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is thanks to shipping, but the road, rail, port, and airport projects now in the pipeline will boost the overall sector exponentially.

As it is, some €7.4 billion worth of rail projects and €4.3 billion worth of highway projects are already in progress or ready to be launched, according to a recent Pricewaterhouse-Coopers (PwC) study, Infrastructure in Greece: Funding the Future. Another €2.2 billion worth of investments in tourism infra-structure and waste management projects are also in the works.

“The pipeline [of infrastructure projects] is higher than in the past due to the completion of lower-cost projects, and the addition of higher-cost ones, in the preparation phase,” says PwC.

The report also stresses that more needs to be done fol-lowing years of underinvestment due to the crisis as well as to catch up with investment levels in the rest of Europe.

And as the World Bank put it in a report on the industry: “The logistics sector is now recognised almost everywhere as a core enabler of development”.

And for good reason. Logistics is the array of services needed to move goods from producers to consumers, both domestically and across international borders. But today’s lo-gistics sector is more than the provider of warehousing, bro-kerage, and delivery services. It is the nexus uniting the rail and highway networks, port facilities, intermodal systems, and information management capabilities needed to secure a high-value niche in global supply chains.

Transport and Infrastructure Minister Kostas Karamanlis says that infrastructure investments have a multiplier effect on the economy, boosting its competitiveness and creating new job positions. “The government believes in the growth pros-pects of infrastructure projects and in the important role they can play in private investments,” says Karamanlis.

And while he acknowledges that infrastructure projects in Greece have suffered from slippage and delays, Karamanlis says the government will introduce new tools to improve the qual-ity of projects and reduce the cost and time associated with their completion. Unsolicited Proposals, for example, are slated to allow the private sector to partake in infrastructure planning through the submission of ad hoc project proposals for which a tendering procedure has not been launched.

WORK CUT OUTWith the country lagging on a number of competitiveness in-dices, Greeks in both the private and public sectors have their work cut out for them.

The good news is Greece’s geostrategic location between Europe, Asia, and Africa. On the long ocean voyage from the Far East to Europe, goods unloaded in Greece and sent on-wards by rail to northern Europe have the potential to shave eight days off shipping times compared with ports like Rotter-dam and Hamburg. A number of private-public partnerships are moving to seize these opportunities.

In June 2019, over 464,700 twenty-foot equivalent units (TEU) were shipped through container terminals operated by Chinese shipping company COSCO at the country’s main port, Piraeus. This is up from 374,300 TEU in the same month of 2018.

That puts Piraeus in the top tier of European ports and makes it the second busiest container port in the Mediterra-nean. These exploding container volumes bode well for the ultra-modern logistics centre taking shape in the Thriasio Plain, just a few miles to the northwest of the port.

Connected by road and rail to Piraeus and the rest of Greece, the huge freight village is slated to be the largest in the Balkans. Meanwhile in the port itself, several major multi-nationals, like Chinese telecom companies ZTE and Huawei, have set up their own local logistics centres.

In northern Greece, bids also have been tendered for an-other major logistics centre on 167 acres of the former Gou-nou military base located west of the Port of Thessaloniki, the country’s second largest. The construction costs are estimated at €150 million.

That project comes as the recently privatised Thessaloniki port extends one of its container terminals by 440 metres – and with a depth of 16.5 metres that makes it suitable for oceangoing vessels – as part of the port’s programme of opera-tional upgrades. Already the port has more than halved waiting times for ships at anchor.

Elsewhere across the country, in tandem with rail, road, and port projects, smaller logistics centres are in the planning stages including in Alexandroupolis, near the Dardanelles, and the northern Greek cities of Kavala, Volos, Larissa, and Igou-menitsa, as well as Patras in the western Peloponnese, which serves as Greece’s gateway to Italy and western Europe.

Those six ports, along with another eight scattered across Greece, are all slated for privatisation as part of Greece’s ambitious plan to sell off some €50 billion worth of state-owned assets.

