THE operator the second largest port in Greece, the Thessaloniki Port Authority (OLTH), has announced that Hong Kong's Hutchison Port Holdings (HPH), together with its joint venture partner, Greek pharma giant Alapis, have withdrawn from a container-terminal concession for which they had successfully tendered.
Although no reason was given in the statement to the Athens stock exchange, by the port authority, market sources said a dispute had erupted between Hutchison and Alapis, according to Ekonomist Media Group in Belgrade.
Others said the decision had more to do with the downturn in the shipping market and the difficulty in raising finance for the deal, reported Newark's Journal of Commerce.
The port authority, in a statement to the Athens stock exchange, said two sides were at the stage of drafting a contract for the EUR3.1 billion (US$4.3 billion) deal when they decided to withdraw.
The joint venture had offered over the 30-year contract and pledged to invest EUR489 million euros [$685 million] to upgrade the port's outdated container facilities.
The withdrawal of Hutchison from Thessaloniki is a blow for the Greek government which hoped privatisation would create transshipment hubs to compete with Mediterranean ports, especially those in Italy, said the Journal.
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