Ports Sector in Turkey

An Expert's View about Ports in Turkey

Last updated: 14 Mar 2011

For the last ten years over 85% of Turkish international trade has been carried out by sea. The Turkish ports sector is growing insignificance each year.

Sector briefing Port Opportunities in Turkey Why Turkey? Turkey?s strategic location at the junction of three economic blocks; its regional economic and political role; its increasing domestic demand; its accelerating infrastructure investments and growing exporting activities make Turkey an international gateway for maritime traffic. For the last ten years over 85% of Turkish international trade has been carried out by sea. The Turkish ports sector is growing insignificance each year. There are 176 ports in Turkey, both privately and publically owned, servicing domestic and foreign trade. These ports have a combined capacity of around 5.5m TEU. If TEU is to reach its expected 20m by 2020, new and improved ?If TEU is to reach its expected terminal facilities are needed. 20m by 2020, new and improved terminal facilities are needed.? Find general information on Turkish market conditions on UKTI website. The Doing Business Guide for Turkey gives an overview of Turkey?s economy, business culture, potential opportunities and an introduction to other relevant issues. UK Trade & Investment Sector briefing: Port opportunities in Turkey Asyaport is a new private container terminal Opportunities being constructed as an international transit port in the central district of the province of The opportunities reported below provide Tekirdag. It is designed with a handling merely a snapshot. In the coming years, much capacity of 2.5m TEU per year. The terminal larger volume of private sector financed will start operation with an initial handling projects is expected in Turkey. Major catalysers capacity of 1m TEU per year and has are ongoing privatisation process, increasing reportedly already established an agreement exporting activities, growing local demand as with MSC for handling 500,000 TEU per year well as developing sea transport for foreign upon completion. The deep sea container trade activities. terminal will have a quay length of 2,010 metres, with drafts up to 20 metres to suit Key strengths that UK companies should focus 13,000 TEU vessels. on are: an economically advantageous outlook, innovative solutions/products, good project Borusan Port (Gemlik), located on the southern management ability, environmental awareness shore of the Sea of Marmara near Gemlik and and high calibre staff. operated by Borusan Lojistik, completed its first stage of expansion late in 2009. The port Opportunities for re-design/expansion of has second and third stage development plans existing Ports & Terminals to make it the biggest port in the south Marmara Region, with target handling Samsun Port, which has recently been capacities of 7.5m tons in general cargo and privatised, has announced that it will be 1,600,000 TEU in container operations by investing around £22m in the port following the 2015. transfer in March 2010 of operating rights to Ceynak (a group company of Cey Holding) for Gemport (Gemlik), located on the South- a period of 36 years. eastern shore of the Sea of Marmara near Gemlik and operated by Gemlik Port and Derince Container Port, located in the bay of Warehousing Administration Co. Inc, has Izmit, will be developed next to the existing development plans to build a new container State Port (TCDD) which was privatised to be terminal to increase its container handling operated by the Turkerler Group. The Group is capacity from 250,000 TEU to 600,000 TEU by in the process of reaching an agreement with 2015. This work is expected to require a the Privatisation Administration for the master plan and detailed design, along with the construction and operation of the new purchase of equipment for the facility. container terminal under a 36-year concession from the Turkish General Directorate for the Evyap Port, located in Izmit Bay, is a private construction of Railways, Harbours and container terminal, which has recently been Airports. Under the concession, which is expanded 615,000 TEU capacity from 40,000 granted on a BOT (built-operate-transfer), TEU capacity, is fitted out with the latest basis at a cost of £133m, Turkerler is expected container terminal technology. It is planning to invest up to £68m in phases to develop future developments to increase its capacity to container handling capacity up to at least 1.2m TEU by 2015. 