China COSCO Holdings Co Ltd would expand its container operations business in the Greek port of Piraeus, costing China's largest bulk shipper EUR 230 million or USD 303 million in the process. In exchange, the Greek government would excuse COSCO from paying fees. Reuters reported that the deal was one step closer towards privatizing the port. The state currently holds a 74% stake in Piraeus.
The deal would have the Chinese company expanding the cargo handling capacity of Piraeus to 6.2 million 20-foot equivalent units annually in the next seven years. In return, the government would suspend the fixed fees that COSCO needed to pay Piraeus under its existing contract. COSCO would only continue with the payments if the gross domestic product of Greece would go back to its pre-2008 levels plus an additional 2% annually.
Reuters reported that Greek wanted to lure private investors to manage Piraeus. This would be done through a concession or a direct sale of its stake. COSCO was seen as a possible buyer. Greek also intends to privatize Thessaloniki, its second-largest port.
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