Public interests and private ports
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Progressive privatisation of the ports of Piraeus (2008), Thessaloniki (2018) and Igoumenitsa (2023) has had highly visible consequences for three key Greek gateways.
Building on the investments made by private shareholders, Piraeus and Thessaloniki now benefit from higher-capacity, faster gantry cranes that handle bigger container ships. Both now also offer container lines berthing windows to support precision scheduling.
Increased efficiency, reduced ship waiting times and less red tape mean that cargoes are also received, handled and dispatched more quickly, to the benefit of the local economy. Outlay on port systems and human resources in port security has also been crucial to developing transshipment services.
Experience shows that these changes make Greek logistics more competitive to open doors in surrounding Balkan markets.
Positives go beyond the dockside. At Thessaloniki, a privately financed cruise terminal now attracts ships of up to 300m in length, boosting the local economy. Private interests have created new jobs in warehousing, supply chain management, and elsewhere. Between 2009-2024, fiscal gains (concession fees, taxes, insurance, etc.) at the Port of Piraeus amounted to €961 million, with 2,500 direct jobs created. Private capital has also funded emission-free shore power to meet sustainability aims.
But port privatisation also has drawbacks. Selling of the best assets can means other ports and their communities suffer. Meanwhile, ports aiming to please private shareholders can raise fees, prioritise real estate or tend towards other monopolistic behaviours, with importers, exporters and consumers paying the price.
Unrestrained, the profit motive can also drive cost cutting, lower port wages, outsourcing and temporary contracts – a cocktail that can undermine safety standards, let alone efficiency.
While privatised ports are entitled to work towards profits, therefore, their efficiency and prosperity must remain compatible with the interests of those they serve.
Debate over how far the state should be involved in business can quickly divide opinion, but the privatised port remains an asset of public interest that remains subject to the supervision of, and intervention by, those safeguarding that interest.
