APM Terminals said it has entered a final agreement with Petkim to create and operate for 28 years the Aegean Gateway Terminal (AGT), close to Izmir.
APMT said the new facility will be one of Turkey’s largest container and general cargo terminals. It will be entirely operated by APMT under a concession agreement with operations expected to start in summer 2015.
Construction of the terminal is being carried out by APMT’s partner in the deal, but under its technical and operational specifications.
The initial investment for the container terminal is about $400 million with further investments depending on market demand. APMT will have the right to operate the port for a period of 28 years, which may be extended further.
Kim Fejfer, chief executive officer of APMT, said the deal has a winning combination in Petkim Port’s location, its market access and natural deep water.
“Turkey is a very important high-growth market which we are pleased to enter together with strong and well respected business partners such as Petkim Petrokimya Holding A.S. and SOCAR,” he said. “We look forward to establishing a long term presence in Turkey and apply APM Terminals’ strong operational skills as well as our customer and safety focus into further developing the Izmir area into a key strategic logistics center.”
Petkim’s port is located in the petrochemical complex of Petkim in Nemrut Bay and close to Izmir the second largest industrial city in Turkey with a rapidly growing population of 4 million.
APMT said with current market utilization already at 90 percent the area needs more port capacity to service growth. It said container volume growth in the Izmir area is driven by a combination of industrial manufacturing, imports of consumer goods and agricultural exports.
Petkim will offer a 15.5-meter water depth and efficient access to Turkey’s high growth market. The initial capacity of the new container terminal will be 1.5 million TEUs, which is 50 percent more than the capacity of the current city port of Izmir, Alsancak Port.
Petkim, through its port subsidiary, is APMT’s direct partner in the agreement. Petkim, which is listed on the Istanbul stock market, produces about 3 million tons of petrochemical products annually. It owns the rights to operate Petkim Port. Petkim is a subsidiary of Socar Turkey Enerji, the state oil company of Azerbaijan. It provides 50 percent of annual state income to Azerbaijan. - Chris Dupin