Containers pile up at main Greek port over dockworkers' strike

Oct 16, 2009, 8:22 GMT

Athens - Thousands of containers piled up at Greece's largest port of Piraeus on Friday as a dockworkers' strike entered its third week.

The strike, in protest at the takeover of the docks by Chinese company COSCO Pacific, is costing the country an estimated 3 million euros a day as thousands of shipping containers pile up at the main port or are kept from even reaching Greece's shores.

The protest has prevented more than 15,000 containers from being unloaded from ships docked at the port, while traders are unable to move more than 25,000 tons of goods out of the harbour as protesting workers will not allow them to get customs clearance.

Costas Michalos, president of Greece's biggest chamber of commerce, said cargo vessels with tons of merchandise on board were turning to alternative ports.

The strike, which began October 1, has left hospitals dangerously under-stocked as ships carrying basic medical supplies remain stranded at various ports around the Mediterranean.

'The continued strike action by workers at Piraeus Port has brought Greek businesses to a dead end,' Michalos said in a statement.

Unions are threatening further industrial action unless the 35- year concession agreement awarded by the previous conservative government is annulled, pushing the new Socialist government to revise a concession deal with COSCO Pacific.

Greece's Socialist government, which won parliamentary elections earlier this month, has promised to review the deal which workers say may lead to job cuts.

Greece and China signed the 4.3-million-euro (6.32 million dollars) agreement for the new management of the port at the beginning of the year. Under the contract, COSCO was scheduled to take over Piraeus' cargo management services on October 1.

In an article in the daily Kathimerini newspaper, COSCO officials suggested that if the strike continues, the company will consider taking legal action and seek compensation.

Piraeus is one of the most important ports in the eastern Mediterranean. The Chinese company plans to make Piraeus the hub of its Chinese exports operation for southeast Europe.

With 2.9 billion euros in trade per year, China is Greece's seventh-biggest trading partner.