THE PORT INDUSTRY & ITS CONTRIBUTION TO THE DEVELOPMENT OF THE COUNTRY

The Executive Director of the Hellenic Ports Association, Mr. Dimitris Iatridis, speaks to ERGOLIPTIKON VIMA about how the challenges facing ports today are leading to a new development cycle.

source: Construction Step No_127 PESEDE

The important role that Greece plays as a crossroads of transit trade and a point of reference between East and West is discussed by Executive Director of the Hellenic Ports Association, Mr. Dimitris Iatridis, noting that developments at the global and European level in the port sector are explosive. As noted, the competition between interested parties in the HRADF tenders for ports creates the conditions for achieving a significant price that will lead to the implementation of investments in improving port infrastructure and facilities, in specialized jobs and in general to the creation of a dynamic development climate with a positive diffusion, in general, in the projects and construction sector. Taking into account the financial tools, programs and political will, the Mr. Iatridis underlines that we are facing a new and more dynamic landscape for the industry.

Previous and ongoing HRADF tenders for ports in our country demonstrate the existence of strong investment interest in the sector. What are your estimates for the development trajectory of the sector?

First of all, thank you very much for inviting me to answer your questions in the context of an interview in the history CONTRACTOR STEP  the periodical edition of Panhellenic Union of Public Works Contractors AssociationsThe members of the Union are distinguished for their knowledge, professionalism, hard work and efficiency and always contribute to the construction of modern, technologically and constructionally sound projects and, of course, to economic development and the creation of new jobs in our country.

As you know, The developments, at a global and European level, in the port sector are explosive. and our country, by nature and position, is decisively positioned on the front line.

Greece is a crossroads of transit trade, a reference point between East and West and is the main gateway for people and goods to southeastern Europe and the eastern Mediterranean. Its geopolitical and geostrategic advantages are of key importance. And of course, Greek tourism, despite the difficult conditions created by the pandemic, maintains one of the top 15 positions in the world both in terms of arrivals and revenue.

It is a given that the HRADF tenders for the development of Greek ports are progressing. The interest of potential investors is great and this is particularly important. For example, in the final phase of the sale of a majority stake in the Alexandroupolis Port Authority, 4 investment schemes and consortiums are in the final phase. In the case of the sale of a majority stake in Igoumenitsa, 7 investment schemes have qualified for the final phase and are expected to submit binding offers. In the sub-concession of the use of the 'Philippos B'' pier in the Port of Kavala, 4 interested schemes have advanced to the final phase. While in Heraklion, where the process is still in its first stage, 9 investment schemes and consortiums have expressed initial interest. Based on the information we have from HRADF, the binding bid process is proceeding with Kavala first, in February, Alexandroupoli immediately after, and always within the first months of 2022, followed by Igoumenitsa and later, Heraklion. In addition, we know that other important ports will also proceed to be developed by HRADF, such as Volos and Corfu.

Competition between interested parties creates the conditions for achieving a significant price for the concessions we mentioned, an assessment that we expect to be confirmed upon completion of the procedures. Also very important is the fact that the preferred investor, i.e. the investment scheme that will bid in the process, undertakes, based on a contract, the implementation of investments to improve port infrastructure and facilities with positive consequences for the local community and the regional economy. New specialized jobs are being created, executives are being utilized and all the conditions and prospects exist for a dynamic development climate with positive diffusion, in general, in the construction and construction sector.Our experience to date in the development of ports in our country comes from Piraeus and Thessaloniki and is particularly positive.

According to the National Energy and Climate Plan (NESP) and the EU roadmap for "greening" transport, the energy transformation of the country's ports has been identified as a priority by both the Ministry of Environment and Energy and the Ministry of Shipping and Island Policy. What are the steps that have been taken in this direction and what are the objectives? What will be the burden or benefit to the market from such a transition?

Actually, The green transition is one of the most important challenges facing Greek ports. and there are important legislative initiatives at both European and national level. In the field of environmental good practices and renewable energy sources, as you know, the goals are particularly ambitious. We are present, we are in the developments. In particular, the Association of Greek Ports and its members, actively participate in the consultation for the adoption of a new European Union Regulation for the development of alternative fuel infrastructure, within the framework of the 'Fit for 55' initiative, i.e. the reduction of greenhouse gas emissions by 55% by 2030. A new Regulation that, based on the design of the European Commission, will be voted on in 2022.

The draft Regulation that we have in our hands provides, among other things, the provision of electricity to 90% of ships over 5.000 tons from each port, after a 2-hour stay at its facilities, with an implementation deadline of 2030. Also the construction of LNG fueling facilities by 2025 to serve dual-fuel ships and, in this context, FSRU installations and other related projects. All of these are on the table for discussion and may be adjusted, other intermediate targets may be set and other regulatory obligations may eventually be imposed. We are co-shapers of developmentsAs we all understand, the level of investment required is particularly important, so that in principle there is the possibility of providing power to this large amount of electricity in the ports, both in the transmission of electricity to the port facilities and in the port infrastructure itself, even at a security level.

In this context, and as there is a direct connection between the green transition in ports and the reduction of pollutants in shipping in general, we consider the letter of Prime Minister Kyriakos Mitsotakis to the President of the European Commission Ursula von der Layen on the green transition in maritime transport to be particularly important, where the Prime Minister, among other things, proposes the creation of a Research Center for Alternative Maritime Fuels and Technologies and the financing of investments in research and development through the Innovation Fund. We believe that the benefits from the 'greening' of energy will be particularly significant. Always of course with the application of the 'polluter pays' principle. We are therefore in favor of delignitization in maritime transport and ports, but also in ensuring the competitiveness of ports, internationally.

What are the biggest challenges and opportunities for the port industry within this volatile context of recent years?

As you very correctly mentioned, we are in a volatile, or rather constantly changing international environment, also due to the evolution of the pandemic with attendant consequences such as, to a large extent, the international supply chain crisis. With this in mind, Greek ports are moving on a trajectory of dynamic transformation to face the major challenges: first, the green transition with the use of renewable and other 'clean' energy sources, which we have already mentioned, secondly, the promotion and completion of the digital transition and thirdly, the upgrading and modernization of port infrastructure and the services provided to the level that our country can decisively support.

In the field of digital transition, the use of cutting-edge technological innovations is leading to the adoption of the 'smart port' model. Artificial intelligence, big data and its analysis, and augmented reality already provide solutions to the daily operation of ports and can offer even more. Of course, a necessary condition for completing the transition to 'smart ports' is the adoption of 5G technologies with high connectivity and speeds, with the objective of improving port operations and services and effective crisis management.

In the field of investments for upgrading and modernization of port infrastructure and services provided Important steps have been achieved, both by the 2 major ports that have been privatized to date, Piraeus and Thessaloniki, as well as by the ports under Public control.

And the announcements of the Minister of Shipping and Island Policy, Yiannis Plakiotakis, are important, for financing of 33 projects to upgrade port infrastructure on the Greek islands with a budget of 175 million euros through the new NSRF 2021-27But also the financing of other projects in the port facilities of 200 million euros through the Nearchos program and 20 million more from the Recovery Fund to address climate change and erosion. The Recovery Fund can further support port infrastructure with targeted actions in the field of digital and green transition. And also projects to interconnect ports with the rail network, and directly with airports and major road arteries of the trans-European transport network. All these investments in infrastructure suggest that very We will soon be faced with a new, even more dynamic landscape in ports., with a significant contribution to the development of the Greek economy.

source: Construction Step No_127 PESEDE