A COSCO company flag and a Chinese national flag fly in front of the company's headquarters in Beijing, Aug. 26, 2010. (Photo : Reuters)
China Ocean Shipping (Group) Company (COSCO), which recently secured control of Greece’s Piraeus Port Authority SA, is now bidding to operate the port of Limassol on Cyprus Island, in an attempt to expand its reach in the Mediterranean Sea.
According to China Daily, the newly combined and largest shipping corporation by volume is among 14 investors who showed interest in bidding for three concession chances. COSCO is among six bidders for Limassol's container terminal and one of five vying for multipurpose terminal.
Three more companies have placed bids to run a marine service concession, according to a statement issued on Jan. 21 by the Ministry of Transport, Communications and Works. DB World of Dubai and Philippine-based International Container Terminal Services Inc. are other firms interested in the concession opportunities.
COSCO's interest in the port followed its being declared the preferred--and only--bidder for a major stake in Piraeus Port, which is the biggest harbor in Greece and among the largest in the Mediterranean.
COSCO completed its control of Piraeus Port Authority SA on Jan. 20, opting to pay $402 million to have a 67-percent share after increasing its offer to acquire control of what is perceived a key waterway into Europe.
The same publication revealed that Limassol Port is the main port in Cyprus since it serves most of the island's seaborne cargo and passenger traffic. It accounts for almost all container traffic, approximately half of the total cargo, and 75 percent of passenger traffic on the island, tender documents revealed.
The general director of the transport ministry, Andreas Michaelides, pointed out in a previous statement that China's objective was to make Limassol Port a "gateway for development for the future."
The Cypriots would rather draw investment to a port that may offer hydrocarbon support services in future to support affluent offshore oil and gas industry in the region, which is very instrumental to the future economic growth of Cyprus.
Wang Yi, China's foreign minister, unveiled during a visit to Nicosia last month that China has interest to control Cypriot ports and wishes to help transform the eastern Mediterranean island-country into a regional shipping hub.
