Piraeus: A bustling hub of maritime activity awaits. We are standing at Pier J. It is part of the Port of Piraeus. This port is not just any port. It is the chief sea port of Athens. The Port of Piraeus sits on the Saronic Gulf. This is on the Aegean Sea’s western coasts. It is the largest port in Greece. It ranks among Europe’s largest.
The Port of Piraeus has been Athens’s gateway since ancient times. Imagine this area millennia ago. Piraeus was once a rocky island. It was mostly separated from the mainland. A strip of low land connected it. Most of the year, seawater flooded this connection. Around the 3rd millennium BC, silt started building up. Flooding became less common. Eventually, Piraeus permanently connected to Attica. This formed its harbors. The main harbor was Cantharus. There were also two smaller ones called Zea and Munichia.
In 493 BC, Themistocles began fortifying Piraeus. He saw the strategic advantage of its natural harbors. Ten years later, the Athenian fleet moved from Phaleron’s older harbor to Piraeus. The fleet distinguished itself in the Battle of Salamis against the Persians in 480 BC.
Themistocles then started building the port. He created ship sheds or neosoikoi. The Themistoclean Walls finished in 471 BC. Piraeus transformed into a major military and commercial port. It became the permanent naval base for Athens’s powerful fleet.
However, Piraeus entered a long decline in the late 4th century BC. Its harbors were only sporadically used by the Byzantine fleet. The town was mostly deserted during the Ottoman occupation.
Fast forward to 2002. The Piraeus Port Authority or PPA and the Greek government made a deal. The government leased the port zone’s land, buildings, and facilities to PPA for 40 years. In 2008, this agreement extended to 50 years. The lease will now end in 2052.
When the Greek government-debt crisis began in 2009, privatization became a key strategy. The government aimed to privatize state-owned assets. These assets were worth around 50 billion euros. One such asset was the Piraeus Port Authority. The port is a significant employer in the region.
Today, the Greek state owns the port. The Piraeus Port Authority operates it. China COSCO Shipping holds the majority stake. COSCO is one of the world’s largest container ship companies. In 2003, the port had its IPO. After this, the Greek state owned 74.5% while investors held the rest.
In 2009, Greece leased docks 2 and what would become dock 3 to COSCO’s subsidiary, COSCO Pacific, for 35 years. COSCO pays 100 million Euros annually as part of this arrangement.
Fu Chengqiu, managing director of Piraeus Container Terminal said “The port’s geographic advantages and the quality services offered by us, have helped deliver rapid progress, in a crisis era”. COSCO’s investment helped the port break records. By 2011, it handled 1.5 million TEUs. Dock 2 handled 1.18 million TEUs. Dock 1 handled 500,000 TEUs. In 2009, the financial crisis reduced the TEU volume to 450,000 for the entire port.
In 2016, COSCO bought 51% of the port from the HRADF for 280.5 million Euros. COSCO will pay 88 million more Euros for an additional 16% stake by 2021. This is contingent on investments in passenger and cruise expansions, dredging, and car terminal expansion.
As of 2020, COSCO owns 67% of the shares. The HRADF holds 7.14%. Non-institutional investors hold the remaining 25.86%. In October 2021, the HRADF transferred the 16% escrow shares to COSCO. COSCO paid 88 million euros plus accrued interest.
The Port of Piraeus continues to evolve. It balances its rich history with modern demands. It serves as a vital link between Greece and the world. Its story is one of resilience, strategic importance, and ongoing transformation.