All these initiatives are part of a grand scheme. By 2030, as part of a European Union masterplan, Greece plans to up-grade its transport corridors with Bulgaria, Albania, Serbia, and other countries to its north, and link its northern ports with the Black Sea.

“There is no growth without modern infrastructure, roads, trains, ports, and airports,” says Alexandros Exarchou, CEO of construction group Aktor.

SOME €7.4 BILLION WORTH OF RAIL PROJECTS AND €4.3 BILLION WORTH OF HIGHWAY PROJECTS ARE ALREADY IN PROGRESS OR READY TO BE LAUNCHED

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To improve the situation going forward, there needs to be a systematic effort to bring all these projects to maturity. They need not just actually to commence but to reach an advanced level of construction. This is critical. It is only when projects reach a peak stage of construction that the wider public witness actual activity, bulk funds are deployed in the economy, jobs are created, and you get the spill-over effect. This happens during construction and, of course, during operation.

All stakeholders should take note that this is not an easy task and requires a continuous effort. My two cents is that while things are improving, it will take two to two-and-a-half years for all these projects to really peak. But the

requisite upstream effort is due now, and there is not a single day to lose.

GIG: Can you tell us more about your involvement in the expansion of the Port of Thessaloniki, as well as the eagerly awaited Kasteli Airport on Crete?

Sigalas: In September 2019, following an international tender that attracted seven consortia, we were appointed – in collaboration with a Greek marine engineering firm – as the designer and

project manager for the planned expansion of the marine works infrastructure of Pier 6.

The Port of Thessaloniki is the most important port of northern Greece and a key trans-portation hub for Southeast Europe as a part of the core network of the Trans-European Transport Network. It hosts a variety of activities, including the servicing of all types of cargo, ferry/passenger shipping, and cruises, as well as the Port of Thessaloniki free zone, operating under the applicable tax and customs legislation. Pursuant to the terms

of the relevant Concession Agreement, the Thessaloniki Port Authority (THPA) is required to implement a minimum €180 million capital expenditure programme to upgrade the port.

The main project relates to the expansion of the marine works infrastructure of Pier 6. As it was announced by THPA, in parallel with the design process, we worked to launch the pre-qualification stage of the main construction tender at the end of November 2019, with a view of selecting the preferred contractor in the first half of 2020.

Following an international tender in June 2018, we were selected as the independent engineer for the new international airport of Heraklion Crete, widely known as the Kasteli Airport. The total investment is expected to exceed €500 million. The project will be developed under a concession agreement for a period of 35 years, with the Hellenic Republic maintaining a 45.9% stake in the

concession. The concessionaire is Ariadne Airport Group and comprises Terna, a reputable Greek corporation, and GMR Group, an India-based airport investor and operator. Works include the construction of a new airport with a terminal of 72,000 m2, an ICAO aerodrome reference code E runway of 3.2 km, an apron area capable of more than 30 remote and contact parking positions, as well as the connecting roads and a commercial zone. The airport will become the second busiest airport in Greece, behind Athens International. After a long waiting period, we have commenced preliminary works and, hopefully – very shortly – the concession effective date will be duly achieved to allow the project to move forward with design development in full throttle.

Without a doubt, both are infrastructure projects of broader national and particular regional significance, providing also several benefits to the local economies. We are fully aware of the responsibilities that come along with the honour to serve these projects, hence we look forward to working hard with all stakeholders involved for their successful delivery. n

HILL IS UPBEAT ABOUT GREECE’S DEVELOPMENT PROSPECTSManolis Sigalas, Vice President and Managing Director of the Southern Europe division of Hill International says his firm’s project management and consultancy operations are set to benefit from billions of euros of Greek capex in the coming years, as the economy recovers, circumstances are more promising than ever before, and a strong pipe-line of projects reaches maturity across the country.

GIG: Can you tell us about the main areas in which you specialise and your activities in Greece?

