Kavala Port: New Era of Growth After Privatization Deal

The signing ceremony was attended by, among others, the Minister of Economy and Finance, Kostis Hatzidakis; the Minister of Maritime Affairs and Insular Policy, Christos Stylianides; the CEO of HRADF, Dimitris Politis; the CEO of GROWTHFUND – The National Fund of Greece, Grigoris D. Dimitriadis; the CEO of OLK S.A., Angelos Vlachos; the General Manager of Business Development & Executive Member of the Board of Directors of GEK TERNA Group, Emmanuel Moustakas; the President of BFG, Ioannis – Evryviadis Charalambakis; and the President of EFA, Nikolaos Papatsas. Photo source: Hellenic Republic Asset Development Fund S.A. (HRADF)

Privatization plans for one of the most important ports in Northern Greece in Kavala were completed this week after the signing of an agreement with the investor who has been awarded the sub-commission for a period of 40 years, announced the Hellenic Republic Asset Development Fund (HRADF).

The deal foresees the development of the “Philippos ΙΙ” port, currently operated by the Kavala Port Authority. Signatories included the Greek State, HRADF, the Kavala Port Authority and the company “Sarisa Sub-Concession Port of Kavala Philippos II SA” established by the consortium “International Port Investments Kavala” – the highest bidder in May 2022 in the tender.

The “Philippos ΙΙ” port in Kavala. Photo source: HRADF

Under this agreement, the investor has been awarded the right to use, operate, maintain, and develop a multi-purpose terminal inside the port for a 40-year period.

According to Greece’s assets body, the move marks the beginning of a new era of growth for the port of Kavala. Made up of GEK Terna, Black Summit Financial Group and EFA Group, the International Port Investments Kavala consortium has pledged to invest in a number of upgrades.

In addition to the agreed upon lump sum of 33.9 million euros, the sub-concessionaire will also invest 36 million euros for the further development of the port, including covering heavy maintenance costs.

“The upgrade of critical infrastructure such as ports is a prerequisite for Greece to make the most of its geostrategic position and enhance its regional role in international trade. With the agreement signed today, the conditions are created for the development of the commercial port of Kavala ‘Philippos ΙΙ’, the implementation of significant investments, and the creation of new jobs,” said Economy and Finance Minister Kostis Hatzidakis.

National Economy and Finance Minister Kostis Hatzidakis. Photo source: HRADF

Kavala’s main “Apostolos Pavlos” port was the central point of maritime transport in the wider region. In October 2002, freight transport was moved to the Philippos ΙΙ with the central port being used as a passenger port for ferries to the islands of Thassos, Lemnos, Mytilene, Chios and Samos, as well as a fishing reserve, and for sea sports, cruise and yachting activity.

Commenting on the news, Maritime Affairs and Insular Policy Minister Christos Styliandes said the agreement was a “big leap” and marked a “new beginning” for the city of Kavala and the wider region.

Since 2018, Greece has made it a top priority to privatize through partial concession deals or full management schemes state-owned regional ports. In addition to the port of Kavala, ports include those in Rafina, Elefsina, Lavrio, Volos, Patra, Igoumenitsa, Alexandroupolis, Heraklio on Crete, and Corfu. Earlier this year, a master plan for the development of Attica’s second largest port in Rafina, was approved.