Cosco Pacific’s expansion in the Mediterranean is facing increased competition following its recent acquisition of a Turkish container port, according to the South China Morning Post.
Cosco Pacific operates two container terminals at Greece’s largest port – the Port of Piraeus – and recently jointly-acquired Kumport Container Terminal in Turkey with China Merchant Holdings.
However, Cosco’s Piraeus volume-growth has recorded a year-on-year decline in Q2, 2015, with Asyaport in Turkey, operated by Terminal Investment Ltd (TIL), allegedly moving transshipment volumes from Piraeus terminals.
Drewry Shipping Consultants said: “Although AsyaPort is located at a greater deviation from the main international shipping route than Piraeus, MSC will ensure commercial viability of the new port operated by TIL by pulling away transshipment volumes from Piraeus.”
Andy Lane, partner at CTI Consultancy, agreed and added that TIL’s terminals will be first choice for MSC and that will also draw in 2M alliance (Maersk Line and MSC) volume.
He concluded: “It is never ideal from a line network optimisation perspective to operate with multiple hubs within a small geography. The stability of Greece overall also needs to be considered.”