Economist: Piraeus and Elefsina at the heart of global port rivalry — The U.S.–China “naval battle”

Greece is emerging arsenic a cardinal battleground successful the planetary contention implicit commercialized ports, according to an investigation by The Economist. As the work notes, the Port of Piraeus—located astir 1,200 kilometers northbound of the Suez Canal—is 1 of Europe’s busiest ports, handling much than 4 cardinal containers annually. Majority-owned by COSCO Shipping, it highlights Greece’s ascendant presumption successful planetary shipping capacity.

Just 30 kilometers to the west, the U.S. authorities is backing plans to make a commercialized larboard successful Elefsina. Further north, Russian and Chinese investors person acquired stakes successful the Port of Thessaloniki, portion adjacent farther northeast, American and NATO forces person established a logistics hub astatine the Port of Alexandroupoli.

This contention successful Greece is portion of a broader planetary conflict for power implicit maritime commercialized infrastructure—from Argentina to Thailand. In immoderate regions, specified arsenic the Panama Canal, tensions person escalated into a much unsafe signifier wrong the wider geopolitical rivalry betwixt the United States and China. Globally, spending connected larboard infrastructure is expected to emergence by much than 30%, reaching $90 cardinal annually by 2035, according to PwC.

The importance—and risks—of maritime trade

Around 80% of planetary commercialized by measurement is transported by sea, making the stableness of proviso chains a apical precedence for governments. Recent crises—from the pandemic to the impermanent closure of the Strait of Hormuz—have exposed however fragile the strategy tin be. Reducing dependence connected cardinal chokepoints has truthful go some an economical and geopolitical objective.

However, the unreserved to physique caller larboard infrastructure risks creating large inefficiencies. Many investors—including American and Chinese taxpayers—may spot disappointing returns. At the aforesaid time, governmental unit connected shipping companies to usage circumstantial ports oregon routes, careless of commercialized logic, is expected to increase.

China’s enlargement and the West’s response

Much of the hostility is driven by concerns implicit China’s increasing power successful planetary proviso chains. Chinese companies negociate oregon clasp stakes successful astatine slightest 129 ports extracurricular China and person invested implicit $80 cardinal successful larboard operation worldwide—from Antigua to Tanzania.

More than one-third of these ports are located adjacent strategical maritime chokepoints specified arsenic the Strait of Malacca, the Strait of Hormuz, and the Suez Canal. This expanding footprint has raised alarms successful Western capitals. Research by MERICS suggests that commercialized with China tends to summation importantly aft specified investments, often astatine the disbursal of exports to different countries.

A fragmented aboriginal for planetary ports

At the aforesaid time, non-Chinese shipping companies are strengthening their ain networks, announcing acquisitions worthy astir $140 cardinal since 2021. Governments—including those of India, Saudi Arabia, Singapore, and the UAE—are besides ramping up investments to unafraid commercialized routes.

The United States, meanwhile, is taking a much assertive stance, arsenic seen successful disputes implicit power of the Panama Canal’s terminals. These developments are contributing to a increasing disagreement betwixt Chinese and Western larboard networks.

While accrued contention could pb to amended services and little costs, it besides raises the hazard of overcapacity and inefficient commercialized routes. As 1 European shipping enforcement told The Economist, “Every larboard and each state wants to go a logistics hub—but not everyone can.”

Despite the challenges, the enlargement of larboard infrastructure is not needfully negative. Greater contention whitethorn yet thrust innovation and efficiency—though possibly not successful the mode those fueling this planetary “port war” initially envisioned.