Companies

China's Cosco says will not halt Greek investment

(Agencies)
Updated: 2010-05-22 10:33

ATHENS - China's Cosco said it would go ahead with investments in Greece's largest port Piraeus despite the crisis that has hit the Greek economy and sent shockwaves throughout the euro zone.

"I do believe we will bring a lot of opportunity for the Greeks and for the Greek economy," said Captain Wei Jiafu, president and CEO of Cosco Group, which operates the world's largest bulk cargo fleet.

"Cosco will materialise the agreement and will fulfil its duties and responsibilities."

Cosco is the No 7 container shipping firm globally and controls port operator Cosco Pacific.

Cosco signed a guaranteed 3.4 billion euro concession deal with Greece in 2008 to run and upgrade port facilities for up to 35 years aiming to turn state-owned Piraeus port (OLP) into a regional hub, according to OLP figures.

"We set up this port as a hub port and to link three continents, south, east and middle Europe, Africa and Asia," Wei said.

Related readings:  COSCO Pacific net profit up 207% in Q1  China Cosco posts annual loss on overcapacity, shipping rates  Cosco share sale to fund new ships  COSCO to increase US-Asia cargo rates

Cosco Pacific started operating one of OLP's piers in October and has said it will build one more pier by 2015.

After meeting Greek government and Piraeus Port officials this week Wei said Cosco was also interested in setting up a distribution centre in Piraeus, to transport Chinese goods to the wider region and vowed to hire Greek workers.

"From the long-term perspective Cosco firmly believes any problems of the crisis that arise can be tackled by the understanding, the mutual trust between Cosco and the Greek people and the Greek government."