Piraeus Port Authority (PPA) in Greece has temporarily paused the construction of its Cruise Terminal Expansion Project following a ruling from the Greek Supreme Court.
The court ruled that the investment decisions taken by the authorities, including on the expansion of the existing cruise terminal, were insufficient and needed to be amended.
It also stated that the authorities failed to carry out an environmental assessment as needed by national and European Union regulations.
As part of a 2016 privatisation deal, Chinese company Cosco purchased a 51% stake in Piraeus Port, reported Reuters.
The company bought an additional 16% interest in the port last year, even after failing to meet a crucial condition of completing mandatory investments of approximately €294m.
In a statement, PPA said: “PPA is committed to implement its large-scale investment plan in the country, including any possible modifications deemed necessary, based on the decisions of the relevant administrative and judicial authorities and in full alignment with the Concession Agreement with the Greek State.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
“As a trusted, reliable and long-term investor, PPA is closely cooperating with the Greek authorities for the best possible outcomes, while giving full effect to all relevant decisions and instructions.”
Piraeus has been serving as a key transhipment hub for commodities intended for Mediterranean and Black Sea ports since 2009, when Cosco took over the operations of containers and improved the infrastructure.