Row over Piraeus port master plan leads to extension for deliberation

Chinese Cosco-controlled Piraeus Port Authority SA (OLP) in Greece has accused the state’s Public Authority of Piraeus Port (DALP) of a “systematic effort to dispute the privatization of OLP and its operation in the context of the law on private enterprises,” effectively speaking of state intervention.

In a letter dated February 5, which was sent to the ministers of finance and shipping and the presidents of state sell-off fund TAIPED and the Regulatory Authority for Ports, OLP argues that DALP chief Dimosthenis Bakopoulos “is trying to subrogate the administration of OLP SA and intervenes in the management of the port, which is not only illegal but also goes against the implementation of our company’s investment program, which depends on the approval of its master plan.”

OLP further stresses that the state regulator is creating “serious confusion as to the competences and rights of the OLP administration, which appear to be exercised by DALP.”

The issue arose from DALP’s initiative to invite various entities and port users to a consultation on the Piraeus Port Master Plan, which according to the Cosco-run listed company has no legal grounds. Sources also say DALP has further infringed on the competences of other entities, such as those of the Regulatory Authority for Ports.

At the same time, the Port Planning and Development Committee announced on Tuesday, that the period for public deliberation will be extended by 10 days.

Cosco’s aim is to turn the port of Piraeus into a major home port for cruise ships, with the target being 580,000 passengers – of whom 100,000 will be Chinese holiday-makers – using the port as a starting point every year. Cosco’s master plan includes new hotels and commercial activities (mall) within the PPA premises, among others.

The Chinese multinational has, from the very moment it assumed the port authority’s control, conveyed its intent to transform Piraeus into the largest ship-repair and ship-building hub in the east Mediterranean. A new floating dock able to handle to 350 to 400 vessels per year is already on line, in tandem with a strategy aimed to offer competitive prices and faster repair times.

Another axis of development for the PPA’s growth is to expand the current container port by connecting it with a rail line to logistics hubs in the greater west Athens area, attracting more ro-ro customers and more modern warehouse space.

All of the above aim to further upgrade Piraeus as the southern “gate” for Sino-EU trade.Finally, the fourth axis for future growth, as included in the master plan, is to continue to upgrade port facilities (parking space, port deepening, more shops within port premises) for ferry boat passengers travelling to and from various Aegean islands.

As local media report, Piraeus Port Authority is required to consider the proposals made by affected municipalities but not obligated to adopt these. Nevertheless, if the proposals are accepted, it will be required to submit an amended plan presenting its rationale for those rejected.