Presentation of P.P.A SA to the Association of Institutional Investors
Today, 19/4/2011, took place the analysts briefing from the Management of
Piraeus Port Authority SA at the Association of Institutional Investors, in
accordance with the A.S.E Regulation.
The Company, its activities and its annual financial results were presented from
the President of the Board of Directors and Managing Director of P.P.A SA, Mr.G.
Anomeritis, the General Manager Mr. P. Petroulis, the Financial Director Ms. A.
Vernardou and the Director of the Administration Directorate, Mr Hatzakos
The Management reviewed the economic environment during 2010, whose main
feature was the beginning of operations at Pier I (June 2010) under P.P.A.SA, the
completion of the staff voluntary retirement scheme, the implementation of the
new Internal Organizational and Operational Regulation, as well as the
restructure of the Company’s tariffs.
Moreover cargo and passenger throughput at Piraeus Port was analyzed, as well
as the annual financial results with the most notable being the Company’s return
to profitability. The evolution of P.P.A SA 5 -year Investment Plan (2011-2015)
amounting to 1 billion Euros, was presented. The Company's Investment Plan,
focuses on projects that will increase the capacity of the Container Terminal, the
Cruise and the Car Terminal, and will strengthen the competitive position of the
port. At the same time the development of port installations, particularly of areas
and buildings at the Central Port, through concession agreements, is planned.
As to what regards the prospects for the current year, it was noted that the
business activities of PPA SA are among the first to accept the positive or
negative effects from the fluctuation of international trade, which currently faces
recession showing however certain signs of recovery. Generally speaking, the
entire system continues to be characterized by uncertainty.
The international transshipment cargo is expected to increase as a result of the
anticipated increase in the volume of international trade. However, the downward
trend of domestic cargo should be taken to continue within 2011 affecting the
turnover of the company.
The beginning of operations at Pier I of the Container Terminal will play a
catalytic role, due to the parallel operation of two autonomous and competing
Container Terminals. The Management is working to attract old and new
customers within a new pricing and regulatory environment. However a
systematic and organized effort to counter this risk is being made though efforts
to increase turnover from the Cruise and Car terminal sectors.
As far as cruise is concerned, a readjustment of tariffs was made aiming to close
the gap that existed with current tariffs of competing ports, coupled with the
effort to upgrade the quality of service provided.
As far as the Car Terminal is concerned, the works of upgrading and increasing
the capacity of the Terminal are in progress, and this coupled with the
coordinated contact with the clientele, will increase around 12% amidst recession.
Replying to institutional investors questions, Mr. Υ.Anomeritis inter alia said:
A) The creation of the Attica Port System has been adopted by the shareholder
(Ministry of Finance), the Ministry of Maritime Affairs, Islands and Fisheries, and
the Organization of City Planning of Athens. The Privatization Commission has
already launched the project for the recruitment of a consultant. This means that
in 2011 the new scheme, will take place.
B) The Investment Plan 2011-2015 and particularly the major projects (the
expansion of the cruise port, the monorail, the 5* hotel, the Cultural Coast, the
Conference-Exhibition Center), have been unanimously approved by the Port
Planning and Development Commission (E.S.A.L). They are already entering to
the phase of fast-track licensing process and till the end of the year the
subcontractors will be installed.
C) All projects are approved by the Interministerial Committee, which met twice
in P.P.A SA premises, included the Cultural Coast which is particularly important
for the City of Piraeus and the Cruise.
D) The administrative reforms and concessions will continue and in 2011 with
emphasis to the cruise sector.
E) The Company’s economic course will be profitable in 2011, since the turnover
will be further increased. It is noted that in 2010, the Container Terminal (Pier I)
did not operate at all for five months, while in the cruise sector we already see
100% occupancy from cruise vessels calls.