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COSCO investment benefits Greek port

(cntv.cn) Updated: 2012-11-06 11:10

The Greek port of Piraeus has been booming since COSCO's arrival. The Chinese shipping giant operates next to the Greek-run side of the container terminal.

As?the correspondent Filio Kontrafouri reports from Athens, Piraeus is now gaining ground among the world's biggest commercial ports.

Since shipping giant COSCO leased this part of the port of Piraeus three years ago from the Greek government, it has turned it into the company's most dynamic container terminal in Europe. Cargo volume has tripled since, but profit remains thin, only because COSCO's subsidiary, the Piraeus Container Terminal that runs the dock, keeps pouring money back in to the port.

Related: COSCO eyeing further Piraeus port investment

One of the first things that COSCO did when it arrived here, at the port of Piraeus, was to modernize its dock investment that cost close to $400 million.

Run by a few Chinese managers and about 1000 Greek workers, the COSCO operation at Piraeus will be able to handle close to 4,000,000 containers next year.

Stavros Xatzakos, general manager of Piraeus Port Authority, said: "Of course we cannot compete with that but as I told you before, with the other part, which is the operation itself in the terminal in Pier 2, I think we are competing and we are as good as they are."

The Piraeus Port Authority still runs the Greek side of the port. COSCO's competition has forced it to upgrade its significantly smaller dock and its services and this year, container handling has increased by 35 percent. The 1200 remaining employees have seen their salaries slashed close to half. With further budget cuts and an increase in productivity, the Piraeus Port Authority will be seeing a fourth year of profit.

Under the government's privatization program, the port of Piraeus is in line for more private investments. And COSCO doesn't rule out further involvement.

In the meantime, next year COSCO will have most of its second dock ready enhancing Piraeus' position among the world's top ten commercial ports.

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