Foreign inflows speed up development, welcomed by residents

VADO LIGURE, Italy - The Mediterranean port city of Vado Ligure, with a population of some 8,500, might be small in size, but it has an ongoing big construction project on its shore.

The Vado Gateway terminal, scheduled to open in December, will be able to service the world's largest container ships, which are so huge they can only dock at select ports across the globe.

Making that possible is the Netherlands-based APM Terminals, part of the Danish conglomerate Maersk, together with two Chinese companies including COSCO Shipping Ports.

Ports are among the most traditional and strategic infrastructure in the world, and Chinese investment here is welcomed, local officials and industry insiders say.

"Our local community is well aware that a foreign investor is not in Vado to conquer but to collaborate, this is the message that I gave to residents," said Monica Giuliano, mayor of Vado Ligure.

Gian Enzo Duci, a professor at the University of Genoa and president of Federagenti (the Italian National Federation of Ship Brokers and Agents), said Chinese companies involved with ports are doing just what their international counterparts do year after year.

"What COSCO is doing in Italy is no different from what MSC - a Swiss company - is doing; or Maersk, a Danish company; or what in the past was done by US or Japanese companies. So in this respect, I don't see why we should be scared of a Chinese presence here," Duci said.

The city of Genoa is known for its central role in maritime trade over many centuries and is currently Italy's busiest sea port. The city's deputy mayor, Giancarlo Vinacci, said he believes there is a need in the Western world to fuse old Europe with young China.

Chinese investments are welcomed as they bring exactly what Italy needs most - infrastructure.

Italy hasn't developed infrastructure in its ports or inland areas in the past few years, said Paolo Cornetto, managing director of APM Terminals at Vado Ligure.

"In Italy, the time needed to create infrastructure is long. In this context, the arrival of COSCO has accelerated the conclusion ... of the project," Giuliano said.

The Vado Gateway is set to be the first semi-automated port in Italy with a fully-automated gate and stacking yard after the construction of the terminal is completed.

Anticipating booming transportation of goods at the terminal, logistic companies have rented or bought warehouses nearby in the hope of taking a slice of the cargo in the future.

"It is good that all these firms want to enter Vado (Ligure) port. Now we have to develop the infrastructure to speed up the transportation process," said Danilo Causa, who is in charge of the local transport federation of the Italian Confederation of Trade Unions.

"It would be useful if part of the investment in infrastructure could come from China. This would speed up the process, as in Italy it is quite slow," he added.

The China-proposed Belt and Road Initiative provides an extraordinary opportunity for Italy and its ports in particular, Duci said.

The initiative refers to the Silk Road Economic Belt and the 21st Century Maritime Silk Road, which is aimed at building trade and infrastructure networks connecting Asia with Europe, Africa and beyond.

If fully implemented, the initiative could boost global trade by 6.2 percent and by up to 9.7 percent for BRI corridor economies, according to a study published on June 18 by the World Bank.

Compared with established ports in northern Europe such as Rotterdam, Antwerp or Hamburg, Italian ports could save about five days' sailing time for ships passing the Mediterranean, Duci said.

If the cost and time of land transfer of goods after their arrival by sea can be slashed, we can be the real kingmaker of European logistics, Duci added.

Upbeat about the terminal's business prospects, locals have been looking forward to a brighter future, as they believe the project will boost employment.

Jobs will be created in "port labor, workshops, restaurants, everything that is developing around the terminal", said Cornetto.