An Empirical Evaluation of Greek Ports Financial Performance

Abstract

The paper examines the financial statements and accounts of the twelve major Greek ports and proceeds to an empirical evaluation of the port entities' financial performance over a time span that corresponds to the sector's reorganization. Since the late 1990s the port sector in Greece has changed its management model through the conversion of twelve ports of national interest from "public law undertakings" to government-owned port corporations. At a latter stage, the ports of Piraeus and Thessaloniki were listed at the Athens Stock Exchange and since then the State's stake has been on the order of 75%. These reforms attempt to facilitate the adjustment of the sector to contemporary trends and to overcome deficiencies of the earlier port structures. The analysis suggests that certain rigidities are still present and further steps of modernisation and restructuring are essential, if the Greek ports are meant to play a more active role in the international arena. Despite profitable financial results for most Greek ports, the examination of their financial accounts raises considerable doubts as to the efficiency of their organisational structures, currently at a transitory phase. These results are in line with the conclusions of other studies suggesting that port governance in Greece does not respond yet to a potential matching framework configuration of their structures and strategies that might advance port competitiveness.

Keywords: Port Organisation, Financial Performance Evaluation, Financial Ratio Analysis

JEL Classification: L92, G3