The relations between Piraeus Port Authority and Chinese giant Cosco have gone through several occurrences. A common ground is wanted regarding the concession of Pier II, while the Greek side seems optimistic.
“We will find the ways for the concession to advance. We want a major provider such as Cosco in Piraues Port and we will respect the contract”, said President and CEO of PPA Giorgos Anomeritis to analysts.
The two sides are in a process of “amicable settlement” of disputes with the Chinese side describing the administration of PPA as a problematic partner.
Giorgos Anomeritis was clearly more conciliatory on Tuesday than in the recent press conference of the Authority, when he referred to the possibility of resorting to arbitration court if there will be no other solution. “Neither we nor Cosco resorted to arbitration, but proceeded with the procedure of amicable settlement” he said, adding that the disputes arose because of the international crisis, intensity of competition and the lengthy contract (more than 4,000 pages), which contains many ambiguities.
A committee of dispute settlement between PPA and Cosco, which is compose of the two companies’ CEOs and independent experts, has already met three times, showing goodwill, according to Giorgos Anomeritis.
The problem regards:
- The redraft of the timetable for the construction of Pier III be Cosco, which normally begins in October, with the Chinese company requesting for the extension of implementation of the investment.
- The legal wording of “force majeure” that Cosco may invoke for events, for which PPA is not responsible. Cosco has asked for the revision of the annual rent it pays to PPA, highlighting the abnormal operation during the strike of truck owners and customs employees. Noted that the annual rent is €25m.
- The legal obligation of MSC-PPA and MSC-Cosco. Under the concession for Pier II, Cosco obtained also the concession for intransit shipments of MSC, which expires in the summer of 2012. However, the Italian-Swiss group denounced the agreement.
Regarding Thriasio, the administration of PPA clarified that it is interested only in the railway connection with Piraues Port and PPA shouldn’t be involved as the law doesn’t provided public bodies to have a majority stake in this project.
SOURCE: CAPITAL
