AAthens sometimes reacts sensitively to reports of China’s growing influence in south-eastern Europe. “Should Greece, which is rebuilding its economy with great sacrifices, have to apologize for attracting Chinese investments – even if they are many times smaller than those that China makes in Germany or other countries?” Greek embassy in a letter to the FAZ
About half a year later readers’ mail arrived again. “It is unacceptable,” it said, “that the Chinese investments are seen as ‘business as usual’ in some countries, but as a political decision in others.” The FAZ “distorts reality,” wrote the Greek ambassador in Berlin at the time and asked a rhetorical question with regard to the Chinese investments in the port of Piraeus: “Is it perhaps the case that the fact that the port of Piraeus is developing into an important cargo handling center in the Mediterranean region (…) poses a problem for others in this one specific case, competing ports in Europe?”
After it became known last week that the Chancellery was in favor of the Chinese state-owned company Cosco taking a stake in one of the four terminals in the Port of Hamburg, all eyes are once again on Piraeus. Cosco has had a stake in Greece’s largest seaport since 2009 and now holds 67 percent of the port company. What experiences have you had there with the company, about which the coalition partners in the traffic light government, among others, are arguing in Germany?
Entry as a sovereign decision of Athens
Economically, the answer is simple. Ever since the Chinese shipping, logistics and port management group took over in Piraeus, the port has experienced tremendous growth. Contrary to popular belief, Cosco did not come to Athens under pressure from creditors. After years of negotiations, the Chinese got involved in Piraeus in 2009 during the reign of conservative Prime Minister Kostas Karamanlis. At that time, Greece’s impending insolvency was not yet an issue in the euro zone.
The Chinese entry was a confident decision by Athens. All of Karamanlis’ successors, including Alexis Tsipras from the “Alliance of the Radical Left”, promoted the growing role of the Chinese in the port – because the economic success was obvious. When Cosco got on board, Piraeus was the 20th largest freight port in Europe. It now occupies fourth place after Rotterdam, Antwerp and Hamburg. Hamburg is to be overtaken next. Thanks to Chinese investments of more than half a billion euros, the port has been growing faster than its continental competitors for years.
Beijing’s competence is valued
“If you weigh the pros and cons, there are mostly positive aspects of Cosco’s commitment. There is no particular negative aspect, at least so far,” says former Greek economy minister Stefanos Manos. Although Greek shipowners own a large part of the world’s merchant fleet, Manos said the port of Piraeus did not play a leading role in Europe before Cosco’s entry. “Thanks to the Chinese, that has changed. We weren’t very competent at running the port. The Chinese are very good at it.”
