After years of stagnation stemming from Greece's economic crisis, the nation’s shipyards are showing signs of life. The shipyards of Skaramangas, Syros, and Elefsina, once considered derelict, are now undergoing significant transformations under private ownership.
The Skaramangas shipyard, which has recently transitioned to the ownership of shipping magnate George Prokopiou, is indicative of this revival. Prokopiou signed the contract for the transfer of assets from the former state-owned ENAE shipyard on March 2023, having won the procurement process back in July 2021. An active figure both within the shipping sector—founding companies like Dynacom Tankers and Dynagas—and real estate, Prokopiou is reinvigorated the local shipbuilding industry, positioning the Skaramangas shipyard on the global maritime map.
Miltiadis Varvitsiotis, the Managing Director of the Skaramangas shipyard, noted the facility repaired 37 ships last year, with expectations to double this figure by 2025. “The increase reflects the general upward trend of the sector, where total ship repairs reached 700 across Greece last year, up from about 330 repairs just over a decade ago,” Varvitsiotis stated, speaking to Reuters.
Syros and Elefsina shipyards, belonging to ONEX Shipyards and Technology, run by businessman Panos Xenokostas, have also reported remarkable progress. Xenokostas acquired the Syros shipyard from the Greek state in 2018 and followed with the Elefsina shipyard’s acquisition two years later. These shipyards have seen repair numbers soar from just dozens to 220 repairs last year, which showcases the potential the region has for recuperation and growth within the maritime industry.
Experts see this resurgence not only as beneficial for the shipyards themselves but also for the local labor market. According to George Xiradakis, a maritime economist, “The resurgence of shipyards returns Greece to the forefront of maritime repairs in the Mediterranean.” With many workers who had suffered long-term unemployment now being absorbed back, the economic tide is turning. "The unemployment rate, once peaking at 40% ten years ago, has significantly reduced, creating pressing needs for infrastructure improvements in places like Perama, where many subcontractors operate for the large shipyards,” stated Giannis Lagoudakis, Mayor of Perama.
The challenge of workforce retention is increasingly present, with contractors now struggling to find enough qualified workers to meet the demands of the growing industry. The positive effects of reinvigorated shipbuilding activities are felt both directly and indirectly across the economy.
Future investments are on the horizon, as both Prokopiou and Xenokostas have voiced intentions to expand their shipyards’ capacities. They aim to refurbish and develop shipbuilding infrastructures, as well as repair specialist liquefied natural gas (LNG) carriers and offshore drilling platforms. With rising demand for new ships and repairs globally, they are steering their businesses toward enhancing service capabilities.
Nevertheless, though Greek shipyards are optimistic about their future, significant competition remains from larger shipbuilding nations such as China and South Korea. The local industry, bolstered by its rich maritime history and expertise, is focused on carving out its niche within the market. “We have the know-how and potential to capture substantial market shares, leveraging our past as key players on the global shipbuilding stage,” Xiradakis affirmed.
Despite the achievements, there is still work to be done. The shipyards are not yet fully capable of replacing their more dominant counterparts overseas, but they are certainly on the path to reclaiming their former prestige. With renewed vigor, the Greek shipbuilding industry is not only reviving its own fortunes but is also bringing hope to local communities through job creation and infrastructural development.
Prokopiou and Xenokostas's dedication to investing and upgrading their shipyards highlights their commitment to attracting international clients and tapping newfound opportunities within the sector. The gradual recovery of the Greek shipyards could mark the beginning of a new chapter, emphasizing the importance of maritime activities within the national economy.
All things considered, Greece's shipyards are steering back to relevance, and as their operational capabilities expand, the ripple effects are sure to extend throughout the economy. The strategic redirection and revitalization of these shipyards appear to be aligning perfectly with global demands, making it an exciting time for Greece as it reestablishes itself as both a shipping powerhouse and repair hub within the Mediterranean.