EIB loans Piraeus €140M

The European Investment Bank (EIB) is loaning Piraeus Port Authority SA (PPA) €140 million to support its future modernisation and expansion programme.

Overall, €611M is being invested in new infrastructure and facilities, which include the decelopment of a new port-based logistics centre and cruise terminal. In addition, the port’s vehicle-handling facilities will be expanded and the existing ship repair facilities improved.

“Recent investment has shown how investment at the port of Piraeus can support economic growth and benefit Greece,” explained Yu Zenggang, chairman of PPA. “The confirmation of the EIB’s support for this latest plan follows detailed due diligence and reflects the broad benefits to be unlocked by the largest investment programme in the history of the port of Piraeus.”

Commenting on the loan, Andrew McDowell, vice-president of the EIB, said: “The redevelopment of the port will strengthen connections between Greece and the rest of the world and ensure that Greece benefits from a world-class maritime logistics hub. We are pleased to provide this loan for the principal maritime hub of Greece and one of the leading port in the Mediterranean region.

He added: “The EIB support reflects the economic benefits to be unlocked in the coming years and the importance of ensuring competitive transport links for Greece and South Eastern Europe.”

The EIB loan, which is for 20 years, is guaranteed by the Exports–Imports Bank of China.

Operations in the port of Piraeus are undertaken by China’s Cosco’s Shipping Ports Ltd which owns 50% of the authority’s shares. In 2018, Piraeus was the second largest port in the Mediterranean basin, but on the back of continuing strong growth in H1 2019, is expected to achieve premier position this year. Over 5M TEU will be processed.

Source: WorldCargo News