No alarm in Greece's port U-turn

On Jan 27, hours after taking office, the new Greek government halted the privatization of the country's largest port in Piraeus. Since China's COSCO Group was likely to win part of the privatization bid for the port, which is also the starting point of a planned China-Europe land-sea "express line", many observers say China's investment in Greece now faces an uncertain future.

Such concern is unnecessary. Widely acknowledged as the "anti-bailout" government, the new dispensation in Greece is opposed to a series of deals the previous governments signed with the European Union and the International Monetary Fund, of which selling 67 percent of Piraeus Port's shares is only one. And the new Greek government's move is not aimed against COSCO, which is rather a powerful competitor in the open tender than an actual winner.

Some people believe the Greek government's decision could result in a huge loss for COSCO, which had invested 800 million ($905.8 million) in the port's construction. The fact, however, is that COSCO spent the money on No. 2 and No. 3 piers at the port, for which it got a 35-year management lease way back in 2008. And since the Greek government's move will not nullify the existing deal, there is no need to worry about its political or economic consequences.