Greece cancels Thessaloniki port tendering
Greece has cancelled a tender competition to privatise and upgrade facilities at its second-largest port in Thessaloniki after the top bidder withdrew because of the global downturn, OLTH said on Tuesday.
"OLTH decided to ... cancel the tender to privatise its cargo facilities," the company said in a statement.
Greece launched tender competitions last year to turn two of its ports, among the largest in the eastern Mediterranean, into regional hubs to boost competitiveness.
Piraeus Port (OLPr.AT) sealed a deal with China's Cosco Pacific (1199.HK) in November.
But the Thessaloniki port competition fell victim to the global crisis, which has hurt shipping as global trade volumes slump. The top bidder, Hutchison Port Holdings (HPH) (0013.HK), pulled out in December citing difficulties in financing the project.
HPH, which has operating rights in 45 ports around the world, had offered 3.1 billion euros ($4.13 billion) for the project in Thessaloniki. It had also pledged to invest 489 million to upgrade the port's facilities.
OLTH, 74 percent state-owned, said it has started upgrading the facilities using its own funds. On Monday the company reported a 62 percent drop in 2008 profit as dockhands have refused to work overtime since January last year in a protest over the privatisation.
Dockworkers ended their strikes this month on reports the tender competition would be cancelled.
OLTH shares, up 1.4 percent at 10.11 euros on Tuesday, have lost about 60 percent of their value since March last year, in line with the main Athens market index .ATG.
"OLTH decided to ... cancel the tender to privatise its cargo facilities," the company said in a statement.
Greece launched tender competitions last year to turn two of its ports, among the largest in the eastern Mediterranean, into regional hubs to boost competitiveness.
Piraeus Port (OLPr.AT) sealed a deal with China's Cosco Pacific (1199.HK) in November.
But the Thessaloniki port competition fell victim to the global crisis, which has hurt shipping as global trade volumes slump. The top bidder, Hutchison Port Holdings (HPH) (0013.HK), pulled out in December citing difficulties in financing the project.
HPH, which has operating rights in 45 ports around the world, had offered 3.1 billion euros ($4.13 billion) for the project in Thessaloniki. It had also pledged to invest 489 million to upgrade the port's facilities.
OLTH, 74 percent state-owned, said it has started upgrading the facilities using its own funds. On Monday the company reported a 62 percent drop in 2008 profit as dockhands have refused to work overtime since January last year in a protest over the privatisation.
Dockworkers ended their strikes this month on reports the tender competition would be cancelled.
OLTH shares, up 1.4 percent at 10.11 euros on Tuesday, have lost about 60 percent of their value since March last year, in line with the main Athens market index .ATG.