Follow Greek investment immigration and stay updated on life in Greece. Recently, a news story titled "How Many Ships Have Greek Shipowners Actually Ordered in China?" has attracted significant attention from those interested in Greece. A recent Xinhua News Agency report stating that Greek shipowners ordered 142 vessels from China in April has surprised the entire Greek populace. The report cited remarks made by Kostis Mousouroulis, the Greek Minister of Shipping and the Aegean, who was part of the trade and investment delegation visiting China.
Although Greek shipowners are China's largest customers, this statement made by Kostis Mousouroulis in Beijing still left many Greek commentators confused. In fact, what the minister likely intended to convey was that by April, the total number of vessels ordered by Greek shipowners from China had reached 142.
Kostis Mousouroulis may have been quoted accurately when he said: "These contracts account for more than 60% of new orders by Greek shipowners, reflecting the close cooperative relationship between Greece and China in the shipping sector." He also described these orders as "investments in the future by Greek shipowners."
John Platsidakis, manager of the dry bulk transport company of the Angelicoussis Group and another member of the delegation, pointed out: "Since 2000, Greek shipowners have ordered $28 billion worth of ships from China alone." He was also one of the Greek delegates who signed contracts during this visit, receiving a 146.4 million yuan term loan from the Export-Import Bank of China for the order of three 319,000-ton VLCCs from Shanghai Waigaoqiao Shipbuilding, which are scheduled for delivery within the next two years. The Angelicoussis Group is the largest shipowner in Greece and has so far invested $1.6 billion to order 27 ships from Chinese shipyards, 20 of which have already been delivered.
In addition to Mousouroulis and Platsidakis, other representatives of the Greek shipping industry who attended meetings with Chinese government and banking officials included Simeon Palios, CEO of Diana Shipping; George Procopiou of Dynagas; Theodore Veniamis of Golden Union (who is also the President of the Union of Greek Shipowners); and Michael Bodourouglou of Paragon Shipping. George Xiradakis, a financial advisor for the China Development Bank, also attended the meetings.
The total amount of shipbuilding loan agreements signed with the China Development Bank and the Export-Import Bank of China was $245.4 million. Bodourouglou signed a $69 million loan agreement with the China Development Bank and reached a cooperation agreement with the China Classification Society. Palios received a $30 million loan from the Export-Import Bank of China, and Veniamis ordered three Panamax vessels. The Export-Import Bank of China also signed a strategic cooperation agreement with the LNG transport company under Prokopiou.
Jiang Yaoping, Vice Minister of Commerce of China, stated that China will increase its investment in the Greek port industry and hopes to further strengthen economic cooperation between the two countries. Speaking at the China-West Business Forum, Jiang stated that China will expand its investment in the Port of Piraeus. After three years of operating Piers 2 and 3 of the Port of Piraeus (on a 35-year lease), the Chinese shipping giant COSCO is prepared to invest 1 billion euros ($1.29 billion) to acquire a 60% stake in the port. Fu Chengqiu, Managing Director of COSCO Piraeus Container Terminal, recently stated that the Port of Piraeus is an important gateway to Europe.
Prime Minister Samaras said: "Greece's infrastructure is open to foreign capital, and we welcome Chinese companies to participate in the operation of certain projects." Greece plans to privatize a number of state-owned assets, including airports, government buildings, oil companies, natural gas fields, mineral resources, postal services, and real estate projects, to raise approximately 50 billion euros.
Samaras said at the forum: "Greece is steadily moving toward success," adding that the country could become "an important gateway for China to the European interior."
Hours after returning from China, Samaras told approximately 1,000 shipping professionals attending the celebration of Greek Merchant Marine Day and European Maritime Day: "We must first let the world understand Greece through shipping and tourism before we can trigger interest from foreign investors in other industries."
Hopefully, the implementation of this gateway plan will be a bit faster than previous similar promises. On January 19, 2006, then-Greek Prime Minister Costas Karamanlis signed a strategic agreement with Chinese Premier Wen Jiabao in Beijing. The latter hoped to strengthen relations with Greece, while Greece hoped to obtain shipping and other commercial benefits from the world's second-largest economy. However, it was not until March 2010 that COSCO's $5 billion Port of Piraeus concession project was fully completed.