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China’s CoscoPacific has signed a share purchase agreement with the Hellenic Republic Asset Development Fund (HRADF) to acquire a 67% stake in the Piraeus Port Authority (PPA).

Under the terms of the agreement, Cosco Group will pay €280.5 million (US$319.6 million) to the Greece privatization fund (TAIPED) for the initial acquisition of a 51 % stake. Additionally, it will pay another €88 million (US$100.3 million) within five years for the remaining 16 percent.

Piraeus Port is one of the busiest passenger ports in Europe and one of the top cargo ports in the Mediterranean. 

According to sources, the signing ceremony was attended by Greek Prime minister Alexis Tsipras, chairman of China Cosco, Xu Lirong, HRADF chairman, Stergios Pitsiorlas and Zou Xiaoli, Chinese Ambassador to Greece. Xu Lirong said:

"My company has been implementing high-quality investments in the port since 2009”.

“Over the last few years, China Cosco Shipping has successfully enhanced the competitiveness and significance of Piraeus in the international shipping market, and contributed actively to the local economic development. Piraeus has now become a modern large-scale container terminal with leading technology, the fastest growing port in the past two years in terms of port handling capacity among the Top 100 container ports internationally, and an important hub for many international container liner companies in the East Mediterranean area.”

“Upon completion of the acquisition, China Cosco Shipping will capitalise on the strategic opportunity provided by the ‘One Belt, One Road’ initiative, vigorously embark on a new series of infrastructure and operational investments that will fully streamline the port’s performance and will help PPA reach its full potential to become one of the leading ports in Europe.”

Zou Xiaoli commneted::

 “With China Cosco Shipping’s fleet and technical expertise, Greece will become the leading gateway for Chinese products to Europe, and Greek exports to China will be further enhanced.”

The privatization is part of the Greece's privatization program, which aims to raise around €6.4 billion by 2017.