Presentation of P.P.A SA to the Association of Institutional Investors



Pireaus, 19/04/2011

Today, 19/4/2011, took place the analysts briefing from the Management of Piraeus Port Authority SA at the Association of Institutional Investors, in accordance with the A.S.E Regulation.

The Company, its activities and its annual financial results were presented from the President of the Board of Directors and Managing Director of P.P.A SA, Mr.G. Anomeritis, the General Manager Mr. P. Petroulis, the Financial Director Ms. A. Vernardou and the Director of the Administration Directorate, Mr Hatzakos  Stavros.

The Management reviewed the economic environment during 2010, whose main feature was the beginning of operations at Pier I (June 2010) under P.P.A.SA, the completion of the staff voluntary retirement scheme, the implementation of the new Internal Organizational and Operational Regulation, as well as the restructure of the Company’s tariffs.

Moreover cargo and passenger throughput at Piraeus Port was analyzed, as well as the annual financial results with the most notable being the Company’s return to profitability. The evolution of P.P.A SA 5 -year Investment Plan (2011-2015) amounting to 1 billion Euros, was presented. The Company's Investment Plan, focuses on projects that will increase the capacity of the Container Terminal, the Cruise and the Car Terminal, and will strengthen the competitive position of the port. At the same time the development of port installations, particularly of areas and buildings at the Central Port, through concession agreements, is planned.

As to what regards the prospects for the current year, it was noted that the business activities of PPA SA are among the first to accept the positive or  negative effects from the fluctuation of international trade, which currently faces recession showing however certain signs of recovery. Generally speaking, the entire system continues to be characterized by uncertainty.

The international transshipment cargo is expected to increase as a result of the anticipated increase in the volume of international trade. However, the downward trend of domestic cargo should be taken to continue within 2011 affecting the turnover of the company.

The beginning of operations at Pier I of the Container Terminal will play a catalytic role, due to the parallel operation of two autonomous and competing Container Terminals. The Management is working to attract old and new  customers within a new pricing and regulatory environment. However a systematic and organized effort to counter this risk is being made though efforts to increase turnover from the Cruise and Car terminal sectors.

As far as cruise is concerned, a readjustment of tariffs was made aiming to close the gap that existed with current tariffs of competing ports, coupled with the effort to upgrade the quality of service provided.

As far as the Car Terminal is concerned, the works of upgrading and increasing the capacity of the Terminal are in progress, and this coupled with the coordinated contact with the clientele, will increase around 12% amidst recession.

Replying to institutional investors questions, Mr. Υ.Anomeritis inter alia said:

A) The creation of the Attica Port System has been adopted by the shareholder (Ministry of Finance), the Ministry of Maritime Affairs, Islands and Fisheries, and the Organization of City Planning of Athens. The Privatization Commission has already launched the project for the recruitment of a consultant. This means that in 2011 the new scheme, will take place.

B) The Investment Plan 2011-2015 and particularly the major projects (the expansion of the cruise port, the monorail, the 5* hotel, the Cultural Coast, the Conference-Exhibition Center), have been unanimously approved by the Port Planning and Development Commission (E.S.A.L). They are already entering to the phase of fast-track licensing process and till the end of the year the subcontractors will be installed.

C) All projects are approved by the Interministerial Committee, which met twice in P.P.A SA premises, included the Cultural Coast which is particularly important for the City of Piraeus and the Cruise.

D) The administrative reforms and concessions will continue and in 2011 with emphasis to the cruise sector.
E) The Company’s economic course will be profitable in 2011, since the turnover will be further increased. It is noted that in 2010, the Container Terminal (Pier I) did not operate at all for five months, while in the cruise sector we already see 100% occupancy from cruise vessels calls.