Greek Shipowners Look to London

Efforts by London to sharpen its appeal as an attractive home for shipowners appear to be working following a claim by one London-based Greek that more Greek shipowners are considering moving to the capital.

“Relocations are already happening,” said Costas Savvides, General Manager of Vantage Shipping Lines, “because many companies have experienced that the banks are not as open to lending in shipping, thus creating the necessity to seriously examine all capital raising options. London is an ideal location for this purpose. And when you talk to international banks, they are pretty relieved to hear you have a London presence.”

Vantage moved into its Covent Garden offices in central London just under a year ago and it has already started to see additional benefits as it finds itself close to the legal, insurance, broking, and financial services that London has to offer. The company, which owns and operates handy and handymax bulk carriers, runs chartering, sale and purchase, capital raising as well as technical ship management services out of its London base.

“We own and operate anywhere between four and six vessels at any given time and we trade the assets to realise profit,” Savvides added.

“We take advantage of the peaks and are not reluctant to sell when there is a good return on the investment,” he said. “We are in different kind of market right now from the problem cycles of the past few years and we may now be able to take advantage of certain market values,” he said.

News of more possible Greek relocations comes hot on the heels of moves by the London Stock Exchange (LSE) to up its game in attracting shipping listings. The LSE used the recent Posidonia event to make renewed effort to attract shipping companies to list in London.

London is attractive because it is a one-stop shop but it has sat on its hands for too long, Costas told IHS Fairplay.

“Yes, Singapore has been extraordinary in the way it has grown but London is still where it is all happening. It is all about the legitimacy of what goes on in London and the compliance which is much more important than many realise. Being in London automatically gives you something of a badge of honour; there is an element of credibility attached to it,” he said.

“It is going full circle; the Greeks were here in good numbers in the 1970s but walked away after [Prime Minister Margaret] Thatcher. But now they are coming back and I say that with little exaggeration. Indeed, a number of them have approached us to ask if there is available space in our building,” he said.

The old phrase that ‘cargo is king’ still abounds and to be in a position to control it, or have a relationship with someone who does, is crucial. But according to Savvides, being in London gives companies like his that opportunity to tap into the necessary cargo contracts.

“We are trying to use a base which has the biggest facilities and combine a lot of experience in what we think is an interesting market. It’s not an easy market but it is all about trying to be different from anybody else. It is great being a small- to medium-sized shipowner from Athens but no one is really comfortable with what is happening in Athens at the moment,” he said.

The reigniting of maritime interest in London, encouraged by the recent involvement of the UK Government through initiatives such as London International Shipping Week, was also strongly on show in Athens during Posidonia with both the Lord Mayor of London, Lord Mountevans (himself a shipbroker), and the UK shipping minister Robert Goodwill spearheading what amounted to something of a Maritime London-led trade shipping trade mission to the Greek capital to woo local owners.

Source: Fairplay