ECONOMY

OLP and Cosco strike deal on extending their contract

Chinese shipping giant Cosco and the Piraeus Port Authority (OLP) reached an agreement on Tuesday for the former to invest another 230 million euros in the country’s main port. This took place in the context of the extension of the contract between the two parties.

After negotiations that lasted for several months, OLP announced the signing of the agreement that is now pending approval by the competition authorities, the boards of the two companies as well as the Greek Parliament.

In return for an increase in the annual guaranteed capacity to 4.75 million containers by Cosco, the Chinese company will be relieved of having to pay a minimum guaranteed amount until the country’s gross domestic product returns to 2008 levels plus 2 percent. The Chinese company will also construct a fuel dock on OLP’s behalf, which Piraeus Port will repay in 22 years.

OLP’s share in the turnover of the Cosco subsidiary operating in Piraeus will remain at 21 percent until 2016 and rise to 24.5 percent from 2017 onward. This is expected to secure OLP’s future revenues and open the way for the privatization of Piraeus Port.