COSCO completes Piraeus port authority takeover

Monday, 22 August 2016 00:01 - - {{hitsCtrl.values.hits}}

AFP: Chinese shipping giant COSCO said it had completed the acquisition of a majority stake in OLP, the company running the main Greek port of Piraeus.

Under the deal, approved by parliament in July, COSCO acquired 67% of the port authority for 368.5 million euros ($ 409 million).

“COSCO Shipping is now the majority shareholder of OLP, taking over the port’s management and operations,” the company said in a statement.

The sale gives COSCO rights to run Piraeus until 2052.

Leftist Prime Minister Alexis Tsipras had opposed the port’s privatisation before coming to power last year.

In July he departed for a six-day trip to China as lawmakers approved the deal. COSCO was the sole bidder in the process.

OLP said a new 11-man managing board named on Wednesday includes seven Chinese representatives, including the chairman and the CEO.

“This is the first cross-border acquisition by COSCO shipping,” the company said.

COSCO, through its Piraeus Container Terminal (PCT) arm, already manages the two main container terminals at the port – one of Europe’s busiest – under a 35-year concession signed in 2008.

Now it has control of the port, including its passenger ferry functions used by millions of tourists every year heading for the picturesque Greek islands.

COSCO has pledged to invest nearly 294 million euros ($ 326 million) to expand cruise facilities, upgrade the dockyard and create car space.

The company wants to turn Piraeus into the largest container port in Europe and the world’s main cruise departure hub.

The mayor of Piraeus had in the past expressed misgivings about an all-out sale of the port, and local unionists had protested about low wages and working conditions on the COSCO-run docks.

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.