Could Turkey’s Alsancak Port operating rights be sold to Gulf States?

Turkey is looking to sell the operating rights for its Alsancak Port in Izmir, with talks currently ongoing with GCC countries, as part of Turkey’s renewed push for foreign investment, Transport and Infrastructure Minister Abdulkadir Uraloglu tells Bloomberg. Turkey has engaged in investment negotiations — including the sale of the port’s operating rights — with Gulf region countries at the deputy minister level, Uraloglu told the business information service, without disclosing the potential buyers or expected value of the transaction.

About the port: Alsancak port is owned by Turkish sovereign wealth TWF and is operated byTC State Railways General Directorate (TCDD). Located in the Aegean city of Izmir, the 635k sqm port can handle up to 1.2 mn TEU containers of cargo, and 1.4 mn tons of general and bulk dry cargo annually, according to TCDD. The port was slated for privatization in 2004 and a consortium of Hutchison Port Holdings, EIB Limas, and Global Yatirim Holding was awarded the tender in 2007 to operate the port, before Turkey’s top administrative court blocked the tender the following year. The consortium had submitted a USD 1.28 bn bid for the concession rights.

Gulf countries have recently been expanding their presence in operating ports: EmiratiAD Ports has been venturing into developing and operating ports, spanning from overseeing operations at the terminal at Pakistan’s Karachi Port for 50 years, to managing and operating a multipurpose New East Mole Terminal Congo’s Pointe-Noire for 30 years. DP World has also been active with their recent expansion in Indonesia’s Belawan New Container Terminal.

What's next? Turkish President Recep Tayyip Erdogan will embark on a Gulf tour later this month to attract investments and other financial resources to Turkey, Bloomberg reported earlier. Erdogan will make visits to Gulf countries including Saudi Arabia, UAE, and Qatar.