Amid new protests scheduled by dockworkers, the Chinese delegation visiting Hellas since Monday, headed by Chinese President Hu Jintao, is expected to sign the concession agreement between Cosco Singapore and OLP (Piraeus Port Authority).
Hu is scheduled to sign a 3.4 billion euro deal to manage and upgrade facilities at Piraeus Port (OLP) for up to 35 years. The amount will be paid over the duration of the contract. Speaking in a press conference organized yesterday in Athens, Cosco’s s President and CEO, Capt. Wei Jafu said the concession would profit Cosco in the long term and would bolster Greece's cargo business. OLP has already said it expects the deal to boost profit by at least 60 percent over five years. "We don't expect the crisis to last for 35 years," said Wei, laughing. "In 35 years, we can make a reasonable return on this investment." Cosco will invest at least 350 million euros to upgrade the port’s facilities and raise annual handling capacity from 1.6 to 3.7 million TEU’s (twenty-foot equivalent units). But, Captain Wei Jiafu also commented on the recent downturn of the dry bulk shipping industry. He expressed his hope that demand would rebound in the first half of next year, instead of lasting for years. "The financial tsunami affects real shipping demand. Shipping is diving due to the panic of investors ... but the diver has to come up eventually," Cosco CEO said.
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