Greece’s $680 Million Investment Plan to Upgrade Ports

 

The Greek government has confirmed a $680 million investment plan to modernize the country’s port infrastructure. Speaking at an infrastructure conference in Athens last week, the Greek Deputy Maritime Affairs Minister Stefanos Gkikas said that the port upgrade program will focus on Greece’s island ports.

“The upgrade is a basic priority so that islands acquire equal terms of competitiveness with mainland Greece and international markets,” added Gkikas.

For several years now, port stakeholders in Greece have been highlighting the dilapidated port infrastructure. For instance, some Greek Island ports have gone without repairs for over 30 years. This means the facilities are limited in terms of the type of vessels and cargo they can accommodate. In its annual reports, the Panhellenic Association of Merchant Marine Captains, have decried of the aging Greek port facilities. Some of the pressing challenges that the association has highlighted include years of silt accumulation, significantly reducing port channel depths. Others are crumbling piers and lighthouses, inadequate parking and passenger waiting spaces,

To address some of these challenges, Gkikas said that the maritime ministry has secured $210 million from the National Strategic Reference Framework (NSRF) 2021-2027 Transport program. The initiative is supported by European Union(EU) funds, with additional contributions from Greece. The financing will go into upgrading 30 island ports. Notably, 21 of these port upgrades have already been included in projects being implemented by Growthfund, Greece’s national investment fund.

Greece has also secured another $93 million from EU’s Recovery and Resilience Facility. The funds will further support the planned upgrades in island and regional ports. A major focus of this upgrade effort will include green transition for the ports. Gkikas estimated that at least 12 ports will be equipped with shore power (cold ironing systems) by 2029. $11 million has been allocated for shore power feasibility studies in ports such as Lavrio, Rafina, Kavala and Corfu.

The green transition element of the program is estimated to cost $310 million, with almost half of the financing provided by the Island Decarbonization Fund. The fund is a joint effort between Greece, the EU and the European Investment Bank partly aimed at supporting green transition projects in Greek Islands.