The investment programme of the Piraeus Port Authority (PPA) is entering a new phase, with the development of a modern logistics centre costing €77.5 million and plans to move ahead with the redevelopment of two former port warehouses, which are intended to be converted into hotels.
As part of this, the PPA’s board has established a new subsidiary, which will focus primarily on supply chain services while also having the scope to develop investments across a wider range of activities, from infrastructure and property to tourism and energy.
The new company, named “Piraeus Supply Chain Gateway Single-Member S.A.”, will be based in Piraeus, have initial share capital of €30,000 and be wholly owned by the PPA.
The PPA’s management recently referred to the development of the new logistics centre during a conference call with analysts on the organisation’s first-half results.
The logistics investment
The new logistics centre is one of the most significant projects in the PPA’s additional investment programme, which envisages developing a site covering a total of 80,000 sq m in the former ODDY area of Keratsini, north of the organisation’s vehicle terminal, where old warehouse facilities are already in operation.
The plan calls for redeveloping the site and building new, modern facilities for storing and handling goods.
The facilities will be able to serve the needs of the PPA as well as those of third-party businesses, through the leasing of warehouse space, creating the potential for additional revenue from the commercial use of the new infrastructure.
Under the current plans, the investment is expected to be completed in about three years.
The development of the centre is part of efforts to further expand the port’s logistics activities beyond freight handling, with the aim of creating additional facilities to support storage, distribution and business services.
The new subsidiary’s remit
Beyond the specific project, the breadth of activities envisaged for the PPA’s new subsidiary is also notable.
According to the listed company’s announcement, the subsidiary’s corporate purpose includes the development and provision of integrated services in supply chain management (logistics), transport, port infrastructure and related facilities. These include the development, operation and use of warehouses and distribution centres; the storage, handling and distribution of goods; and the provision of related services and technology solutions.
The subsidiary will also be able to develop, manage and make use of property, as well as carry out investment projects in Greece and abroad.
The sectors in which the company may invest include tourism and hospitality, energy, transport, infrastructure, the environment, property and technology. It will also be able to work with third parties, participate in business ventures and acquire stakes in companies.
Two hotels planned for former warehouses
At the same time, the PPA is pursuing another plan to make use of its property assets, this time in the tourism sector.
The plan is to convert two former multi-storey warehouses on the Ietionia Coast, near Gate E2 of the port, into hotels.
The PPA is currently looking into appointing an adviser to prepare the tender process for the redevelopment of the two properties. Under the latest plans, the tender is expected to be launched in 2027.
The two buildings are on the port’s waterfront, near the old Silo, where a Museum of Underwater Antiquities is planned.
The redevelopment plan is not new, having been included in the approved master plan for the port of Piraeus. Specifically, it provides for the reconstruction of the two former warehouses, with floor areas of about 8,800 sq m and 15,000 sq m respectively, for conversion into four- and five-star hotels.
According to earlier reports, the plan envisaged two hotels with 150 and 200 rooms respectively, with the final specifications of the investments expected to be clarified as the projects are further developed and the terms for their use are set.