Greece Ports and Shipyards
Ports
In 2019, the Government of Greece embarked on a privatization campaign of its second-tier ports. This followed the initial privatizations of the two largest ports of Piraeus (by Chinese firm COSCO) and Thessaloniki (by South Europe Gateway Thessaloniki).
The Greek Privatization Program includes the following ports, some of which are still in progress:
- the port of Alexandroupolis;
- the port of Heraklion;
- the port of Igoumenitsa;
- the port of Kavala; and,
- the port of Volos.
The Alexandroupoulis post, the third largest port in country, is of particular geopolitical and geographic significance. Already a strategic hub, this port has potential for further development. An industrial area is situated near the port with plans for two floating LNG units to supplement infrastructure already in place.
Another project to watch is the port of Kavala. In May 2022, a consortium of firms including GEK Terna, EFA Group, and Black Summit won the concession agreement for the Kavala port.
As investors and operators make necessary infrastructure upgrades to these ports, we expect opportunities in the following areas: equipment, logistics, cybersecurity, and project management. Cybersecurity for high value infrastructure assets is a particularly promising sector. Project management is an emerging opportunity as the Greek government seeks to utilize project managers to monitor projects being executed by partners.
Shipyards
In 2020, the Greek government announced another round of privatizations which also included shipyards. The most significant projects are the Scaramanga and Elefsis shipyards, each valued at approximately 40 million euros.
The Hellenic Shipyards of Scaramanga
Scaramanga shipyard is the largest in the eastern Mediterranean and has historic ties to Greece’s Navy, having built and repaired many of its war vessels since the late 1930s. Greece concluded a tender for the sale of the Scaramanga shipyards and a well-known Greek shipowner secured Scaramanga in July 2021. This shipyard is currently offering maintenance services to the Greek Navy and the sale has been part of Greek Government drive to overhaul its defense industry and boost the country’s defense capabilities.
The Elefsis Shipyards
One of the main priorities of the Ministry of Development and Investments is the utilization of the Elefsis Shipyards, with the ultimate goal of transforming the shipyard into a shipbuilding repair center, following the example of the Neorion Shipyards in Syros. U.S. firm ONEX is in advanced discussions with the Greek government as the sole executor of this pending privatization valued at over $200 million. In August 2022, the Greek Parliament voted on a privatization bill in support of the project paving the way for approximately $102 million in Development Finance Corporation (DFC) funding. According to ambitious predictions, the shipyard could start operations in 2023.
The Neorion Shipyards
Shipbuilding in Syros, the capital of Cyclades, was reborn after the investment by U.S. firm Onex. In 2019, Onex took control of the Neorion Shipyards on Syros Island. Since its change in ownership, the shipyard has been referred to as “the miracle of Syros” with long pending dues managed, jobs saved, investment commitments honored, and the shipyard becoming profitable. The U.S. has provided a significant amount of machinery, software and services in order to modernize and expand the shipyard.
For more information on ports and shipyards, please visit the website: https://ypodomes.com/
Please contact Industry Specialist Athina Kladis at athina.kladis@trade.gov or Irini Karajani at irini.karajani@trade.gov for further information.