Sigalas: Hill International is a global project management and consultancy firm headquartered in the U.S. and listed on the New York Stock Exchange (NYSE). We provide technical assistance, programme management, project management, and a range of advisory services to support investors and governments with planning, maturing, and delivering major capital programmes worldwide.

We invested in Greece during difficult times, and we are delighted to see our efforts coming to fruition. We are currently engaged in some very exciting projects across different project sectors such as ports, airports, hotel projects, new hospitals, master-planned developments, oil and gas, and others. This distinct mix of projects underscores the breadth and depth of our regional operations and our team’s ability to support clients through the different stages of a project’s planning and implementation.

GIG: What drove Hill International to have its regional base in Greece? And what are the benefits?

Sigalas: It was during the late 1990s that Hill International’s management established administrative headquarters for non-U.S. operations in Athens, essentially to support international operations in the Balkans, the Middle East, and North Africa. At the time, Hill did not have active operations or projects in Greece. This allowed the company to make use of a pertinent Greek law that provided incentives for companies with international operations to maintain their administrative headquarters in Greece.

Greece has several advantages. It is an EU country with a great location, at the heart of the eastern Mediterranean and within a reasonable flight-time radius from all European locations and the Middle East. It has a well-educated and English-speaking workforce and an advanced level of transport infrastructure. Of course, climate, culture, and lifestyle are all factors that contribute to Greece potentially emerging as the main hub for the wider southeastern Europe/eastern Mediterranean region. These are some of the reasons why we strongly believe in Greece and its development potential. Although, to be able to compete internationally, Greece still has plenty to do towards adopting a bold framework for investment and taxation incentives, which are key to attract international businesses and professionals to establish their base in the country.

Nowadays, as we have significant operations in Greece, the Athens office has evolved to be the main office for projects in Greece and SE Europe, while we maintain certain backbone administrative functions – such as finance, human resources, and IT – that support other geographical regions in Europe, the Middle East and North Africa.

GIG: What are the flagship projects you are currently undertaking and what are some of the most exciting projects you have in the pipeline?

Sigalas: We are delighted and honoured to be involved with some major projects such as the circa €400 million Stavros Niarchos Foundation Health Initiative that involves the

construction of three new exemplary hospitals designed by the internationally acclaimed architect Renzo Piano; the €350 million CapEx programme for the upgrade of the Port of Piraeus; the €130 million planned expansion of Pier 6 of the Port of Thessaloniki; the new international airport of Heraklion in Crete, widely known as the Kasteli Airport; the Trans Adriatic Pipeline (TAP) in northern Greece; the new Holocaust Museum in Thessaloniki; and the redevelopment of the Astir Palace, the ‘crown jewel’ of the Athenian Riviera.

I want to stress that these are just some of our current projects. These are more known to the wider public and the investment community. Regardless of how big or small a project is, and notwithstanding the specific remit that we may have on any given project, as a team, we feel the same level of honour and responsibility to deliver on every project. This sense of responsibility should transpire in the market also as, ultimately, each project is a piece of the puzzle that amalgamates into the big picture for the country as an investment destination.

Looking ahead, there are major upcoming projects that are maturing in Greece. In Athens alone, there are €5-6 billion worth of major and smaller scale projects to carry out over the next five years. These projects can act as ‘power houses’ for development. This includes just Phase 1 of the master Hellinikon redevelopment, the largest urban regeneration project with a waterfront to be carried out in a Europe; the integrated resort casino within the Hellinikon project; the €500 million planned major expansion of the Athens International Airport; the expanded scope of the Piraeus Port Master Plan; the metro expansion; and many more such as Alimos Marina, Vouliagmeni Marina, Asteria Glyfadas, Piraeus Tower, and wider real estate activity in Athens.

Likewise, there is a strong pipeline across the country, including northern Greece, Crete, the Peloponnese, and the Greek Islands. This is mainly driven by public private partner-ship (PPP) infrastructure projects, strategic investment projects that have been approved across the country and on certain islands, the new generation of privatisations – region-

al ports and airports, investments in energy, renewables, waste management – and the wider real estate activity that will hopefully improve as the systemic banks

sanitise their portfolios from the non-performing loans (NPLs).

