Foreign port operation rights granted to Chinese company for first time

With approval from the Parliament of Greece, COSCO Pacific, a subsidiary of the China Ocean Shipping (Group) Company, was granted 35 years of operation rights in the Piraeus Port of Greece, marking the first time overseas port operation rights have been granted to a Chinese company.

The port concession agreement, signed on November 25 last year between COSCO Pacific and the Piraeus Port Authority, was approved by the Parliament of Greece on March 5 with a majority vote of 149 to 139, Wei Jiafu, President of COSCO and Chairman of China COSCO Holdings Company Limited, told reporters on March 9.

The Piraeus Port, the largest in Greece and a marine transportation hub in the eastern Mediterranean, handles over one million containers every year, making it a leading operator in turnover capacity in Europe.

Wei noted that COSCO won the project through international bidding organized by the Greek Port Authority, beating out eight very competitive bidders including Hutchison Port Holdings and Maersk Line.

According to the agreement, COSCO Pacific is granted 30 years of operation rights for the four berths at Pier 2, capable of handling 10,000 TEU container vessels. COSCO Pacific are also granted 35 years of operation rights for the two berths to be built at Pier 3, capable of handling 10,000 TEU container vessels, at the Piraeus Port in Greece.

Wei noted that presently COSCO is stepping up preparation efforts and is scheduled to officially take over operations of the piers on October 1 this year.

According to estimates from a local authoritative expert, COSCO Pacific’s cooperation in the operation of Greek quays will bring long-term benefits to COSCO, and reinforce COSCO's liner operation in the China-Greek ship route, as well as offer more job opportunities for the Greek port. It will also promote trade between China and Greece and help the two countries work together to deal with the financial crisis.

The expert said that COSCO’s winning of the rights to port operations in a European developed maritime nation is one of the projects that symbolize China's growing strength through reform and opening-up, demonstrating the strength of Chinese state-owned enterprises and revealing the COSCO Group's capacity to operate international modern piers.

COSCO and Greece began negotiations for the project in 2006. In April 2006, COSCO launched a China-Greece direct ship route. The volume of goods exported from Greece to China in the same year rose over 30 percent year-on-year.

The COSCO Group is the second largest shipping enterprise in the world, and the most profitable shipping enterprise in the Fortune 500. Greece is the largest maritime nation in the world.

Source: People's Daily Online