Greek shipyards are bouncing back following decades of decline and disrepair enhancing Greece’s prospects as a maritime hub for the region.
After the consolidation of the country’s shipbuilding units in Syros and in Elefsina, and also due to the restart of Skaramangas shipyard and the increased activity in Halkida the sector’s Greek renaissance is on the cards.
For decades, Greece’s three main shipyards – on Syros, at Elefsina and at Skaramangas – were hamstrung by a web of competing legal and financial claims, but these have been systematically over the past few years.
As a result, the yards have drawn investor interest, culminating in the sale and consolidation of the two yards on Syros and at Elefsina to the ONEX group, and the sale of the Skaramangas yard to shipowner George Prokopiou.
Neorion Shipyard in Syros and Elefsis Shipyard have repaired over 500 ships, foreign and Greek-owned, since the New York-based ONEX Shipyards and Technologies group took over their operations in 2019. Combined with further domestic output from other ship repair and shipbuilding operations, Greece is now seen as an important contributor to European shipyards’ annual production value of around €43 billion.
Greece resurfaces as a credible shipyards cluster
“Greece is resurfacing as a credible shipbuilding cluster for vessel repair, conversion and potentially for the construction of new buildings for Greek and international shipowners and naval forces. This revival follows decades of underperformance and underinvestment, marked by the absence of a strategic vision,” said Theodore Vokos, Managing Director, Posidonia Exhibitions S.A., the organizer of the world’s most prestigious shipping exhibition.
The ONEX group business plan foresees $550 million worth of investments in the two yards to develop them into a maritime hub for the greater Mediterranean region.
Recently, the American government’s development fund, the US International Development Finance Corporation, extended a $125 million loan to ONEX to help finance its investments.
Panos Xenokostas, President & CEO, ONEX, told Hellenic Shipping News: “Our goal is to transform the historic shipyards into a modern maritime hub for the greater Mediterranean region.
“We aspire for both Elefsis and Syros Shipyards to become the first choice of those seeking quality, speed, and personalised service, while adhering to relevant security protocols and always taking into consideration the transition to a sustainable maritime model.”
The resurgence of the Greek shipyards at Skaramangas
Skaramangas Shipyards aims to transform the facility into a multi-million contract-winning operation.
“Since 2010, the shipyard was exclusively involved in the repair, maintenance, and upgrade of the Hellenic Navy’s fleet,” Chairman Miltiadis Varvitsiotis told Hellenic Shipping News.
“Now, with new ownership and management, we are ready to present our world-class infrastructure and state-of-the-art equipment for heavy and specialized repairs. We are going to promote our future plans and explore the possibilities of undertaking important and sophisticated new building projects,” he added.
Helping support the growth in Greece’s maritime cluster is the country’s ongoing naval modernization program, as well as the growing footprint of Greek manufacturers of maritime equipment and supplies.
The naval projects could include the future co-production of foreign frigates, while increased activity in the shipyards will boost Greek maritime equipment manufacturers, who are already world leaders in their sector.
Greece is one of the world’s preeminent shipping nations, controlling roughly one-fifth of the world’s ocean-going fleet and more than half of the European Union’s total tonnage.
The overall contribution of maritime transport to the Greek economy is equal to 7.9 percent of GDP, and the sector provides directly and indirectly almost 90,000 full-time jobs in Greece.
The area of greater Athens – and the Port of Piraeus in particular – is viewed as one of Europe’s major shipping centers. The last two decades have seen a steady growth in Athens as a commercial hub for shipping with the growth in support industries like financing and legal services.
Related: Greece’s Shipping Fleet in the Top 3 Worldwide
