September 08, 2008

Deadlock over Greek port privatization

It is reported that Greek port workers and the government have reached a deadlock over plans to privatize cargo handling facilities at Piraeus and Thessaloniki.

Dockers working for the Piraeus Port Authority held a 24 hour strike last week. There was also a strike in Thessaloniki which effectively closed the commercial port. Port authorities have warned that container storage terminals are already running close to capacity and that further strikes will worsen congestion. Dock workers are slated to carry on in April their refusal to work overtime and on weekends or holidays.

Mr George Voulgarakis merchant marine minister of Greek however, said the government will hold firm to its privatization plans. He stressed that "both ports were heavily in debt and for the first time last year had asked to be included in the State budget." He called on the workers to engage in talks to avoid the possibility of some of them losing their jobs.

The strikes started this year after an announcement by Mr Voulgarakis that a global tender for operators to run Piraeus and Thessaloniki under a 30 year concession would be released. The tenders are for management contracts for two of the three container facilities at Piraeus and for the entire container terminal in Thessaloniki.

The Thessaloniki Port Authority on January 15 approved the global tender process while the Piraeus Port Authority approved the tender conditions on January 11.

Reports said that parties interested in the privatization include DP World, COSCO Pacific Limited, Maersk, Hutchison Port Holdings and Zim Integrated Shipping Services Ltd. Meanwhile, the Piraeus Traders Association is reportedly asking the government for measures to stave off the 'extinction' of hundreds of small and medium import/export companies.