MINISTRY OF DEVELOPMENT, COMPETITIVENESS, INFRASTRUCTURE, TRANSPORT AND NETWORKS

1. MINISTRY OF DEVELOPMENT, COMPETITIVENESS, INFRASTRUCTURE, TRANSPORT AND NETWORKS GENERAL SECRETARIAT OF COMMERCE STEFANOS KOMNINOS

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3. Main Matters for consideration • Greece as: • A Hub of international transshipment • Gateway for North East Europe • Facts: • Crossing of TEU in Eastern Mediterranean is quite high • High competition from ports of neighbour countries • Areas of Intervention: • Added value by providingnew services • Legislation • Human Resources of stakeholders and services provided • Infrastructure 3

4. Paneuropean Corridors TEN-T Plan TEN-T • Τhe European Plan foresees that the central network will connect by road 83 European ports, byrail link 37 main airports and provides for the creation of a new network with 35 large-scale cross-border projects • Τhe new central transportation network of E.U. hasa budget of €31.7 billions, approved by the Commission. • The fourth corridor (corr. IV)includes Salonika and is as follows:Dresden/Nuremberg - Prague - Vienna - Bratislava - Győr - Budapest - Arad - Bucharest - Constanţa / Craiova - Sofia - Thessaloniki / Plovdiv - Istanbul. • Next is the relevant map of European Corridors including Alexandroupolis and Igoumenitsa. 4

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6. EUROPE 90% of exports value of the EU moves through the sea (source: nova capital partners Market Commentary, Nov. 2010) 41% of import value of the EU moves through the sea (source : nova capital partners Market Commentary, Nov. 2010) In 2009, 19 million TEU (Twenty-foot-container Equivalent Units) were handled in eastern Mediterranean (source : Mckinsey, 10 Years Ahead report) 9% average annual between Europe and Asiafrom 2004 to 2008 (source : Mckinsey, 10 Years Ahead report) GREECE 40% of vessels in EU are of Greek interests(source : nova capital partners Market Commentary, Nov. 2010) Globally 8% of vessels and 14,9% of dead weight are of Greek interests (source : nova capital partners Market Commentary, Nov. 2010) Shipping industry in Greece had 11 billion Euros Net Income in 2008 (source : Εργασία: The Greek Shipping Cluster, Harvard Business School, Microeconomics of Competitiveness, May 2009) The 4 main types of Greek interest vessels transport: crude oil, gas and chemicals, bulk cargo, aircraft parts, minerals(source : nova capital partners Market Commentary, Nov. 2010) In absolute numbers: 4000 vessels of Greek interests 258 millions DWT (dead weight ton.) 153 millions GT (gross tonnage) (source : nova capital partners Market Commentary, Nov. 2010) Fundamentals of Marine Transport 6

7. DISTANT PORTS(tonnage) Netherlands Spain Germany France Norway Great Britain NEIGHBOUR PORTS Varna, Bulgaria Ambarli, Turkey Costanza, Rumania GioiaTauro, Italy which offer good quality of service: Reliable and stable operation(more working days) Less processing time – 50% - due to infrastructure(un/loading and customs) Transport infrastructure in inland waterways and railway (faster delivery in the final destination, use of rail instead of road network) But traffic is saturated through Bosporus to an extent that possible risk of accidents is indicated source: Mckinsey, 10 Years Ahead report Competition of Maritime Transport 7

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9. Piraeus and Thessaloniki Ports as Transshipment and Gateway Ports • . πηγή: McKinsey, Greece 10 Years Ahead 2012

10. Greece as a Gateway Port to the Broader Region • . πηγή: McKinsey, Greece 10 Years Ahead 2012

11. Important Parameters For the transformation of Greece into a Logistics Hub for the Northeastern Europe, we need to focus on: • Ensuring Cost Competitiveness • Building Sector Critical Capabilities • Direct Investments’ Attraction • Enhancing Greece’s Strategic Relevance and Supporting Transport Infrastructure • Improving Port Infrastructure and Operational Attractiveness 11

12. General Conclusions (1/2) 12 • Operational Interventions • Operational Stability • Tax incentives – Favorable business environment • Greek customs clearance of products with destination to the EU (with simple, cheap and easy way) increase of employment and economic input • Faster services to ships in order to attract new customers • High quality of service provided (fast loading, clearance etc) • Combination of transit with manufacturing potential (value added) • Combination of transit with cross-docking storing • Human Resources • Education • Certification of works on Logistics – Adoption of meritocratic methods and criteria • Staffing with qualified personnel • Attraction of Direct Investments

13. General Conclusions (2/2) 13 • Infrastructure • Positioning of Freight Centers (How many freight centers and where) • Modernization and development of new port infrastructures • Ability of docking large freighters • Modernization of transport infrastructure (trains, railway network, trucks, roads etc) • Combined National and International Transport • Linking national commercial hubs • Coordination & Promotion • National Strategy and National Actions Coordination Agency • Commercial exploitation of new ports (e.g. Alexandroupolis) providing competitive handling time and prices and ensuring economic and social development of the country, e.g. by exploiting opportunities like Bosphorus • Marketing for making Greece a Logistics hub • Adoption of common legal framework for national and international transport • Making of international trading agreements • Networking and synergies of business • Active participation of Greek shipping

14. Greece – China May 2013 14 The PM of Greece meeting the PM of China • China interested in privatizations (cooperation protocol signed): • Ports - 51% of Piraeus and other regional ports • Airports - majority of shares of Athens airport • Railway - majority of shares of TRAINOSE • Prerequisites: • Eliminate bureaucracy • Remove competition barriers • Memorandum of Understanding between the Ministry of Development and large Chinese high-tech companies (Huawei and ZTE) for the transformation of Piraeus port into a transit and logistics hub for the products. • Into consideration the creation of an assembling factory of ZTE in Greece • Huawei willing to cooperate with Greek Universities and research centres and provide training and practical experience to students and young professionals • Cooperation protocol between Invest in Greece and China Development Bank • Agreements of Greek shipowners and Chinese credit institutions for shipbuilding

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