India wants a port in Greece – Lavrio, Patras and Alexandroupoli in focus

The Greek government is selling Lavrio, Patras, and Alexandroupolis to India, which is building its own economic corridor.

India is one of the fastest-growing economies in the world. Estimates suggest that by 2030, it could be the third largest, behind only the US and China, surpassing Japan and Germany.

Running at high growth rates, 6.3% per year, and taking advantage of its huge human capital, which for the first time surpassed that of China, analysts estimate that by the end of the decades, it could even double its GDP.

In this context, India seeks to build its own modern economic corridor, an initiative similar to China’s “Belt and Road Initiative” The plan envisages a corridor for transporting products from land and sea that will reach the Middle East and then, through the Mediterranean, end up in Central and Northern Europe.

A key stop on this route could be Greece, and India’s opportunity arises from the Greek government’s intention to put three important Greek ports under the hammer.

These are the port of Lavrio, the port of Alexandroupolis and Patras. The Hellenic Republic Asset Development Fund (TAIPED) is preparing for the three tenders and attracting investors.

According to iEidiseis, the ports in question were also presented to the Indians during the business mission led by Prime Minister Kyriakos Mitsotakis to India.

Regarding the port of Lavrio, the tender process was opened at the beginning of March and foresaw the sale of 50%+1 of the Lavrio Port Organisation.

The developments with the port of Alexandroupoli also have a geopolitical dimension, as it is a point of great strategic importance.

It is recalled that the previous tender process was aborted due to the war in Ukraine, even though it had reached the final phase of submitting binding offers. After the Russian invasion, the Greek government—and under the recommendations of the Western allies—wanted to re-evaluate all the parameters for its sale.

Finally, the port of Patras is the next one being prepared for exploitation by TAIPED, which is currently planning the process for attracting investors.

Lavrio Port Authority Next Up for Privatization

Procedure to sell-off a majority stake (50% plus one share) of the Lavrio Port Authority, located southeast of the greater Athens-Piraeus area, is underway by Greece’s privatization fund, officially known as the Hellenic Republic Asset Development Fund (HRADF).

A deadline for the submission of expressions of interest is May 14, 2024.

Additionally, certain facilities are also being offered to the highest bidder at the large port of Patras, western Greece, and the increasingly important port of Alexandroupolis, in extreme northeast Greece. Another tender offers up a tract of land in the Fyli municipality, due west of Athens, for the creation of a logistic center.

The prospective concessions – an entire port authority, facilities in two others and the zoned tract – were presented by the privatization fund’s CEO, Dimitris Politis to Indian investors during a recent visit to India by Greek Prime Minister Kyriakos Mitsotakis.

The small-to-midsized port of Lavrio (ancient Laurium) lies in the extreme southeast corner of Attica prefecture, where the greater Athens area is located, and specifically some 60 kilometers from the Greek capital and 20 kilometers from the Athens International Airport (AIA). The location is seen as a distinct alternative to the large and busy port of Piraeus, as it’s able to load/offload bulk carriers and containers. It’s also seen as an alternate for ferry boats, compared to the small and very busy harbor of Rafina, located further north along the eastern Attica coast.

Moreover, Lavio has the prospects to also host cruise ships and more marina space for pleasure craft and professional fishing vessels.