New | Cosco Pacific seen distancing itself from Greek port project
Degree of diversification of assets cited as major reason for taking a back seat in bidding in Piraeus Port Authority privatisation plan
Cosco Pacific, the port unit of China Ocean Shipping Group, seems to be distancing itself from any involvement in a port privatisation plan in Greece, where a new leftist government has tried to shed austerity commitments, casting doubt on further investment by the Chinese firm.
"Any decisions related to [the bidding] of Piraeus Port Authority (PPA) are made at our parent group level," vice-chairman and managing director Qiu Jinguang said after Cosco Pacific's annual general meeting on Thursday. "We are not involved at all."
The comments mark a U-turn from the company's previous stance, when it repeatedly asserted interest in Greece's largest port, a substantial part of which it already operates. In March, deputy managing director Ken Chan said the firm had been preparing bidding documents and waiting for the local authorities to call for their submission.
Privatisation of PPA, controlled by the Hellenic Republic Asset Development Fund (HRADF), was launched in March last year, as part of a massive state assets sell-off to relieve Greece's credit crunch.
The portfolio contains a wide array of assets, including a container terminal, car terminal and cruise terminal, ship-repair facilities and a passenger terminal that is the largest in Europe.
Both Qiu and Chan on Thursday cited the degree of diversification as a reason why Cosco Pacific was taking a back seat in the bidding.