Greece's OLP to get fifth of sales from Cosco unit

[Angelo]

Greece's OLP to get fifth of sales from Cosco unit

ATHENS, Oct 16 (Reuters) - Greece's Piraeus Port (OLPr.AT: Quote, Profile, Research, Stock Buzz) said on Thursday it would receive more than a fifth of revenues from a new cargo handling company to be run by China's Cosco (1199.HK: Quote, Profile, Research, Stock Buzz), worth an estimated 3 billion euros over 35 years.

OLP, which approved late on Wednesday the terms of a deal for Cosco to upgrade and run cargo port facilities for up to 35 years, said rental costs would push the guaranteed amount of the transaction to 3.4 billion euros.

"OLP will receive 21 percent of the new company's revenues for the first eight years and about 25 percent in the next years," the company said in a statement.

OLP, which expects to make a loss this year due to labour action by dock workers, has said the deal will return it to profit once Cosco enters Piraeus in 2009. Cosco is expected to pay OLP an initial 50 million euros in 2008.

"This 50 million euros [in] revenues will be seen in the bottom line of 2009 results," an OLP official, who declined to be named, told Reuters. "OLP will receive the amount after Greek parliament approves the deal, probably in December."

Among other terms, the contract sets a 2015 deadline for Cosco, the world's fifth largest port operator, to complete the construction of one pier. If Cosco fails to meet the deadline, it has agreed to refund 112 million euros to OLP.

The Greek court of audit, which oversees large financial contracts with the state, is expected to approve the terms of agreement later in October.

Greece's conservative government sought investors to modernise and run outdated facilities at the country's two largest ports in Piraeus and Thessaloniki, with the aim of growing cargo business, boosting competitiveness, and turning them into regional hubs.

OLP, with a current market value of 298.5 million euros, is 74 percent state-owned. Its shares have lost 60 percent since the start of the year underperforming a 54 percent drop in benchmark index .



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[gorgona]

At first I though it was Costco. I was thinking, “Costco?! I love Costco! They have Costco in Greece now?!” I guess this is OK too, though.
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[Angelo]

Originally Posted by gorgona
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At first I though it was Costco. I was thinking, “Costco?! I love Costco! They have Costco in Greece now?!” I guess this is OK too, though.
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We have costco to in Canada, very good place to shop
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[Angelo]

How that the chinesse have leased one terminal at pireaus port,they will be moving their

goods all over europe from their.Excellent move by Greece,more jobs will be created and

more income for the country.We will also strenghen are ties with china

[phoenix]

Originally Posted by Angelo
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How that the chinesse have leased one terminal at pireaus port,they will be moving their

goods all over europe from their.Excellent move by Greece,more jobs will be created and

more income for the country.We will also strenghen are ties with china

Fantastic news..

[greek18]

does anybody have some news about relationship greek-chinese in the shipping?

[Prokomenos]

Originally Posted by greek18
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does anybody have some news about relationship greek-chinese in the shipping?

I found this :

Boosting Greece-China economic relations the main thrust of President's talks in China
25 June, 2008


Further enhancement of economic relations between Greece and China was the main thrust of talks on Tuesday, the second day of Greek President of the Republic Karolos Papoulias' state visit to China.

Papoulias began on Monday afternoon an official visit to China designed to strengthen bilateral relations in the financial and investment sectors, and a memorandum of bilateral cooperation was signed after a meeting between Papoulias and his host, Chinese President Hu Jintao.

The Greek President also attended the closing session of the Greek Chinese Business Forum at a central Beijing hotel on Tuesday.

According to Chinese media reports, Hu proposed to Papoulias a four-point plan for strengthening bilateral relations, founded on frequent contact between the leaders of the two countries and cooperation between their governments, as well as mutual understanding and agreement on matters of common interest.

President Hu proposed that emphasis be placed on collaborations among small and medium size enterprises of the two countries, and boosting commercial transactions and and bilatera economic cooperation, particularly in the sector of investments and in the shipbuilding industry.

Hu further called for increased cultural exchanges, and proposed that Greece take part, as the Country of Honor, in the Beijing International Book Fair (in September 2008), while he also invited Greece to maintain communication and cooperation with China on international issues such as climate change, environmental protection and sustainable development.