GIG: The Greek government has been very outspoken about its commitment to catapult projects forward and have set great expectations. What is your outlook?

Sigalas: Indeed, expectations are high and rightly so. We need to manage expectations, however, and put them in a realistic and pragmatic frame. There should be no fallacy that billions are going to be poured into projects in early 2020. It needs to be recognised that the market has suffered, thus far, from a lack of mature projects that are ready for construction.

Manolis Sigalas

Vice President and Managing

Director of the Southern Europe

Division of Hill International

“IN ATHENS ALONE, THERE ARE €5-6

BILLION WORTH OF MAJOR AND SMALLER SCALE PROJECTS TO CARRY OUT OVER THE NEXT FIVE YEARS. THESE PROJECTS CAN ACT AS ‘POWER HOUSES’ FOR DEVELOPMENT.”

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Port of Piraeus Astir Palace

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HILL INTERNATIONAL, INC. Hill International, Inc. is an international construction consulting firm that provides programme and project management, construction management, technical assistance, due dili-gence, cost planning and a range of related services to support investors and/or governments for maturing, planning and delivering major construction projects worldwide.

Hill employs approximately 2,700 professionals and support personnel across 50 offices worldwide. Our professionals in Greece are currently supporting major projects throughout the country, including the Stavros Niarchos Foundation Health Initiative, the New International Airport of Heraklion in Crete (Kasteli), the Port of Piraeus, the Port of Thessaloniki, the Four Seasons Astir Palace, and the Trans-Adriatic Pipeline in northern Greece.

37A, Kifissias Avenue, Marousi 15123 Athens info@hillintl.com +30 210 610 5171 hillintl.com MANOLIS SIGALAS

VICE PRESIDENT AND MANAGING DIRECTOR OF THE SOUTHERN EUROPE DIVISION

HELEXPO The national exhibition agency TIF-Helexpo serves as the official advi-sor to the state on issues of exhibition policy; organises the Thessaloniki International Fair, major trade fairs, international conferences and regional exhibitions throughout Greece; participates in major international exhibitions with national pavilions; and has expanded its activities to the creation and operation of educational and recreational theme parks. It also manages the facilities of the Thessaloniki International Exhibition and Congress Centre, as well as the Athens Exhibition and Congress Centre.

TIF-Helexpo’s current strategy focuses on internationalisation, partnerships at the do-mestic and international level, and events that provide high added-value for exhibition visitors.

Egnatia 154, 54636 Thessaloniki exhibitions@helexpo.gr +30 231 029 1111 helexpo.gr

ANASTASIOS TZIKASPRESIDENT

KYRIAKOS POZRIKIDIS

CHIEF EXECUTIVE OFFICER

GERMANY TRADE AND INVEST Germany Trade and Invest (GTAI) is the economic development agency of the Federal Republic of Germany. The company helps create and secure extra employment oppor-tunities, strengthening Germany as a business location. With more than 50 offices in Germany and abroad, and its network of partners throughout the world, GTAI supports German companies setting up in foreign markets, promotes Germany as a business location, and assists foreign companies setting up in Germany.

Friedrichstraße 60, 10117 Berlin, Germany +49 30 200 099-0 gtai.com

FRIEDRICH JUERGENCHIEF EXECUTIVE OFFICER

GENESIS ATHENS CLINIC Genesis Athens Clinic is a medical and scientific research facility that specia-lises in plastic surgery, fertility, and reproductive health. In 1995, Dr Pantos established the IVF unit in order to provide the most advanced reproductive health technologies available combined with compassionate patient care. The fertility doctors and specialists are considered leaders in the fields of infertility, embryology, and medical genetics, and are pioneers in Greek and international procedures. Genesis Athens Clinic and its new state-of-the-art facility built in 2014 is the largest private IVF centre in Athens in terms of IVF cycles per year. It is highly acclaimed internationally in the field of reproductive medicine, catering to patients from over 65 countries.

