China Denounces US Suggestion for Greece to Sell COSCO’s Piraeus Concession
The Chinese Embassy in Greece has unleashed strong criticism on the United States and its new ambassador to the Hellenic Republic after comments calling COSCO’s ownership of a Greek port “unfortunate,” and suggesting there were ways around it, including the sale of Piraeus. It is the latest criticism by the Trump administration of China’s global port strategy and follows the insistence earlier this year that China was controlling the Panama Canal.
The latest war of words was spurred by the new U.S. ambassador, Kimberly Guilfoyle, during her first weeks in Athens. The former Fox News host, who is a lawyer and former prosecutor, was confirmed to her first diplomatic post as the U.S. ambassador in September and arrived in Greece at the beginning of November. She has been making the rounds, meeting government officials, and made her remarks about Piraeus during a TV appearance on November 14.
Guilfoyle emphasized the importance of having American infrastructure in Greece while saying the U.S. could “balance against the Chinese influence.” She said there were ways around it and commented, “perhaps Piraeus could be for sale.”
A spokesperson for the Chinese Embassy lashed out, calling Guilfoyle’s remarks “erroneous” and an “unwarranted attack.” In a transcript of a Q&A, the remarks by the Chinese spokesperson said the remarks, “are not only malicious slanders against normal China-Greece commercial cooperation but also serious interference in Greece's internal affairs, reeking of Cold War mentality and hegemonic logic. These remarks violate the basic professional ethics of a diplomat and fully expose the sinister intentions of the U.S. to use the Port of Piraeus and even Greece to serve its own geopolitical interests. China expresses its strong dissatisfaction and firm opposition to this.”
The Chinese state-owned shipping group COSCO has a controlling stake in the Piraeus Container Terminal company, which was awarded in 2009 a 35-year concession to operate Piers II and III at Piraeus’ container terminal. China points out that it made the investments at the height of Greece’s debt crisis to provide a helping hand, and since then, the port has grown significantly. COSCO increased its position to 51 percent in 2016 and to 67 percent in 2021.
Greece’s State Department has also been dragged into the war of words. A spokesperson during a briefing on Tuesday, November 18, said that the Greek Prime Minister acknowledges the role COSCO has played in the port. They noted that China was the only one to submit a bid in 2009 during the country’s financial crisis. Asked about the future of the concession, the spokesperson said, “Greece respects the agreements that have been concluded in the past.”
Guilfoyle conceded during her interview that there were other ways for the United States to expand its influence in Greece. American investment is supporting the development of the new port in Elefsina. Greece is planning legislation enabling ONEX, the operator of Elefsina Shipyards, to develop a new concession for a terminal that would compete with COSCO’s Piraeus operations. The company recently highlighted its investment to restart and modernize Elefsina Shipyard and its operation at the Neorion Shipyard on the island of Syros. The U.S., in 2023, backed a $125 million loan to ONEX for the modernization of the Elefsina Shipyard.
Thessaloniki Port Expansion Begins as US Calls for Alternatives to COSCO
An agreement was signed to put into motion the planned expansion of the Port of Thessaloniki in northeastern Greece. While historically a smaller operation, the expansion comes as the United States has been calling for Greece to take steps to lessen the influence of China in Greek ports.
Port officials are calling the new project “the most important upgrade project in the history of the Port of Thessaloniki.” A port since ancient times, Thessaloniki has seen a rapid expansion trend since 2018. It has the potential to become not only a key secondary port of Greece but also a gateway for transshipment into Eastern Europe.
The port company has completed a new concession agreement with the Hellenic Republic, which, among other steps, calls for a drastic strengthening of the port’s infrastructure. Pier 6, which is used for containerships, will be lengthened by an addition of 513 meters (more than 1,600 feet). The yard space for containers will also be expanded.
A significant dredging program is part of the effort to deepen the navigation channel and the maneuvering area. The project is projected to require 40 months, and when completed, Thessaloniki will be able to handle very large container vessels (VLCVs) with a capacity of up to 24,000 TEU. It will be a unique capability for northern Greece. The total budget for the project is €195.6 million ($225 million).
The port’s capacity will be expanded to handle 1.5 million TEU annually. In 2024, the port handled 566,000 TEU, which represented a nine percent increase over the prior year. It also handled approximately 250,000 tonnes of general cargo and has a growing business with cruise ships.
“The expansion of Pier 6, the largest upgrade project in the history of the port, creates the conditions for Thessaloniki to strengthen its role in the Mediterranean as a strategic trade hub for Southeast Europe,” highlighted Dr. Ioannis Tsaras, CEO of ThPA S.A., the port’s operator.
The United States’ new ambassador to Greece, Kimberly Guilfoyle, has been emphasizing during her recent meetings that Greece needs to take steps to decrease China’s influence. Arriving this month in Greece on her first appointment as an ambassador, Guilfoyle called the 16-year-old agreement with COSCO for the operation of the container terminal in Piraeus “unfortunate.” She suggested there would be ways around the company’s controlling ownership stake of the container terminal, including the expansion of alternate ports. She also said, “Perhaps Piraeus could be for sale.”
Greece was quick to defend its agreement with the Chinese company and said it respects existing agreements. China’s embassy in Greece lashed out at Guilfoyle and the United States, saying that Guilfoyle’s remarks were interference and “violate the basic professional ethics of a diplomat.”
The Chinese Embassy called the U.S.’s remarks “erroneous” and interference in Greece’s internal affairs. It was emphasized that COSCO was the only bidder for the concession in Piraeus in 2009 at the height of Greece’s financial crisis. The Chinese official highlighted the strong growth of container operations in Piraeus after COSCO’s investment.
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