Ports set to gain as Italy and China sign MoU for investment

Rome, Italy (Ports Europe) March 24, 2019 - During a state visit to Italy of Chinese President Xi Jinping, the two countries signed a non-binding memorandum of understanding (MoU) covering Chinese investment in Italy and access to Chinese markets for Italian companies. Italy is the first developed economy to sign up to China's new Silk Road investment programme which has raised concerns among Italy's Western allies. Italy's European Union allies and the United States have both expressed concern at China's growing influence. The new Silk Road (part of the Belt and Road initiative also known as One Belt, One Road, or OBOR) is a Chinese economic strategy to seek better access for Chinese-made products in European markets, which includes acquiring stakes in ports and other transport facilities, and cooperation agreements with countries along the Silk Road routes. A total of 29 deals amounting to €2.5bn ($2.8bn) were signed, including two port management deals between China Communications Construction and the ports of Trieste, situated in the northern Adriatic Sea, and Genoa, Italy’s biggest seaport. https://www.portseurope.com/ports-set-to-gain-as-italy-and-china-sign-mou-for-investment/ In the presence of the heads of state of Italy and China, the president of Autorita’ di Sistema Portuale del Mare Adriatico Orientale (AdSP - Eastern Adriatic Sea Port Authority) Zeno D'Agostino and the leader of the Chinese CCCC group Song Hailang have formalized a key agreement about the railway infrastructures located in the region port of the Eastern Adriatic Sea, in particular the new Servola and Aquilinia stations, included in the "Trihub" project, the integrated plan to reinforce the railway infrastructure system in the area between Cervignano del Friuli, Villa Opicina and Trieste, developed in collaboration with the Italian rail network operator RFI. The agreement with CCCC, which will allow the growth of the influence of the port of Trieste both in Central Europe and in the Chinese maritime markets, will allow the AdSP to explore new opportunities related to the CCCC project for construction and management of the large intermodal terminal in Kosiče (Slovakia). The agreement signed today will also allow both signatories to evaluate collaborations for logistic-industrial projects in China with the aim of facilitating logistics flows and trade. "With this agreement", said the president of the Authority Zeno D'Agostino, "we aim to organize the logistics leaving the port. Our commitment is to support exports to China and the Far East of our SMEs, which do not have the size to deal with this type of investment. The AdSP makes itself available to Italian companies to develop in China logistic and port platforms that allow Made in Italy to reach commercial flows towards this large expanding market". The collaboration agreement between Autorita’ di Sistema Portuale del Mar Ligure Occidentale (AdSP - Western Ligurian Sea Port Authority) and the Chinese construction company CCCC concerns investment in the development of the port, also following the collapse of the Morandi bridge in August 2018. The program includes a project of the new breakwater, €1 billion, which represents one of the two Italian initiatives included among the strategic projects of the EU-China Connectivity Platform, to strengthen transport connections between Europe and Asia and increase the competitiveness of the port system that operates at the service of the economy of Northern Italy. The public investment program provides, among other things, for improving accessibility by sea (first phase of the new breakwater) and the last road and rail mile (about €160 million euros) in the Sampierdarena port basin. Another issue is the Fincantieri SpA plant in Sestri Ponente, a shipyard currently divided by the railway, to increase the space of the basin. The aimed is the development of shipbuilding and ship repair activities, which has about 7,000 units in Genoa, more than half of which are located in the Fincantieri industrial center : adapting the shipyard is functional to the strong growth in the size of the ships. Thanks to the aforementioned infrastructure upgrading interventions, compared to the current volumes, the forecasts provided by the operators identify a doubling of the volumes handled at full capacity. The increase in traffic could generate revenues of around €20 million annually compared to €11.5 million per year in 2018 as an effect of the increase in freight taxes and anchorage fees related to the size of the ship . Copyright (C) Ports Europe. All Rights Reserved. 2019.

Ports set to gain as Italy and China sign MoU for investment

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Ports set to gain as Italy and China sign MoU for investment

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