600,000 TEU per year. Yilport, located on the northern coast of Izmit Bandirma Port, in Balikesir province, was Bay at Gebze, is a private terminal operated by announced to be operated by Celebi Holding, Yildirim Group Inc. The container terminal, after bidding £119m in the tender to transfer which has recently been expanded to 150,000 its operating rights for 36 years. The company TEU capacity from 75,000 TEU capacity, is has stated it is to invest £13.6m over five fitted out with four SSGs, two mobile harbour years in the development of the port. cranes and 18 RTGs. It is planning future phased developments to increase its capacity Mersin International Port, operated by the PSA- to 1m TEU by 2011 and 2m TEU by 2014. The Akfen port, located at Mersin on the facility is served by MSL and CMA CGM Mediterranean Sea, reportedly has shipping lines. development plans to increase container terminal facilities from the current 850,000 TCE Ege Gubre Terminal Expansion, located in TEU capacity to 1.7m TEU by 2015. Nemrut Bay, Aliaga ? Izmir, is a private UK Trade & Investment Sector briefing: Port opportunities in Turkey terminal offering port services for containers the port will be re-tendered for privatisation. In operated by TCE Ege, of which 90% is owned addition to its privatisation, there is a by Spanish Grup Maritim Terminal de development project planned for Izmir port Contenidors de Barcelona (GMTCB) and 10% which involves the deepening of the approach by Ark Lojistik. The expansion project involves channel to Izmir port, along with the idea of a the development and operation of a container second stage container terminal. The port, terminal at an existing port facility in Nemrut historically the busiest container terminal in Bay. The company has plans to increase Turkey, is well located to serve the Istanbul capacity from 380,000 TEUs to 650,000 TEUs area but is unable to accommodate third over time. The total initial project cost is generation container vessels. The development estimated to be £54m. The proposed project is expected to be tendered by the new International Finance Corporation (IFC) operator after completion of the port investment is a loan of up to £13.5m. privatisation process. Toros Tarim Dry Bulk Terminal, located in the Galataport Project is the site of a proposed new Bay of Iskenderun, is a multi-purpose, dry bulk cruise terminal and waterfront development on terminal with two independent piers, a total of the coastline in Istanbul. The site has been eight separate berths, and landside storage handed to Privatisation Administration (PA) for facilities. The private terminal, owned and re-tendering this year. Galataport is expected operated by Toros Tarim, caters for ships up to to be the largest cruise port in Turkey, with 110,000 dwt. There are proposals to expand proposals for three cruise ship berths and a the facility from its current 10 million tonnes new passenger terminal building within a total per year to 19 mtpa by 2015. project development area of approximately 2 100,000m . The development will co-exist Port Privatisation Opportunities with, and be part of, a new waterfront development project comprising a new five star Iskenderun Port is re-tendered for privatisation hotel, shopping mall and duty free shops. in May 2010, with a bid deadline announced as Currently, the PA is considering options for the August 2010, through transfer of operational master plan development of the site. rights under 36-year concession agreement. Under the concession, which is expected to be New Port Development Opportunities granted on a BOT (built-operate-transfer) basis, the operator is expected to invest to Candarli Port has been selected as the first increase the port?s container and general cargo priority new port project, suitable for technical handling capacity. Design and construction assistance funding from the EU as part of the activities are expected to commence after Transport Infrastructure Needs Assessment ongoing operating rights transfer details are programme. Located in the Aegean, Candarli approved. Port of Iskenderun is located in the Port is to act as a hub-port in the multimodal north eastern part of Mediterranean Sea. The transportation corridor for the traffic between port serves to South and South East Anatolia Europe, the Middle East, and Eastern and Black Region, as well as the transit traffic to the Sea countries. The target capacity is an initial Middle East Countries. Thus, port of phase of 2m TEU per annum by the year 2014 Iskenderun is an important transit port. The and further extension phases to a future port has a breakwater of 1400mtr long which capacity of 12m TEU by 2024. An investment avoids the port from the north and south value of £115m has been allocated within the winds. The depth is 12mtr at the entrance of EU public investment programme as part of the the port. Port of Iskenderun, which is a general IPA (Instrument for Pre-Accession Assistance) purposed port, has connections to both rail and Funding for which approval of the loan is highway networks and serving customers to expected within 2010. The tender for handle bulk, general cargos and Ro-Ro?s. development is planned to be issued to local and international consortiums on the basis of a Izmir Port is currently in the process of being BOT model with a minimum 25-year lease privatised