Piraeus Port posts nine-month loss of 0.6 mln euros

The port of Piraeus (OLP), the largest in Hellas, managed to trim its losses from the continuous bans on overtime and weekend shifts by dockworkers, which have resulted in a halt of transshipment trade.

The overall volume of container traffic has fallen by more than 60 per cent. For the nine-month period, the port authority posted a loss of 0.6 million euros ($776,300). Nevertheless, the port had recorded a net profit of about 20 million euros in the same period of 2007. Piraeus has suffered gravely from the workers’ dispute over the concession agreement for two (out of three) container handling piers. As a result sales for the third quarter dropped 37 percent. OLP has seen containers pile up as dockers have refused to work overtime since January in protest at the government's move to privatise the port's container business. "The dockers' refusal to work overtime and weekends for the third consecutive quarter has led to reduced cargo business and income at very low levels," the company said in a bourse filing. Last week, OLP signed the much-contested concession agreement with Cosco Pacific Singapore, which will modernize and run the port’s facilities for a period of 35 years. The deal will start running from October of 2009. Cosco, China’s state-controlled container operator, is expected to invest almost 620 million euros, in order to upgrade the existing terminal and build a new facility to handle larger ships capable of carrying 10,000 TEUs (20 feet equivalent units). The company would operate both terminals, while OLP will handle the last one. Both parties expect that the investments will triple capacity to more than 3 million TEUs on an annual basis, while more than 1,000 new jobs would be created.
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