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DPW to invest in Greek ports

Officials from DP World met the Greek Minister of Merchant Marine Manolis Kefaloyiannis late last week to underline their interest in investing in the country's ports.

A DP World spokeswoman has confirmed the negotiations between DP World and the Greek Minister and declined to give further details, but promised however to announce the results of the talks sometime in the future.

Coming hard on the heels of last week's visit by China Ocean Shipping Group president Wei Jiafu, who had talks with the Greek Prime Minister Costas Karamanlis, this meeting is seen by industry observers as adding substance to government claims of mounting interest in the country's ports sector. DP World executives last flew to Greece in May and are reported to have visited both Piraeus and Thessaloniki ports, as well as the Tympaki area of Crete, where the ministry wants to develop a new container transshipment hub.

DP World was named in a marine briefing paper early last week among three overseas groups to have shown interest in investing in the two top Greek ports.

Together with Cosco and the rival Chinese giant China Shipping, DP World's approach was deemed "indicative" of the sector's wider appeal. According to the ministry, this also includes interest from Greek investors.

Privatisation to date has consisted of the Piraeus and Thessaloniki port corporations being listed on the Greek stock market, but the government has promised further privatisation for next year.

The government's plans are still sketchy as are details of the proposals being hatched by various suitors, although it now appears that there is real interest in the ports. The sector was the main source of discussion last week during a meeting between Karamanlis and Kefaloyiannis, after which the latter reportedly said: "Major investment in Greece is starting from Greek ports."

The government has already signed a 10-year protocol with European Investment Bank, running up to$3.8 billion in loans on development projects in the ports costing up to $7.6 billion.

The commercial harbour of Piraeus is one of the most important in the Mediterranean. The city itself with its suburbs is an industrial zone of particular importance for the Greek economy, while the Port of Thessaloniki has significant advantages as the main European sea gate in the Balkan region.

The port of is one of the top two Greek critical export and transit ports and the main sea hub to the Balkan hinterland. It is also the nearest EU port to the Balkan countries and the Black Sea zone.