The Greek government is reported to be privatizing the management of the first wharf of Piraeus Port, a transport hub of the Mediterranean Sea. According to local reports, China Ocean Shipping Co. (COSCO) is vying for the bid.

Greece’s government has been offering management rights to the port since 2006. With 4 billion euros for operating concessions, COSCO acquired management rights of the second and third wharfs in 2008.

As Greece continued to suffer from the debt crisis, the government planned to sell the management rights of the first wharf, with the possibility of a public bidding process.

"Not only are we interested, but the Greek government also has the willingness," said Fu Chengqiu, general manager of Cosco Piraeus Container Terminal Co. (PCT).

According to 21st Century Business Herald, workers in the first wharf were going on strike as the interview was going on. The workers are still able to receive 5000 euros a month even while they are striking.

But the second and third wharf are so far operating well. According to Fu, workers in the second wharf have not gone on strike since management went into the hands of COSCO. "Once a union leader promoted a strike at PCT, but workers refused and told the personnel department about it."

According to current circumstances, GDP of Greece will be growing with an annually average rate of 2.5 percent and an annual growth rate of 5 percent of trading volume. COSCO expects to have revenue of 4.3 billion euros during the franchised period.

The country was shocked by the financial crisis, and GDP may reduce 25 percent this year.

But as the company has been operating the wharf, according to Fu, they straightened out the equipment with three to four months. "Trucks used to need 4 to 6 hours to line waiting for cargoes, now they only need ten minutes," said Fu.

This is not only because of their efficiency in renewing the wharf and creating profitability for the state. COSCO also brings out many job opportunities since they have only brought seven working staff from China and produced job openings for more than 1000 workers.

Some people familiar with the industry said that COSCO has to bear a heavy pressure since they have to pay 3.28 billion euros for the operating rights, and with the current situation, they are taking a sizeable risk.

But Fu said they'll focus on building up a completed branch network to increase density of service coverage of the port, "My goal is to make Piraeus the best port in the east Mediterranean Sea in two or three years."

Source: Morning Whistle