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MSC switches business as dispute hits Greek ports.

Europe Intelligence Wire

| December 01, 2006 | COPYRIGHT 2006 Financial Times Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

(From Lloyds List)

Byline: Philip Pangalos in Athens

AN OVERTIME ban at Greece's main commercial ports of Piraeus and Thessaloniki has led to a backlog of containers and prompted the ports' biggest customer to temporarily switch some of its business elsewhere.

Employees at the state-controlled Piraeus Port Authority and Thessaloniki Port Authority have been staging the overt- ime ban for three weeks in opposition to plans for an international tender to operate the twoports for a period of 30 years.

The tender is expected to involve an estimated €500m ($585m) investment at Piraeus alone.

The government has said it plans to privatise parts of the two ports through an internati- onal tender to be completed within a year in a bid to bolster in- vestment, develop container business and make Greece a regional ship-ping hub.

But the unions oppose such moves, fearing for their jobs, and claim they have so far been excluded from any discussions by government and by management at the ports.

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