Grimaldi Group secures majority stake in Heraklion Port Authority, expanding footprint in the eastern Mediterranean

Italian shipping colossal Grimaldi Group has secured a majority stake in the Heraklion Port Authority (HPA), inking the first lines of a new chapter for the port’s growth and development as estimates suggest the acquisition could expand the port’s trade capabilities and accelerate its transition toward greener operations.

This builds upon the share purchase agreement signed earlier this year, in which the Grimaldi Group’s consortium committed to acquiring 67% of the capital of Heraklion Port Authority for €80 million.

As disclosed, the completion of the majority stake purchase followed a tender conducted by the Hellenic Republic Asset Development Fund (HRADF)—a member company of Growthfund-The National Fund of Greece which manages the program of privatization of ports and other public assets in Greece.

Following the acquisition, HRADF will retain 33% of the share capital, which is expected to create more room for the growth and development of both the local and national economy.

At the signing ceremony—which was attended by prominent Greek government figures, including Minister of Maritime Affairs and Insular Policy, Christos Stylianides, and the Governor of the Region of Crete, Stavros Arnaoutakis—the Minister of Economy and Finance, Kostis Hatzidakis, stated that the Italian heavyweight’s majority purchase represents the ‘first’ implementation of the new provision of the Greek Law 5131/2024, according to which 50% of the fee will be allocated for the development of the ports in HRADF’s portfolio.

“It is important for the local community of Heraklion that after the redefinition of the land zone of the port, the areas that were released will be assigned to the Municipality, satisfying a long-term demand,” he noted.

“The government is implementing a comprehensive strategy to upgrade the country’s maritime infrastructure, which leads to better services for islanders and tourists, facilitation of trade, more revenue for the State, growth and job creation.”

Reflecting on the significance of the project, HRADF’s CEO, Dimitris Politis, pointed out that Grimaldi Group’s aquistion of the majority stake could guide the port toward a new period of sustainable development. He cited that the project would protect the public interest in a number of ways, starting with the implementation of large investments for the port’s energy transition and operational upgrades.

“The Venetian harbour of the city, one of the cultural landmarks of Heraklion, will be protected as we included, in cooperation with the Ministry of Maritime Affairs and Insular Policy, provisions in the tender for the establishment of a new state-owned managing body,” he highlighted.

“Finally, it is particularly important that 50% of the fee will be invested for the development of state-owned ports, enhancing their competitiveness and creating new jobs for the benefit of local communities and the national economy.”  

In his speech, Grimaldi Euromed President and CEO, Emanuele Grimaldi, underlined the long-term, investment-oriented vision that inspired this purchase. He revealed that the group was planning to roll out a large investment program aimed at fully leveraging Heraklion’s location in the Mediterranean, hoping to expand the port for new trade routes for both passenger and freight transport, including cruises and vehicle shipments.

He added that the Grimaldi Group’s dedication to sustainable causes will naturally seep into the company’s upcoming endeavors at Heraklion.

“With our investments in renewable energy, we will also support the Port’s sustainable growth and transform Heraklion into a truly green port and a model for the Mediterranean port sector. Our ultimate goal is to foster improved services for the Port, increased trade activity, more tourism, more business opportunities, job creation, and greater prosperity for the city of Heraklion, the island of Crete, and Greece as a whole,” he remarked.

The Grimaldi Group—which specializes in roll-on/roll-off (RoRo) vessels, car carriers and ferries, with 130 units in its fleet—has long made efforts in the sphere of environmentally friendly maritime solutions.

Around three years ago, Grimaldi Group placed an order for six multipurpose RoRo vessels, the first of which, the Great Antwerp, was delivered in 2023. Measuring 250 metres in length, 38 metres in beam and with a deadweight of 45,684 tonnes, Great Antwerp is said to be compliant with the NOx levels imposed by the Tier III regulation, with projections of it cutting CO2 emissions by 43pct per tonne transported.

The group welcomed the penultimate vessel of the series at the end of August 2024, christening it Great Casablanca.

In the realm of expansion, the Grimaldi Group’s purchase of the HPA majority stake follows other acquisitions. In 2022, the group bought 33% of Antwerp Euroterminal, which is now wholly owned by the Italian shipper.

The following year, a Grimaldi-led joint venture signed an agreement with HRADF for the purchase of a majority stake of the Igoumenitsa Port Authority (IPA).