Papanikoli 14, Chalandri 15232 Athens info@pantos.gr +30 210 689 4326 genesisathens.gr

KONSTANTINOS PANTOSSCIENTIFIC DIRECTOR AND FOUNDER

GEK TERNA GEK TERNA Group was formed through the merger of GEK and TERNA, two of the largest construction companies in Greece. GEK TERNA Group is now one of the leading business Groups in Greece with operations also in Central and Southeast Europe, the USA and the Middle East. With a total number of 5,000 employees around the world, the Group has invested more than €2.5 billion in the last years.

Through the merger, GEK Terna Group combined expertise in the areas of construction, energy pro-duction, concessions, mining, and real estate. The group is a market leader in infrastructure, clean energy, en-ergy production, supply, and concessions, while it also has a strong presence in waste management, mining activities, and real estate development and management. GEK TERNA Group is committed to sustainable growth and respect for the environment.

85 Mesogeion Ave 11526 Athens info@gekterna.com +30 210 696 8000 gekterna.com GEORGIOS PERISTERIS

CHAIRMAN AND CHIEF EXECUTIVE OFFICER

HELLENIC REPUBLIC ASSET DEVELOPMENT FUND The Hellenic Republic Asset Development Fund SA (HRADF), also known as TAIPED, was es-tablished in 2011 to promote and implement the Hellenic Republic’s privatisation programme, with the vision to deliver long-term, sustainable results for the economy and society. The HRADF manages part of the private property of the state in order to maximise its value and contributes largely to the reduction of the public debt, attract-ing direct investments through the implementation of the Asset Development Plan. The fund’s asset portfolio is diverse and includes companies’ shares, infrastructure assets, and real estate in the most competitive market categories (energy, transport, tourism, etc.).

Kolokotroni 1 & Stadiou 10562 Athens info@hraf.gr +30 210 327 4400 hradf.com

ARIS XENOFOSEXECUTIVE CHAIRMAN AND

CHAIRMAN OF THE BoD

RICCARDO LAMBIRISCHIEF EXECUTIVE OFFICER AND MEMBER OF THE BoD

HELLENIC PETROLEUM Founded in 1998, Hellenic Petroleum (HELPE) is a dynamic group holding a leading position in Greece as well as the greater area of Southeast Europe.

The Group’s activities include supply, refining and trading of petroleum products, fuels marketing, pet-rochemicals production and trading, oil and gas exploration & production, power generation and trading of natural gas and renewable energy sources. HELPE owns three refineries in Greece with a 60% share of the country’s wholesale oil products market. The Group is the sole petrochemicals producer in Greece and the domestic ground fuels marketing leader, with a retail network of c.1,700 service stations and a leading player in Cyprus, Serbia, Bulgaria, Montenegro and North Macedonia, operating over 300 petrol stations.

8A Chimarras Str., Maroussi 15125 Athens info@helpe.gr +30 210 630 2000 helpe.gr

ANDREAS SHIAMISHISCHIEF EXECUTIVE OFFICER

SEV HELLENIC FEDERATION OF ENTERPRISES Representing about 50% of the business activity in the country, SEV has been the independent voice of businesses in Greece since 1907. Its members are the key corporate leaders and account for 46% of total turnover, 41% of corporate profits, 10% of private sector employees (insured by EFKA – Unified Social Security Fund), and 27% of corporate taxes in Greece.

As a social partner, SEV participates in the national and European social dialogue and represents the interests of organised business. SEV works with the government, social partners, and policymakers to shape conditions which foster entrepreneurship, advance business, and drive economic growth.

Xenofontos 5 Str., Athens, 10557 info@sev.org.gr +30 211 5006 000 en.sev.org.gr

ALEXANDROS CHATZOPOULOS

DIRECTOR GENERAL