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Trade

Black Sea ports offer much promise

By Fu Jing (China Daily)
Updated: 2011-06-25 09:27
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BRUSSELS - China should consider investing in its ports along the Black Sea to make it easier for Central and Eastern Europe to trade with the second largest economy in the world, a member of the European Parliament suggested.

Bela Glattfelder, a member of the European Parliament from Hungary, put forward that proposal just as Chinese Premier Wen Jiabao began a three-country tour of Europe on Friday with plans to seal multi-billion-dollar agreements. During the part of the trip taking him to Hungary, Wen plans to meet with entrepreneurs from Central and Eastern Europe.

Glattfelder said his suggestion came as China has redoubled its efforts to invest overseas and the EU has recognized the strategic importance of the Black Sea region in ensuring it enjoys energy security and diverse means to obtain energy.

He said China should consider investing in the ports of Constanta and Galati, both in Romania, and in Koper, in Slovenia. He said the Black Sea in many ways has become the inner sea for the EU.

"From the geo-world economic point of view, China's possible investment in port infrastructures along the Black Sea can further strengthen bilateral trade and economic relationships between China and Central and Eastern Europe countries," Glattfelder told China Daily in a recent exclusive interview.

"Romania is the first target China should approach," said Glattfelder, whose home country, Hungary, is landlocked and relies greatly on Romanian ports for trade.

"The regions around the Black Sea are geographically important and that leads to a huge potential for us to build ports and expand our business there," said Mo Wenhe, vice-president of China Harbor Engineering Company Ltd. "We are looking for deals there."

China Harbor, a subsidiary of China Communications Construction Co Ltd, is working on various port projects abroad. "We have signed deals in Turkey and Greece," Mo said.

The Black Sea is an inland sea in Eurasia and encroaches into Bulgaria, Georgia, Romania, Russia, Turkey and Ukraine.

While frequently relying on ports in Western Europe, China has already invested in a south European port. Last June, China Ocean Shipping Group Co (COSCO) signed a 4.3 billion euro ($6.1 billion) deal to assume for 35 years the management of Piraeus, a large port in Greece. COSCO has decided to spend another 620 million euros on improvements at the port, on the construction of a new pier, and on projects meant to triple the number of containers the port takes in every year from the 1.8 million it now does.

Glattfelder said Chinese investors should look at the port in Rijeka, a Croatian city.

According to previous reports, Romania, Slovenia and Croatia have already shown intentions to attract foreign investments to improve and expand their ports.

According to the European Commission, the Black Sea region comprises 10 countries. It includes three members of the EU (Bulgaria, Greece, and Romania), one candidate for membership (Turkey), five Eastern European neighbors (Armenia, Azerbaijan, Georgia, the Republic of Moldova, and Ukraine) and Russia.

"So the harbor investment can help pave the way for China's growing investment and trade activities in eastern and western Europe and other countries in the regions," Glattfelder said.

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