Piraeus Port urges Greece to speed up investment plan approval

Piraeus Port Authority SA

19/10/2018 14:36

By George Georgiopoulos
    ATHENS, Oct 19 (Reuters) - Piraeus Port Authority (PPA),
operator of Greece's largest port, wants the Greek government to
speed up the approval of an investment plan that aims to attract
more business to one of Europe's largest harbours, executives
said on Friday.
    PPA  OLPr.AT , majority owned by China's COSCO Shipping
 600428.SS , is awaiting the green light from Greece's shipping
ministry to proceed with mandatory investments based on its
concession agreement with the Greek state.
    Approval of PPA's so-called master investment plan, which is
comprised of mandatory and voluntary investments, including a
new cruise ship terminal, a mall and four hotels in the port,
was due in June.
    "I am ready with cash and will wait until the end of this
year. But if the delay is prolonged there are legal means, such
as clauses in the concession agreement," PPA CEO Captain Fu
Chengqiu told reporters.
    China wants to transform Piraeus Port into its gateway to
Europe as part of a $126 billion "Belt and Road" initiative,
which envisions a new Silk Road of land and sea routes with
trading partners.
    COSCO bought a 51 percent stake in PPA in 2016, aiming to
make the port a transhipment hub for rapidly growing trade
between Asia and Europe. [
    It will acquire a further 16 percent of PPA, increasing its
stake to 67 percent, once it completes mandatory investments of
300 million euros to upgrade infrastructure.
    Under the concession, COSCO will run the port, which
includes passenger ferry, car, container and cruise ship
terminals along a 37 kilometre coastline, until 2052.
    Deputy CEO Angelos Karakostas said PPA has contacted hotel
investors and operators over plans to develop four hotels at the
port.
    "There is great interest, once master plan approval is
granted, we can start pre-qualifications before the end of this
year," Karakostas said. 
    PPA wants to turn two old warehouses at the port into hotels
and convert an exhibition centre featuring a landmark
pagoda-style roof into a luxury facility.
    The fourth hotel will be built at a new terminal for new
generation cruise ships, he said.
    PPA wants to turn Piraeus into a major port for cruise ships
and take a share of the fast-growing Chinese cruise market.

 (Reporting by George Georgiopoulos; editing by David Evans)
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