BUSINESS

Shanghai teams up with Piraeus to boost container traffic

TAGS: Privatizations, Business

Piraeus Port (OLP), operator of Greece’s biggest port and majority-owned by China’s Cosco Shipping, has agreed to team up with the operator of Shanghai port, the world’s largest container port, to promote container shipping traffic.

OLP, Cosco and Shanghai International Port Group (SIPG) have agreed to cooperate in project planning, staff training and information exchange, OLP said in a statement on Monday.

It noted the agreement would create synergies to boost trade and create new business opportunities.

Shanghai is China’s main gateway port to the world and had a throughput of 36.5 million TEUs (20-foot equivalent container units) in 2015.

“The agreement means that huge quantities of goods will be transported to Piraeus from Shanghai,” Deputy Economy Minister Stergios Pitsiorlas said on the sidelines of the event.

China has been investing heavily in Greece in recent years. Cosco bought a 51 percent stake in Piraeus Port for 280.5 million euros last year under its plan to make Greece a transhipment hub for rapidly growing trade between Asia and Eastern Europe.

It has the option to buy another 16 percent after five years once it completes mandatory investments of 300 million euros to upgrade infrastructure.

Cosco has been managing two of the port’s cargo piers since 2009 and has helped Piraeus shoot up the world rankings of container ports to 44th biggest in 2015 from 93rd in 2010.

Piraeus had a throughput of 3,750 million TEUs last year and expects this to exceed 4 million this year.

[Reuters]

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