by the Privatisation Administration in period. Once completed, vessels up to 200,000 Turkey. The Turkish State Railways (TCDD) dwt and 10,000+ TEU will be able to berth. The port was tendered previously, and awarded to port is planned to have 2km berth with deep a joint venture between Hutchinson and EIB in water access and is scheduled to be 2007 under a concession agreement. However, operational by 2014. this deal has subsequently fallen through and UK Trade & Investment Sector briefing: Port opportunities in Turkey Mersin International Container Port is the second priority new port project and will be located in the Mediterranean, close to the south-eastern corner of Turkey which is proposed to form a strategic gateway, not only for Middle Eastern countries (particularly Iraq) but also Caucasian, landlocked Asian and the CIS countries. The target capacity is an initial phase with 1.9m TEU per annum by the year 2014 and further extension phases to a future capacity of 11.4m TEU in 2033. An investment value of ?337m has been estimated for stage one from the EU public investment programme as part of the IPA funding. Upon loan approval the tender for development is expected to be issued to local and international consortiums on the basis of a BOT model with a minimum 25-year lease period. Once completed, vessels up to 10,000 TEU will be able to berth. The port is planned to have a deep water access and is scheduled to be operational by 2014. Filyos Port is the third new port project with an estimated investment value of ?415m, proposed to promote trade development with other emerging markets in the Black Sea Region, reduce congestion of maritime traffic through the Turkish straights and will be developed in synergy with proposals for power generation in the area. The development of a full works tender dossier, including implementation design and procurement strategy, updates to Environmental Impact DP World Yarimca is being developed by DP World as a green-field 1.3m TEU capacity container terminal on the Anatolian side of Istanbul (Izmit Bay), featuring 895m of berth on a 45ha site. The project is being developed 3 in a single phase and will involve 1.4m of 3 dredging and 3m of reclamation. The port is a private investment and much of the property is privately-owned. Operations in state-owned land (reclaimed areas) will be run under a renewable government land lease for a period of 49 years. DP World appointed Haskoning for design consultancy services, and contracts for the civil works have been awarded to local Turkish companies. The port is expected to open in 2012. Further opportunities may exist in the areas of specialist information technology for UK companies. For further details on each opportunity and to obtain ?Turkey & Black Sea Region Report? please contact UKTI Istanbul Ports Team. UK Trade & Investment Sector briefing: Port opportunities in Turkey Major events and activities UKTI contacts Port Finance International Black Sea Ports Basak Toker Conference: British Consulate General, Trade & Investment Manager Istanbul Turkey: March 2011 British Consulate General Istanbul Contact: UKTI Ports Sector Group Tel: + 90 (212) 334 64 69 Email: Jason.castelino@ukti.gsi.gov.uk Email: Basak.Toker@fco.gov.uk Time: March 2011 www.ukti.gov.uk Find full details of all Turkey Ports events Sibel Bilgin on the UKTI website. New export events are Trade & Investment Adviser added daily to the site and you can register to British Consulate General Istanbul be alerted to them on a daily, weekly or Tel: + 90 (212) 334 64 46 monthly basis Email: sibel.bilgin@fco.gov.uk UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events UK Trade & Investment Sector briefing: Port opportunities in Turkey Next steps - How UKTI can help ? Arranging appointments British companies wishing to develop their ? Organise seminars or other events for business in the Chinese market are advised to you to meet contacts and promote your undertake as much market research and company in the Chinese market planning as possible in the UK. UKTI?s team in China, with its wide local knowledge and This work is available via our Overseas Market experience, can provide a range of services to Introduction Service (OMIS) a chargeable British-based companies wishing to grow their service which assists British-based companies business in the Chinese market. wishing to enter or expand their business in overseas markets. This can include: ? Provision of market information To find out more about commissioning this ? Validated lists of agents/distributors work, or accessing other UKTI services and ? Key market players or potential specialist advice, please visit the UKTI website customers in the Chinese market to find contact details for your local UKTI ? Establishment of interest of such office. contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Port opportunities in Turkey
Posted: 29 September 2010, last updated 14 March 2011