Post by Arxileas on Mar 20, 2009 6:30:34 GMT -5
Greece Halts Thessaloniki Privatization
Bruce Barnard | Mar 17, 2009 1:49PM GMT
The Journal of Commerce Online - News Story
Government to annul tender after top bidder withdraws
London -- Greece is halting the privatization of container operations at Thessaloniki, the country's second largest box hub.
The government is expected to announce shortly it has annulled a tender to operate and modernize the port's box terminal after the top bidder, Hong Kong's Hutchison Port Holdings, withdrew its offer in December.
A joint venture between Hutchison and Greek pharmaceuticals company Alapis offered around $4 billion for a 30-year concession and pledged to invest $635 million to upgrade the port's outdated container facilities.
The companies withdrew their bid just as they were about to draft contracts with the Thessaloniki Port Authority, a move attributed to the downturn in the global ocean container market.
Dockers are opposed to privatization and have refused to work overtime and weekend shifts since January 2008, slashing Thessaloniki's box traffic last year to just below 239,000 TEUs from nearly 450,000 TEUs in 2007.
The state-controlled Thessaloniki Port Authority is expected to undertake modernization on its own while the government decides whether to revive its privatization plan at a later date.
The Greek parliament recently approved an agreement giving China's Cosco Pacific a 30-year concession to operate container terminals at Piraeus, the country's biggest box hub. Under the $1.1 billion deal due to start in November, Cosco will invest a further $300 million to expand the port's annual capacity to 3.7 million TEUs.
Piraeus has also been hit by labor protests against the Cosco deal, resulting in traffic falling to 430,000 TEUs in 2008 from 1.37 million TEUs in 2007.
www.joc.com/node/410115
Bruce Barnard | Mar 17, 2009 1:49PM GMT
The Journal of Commerce Online - News Story
Government to annul tender after top bidder withdraws
London -- Greece is halting the privatization of container operations at Thessaloniki, the country's second largest box hub.
The government is expected to announce shortly it has annulled a tender to operate and modernize the port's box terminal after the top bidder, Hong Kong's Hutchison Port Holdings, withdrew its offer in December.
A joint venture between Hutchison and Greek pharmaceuticals company Alapis offered around $4 billion for a 30-year concession and pledged to invest $635 million to upgrade the port's outdated container facilities.
The companies withdrew their bid just as they were about to draft contracts with the Thessaloniki Port Authority, a move attributed to the downturn in the global ocean container market.
Dockers are opposed to privatization and have refused to work overtime and weekend shifts since January 2008, slashing Thessaloniki's box traffic last year to just below 239,000 TEUs from nearly 450,000 TEUs in 2007.
The state-controlled Thessaloniki Port Authority is expected to undertake modernization on its own while the government decides whether to revive its privatization plan at a later date.
The Greek parliament recently approved an agreement giving China's Cosco Pacific a 30-year concession to operate container terminals at Piraeus, the country's biggest box hub. Under the $1.1 billion deal due to start in November, Cosco will invest a further $300 million to expand the port's annual capacity to 3.7 million TEUs.
Piraeus has also been hit by labor protests against the Cosco deal, resulting in traffic falling to 430,000 TEUs in 2008 from 1.37 million TEUs in 2007.
www.joc.com/node/410115