Piraeus a done deal unless Greek assembly votes it down this week
GREECE stands to benefit from China's growing global influence, while Chinese-owned Port of Piraeus can play a pivotal role in the development of its economy, said China Cosco Shipping president Xu Lirong.
"Greece will have many benefits from China's growing influence and power in the global market," said Mr Xu at the signing ceremony, reported the UK's Seatrade Maritime News.
But many remain opposed to the deal, claiming it is illegal until ratified by the Greek parliament this week.
But Mr Xu spoke of it as if it were a done deal. "Chinese companies see huge investment opportunities in Greece and this is something backed by the Chinese government," said Xu, saying his aim is to make Piraeus the Mediterranean's most competitive port.
After Greek Prime Minister Alexis Tsipras signed the deal, he noted it makes the "Silk Road" faster and shorter at a time when Greece is putting emphasis on economic recovery.
"This investment will be the start for a series of new investments," he said.
Yet the deal is controversial and perhaps illegal, and carried out as part of financial bailout terms with international lenders.
Shipping Minister Theodoris Dritsas refused to attend the signing, insisting the deal has no legal standing unless it is ratified by Parliament and intends to fight until the parliamentary vote it a few days.
Dockers are also opposed to the deal saying it will put their jobs at risk. Their union struck during the signing and held a protest in central Athens over the past weekend.
Greek President Prokopis Pavlopoulos hopes "this deal is just the beginning for many more investments to come to Greece". He met with Xu after the signing stressed the importance of the agreement for both sides.
Under the deal, Cosco will pay EUR280.5 million (US$316.8 million) to buy 51 per cent per cent of the PPA and EUR88 million for another 16 per cent after five years, on the condition it commits to investments of EUR350 million in the next decade.
Mr Xu has pledged that as soon as the deal comes into effect, Cosco plans to invest in maintaining the shipbuilding infrastructure, seek a greater share in the cruise sector and organise coastal shipping.
He also assured the company will "pay great attention" to the labour relations and to "provide the best working conditions" for the employees.Since 2009, Cosco's subsidiary Piraeus Container Terminal (PCT) has been operating container terminals II and III at Piraeus under a 35-year concession.
In 2015, the container throughput of Piraeus increased to 3.36 million TEU from 880,000 TEU in 2010, while the global ranking of Piraeus rose from 93rd to 39th in terms of container capacity.
GREECE stands to benefit from China's growing global influence, while Chinese-owned Port of Piraeus can play a pivotal role in the development of its economy, said China Cosco Shipping president Xu Lirong.
"Greece will have many benefits from China's growing influence and power in the global market," said Mr Xu at the signing ceremony, reported the UK's Seatrade Maritime News.
But many remain opposed to the deal, claiming it is illegal until ratified by the Greek parliament this week.
But Mr Xu spoke of it as if it were a done deal. "Chinese companies see huge investment opportunities in Greece and this is something backed by the Chinese government," said Xu, saying his aim is to make Piraeus the Mediterranean's most competitive port.
After Greek Prime Minister Alexis Tsipras signed the deal, he noted it makes the "Silk Road" faster and shorter at a time when Greece is putting emphasis on economic recovery.
"This investment will be the start for a series of new investments," he said.
Yet the deal is controversial and perhaps illegal, and carried out as part of financial bailout terms with international lenders.
Shipping Minister Theodoris Dritsas refused to attend the signing, insisting the deal has no legal standing unless it is ratified by Parliament and intends to fight until the parliamentary vote it a few days.
Dockers are also opposed to the deal saying it will put their jobs at risk. Their union struck during the signing and held a protest in central Athens over the past weekend.
Greek President Prokopis Pavlopoulos hopes "this deal is just the beginning for many more investments to come to Greece". He met with Xu after the signing stressed the importance of the agreement for both sides.
Under the deal, Cosco will pay EUR280.5 million (US$316.8 million) to buy 51 per cent per cent of the PPA and EUR88 million for another 16 per cent after five years, on the condition it commits to investments of EUR350 million in the next decade.
Mr Xu has pledged that as soon as the deal comes into effect, Cosco plans to invest in maintaining the shipbuilding infrastructure, seek a greater share in the cruise sector and organise coastal shipping.
He also assured the company will "pay great attention" to the labour relations and to "provide the best working conditions" for the employees.Since 2009, Cosco's subsidiary Piraeus Container Terminal (PCT) has been operating container terminals II and III at Piraeus under a 35-year concession.
In 2015, the container throughput of Piraeus increased to 3.36 million TEU from 880,000 TEU in 2010, while the global ranking of Piraeus rose from 93rd to 39th in terms of container capacity.