By A. Tsiblakis & V. Vegiri
Interest in the privatization of the Thessaloniki Port Authority (OL.Th) is reportedly waning, as two out of the five possible candidates have reportedly abandoned plans to participate in an international tender for 67 percent of the state-run company’s shares.
Additionally, one of the five previously “active” candidates has not reached a decision on whether to finally participate.
According to reports from the northern Greek metropolis, Philippines-based ICTS and Maersk subsidiary APM Terminal have lost interest in the tender. Moreover, P&O, a subsidiary of Dubai Ports World, is examining whether it will continue in the process for the future privatization of northern Greece’s biggest port facility.
Candidates still in the running are Japan’s Mitsui and the Deutsche Invest fund, which includes participation by Thessaloniki-based Greek-Russian investor Ivan Savvidis.
Final bids for the international tender must be submitted by March 24, 2017, the latest deadline after repeated deferments, although yet another postponement cannot be ruled out.
Five factors, in general, have been cited for the decision by ICTS and Maersk, namely, the level of a mandatory capital investment, the tender’s conditions, a less than satisfactory country risk, significant competition from the now Cosco-run Port of Piraeus, but also a series of problems with rail service to the port.
Greece’s semi-autonomous privatization fund (HRADF or TAIPED) continues to maintain a 180-million-euro investment figure (over seven years) for any concession holder, a sum that market analysts deem as high. The investment stipulation, combined with the country risk, reportedly makes financing of the privatization more expensive.
Another “thorn” in the tender conditions, according to analysts, is a clause in the concession contract mandating a specific increase in port volume, something deemed as unrealistic in the current economic situation.
