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COSCO Invests 230 Million Euros in Piraeus Port

An agreement between the Piraeus Port Authority (PPA) SA and Piraeus Container Terminal (PCT) SA (owned by Chinese COSCO company), foresees investments worth 230 million euros in the port of Piraeus.

As announced by the merchant marine ministry, the deal involves the construction and exploitation of Pier III of PPA's container terminal by PCT, the construction of the Fuels Pier, and the upgrading of machinery at container terminals Pier II and East Pier III .

According to the ministry the new investments are expected to create 700 immediate job positions and 1200 peripheral positions.
PPA's benefits remain constant as percentages of PCT's net income (21% until 2016, and 24,5% starting in 2017), while the lifting, under terms, of the guaranteed minimum income for PPA, are offset by the upgraded guaranteed minimum handling (4,750,000 TEU) for the piers under PCT control.

The agreement has been ratified by the boards of the two companies and will be tendered to the auditory council for approval, after which it will be sent to parliament for a vote.

Merchant marine minister Miltiadis Varvitsiotis noted that COSCO's investment would bear great benefits for Greece.

COSCO has expressed interest in bidding in the privatization for PPA, but so has New Zealand group Morrison & Co και ICM Limited.