Greek shipping executive Andreas Potamianos sees huge potential in working with China to develop the cruise industry. Fu Jing / China Daily

Cruise industry is expected to contribute $50 billion to China's economy by 2020

Greek shipping executive Andreas Potamianos seems younger than his 79 years when he talks about Chinese Premier Li Keqiang's support for investing in Greece and its potential to boost economic recovery of the European nation.

The enthusiastic septuagenarian, who has long led Epirotiki Lines, one of the country's renowned family shipping businesses, has taken it upon himself to prepare an investment priority list for Li, who is visiting Greece from June 19 to 21.

Potamianos' list includes railway construction, port management and tourism. But topping the list is his suggestion that China invest in construction of mega cruise vessels that can meet the holiday needs of the growing market of middle-class travelers.

"It is the right time for China to start cruise businesses and investments to satisfy market demand," says Potamianos, honorary president of the Greek Shipowners Association for Passenger Ships.

He says he sees great potential in working with China to construct a new generation of cruise vessels of advanced design and with energy-saving systems.

Potamianos, whose company operates seven cruise vessels that the family also built, says his people are engaged in negotiations with Chinese companies and they hope to announce some breakthroughs during Li's visit.

Sources say Chinese and Greek investors are negotiating to jointly construct four cruise ships at a cost of up to $2 billion. Chinese banks have shown great interest in investing in the business, the sources say.

Potamianos declined to confirm the reports. But there is no doubt that as the chairman of the Greece-China Friendship Association, he is convinced of the need to boost bilateral relations by linking Greece's competitive shipping industry with China's developmental abilities.

"I just want to say China should accelerate its pace in earning its own piece of the pie in the market," says Potamianos, whose family has interests in both cargo and passenger shipping.

Potamianos was speaking in his office facing the passenger terminals of Athens' Piraeus Port, the biggest in Greece. He pointed to a model of his family's first vessel, which plied the waters back in 1850.

He says China has shipyards capable of building cruise ships and great market potential to explore. "And we have expertise both in vessel building and crew training to share with our Chinese friends," says Potamianos.

He says he proposed a shipping alliance to former premier Zhu Rongji when he held the position from 1998 to 2003. But during that period, Potamianos says, China had other development priorities.

Now things are different. China stands to be among the first group of Asian countries to build large cruise ships, he says. Cruise ship construction is still dominated by European and American companies, though China has made rapid progress in mega cargo ship construction.

In Asia, Japan and South Korea have begun working with other countries to build cruise ships, now that the cruise business in Asia is growing rapidly.

With China's per capita GDP surpassing $6,000 last year, China's government has been encouraging the development of the cruise industry. International experience has shown that when per capita GDP reaches $5,000, the cruise industry is ripe. GDP of $10,000 is a precursor of a golden age for developing such leisure businesses.

The Chinese government has predicted that by 2020, the cruise industry will contribute about $50 billion to the nation's economy. In the United States, the industry currently generates about $40 billion yearly and employs 350,000 workers.

"So you can see the huge potential in China in developing the cruise industry," says Potamianos.

In addition to jointly developing cruise vessels, Potamianos says Greeks feel comfortable with China expanding its presence in Greece because China concentrates on doing business. "But some other countries don't do this way and they want to dominate in Greece, which is not acceptable for us," he says.

"China and Greece have a long history of friendship and understanding," he says. With China, "we don't have such a kind of fear of being dominated".

The economic situation in Greece has also made the country eager for partnerships.

"Psychologically, Greeks feel the situation is getting better, but the reality is that Greece has done very badly. There are many promises on TV but concrete measures are few to get the economy out of crisis," Potamianos says.

Many Greeks have become impoverished, suicides have risen and a lot of companies have closed. Greeks have felt a distance grow toward the European Union - while they didn't quit the EU, the European community did little to protect the Greeks, Potamianos says.

"Against this background, a growing number of Greek people have turned their eyes to China," he says.

Greece would like China to become its top trade partner, he says. China currently is Greece's No 17 export destination and No 5 import source.

Potamianos says that Greeks would like to see the giant, state-owned China Ocean Shipping (Group) Co participate in privatization plans for Piraeus Port management, in addition to the company's expansion in container terminals in Piraeus.

"Everybody has talked about COSCO since it has brought jobs and hope to us," he says.

Potamianos says he would like to see China invest in infrastructure improvements in Greece. One such opportunity would be an investment in a new freight railway linking Athens and Budapest, which would give seaports in Athens a bigger role and allow Budapest to become a logistics center in central and eastern Europe.

"Of course, we also look forward to China's investment in improving passenger railways between Athens and Budapest," he says, adding that it would bring more jobs and tourists to Greece.

"On top of that, we look forward to more and more Chinese tourists traveling in Greece," he says.

To encourage that, Potamianos says he hopes the Greek government would make visiting easier and also launch direct flights from major cities in China to Athens. "We need also to design tailor-made tourist packages to attract the Chinese," he adds.

Though he is about to turn 80, Potamianos' enthusiasm for business, and for life, has not dimmed. He still is active, participating in water skiing and going on walks on weekends. He works from 9 in the morning to 7 at night, and hopes his efforts to expand ties between China and Greece will bear fruit.

"I have spent a lot of time on working as a business bridge between China and Greece," says Potamianos.

fujing@chinadaily.com.cn

(China Daily European Weekly 06/20/2014 page9)