File 04 - Βιβλίο Πιστώσεων ΛΤΘ

The Port of Thessaloniki Trust Fund was established in January 1930, marking the beginning of a new era for the port of Thessaloniki, which until then had been operated by the French Company for the Exploitation of the Port of Thessaloniki. The French Company had managed the port since the period of the Ottoman Empire, having assumed its operation with special privileges beginning in 1904.

The French Company for the Exploitation of the Port of Thessaloniki was founded in 1904 and had undertaken the port’s management for 40 years, with the contract set to expire on July 1, 1944. At a time when Thessaloniki was still part of the Ottoman Empire, the Company enjoyed exclusive privileges for the exploitation and administration of the port—privileges that were extended after the city became part of the Greek state in 1912.

Although the French Company invested in certain basic infrastructures, the years following the Balkan Wars and the establishment of the Serbian Free Zone and the Thessaloniki Free Zone highlighted the need for substantial upgrades. As Thessaloniki developed into an international port, it required more modern technical and storage facilities, as well as new loading, unloading, and transport equipment. However, the French Company was unwilling to proceed with such works without a significant extension of its contract—a condition that the Greek government and the Thessaloniki Free Zone categorically rejected.

The financial situation of the French Company had already become precarious, mainly due to the devaluation of the drachma during the 1920s, which placed it in a state of crisis. Its total revenues had declined significantly, and the Company was unable to undertake major investments for the port’s development. According to government representative Nikos Kitsikis, the Company’s financial crisis made its removal from the port’s management necessary.

Negotiations for the purchase or leasing of the port’s exploitation rights began in 1929. The French Company demanded exorbitant sums for the renewal of the contract, requesting an annual lease payment of 10,000,000 drachmas, while its annual revenues did not exceed 4,500,000 drachmas. Ultimately, the rights were leased for 8,000,000 drachmas per year, a sum considered high and which provoked strong reactions from the opposition.

On October 26, 1929, the Greek government signed the preliminary agreement for the leasing of exploitation rights with the French Company. On December 19, 1929, the bill establishing the Port of Thessaloniki Trust Fund was passed by the Parliament, and on January 27, 1930, the Trust Fund was officially founded as a Legal Entity of Public Law. On January 30, 1930, the final contract with the French Company was signed, and on February 20, 1930, the Board of the Port of Thessaloniki Trust Fund assumed control of the customs port facilities and services, along with the personnel of the French Company.

The new organization took on responsibility for the management and development of the port under the supervision of the Thessaloniki Free Zone. Vasilis Dimitriou was appointed president of the Trust Fund, while its administration was entrusted to a committee composed of members of the Thessaloniki Free Zone as well as representatives of the Nautical and Professional Chamber of Thessaloniki.

The principal mission of the Port of Thessaloniki Trust Fund was the maintenance of existing port facilities and the construction of new ones to support the increasing flow of commerce. The organization launched major construction projects such as new piers, the expansion of quay walls and the breakwater, and the expropriation of land for port development. It also undertook the construction of buildings to house port services and the Port Authority.

At the same time, the operation of the Trust Fund ensured that Thessaloniki would remain an important commercial hub, serving the needs of Greece and neighboring Balkan countries. Port activities included both the export of Greek products and the transit of imported goods.

Although the Port of Thessaloniki Trust Fund functioned independently, in practice the port’s management was controlled by the Thessaloniki Free Zone. The existence of two port authorities with similar missions led to discussions regarding the effectiveness and financial impact of this dual administrative structure. The Thessaloniki Free Zone held the leading role in management, informally assuming the financial support of the Trust Fund, while both organizations operated in a complementary manner without competition.

The first organizational restructuring of the Trust Fund took place in 1935, while in 1939 a new operational regulation was drafted, strengthening the Trust Fund’s technical department to improve the efficiency of port works.

After liberation from German occupation, the Trust Fund undertook the restoration of damage suffered by the port during the war. By the early 1950s, port infrastructure had been largely restored and modernized.

In 1953, under Legislative Decree 2551/53, the decision was made to merge the Trust Fund with the Thessaloniki Free Zone, creating a single public organization under the name “Organization of the Thessaloniki Free Zone and Port” (ΕΖΛΘ). This merger aimed to improve the organization and efficient management of the port of Thessaloniki, enhancing its role as a major commercial hub in the Balkans and the Eastern Mediterranean.

The establishment of the Port of Thessaloniki Trust Fund and the withdrawal of the French Company for the Exploitation of the Port of Thessaloniki were significant steps toward the Hellenization and modernization of the port of Thessaloniki. Despite the financial difficulties and political challenges of the time, the Trust Fund succeeded in carrying out important projects that contributed to the upgrading of port facilities and the port’s continued role as a key commercial center in the region. The merger with the Thessaloniki Free Zone in 1953 paved the way for further development and strengthened Thessaloniki’s position as an international commercial hub.