Greek deputy foreign minister Petros Doukas, who is accompanying Papoulias on his China trip. spoke along the same lines in his address to the Business Forum, at which he highlighted the Greek economy's progress and its growth rates, citing the economic reforms, and stressing the need to increase Chinese investments in Greece and widening the bilateral trade balance, and closing the gap which is at Greece's expense.

Doukas further noted that Papoulias' visit to China will contribute to the two countries getting to better know each other and further strengthen their already excellent reations.

He said the visit was also an affirmation of the impressive potential of those relations and of the bilateral cooperation in recent years, the landmark of which was Greek prime minister Costas Karamanlis' visit to Beijing in January 2006 and the signing of a joint declaration of a comprehensive strategic partnership between Greece and China.

Turning to the global economic crisis and skyrocketing prices of raw materials, fuels and foods, he said these were phenomena that were putting social cohesion to the test in all countries, as they particularly impacted the socially weaker strata.
Doukas noted the burning problems resulting from the petrol crisis, and the repercussions arising from climate change, and stressed the need for cooperation among everyone to face them.

The deputy minister further recalled that Greece has proposed, at international organizations, the design and materialization of a mass tree planting program of at least 50 billion trees by the year 2009.

Inviting more Chinese entrepreneurs to invest in Greece, Doukas outlined Greece's advantages as the only Balkan and SE Europe country that was a member of the EU, NATO and the EU's European Monetary Union (EMU), stressing that "we want you to feel Greece as your own country as regards closer cooperation with the EU", and consider it a country that can serve as the springboard for China's expansion to the wider region of Europe, the Eastern Mediterranean and North Africa.

He underlined that that Greece boasts a strong business presence in the Balkans, while it was also an energy hub, noting the oil and natural gas pipelines in which Greece was a partner, as well as the country's infrastructures and ports.

Doukas also highlighted the investment opportunities on the Athens Stock Exchange (ASE), adding that Athens encouraged Chinese investments in the Greek ports: "We are pleased with Cosco's designation as temporary preferred bidder for the management of the container terminal at the port of Piraeus, adding that significant prospects for Greek-Chinese cooperation were opening up in the fields of alternative forms of energy and high technology.

Earlier on Tuesday morning (Beijing time), Papoulias laid a wreath at the Monument to the People's Heroes in the Gate of Heavenly Peace (Tiananmen) Square, followed by a tour of the Olympic installations that will host the 2008 Beijing Olympics.

Papoulias was the first foreign leader to be given a tour of the impressive installations, which are nearing completion.

Greek employment minister Fanny Palli-Petralia, who is also accompanying Papoulias, also addressed the Business Forum and recalled her cooperation with the Chinese side for the Athens 2004 Olympics, whose portfolio as minister of culture at the time also included the Athens Olympics, and the memorandum of cooperation she signed for the transport of the Olympic Flame to Beijing and for transfer of know-how.

"After the 2004 Games, we built an Olympics bridge, the first bridge between our two countries, which has become a very solid one," Petralia said.

She also recalled that, as minister of tourism in the past, she had agreed with Beijing for an increase in Chinese tourists to Greece, noting that although Greece and China, as countries, differed in size, they were nevertheless "sister countries".
Petralia further expressed certainty that the Beijing Olympiad would be unique, and would make a new beginning for China and afford it the opportunity to open up a window to the world that would enable it to show the soul of every Chinese citizen.

"We raised the standard very high and organised a dream Olympiad in 2004," Petralia said, and wished to the Chinese to outdo the Athens Olympics.

On Tuesday afternoon, President Papoulias is scheduled to meet separately with Chinese prime minister Wen Jiabao and chairman of the Standing Committee of the National People's Congress (NPC, China's unicameral legislative house, or parliament) Wu Bangguo, while in the evening he will inaugurate an exhibition of paintings by Mina Papatheodorou-Valyraki titled "Body and Mind", in the framework of the Cultural Year of Greece in China (September 2007-September 2008).

Papoulias is due to depart for Shanghai on Wednesday.