Cosco Pacific Signs a Concession Agreement to Develop and Operate
Piers 2 and 3 of the Port of Piraeus in Greece
COSCO Pacific Limited ("COSCO Pacific") signed a concession agreement with Piraeus Port Authority S.A. ("PPA") on 25th November 2008 to develop and operate Piers 2 and 3 of the port of Piraeus in Greece. The signing took place at an official ceremony in the office of the Greek Prime Minister, witnessed by President Hu Jintao of China and Prime Minister Kostas Karamanlis of Greece.
On behalf of COSCO Pacific and PPA, Dr. Wei Jiafu, President and CEO of China Ocean Shipping (Group) Company ("COSCO"), and Mr. Nikos Anastassopoulos, CEO of PPA, signed the concession agreement in the presence of a number of Chinese and Greek government officials and distinguished guests.
Dr. Wei said, "It is our great honour to have President Hu Jintao of China and Prime Minister Kostas Karamanlis of Greece here to witness the signing ceremony. Their presence fully embodies the significance of the strategic cooperation between COSCO Pacific and PPA and symbolises the achievement of an important milestone."
Dr. Wei emphasized, "As the world's fifth largest port operator, COSCO Pacific is committed to further expanding its terminal business by strengthening its global network. This long-term collaboration with PPA fits well with our corporate strategy to further solidify our position as a leading global port operator. Enjoying a high degree of support from COSCO, the world's second largest shipping enterprise, and leveraging the long established relationships with major international shipping lines, we believe that Piers 2 and 3 of the port of Piraeus will be transformed into an important hub port providing comprehensive and high-quality services to global shipping lines."
Piraeus Port is the largest container terminal in Greece. Located in the commercially and strategically important shipping routes serving Europe, North Africa and the Mediterranean, Piraeus Port handled 1.37 million TEUs in 2007, representing 73% of the container traffic in Greece.
COSCO Pacific will undertake the concession through its wholly-owned subsidiary, Piraeus Container Terminal S.A. The concession agreement is subject to ratification by the Greek Parliament and provides for an initial term scheduled to commence on 1st October 2009 for a term of 30 years with a five-year extension. Upon completion of upgrading work of the existing Pier 2 and construction of the new Pier 3, the combined capacity of the two piers is anticipated to reach 3.7 million TEUs by 2015.
Source: COSCO Pacific Limited