CMA CGM's Terminal Link joins bidding for Thessaloniki port

Interest on the part of the world’s third biggest container shipping company in the 67% stake in Thessaloniki Port Authority (OLTh) being sold by the Greek government has created fresh momentum in the project.

CMA CGM has agreed to take part in a consortium that will bid for the stake through its Terminal Link subsidiary which has joined forces with the consortium’s main stakeholder, Deutsche Invest Equity Partners, and Russian-Greek investor Ivan Savvidis group.

The consortium along with DP World, Japan's Mitsui & Co Ltd and Philippines-based International Container Terminal Services Inc (ICTSI) are expected to submit binding bids by the 24 March deadline.

The bid deadline has been deferred a number of times, with the main stumbling block being semi-autonomous privatisation fund Taiped's insistence for a EUR180m investment figure over seven years for any concession holder, a sum many deem as high. The investment stipulation, combined with the country risk, reportedly makes financing of the privatisation more expensive.

Another "thorn" is a clause in the concession contract mandating a specific increase in port volume, something deemed unrealistic in the current economic situation.