Deputy Minister of Shipping and Island Policy tο OT: Piraeus as a Global Shipping Center

The withdrawal of Great Britain from the European Union is an opportunity for our country to establish Piraeus as a global shipping center and to upgrade its role not just on the sea, but also on land.

In an internationally and ever-changing environment, experiencing an unprecedented crisis from the pandemic and its effects, international maritime trade and shipping were two of the key players in the global economy that continued to play their part in a globalized market.

According to the International Maritime Organization (IMO), the value of world trade by sea, today represents 90% of the total, while Greek shipping continues to be not only present, but a leading global “player” in the industry.

At the same time, it is the most extroverted sector of our national economy and an important source of income, wealth, and prestige for our country. And while Greece is essentially a floating global shipping center, it has not managed to date, for a number of reasons, to be the “natural seat” of Global Shipping.

The departure of Great Britain from the European Union is an opportunity for our country to establish Piraeus as a global shipping center and to upgrade its role in addition to the sea and the land.

Utilizing the large port as an attractive alternative that will be repositioned with claims as one of the world’s shipping capitals is our own challenge that we must meet.

The shipping industry is being transformed by the growth of international trade, the unification of markets, the development of supply chains, and the shift of the balance of economic power from developed economies to fast-growing markets. As shipping-related economic activities become increasingly globalized, cities and states must compete with each other to attract shipping companies.

The dominance of Europe’s traditional shipping hubs is being challenged by emerging shipping hubs in the developing world, mainly in Asia.

As a study has pointed out (EY Greece) there are four main factors that contribute to the attractiveness of a city or region as a global shipping center:

a. The presence of significant local ship ownership or ship management activity

b. Strong financial, legal and other specialized business services

c. The existence of important port infrastructure and supply chain infrastructure

d. A tradition of marine technology, related to innovation, research and development (R&D), training and availability of human resources.

In addition, the overall business environment, the stability of the regulatory framework, the tax regime, the political institutions, the transparency of the legal system and the practical willingness of the local authorities to support the industry are vital for the attractiveness of a shipping center.

Based on the above, can Piraeus play its leading role as a “shipping capital” and be transformed into an international shipping center?

Today we could not answer with a simple yes or no. And this is because while we gather enough “pluses”, there are also the timeless “minuses” that if we really want to claim a role we must remove  as obstacles, in order to convince the people who manage ships to settle in our homeland and in Piraeus.

In this context, we must join the creation of appropriate infrastructure, based on digital needs, telecommunications, access roads, tax issues, etc. , “Green” interventions that will make Piraeus “attractive”.

To achieve this requires new institutional financial provisions, legislation, land use changes, integration of productive uses, simplification of trade and customs anchoring, ship approach planning, and ultimately tackling foreign trade disincentives and an unbelievable bureaucracy. . At the same time, it is necessary to create a common vision and development program between strategic partners of Piraeus, and cooperation between the Municipality, the State and the Investor of the Port.

Under these conditions we will be able to win the wager and make Piraeus competitive with other European ports and to be able to become a “shipping capital”.

* Costas Katsafados is Deputy Minister of Shipping and Island Policy, New Democracy MP for A’ district for Piraeus and Islands prefecture