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Recent news as well as business sources report the increase of the sea-rail operations from the port of Piraeus to central and eastern Europe
Almost four to five block trains per week carry goods, predominately electronics, originally shipped from China. Around 1,000 TEU per[ds_preview] month are served and the trend is increasing.

This is a major development, considering the business history, the capacity of the Greek and Balkan rail network as well as the availability of means and resources of the rail operators. Moreover, a flow of containers from the central and eastern European markets to Greece and through Piraeus and the PST terminals to other destinations is generated. This reduces imbalances and increases the attractiveness and operational sustainability of the related logistics chains. Destinations, such as Budapest and Prague, can be served within 2,5 to 3,5 days, thus making the sea-rail link through Piraeus competitive to the logistics chains through northern European ports.

Nevertheless, the fears expressed in the past are validated; the successful logistic service is reaching the capacity limits of the existing network that is estimated around 2,000TEU on a monthly basis, and under ideal conditions. Moreover, the market cannot wait for the maturity and completion of the TEN-T rail projects in the Balkans.

The reports that the China National Development and Reform Commission (NDRC) has already suggested financial schemes for the upgrading of rail networks and the increase of the capacity. Chinese banks are obviously willing to provide the necessary liquidity in the dried-up Greek economy. Developments in international trade support further plans for Chinese penetration in the eastern European markets through efficient logistics chains. The growth potential of eastern Europe is still not reached,

many years after the dismantling of the political and trading barriers.

As Europe is fighting against low demand and weak growth rates, China is attacking and challenges European business and politics elite. Definitely competition is a healthy development and the attraction of foreign direct investments, diversification and risk management are necessary conditions for sustainable growth.

In short, this Chinese penetration satisfies the policy-makers in Brussels as well as local governments of impacted states. However, this development also rings a bell for the competitiveness of the north European ports. Innovation, productivity and efficiency might not be enough to compete. The awakening of the local governments is required and the investment in port, rail and related infrastructure should be encouraged and accelerated. Political tackling is not possible even at the EU-level, as the investor, China, has many cards up the sleeve.