Psaraftis and the port of Piraeus

PREAMBLE

I wrote the piece below on the occasion of 25 years since I was asked to become CEO of the port of Piraeus (OLP), July 1996. Time flies. It was a once in a lifetime experience.

For a link to an OR/MS Today (1998) article on how I became engaged and on my early OLP days, see HERE.

For a link to other OLP and port-related papers and articles, see HERE.

For a link to port-related research and papers in general, see HERE.

So here it goes:

PSARAFTIS AND THE PORT OF PIRAEUS

In addition to my academic endeavors, I served as CEO of the Piraeus Port Authority (OLP) for close to 5 ½ years, in the positions of ‘General Manager’ (August 1996- August 1999) and of ‘Managing Director’ (October 1999- March 2002). Both positions were CEO positions, the first during the era the port was a public-law undertaking (1930-1999), and the second after the port was transformed into a corporation (1999 on). Piraeus is the largest port in Greece, and one of the largest of the Mediterranean, with significant passenger and container traffic. Its annual turnover ranged from €105 to €130 million in the above period and its number of employees was about 2,000.

I am and will remain the only CEO in the port’s history having served in both institutional regimes of the port. I overlapped with 4 different Ministers of Merchant Marine, and worked with 4 Presidents or Acting Presidents of the Board.  I am the 3^rd longest serving CEO since OLP was established in 1930.

A non-exhaustive list of developments linked with my tenure at OLP are the following:

 

1. In the container sector, the most important for the port of Piraeus, traffic more than doubled from 575.000 TEU in 1996 to about 1.160.000 TEU in 2001, surpassing for the first time in OLP’s history (2000) the yardstick of one million TEU. In 1999 Piraeus became one of the 50 busiest container ports in the world, and the top hub port of the Eastern Mediterranean.
2. This development was due to the fact that Piraeus succeeded in attracting from 1997 important carriers like Mediterranean Shipping Company (MSC), Norasia and China Shipping Container Line, carriers that could have selected other competing ports in the Mediterranean but preferred Piraeus.
3. In the passenger port, the first phase of redevelopment was completed one year earlier than planned (1998), with works that improve the quality of service to the passengers and the citizens of Piraeus.
4. OLP evolved into a corporation (Law 2688/1999), which set the stage for its further evolution in the following years (flotation at the Athens Stock Exchange in 2003, etc).
5. With the transformation of OLP into a corporation, major and chronic problems of OLP’s personnel were solved, such as pensions and health care, preventing the company from a serious financial crisis.
6. OLP compiled a detailed Strategic and Business Plan (2001).
7. OLP   completed a study on its Organizational Plan (2001), which has formed the basis for its new organizational scheme.
8. OLP compiled also a pioneering and ambitious Redevelopment Plan for the passenger port (2001), unique for Greece.
9. Port engineering works for new coastal shipping berths in the passenger port have been completed (1997-2001).
10. Port engineering works for cruise ships and land engineering works have started (2000- completed in 2004).
11. European Community funding of €35,2 million for major infrastructure works was secured (1999).
12. A significant restructuring of OLP’s tariffs took place in many areas, so as to better attract  cargoes, and achieve simplification (1997-2001).
13. The ‘rendez vous’ system of ship berthing was implemented with success (1998).
14. OLP’s Exhibition Center was substantially refurbished (2000).
15. Many works and other actions for the ship repair base took place (infrastructure improvements, shipyards’ extensions, new tariffs and regulations, pier extensions, etc) (1997-2002).
16. The extension of the car terminal has been tendered (2001- completed in 2005).
17. The first collective labor agreement with port employees was signed (2000).
18. A new Health and Safety regulation was adopted (2001).
19. The company’s asset position was officially valuated, and the first corporate income statement (1/6/99-31/12/00) was profitable, with a dividend paid to the Greek State (2001). Subsequent income statements during my tenure were also profitable.
20. A contract was signed with ATHENS 2004 and the Ministry of Merchant Marine for the Olympic Games infrastructure works (2001).
21. A new integrated computer system went live by OLP’s personnel at the container terminal, possibly the most important event in OLP’s last 30 years (2001).
22. An ambitious €220 million investment plan was adopted for years 2002-2006. For the first time in OLP’s history, a large part of this program concerned privately financed works (2002).
23. Tenders for an underground parking garage, a cruise terminal, two hotels and a financial advisor for the hotels have been prepared  (2000-2002; garage completed in 2005).
24. Tenders for the support of OLP’s financial services and the internal audit service were prepared (2001-2002).
25. The first phase of preparation of the company’s IPO was executed on schedule and the Offering Memorandum was submitted in Feb. 2002. According to it, OLP was found to be particularly strong financially and to enjoy high profitability and return.  (IPO was completed in 2003).
26. In 2001 OLP became a full member of the International Association of Ports and Harbors (IAPH). It hosted IAPH’s Europe-Africa regional meeting in January of 2002 and co-organized with Mareforum the Med Ports 2002 international conference in April of 2002.

NOTE:  VERY LITTLE of all the above counted in my academic career, at least directly. NONE of this counted paper-wise, project-wise, or citations-wise. I wrote ZERO papers while at OLP, and only 3 OLP-related papers afterwards. But it counted indirectly, in terms of the knowledge and experience I gained on ports and shipping. 

APPENDIX

In the pic below, taken at the port's Christmas party in 1999, I managed to gather the four (4) Presidents or Acting Presidents of the Board that I worked with, as the port's CEO. From left to right, Dinos Maniatopoulos, Giorgos Prasianakis, yours truly, Giorgos Klavdianos (RIP) and Yannis Michas (served twice as Acting President).