Alexandroupolis and the new models for Greek ports

A new opportunity for choosing a different model for the utilization of Greek ports is seen opening up after the government’s decision to cancel the tender for the sale of the Alexandroupolis Port Authority, revealed to “TA NEA” newspaper by Thanos Pallis, professor of the Department of Maritime Studies at the University of Piraeus.

According to the professor, this point of view is reinforced by the fact that the debate on the geostrategic importance of ports is gaining strength throughout Europe, as can be seen from the developments in the port of Hamburg.

Speaking to “TA NEA”, Thanos Pallis explains that the model that dominates the utilization of ports in Europe is “public management body – private service providers” and this is not in dispute. However, as he says, these characteristics are changing. First, there is a greater emphasis on enhancing competition and avoiding control of ports by shipping companies and their alliances. On the other hand, mergers of port authorities are increasing, for example in Belgium, France, Italy, Canada, but also China, with the aim of rational planning of infrastructures, adaptation to the new energy environment and strengthening of port authorities vis-à-vis their users.

In Greece, unfortunately, he adds, no aspect of this debate is ongoing, while the choice of sporadic port sales, combined with inaction regarding the institutional framework of the smaller ports, further removes the prospect of a comprehensive strategy for the Greek port sector.

Asked to comment on the recent government decision on the port of Alexandroupolis, Thanos Pallis said that the government decision is part of the geopolitical planning of Greece, and there are indications that it did not surprise those involved. The specific port has comparatively fewer activities and so it may be an isolated decision. Professor Pallis noted that it remains an important development as it highlights the risks produced by the peculiar Greek pattern of privatizations of the port industry. The cancellation of the tender is a reminder of the geostrategic importance of ports. In fact, it comes at a time when a similar discussion is taking place all over Europe, on the occasion of the developments in Hamburg.

New challenges

On the occasion of this development, Thanos Pallis noted the new challenges for the ports, as he notes that maritime trade is increasingly concentrated in a few and strong alliances of liner shipping companies which acquire significant bargaining power in terms of their service and the costs they impose on local economies – putting pressure on local businesses, transport chains, and ultimately consumers.

In these circumstances, the sale of the port, regardless of the buyer, is a potentially disastrous choice, emphasizes professor Pallis. The utilization of public property presupposes the presence of private port service providers and a particularly strong public port management body. It would therefore be useful to be used by the Greek government to change policy and for the Hellenic Republic Asset Development Fund to change course, in order to act in the same way for the competitions of Igoumenitsa, Heraklion and Volos which are in progress. After all, if it proceeds with concessions of uses, it is more than a given that there are several interested investors.