluntary spending,
has met with opposition by local communities for fear it would
hurt Piraeus' landscape and existing ship repair business.
    PPA, which now owns 51% of the port, has to conclude
mandatory investments of 300 million euros by 2022 to acquire an
additional 16% stake.

($1 = 0.9088 euros)

 (Reporting by Angeliki Koutantou; Editing by Giles Elgood)
 ((angeliki.koutantou@thomsonreuters.com; +30 210 3376436;
Reuters Messaging: angeliki.koutantou.reuters.com@reuters.net))