Bulgaria to invest in Greek Aegean Sea port

Sofia, Bulgaria (Ports Europe) October 16, 2022 - Bulgaria has announced plans to invest in Greek Aegean Sea port privatisation. Sofia could participate in the privatisation of the Greek ports of Alexandropolis and Kavala, country’s Acting Minister of Foreign Affairs Nikolay Milkov said. He was confirming an announcement made in March by the then Prime Minister Kiril Petkov. Both Petkov and Milkov claimed that Bulgaria would acquire 10-15% in one of the two Aegean ports as a participant in a consortium tender. “With the construction of the appropriate infrastructure, Bulgaria can have a stable outlet on the Aegean Sea, which will be an extremely stabilising factor for our economy, for the development of the country, especially in the context of the risks that arise from the situation in the Black Sea region from the fact that Turkey makes decisions to increase fees for crossing the (Bosphorus) straits,” Milkov said. “That is, Bulgaria being a White Sea country is a very significant plus for us in the future," he added using the Bulgarian name for the Black Sea. Petkov said in March: "through the eventual acquisition of concession rights, Bulgaria will have access to a port in the Aegean Sea until 2062. In this way, our country will become a strategic partner in trade relations in the region, which will be extremely beneficial for Bulgarian business". The confirmation of the Bulgarian intention to invest in Greece’s Aegean port comes after two bids in the Port of Alexandropolis privatisation (for a 67% shareholding) have been received by the Hellenic Republic Asset Development Fund (HRADF), the agency responsible for privatising Greek state-owned assets. The United States has a role in both consortia: International Port Investments Alexandropolis – a joint venture of U.S. Black Summit Financial Group & Euroports/EFA Group/GEK TernaLiberty Port Holdings Single member S.A. – a subsidiary of Texas based Quintana Infrastructure and Development and Washington DC-based Proxenos International The Port of Alexandroupoli has generated a lot of interest in recent years, both as a regional energy hub and as a geopolitical centre of regional interest. Regional Energy Hub As the largest city in Greece’s Eastern Macedonia and Thrace region, Alexandropoli, has been developing into an energy hub. It is implementing projects inckuding a Floating Storage Regasification Unit (FSRU) and a liquefied natural gas (LNG) terminal. Bulgaria already has a 20% stake in the LNG terminal. The FSRU will be connected to the Greek National Natural Gas System (NNGS), the Natural Gas Interconnector Greece-Bulgaria (IGB) and the Trans Adriatic Pipeline (TAP). Through these connections, Alexandroupoli could also become a key regional supplier to the Balkans. Geopolitical Last year, Greece signed a new, five-year Mutual Defense Cooperation Agreement with USA. The port has thus increasingly become a staging post for regional U.S. military activity. Both of the port bidders are representing U.S. interests. Port of Alexandropoli also became more important after Turkey shut down the Bosporus and Dardanelles Straits to military vessels. It is allowed to do so under the 1936 “Montreux Convention Regarding the Regime of the Straits”. The move was not welcomed by Russia, as it limits transit of military vessels. There were two more potential bidders for control of Alexandroupoli who have links with Russia. Two Russian proxies were hoping for control of strategic Greek port of Alexandropoli. However, neither submitted binding bids. Alexandropoli port, which today operates at less than 25% capacity, is key for the region’s transformation into an energy, logistics, and transportation hub. The port’s cargo terminal connection with the national Greek rail network. The Alexandropolis Democritus Airport is situated just 5 km miles away. Also, the new Egnatia Highway connects the ports of Alexandropoli, Kavala, Thessaloniki and Igoumenitsa. Both routes provide the multimodal transport infrastructure which could be further developed to link regional ports. Port of Kavala It is less likely that Bulgaria will be interested in an investment in Kavala Port. In May, HDRAF declared the consortium International Port Investments Kavala as the preferred bidder. The tender is for a sub-concession for the right to use, maintain, operate and exploit a terminal within the current Kavala Port Authority (OLK). The sub-concessioner International Port Investments Kavala consortium is comprised of the companies; Black Summit Financial Group, EFA Group and GEK TERNA. The financial consideration for the sub-concession is approximately €33.9 million in terms of nominal value. During the sub-concession, the investor will be required to implement an investment plan of 36 million euros, including heavy maintenance costs. Conclusion Bulgaria planning to invest in a Greek Aegean Sea port adds another country with regional plans involving Greek ports. In recent years, Washington has undoubtably applied pressure and influence in Greece to promote its interests. Alexandropolis port has also become a focus for U.S. military forces, hosting U.S. Navy ships and becoming a crucial entry point for the shipment of military material to Ukraine. It can only be positive for Bulgaria if the U.S. "blesses" its involvement in the developing regional transport and logistics sector. More Ports Europe news about the ports of Alexandropolis and Kavala Copyright (C) Ports Europe. All Rights Reserved. 2022.

Bulgaria to invest in Greek Aegean Sea port

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Bulgaria to invest in Greek Aegean Sea port

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