Revival of Skaramangas Shipyard: Greece's Maritime Rebirth

Last month, the Skaramangas Shipyard near Athens was alive with the noise of hammering and welding as workers repaired a large tanker's bow, while other ships queued for repairs in the nearby dry dock. This activity represents a significant revival for the shipyard; a year ago, after years of intermittent government ownership, it stood vacant, symbolizing the lasting effects of Greece's severe debt crisis from 2009 to 2018.

"There's life here again," remarked Theodoros Evagelou, who was busy sandblasting and painting ships at the yard, noting that he struggled to find work elsewhere.

The future of the Skaramangas Shipyard, which was purchased by shipping magnate George Prokopiou last year, reflects Greece's broader recovery from its financial crisis. This recovery includes the government divesting its stakes in banks and key infrastructure such as a major airport and highway.

Since 2019, the centre-right government led by Kyriakos Mitsotakis has also sold its shares in the Elefsina and Syros Shipyards. Attracting shipowners to Greece means they can repair their ships locally instead of opting for facilities in Turkey, Asia, or Romania.

Despite Greeks owning the world's largest merchant fleet of 5,500 vessels, the nation's shipyards have lagged behind international competitors, and previous privatization efforts were unsuccessful.

In the past year, Skaramangas Shipyards has repaired 37 ships and aims to double this next year, according to CEO Miltiadis Varvitsiotis. This growth mirrors the wider industry trend, as Greek ship repairs reached nearly 700 last year, up from 330 in 2013, based on statistics service data.

"We're here to stay," Varvitsiotis stated.

The increased activity has already doubled the shipyards' contribution to the national GDP to 1.5%, noted Panos Xenokostas, owner of ΟΝΕΧ Shipyards and Technology, which acquired the Elefsina and Syros Shipyards in 2020 and 2018. He aims to expand this to 2.5% over five years.

Repairs at his two yards have surged from a few dozen over the past decade to 220 in 2024, said Xenokostas, who intends to diversify into shipbuilding, drilling platforms, and specialized liquefied natural gas carriers.

"The shipyard boom is putting Greece back on the map as a Mediterranean repair hub," commented maritime expert and shipping financier George Xiradakis. "While they can't completely replace the major Turkish and Asian shipyards, they can capture a substantial share."

During the 1960s and 70s, Greece built and repaired hundreds of ships, before much of the industry was nationalized amid an economic slowdown in the 1980s.

The working-class suburbs west of Athens, where most shipyards are located, are also experiencing a resurgence.

In the coastal town of Perama, numerous companies act as subcontractors for the major shipyards. Unemployment, which was at 40% a decade ago, has dropped so sharply that contractors now face a labor shortage, said mayor Yiannis Lagoudakos.

"We now need more roads and parking to handle the increased traffic," said Lagoudakos. "Our town is thriving."