China Cosco Shipping Group could invest around EUR 500 million (USD 554.1 million) in one of Greece’s largest ports, the port of Piraeus, over the period of five years, the Wall Street Journal cited the company’s president Xu Lirong.
Under the investment plans, the company would mainly update the cruise and shipbuilding industry and develop the port’s facilities and services, Lirong was cited as saying during a meeting with the Greek Prime Minister Alexis Tsipras in Shanghai.
In June, Cosco received approval for a new concession agreement at the port after it signed an agreement with the TAIPED (Hellenic Republic Asset Development Fund) for the transfer of a majority stake in Piraeus Port Authority in April.
The EUR 368.5 million (USD 402.3 million) agreement includes the transfer of a 67% stake in Piraeus Port, as Greek two major ports, the Piraeus Port Authority (PPA) and Thessaloniki Port Authority (THPA), are being privatized as part of the country’s bailout plan.
Last week, the country’s lawmakers ratified the sale of the stake, earlier agreed at a price of EUR 22 per share.
Cosco will initially purchase 51 percent in the port for an amount of EUR 280.5 million, and the remaining stake of 16 percent over five years, for EUR 88 million.
World Maritime News Staff