Li Keqiang's 'big gift package' of shipbuilding orders to Greece

On June 19, Premier Li Keqiang of the State Council arrived at Athens International Airport by special plane, beginning his official visit to Greece. Photo by Li Tao, Xinhua News Agency

Li Keqiang's trip to Greece provided timely assistance, resulting in the signing of US$4.8 billion in business deals, with a significant portion related to shipbuilding and shipping cooperation projects.

On the afternoon of June 19, local time, Premier Li Keqiang of the State Council of China arrived in Athens from London, beginning his first official visit to Greece. Agence France-Presse reported that this was the first visit by a Chinese leader to Greece in four years. Some foreign media outlets discussed how this country, burdened by the European debt crisis, hopes to leverage Chinese investment to boost its economic recovery.

Zheng Zhijie, President of the China Development Bank, and Yi Huiman, President of the Industrial and Commercial Bank of China, who participated in this event, also became stars of Li Keqiang's European business cooperation trip. Nineteen projects were signed on Thursday, totaling US$4.8 billion.

It is understood that the cooperation in the field of shipping includes a US$1.5 billion agreement signed between the CDB and the Greek Costamare shipping company for five 10,000-TEU container ships ( ship type   shipyard   transactions project; a project worth approximately €1 billion with the Greek Ministry of Maritime Affairs regarding the expansion of Pier 3 at the Piraeus port, logistics, and other development projects. A financing lease project between ICBC Financial Leasing and the Greek Libra Group for the construction of six bulk carriers ( ship type   shipyard   transactions and container ships at Chinese shipyards; and a special cooperation agreement on ship financing for the construction of energy-efficient and environmentally friendly bulk carriers with Diana Shipping of Greece, worth US$200 million.

The Export-Import Bank of China also reached two business cooperation agreements in the shipping sector: one is a loan and financing framework agreement of approximately US$400 million with Norway's largest bank, DNB, and Greece's Thenamaris Shipping; the other is a US$57.36 million loan agreement with Greece's Oceanbulk Shipping.

Other larger projects include an agreement between Aviation Industry Corporation of China, Taizhou port ships ( location   comment   news Co., Ltd. and the Greek Vlattas Ship Management Company for eight 64,000-ton bulk carriers, with a total value of approximately US$215 million.

On the eve of his visit to Greece, Li Keqiang published a signed article titled "Looking Forward to Visiting Greece" in the Greek newspaper "Ta Nea" on the 18th. Li Keqiang stated in the article that he hopes to work with the Greek side to develop the Piraeus port into a first-class port in the Mediterranean. He also mentioned that he will attend the China-Greece Marine Cooperation Forum to be held in Athens, hoping to use this as an opportunity to expand cooperation in traditional areas such as maritime logistics and shipbuilding, and promote cooperation in new areas such as marine scientific research and marine environmental protection. This cooperation will inject strong impetus into the economic and social development of both countries.

"Greece rolled out the red carpet to welcome the Chinese Premier," Agence France-Presse reported, noting that this was the first visit by a Chinese leader to Greece in four years. The Piraeus port project in 2008 benefited Greeks struggling with the financial crisis, and now, with the Greek economy still faltering and international aid hampered by stringent conditions, Greece hopes the Premier's visit will bring more investment.

"China is making strides into the Mediterranean countries neglected by the EU," stated the German business news website on the 19th. The Chinese Premier's two-day visit "brings joy to Greece," drawing closer relations between Greece and the large Chinese market and attracting Chinese tourists. The report stated that these projects are also a sign of China's move towards the Mediterranean. Greece is an investment point for China that can radiate to surrounding countries, and it is also an important geopolitical foothold for China, making shipping routes to the Mediterranean more frequent.

Statistics of the signed projects

1. CDB and Greek Costamare Shipping Company signed a project for five 10,000-TEU container ships, valued at US$1.5 billion;

2. ICBC Financial Leasing and the Greek Libra Group's financing lease project for the construction of six bulk carriers and container ships at Chinese shipyards;

3. ICBC Financial Leasing and Greek Diana Shipping signed a special cooperation agreement on ship financing for the construction of energy-efficient and environmentally friendly bulk carriers, valued at US$200 million.

4. The Export-Import Bank of China, together with Norway's largest bank, DNB, and Greece's Thenamaris Shipping, signed a loan and financing framework agreement of approximately US$400 million;

5. The Export-Import Bank of China and Greece's Oceanbulk Shipping signed a loan agreement of US$57.36 million.

6. Aviation Industry Corporation of China, Taizhou Port Ship Co., Ltd. and Greek Vlattas Ship Management Company signed an agreement for eight 64,000-ton bulk carriers, with a total value of approximately US$215 million.