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Cosco Pacific named temporary preferred bidder for Piraeus terminal

Cosco Pacific named temporary preferred bidder for Piraeus terminal

Athens: The Pireaus Port Authority (PPA) has named Cosco Pacific the temporary preferred bidder in the tender for the operation of two container terminals in a 35-year concession deal, at a meeting of the board yesterday, reports Hellenic News. Adopting an earlier evaluation committee proposal, PPA will now invite Cosco to submit the additional necessary documentation, as required under the tender process, enabling the commencement of the negotiations to reach a deal. 

The finalisation of the deal is expected by the end of September, followed by the necessary approvals from the country's Parliament. The private company is expected to assume control and begin its operations in the Port of Piraeus (pictured) by the beginning of 2009.

In a press conference held yesterday, Minister of Mercantile Marine, Mr. George Voulgarakis reiterated that Cosco's financial bid stands at 4.3bn euros for the 35-year period, out of which 3.4bn euros are guaranteed (consisting of an initial advance payment of 50m euros, leases of 591m euros and 2.7 bn of return on earnings). Cosco has also said it will commit a further 620m euros in investments to upgrade the port's capacity.

"This capital inflow in PPA will allow for the adoption of measures to improve the port's level of services provided, as well as works of a social character for the neighbouring municipalities. We will also take initiatives to develop the current ship repairing zone, in order to increase employment and improve the current working conditions" said Voulgarakis, among others.

Cosco's presence in the port of Piraeus is also expected to increase employment, since the upgraded terminal will need an additional 1,000 workers to operate properly.  [13/06/08]