COSCO Container Lines Co., Ltd. (COSCO), a Chinese leading provider of integrated container shipping service, has announced it has officially completed the acquisition of a majority stake in Piraeus Port, one of the busiest passenger ports in Europe and one of the top cargo ports in the Mediterranean.
As we reported in April, COSCO signed a share purchase agreement with the Hellenic Republic Asset Development Fund (HRADF) to acquire a 67% stake in the Piraeus Port Authority (PPA). Under the terms of that agreement, COSCO will pay €280.5 million (US$319.6 million) to the Greece privatization fund (TAIPED) for the initial acquisition of a 51 % stake. Additionally, it will pay another €88 million (US$100.3 million) within five years for the remaining 16 percent.
The objective of COSCO with this acquisition is to turn Piraeus port into one of largest container transit ports in Europe. COSCO will invest in a 300,000DWT dock and improve supporting facilities, so as to boost the ship repairing capacity and seek opportunities for repairing offshore equipment
The company will invest a total of €293.8 million (US$332.6 million) in several projects in the next five to seven years, including the expansion of the cruise port, the upgrading of the ship-building zone, and the construction of a multi-storied garage in the Ro-Ro vessel port. COSCO will make it the largest auto terminal in the Mediterranean and will accelerate the construction of China-Europe Land-Sea Express Line to close the gap between China and eastern and southern Europe.
“The Group will leverage on the construction of logistics and warehousing, respond to the ‘Belt & Road’ initiative and further expand the advantage of the port as a bridgehead of sea-land intermodal to forge it into the logistics distribution center in the Mediterranean, as well as the south gate to Central and Eastern Europe and the Balkans.”