Trade with Greece
31
and 2012, while merchandise trade in other
Mediterranean ports increased by only 20% dur-
ing the same period. In 2011, Greek ports received
4% of container traffic in the Mediterranean, up
from 1.5%-2% in 2008-2010. The level of capaci-
ty, infrastructure and equipment in the port of
Piraeus is higher than in European ports of simi-
lar size.
The port of Thessaloniki (the second largest in
the country) is less well equipped.
“The value added from the projected increase in
container handling in Greek ports” says the report
“is estimated to rise by 2.5% of GDP in 2018 with
an expected creation of 125,000 jobs. The
planned development of a ‘dry port’ in Piraeus will
further benefit the shipping activity.”
The growth of port activity does not depend only
on new investment in ports, but also on the
improvement of the quality of road and rail infra-
structures. For example, the port of Piraeus is not
directly linked to the rail network. This could be
done through the use of EU structural funds. In
addition, the “full privatisation of the Piraeus port,
as agreed in the August 2015 MoU, is needed to
increase its competitiveness and allow it to gain
further market share.”
The sale of OLP
The sale of OLP has been completed, so let’s
have a look at the benefits for the port and the
economy:
In the long term, the investment will contribute to
the reduction of the public debt by 2.3 percentage
points of GDP.
The net fiscal gain remains positive for the period
under review (2016-2025). The cumulative bene-
fit for the period 2016-2025 is estimated at 511
million euros, or 475 million euros in terms of
present value.
The net fiscal gain reaches its highest values in
the years 2016 (277 million euros) and 2022
(106.3 million euros), when OLP stock is sold for
280.5 and 88.0 million euros respectively, in
accordance with the proposed timetable.
Even excluding the cash flow from the sale of
shares, we can see that the net fiscal result is
clearly improving over time, owing to the
increased activity and efficiency brought about by
privatisation. More specifically, the remaining net
fiscal result increases from 6.9 million euros in
2017 to 20.9 million euros in 2025.
The concession agreement signed between
COSCO and the Hellenic Republic provides for
certain investments, the realisation of which must
be completed within two five-year periods
(CAPEX periods). Apart from the mandatory
investments, though, COSCO will also able to
make further investments, if this is deemed nec-
essary and profitable. Finally, investments may
also be made by other businesses that will launch
According to a study
by the Organisation
for Economic Cooperation
and Development (OECD)
on Greece, privatisations
are deemed necessary for
the Greek economy and
society, for many specific
reasons
”
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