China's new Silk Road into Europe is at Piraeus

By Harriet Alexander in Athens

But where as Pier One is Greek, Pier Two is now Chinese.

China's state-owned shipping giant Cosco last month took control of Pier Two in a £2.8 billion deal to lease the pier for the next 35 years, investing £470 million in upgrading the port facilities, building a new Pier Three and almost tripling the volume of cargo it can handle.

The container port, just next door to the Piraeus ferry harbour that is the tourist gateway to the Greek islands, can currently load and unload 1.8 million containers a year - meaning 5,000 come and go each day.

While many investors flee from the struggling European nation, which last month only avoided bankruptcy by accepting a 110 billion euro (£90 billion) bailout from the European Union and the IMF, China seen an opportunity to make strides into Europe, buying key assets at enticing prices and gaining access its valuable markets.

The Chinese envisage creating a network of ports, logistics centres and railways to distribute their products across Europe – in essence a modern Silk Road - hastening the speed of East-West trade and creating a valuable economic foothold on the continent. They aim to make the container port a hub to rival Rotterdam - Europe's largest port.

"The Chinese want a gateway into Europe," said Theodoros Pangalos, deputy prime minister. "They are not like these Wall St ****s, pushing financial investments on paper. The Chinese deal in real things, in merchandise. And they will help the real economy in Greece."

It is not the first time China has seen opportunity where others see adversity. With their economy booming and their currency strong, the Chinese have made a series of controversial investments in mining and infrastructure in Africa, which critics say allow them to remove valuable raw materials with little benefit to the local economy.

Workers at the port, like others in Greece, are uneasy the long-term implications of allowing China to take advantage of the country's economic weakness to take such an important stake in a strategically crucial part of its economy.

For the rest of the article go to: http://www.telegraph.co.uk/news/worldnews/europe/greece/7869999/Chinas-new-Silk-Road-into-Europe.html