China president in Greece for $1 billion port deal

http://news.yahoo.com/s/ap/20081124/ap_on_bi_ge/eu_greece_china_2;_ylt=An3KMcKAfUYwF0m_isc8ZceoOrgF

By DEREK GATOPOULOS, Associated Press Writer Derek Gatopoulos, Associated Press Writer – Mon Nov 24, 8:58 am


ATHENS, Greece – China's President Hu Jintao arrived Monday in Greece for a three-day visit timed to coincide with the signing of a 831.2 million euro ($1 billion) port deal.

China's Cosco Pacific Ltd. will receive a 35-year concession to manage two container wharfs at Greece's main port of Piraeus.


Hu was greeted by Prime Minister Costas Karamanlis at the airport in Athens, and the two planned to hold talks Tuesday. Hu planned to meet later Monday with Greek President Karolos Papoulias.

"We have the will to further develop our ties. This is happening at a rapid rate," Hu was quoted as saying by Greek state television.

The port agreement will be signed Tuesday, amid the global financial crisis which has affected the shipping industry, and commodity shipments in particular. Greek companies control nearly 20 percent of the world's merchant fleet.

The Chinese port operator announced details of the deal last month, citing the value of the deal at 831.2 million euro ($1 billion) in present value terms.

Cosco said it would spend an additional 235.5 million euro ($297 million) on pier upgrades.

Dock workers' unions oppose the Piraeus privatization plan. The Federation of Greek Port Employees announced a 24-hour strike Tuesday as well as a protest rally in central Athens.

"The government and the Chinese leadership should realize that we will not allow our ports ... to become Chinatowns," a union statement said.

Piraeus, the port of Athens, is among the 10 largest ports in Europe, and the largest in container throughput in the eastern Mediterranean.

Greece and China expanded cooperation in the run up to this year's Beijing Olympics, with Athens having hosted the 2004 Games. Papoulias visited China in June, while Karamanlis traveled to China in 2006.

Last year, the volume of trade between the two countries was euro2.9 billion ($3.7 billion) with Chinese exports making up more than 95 percent of that figure, according to data from the Hellenic-Chinese Chamber of Commerce.

Greek companies currently have some 480 orders at Chinese shipyards, chamber spokeswoman Stamatina Markou said.

Hu is in Greece after attending a summit of world leaders in Washington and a visits to Latin America. He will return to Beijing Wednesday.

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On the Net:

Proposed port concession agreement: http://www.coscopac.com.hk/admin/upload/ir/announcements_circular/e20081118.pdf