It has been relatively silent around BRI during the pandemic but in recent weeks China is once again pushing the mega project, with state media reporting almost breathlessly about all sorts of new BRI related projects and conferences.
One key BRI player is COSCO, China’s largest state-owned transport and logistics company. And COSCO seems on a roll. The biggest news comes from Greece, where COSCO finally got permission from the government of Greece to extend its share in the Piraeus Port Authority (OLP) to 67%. This was long uncertain, as COSCO hadn’t made all the investments required under the original 2016 agreement. However, COSCO argued that this was caused by delays from the Greek side, and parties have now agreed to an extension of the investment obligations.
COSCO is also expanding in Spain. It already owns terminals in the seaports of Valencia and Bilbao, and a rail terminal in Zaragoza. Earlier this week, COSCO announced a new rail service for freight between Valencia and Zaragoza, operated by CSP Iberian Rail Services, a COSCO subsidiary [COSCO boosts connectivity between its Spanish rail terminals]. The trains run on the existing railway network which was upgraded for 100 million euros. Main investor in the upgrade is the Port Authority of Valencia (PAV). COSCO and PAV are in talks to extend the new service to Bilbao, which would give COSCO a direct connection between its two port terminals.
In Germany, COSCO is negotiating with Hamburger Hafen und Logistik AG (HHLA) to acquire a minority stake in one of HHLA’s container terminals in the Port of Hamburg. The acquisition, which seems all but certain, would give COSCO a foothold in one of Europe’s busiest ports, providing access to Scandinavia and the Baltic Sea.
But not all happens in Europe. Last month, COSCO announced it had signed a contract to build a new seaport in the city of Chancay in Peru, located just north of the capital Lima. The $600 million project will be built by a Chinese consortium led by China Harbour Engineering Company (CHEC). With the new port, COSCO aims to turn Chancay into a gateway in western South America for freight from Asia. The first phase is scheduled to be completed in 2023.
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