With Prime Minister Antonis Samaras trying to figure out who will replace Stelios Stavridis, the former head of the country’s privatization agency who was forced to quit after he accepted a ride on the private jet of a businessman who bought a stake in the state gambling monopoly OPAP, the government is hoping to woo investors to buy 100 percent of Hellenic Railways.
The line is up for sale along with its operating and rolling stock companies, Trainose and Rosco respectively, and negotiations are reportedly picking up speed for the formation of possible consortia. Bidders have only until Sept. 16 to finalize proposals and submit them as formal expressions of interest.
China’s Cosco, which runs a big part of the port of Piraeus, has already stated its interest and wants to expand its presence to take advantage of Greece’s geographical advantage as a gateway to Europe, the Middle East and Northern Africa.
The goal is to make Greece a gateway for the transportation of goods to Central and Eastern Europe. Cosco already has a deal in place with Hewlett Packard and acquiring Trainose is seen as an important potential booster for the development of the Greek company.
Russian Railways also appears to have a strong interest, aiming to create a strong “slot” in Greece that would enable it to combine sea and rail transport. Beyond Russian state funding which the company is seeking in order to vie for Trainose, Rosco and Thessaloniki Port Authority (OLTH), a joint venture with a Greek construction company is reportedly on the table.
According to reports, Greece’s GEK Terna, Ellaktor and the Copelouzos Group are in discussions with the Russians with a view to forming a consortium.
French officials visiting Athens last April expressed an interest in the privatization on behalf of the SNCF and Alstom companies, but it remains unclear whether the French are interested in both Trainose and Rosco.
The tender for Trainose will be conducted in two phases. After the expressions of interest by Sept. 16, short-listed suitors will be invited to sign a contract of confidentiality and submit binding bids. It is hoped that the privatization will be completed by mid-2014 at the latest.
The country’s privatization program is woefully behind schedule and there is some anxiety the Stavridis resignation could impact the sale of OPAP, and as international lenders are pressuring the government to get going.
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