Major shifts seen in coastal shipping
The agreement between Periklis Panagopoulos and Panos Laskaridis for the purchase by the latter of the former’s 22.25 percent stake in Minoan Lines for -94.5 million was definitely the biggest coastal shipping news of last week. The deal means that Laskaridis, who owns close to 27 percent of Minoan Lines and 34.7 percent of Hellenic Seaways (HSW), is now the strongest group in local coastal shipping. This development, following the entry of the Grimaldi group into ANEK with a 14.5 percent stake, shows how attractive investing in Greek coastal shipping has become. The industry has now returned to calm waters: Coastal shipping companies have achieved a reduction in their banking liabilities. The financial results for 2006 are positive and almost all companies have shown profits. There is now a different institutional framework, closer to European Union regulations, about the «full liberalization of domestic maritime transport.» This creates a steady framework for «attracting investments to coastal shipping.» Investment does not necessarily mean the purchase of ships. It also means the acquisition of shares, so as to obtain the momentum required for plans for possible mergers or acquisitions to be realized. «In the Greek coastal shipping market, mainly on the routes where there are strong competition conditions due to the operation of two or more companies in them, there is a drive for their number to shrink. This will result in a new wave of mergers that will lead to the consolidation of the sector,» says Giorgos Xiradakis, chief executive of XRTC, the Natixis bank’s consultant on shipping. It therefore appears that the market’s needs are forcing coastal shipping companies to change their strategies and examine merger and acquisition plans to respond to the fierce competition in a small and seasonal market such as the Aegean. The next few months will be decisive, as competition is no longer restricted to Greek companies. There are now Italians, British and Cypriots as well as some Russians waiting in the wings. The efforts toward the acquisitions and mergers of companies actually began in 1999 when Pantelis Sfinias created Minoan Flying Dolphins (MFD). He in turn began the concentration of virtually all coastal shipping companies. He first bought Ceres Flying Dolphins, active in the Saronic Gulf. The acquisition rally that followed sent Sfinias to the top of the industry as he managed to unite under the MFD umbrella five other coastal shipping companies: those of Costas Agapitos, of Antonis Agapitos, of Giorgos Ventouris, of Yiannis Stathakis and of Gerasimos Agoudimos, although the latter maintained a 30 percent stake and managed to buy back his company when the Sfinias experiment began losing steam. His company is now under his full control. The Sfinias enterprise started crumbling when 80 seamen and passengers lost their lives off Paros with the sinking of the Express Samina in September of the year 2000. A few weeks later, Sfinias killed himself. After his death, Minoan Lines became a dominant force in its attempt to keep the company afloat. Its first move was to rename itself Hellenic Flying Dolphins. The first positive results for the company surfaced in 2002-2003, when Gerasimos Strintzis joined the firm as its CEO. Hellenic Flying Dolphins renamed itself Hellenic Seaways and slowly began becoming competitive and presenting positive financial reports and profits. ANEK’s opening Just as major shifts dominated coastal shipping, Hania-based company ANEK made significant moves in 1999: It become a strategic investor with 42 percent of the share capital in Rhodes-based DANE, promising to finance investments for its fleet’s modernization but without achieving anything important. ANEK then tried to depart from DANE but remained there until the Rhodes company crumbled. ANEK also joined Maritime of Lesvos (NEL), buying a 17 percent stake. It remained a stakeholder for some time until it sold its shares to Apostolos Ventouris, the current CEO of NEL. ANEK further acquired 100 percent of Rethymniaki and 50.03 percent of LANE. Today the company, with Yiannis Vardinoyiannis as its CEO, has managed to improve its finances, complete successfully its share capital increase and, crucially, managed to attract as an investor the Grimaldi group which bought 14.5 percent of the company. Strintzis Lines had been active in the Cyclades when suddenly it passed into the hands of the Attica Group. This gave new momentum to the company, which renewed its fleet, the youngest now in Greece, and became dominant on many routes in the Aegean, mainly to the Cyclades. It was later renamed Blue Star Ferries and is now an exemplary company offering high-standard services with new vessels. Attica Group also owns 100 percent of Superfast Ferries, which operates in the Adriatic. It had stakes in Minoan Lines and HFD but sold them, acquiring significant sums with which it strengthened its overall position. The main shareholder at Attica is Periklis Panagopoulos. Other companies Maritime of Lesvos went through some tough times due to poor choices in previous years. Yet Apostolos Ventouris turned things around, as he worked wonders for the company, both on its liabilities and in its position in coastal shipping. Today it operates eight ships in the Aegean. Other market players are Saos of Fotis Manoussis, who also owns 33 percent of listed company Nick Galis, and Aegean Lines, with two speedboats that serve the Cyclades. Kallisti Ferries recently started serving Samos and Icaria, owned by Giorgos Spanos and Italian Pascal Lota.
