Turkey: APM Terminals, Petkim Conclude AGT Agreement
APM Terminals and Turkey-based Petkim have today entered into a final agreement to create and operate Aegean Gateway Terminal (AGT).
AGT will be one of Turkey’s largest container and general cargo terminals and will be entirely operated by APM Terminals under a concession agreement with operations expected to start in summer 2015.
The agreement means that APM Terminals will assume full operational responsibility for the container terminal and general cargo operations in AGT.
The construction of the terminal is being carried out by APM Terminals’ partner in the deal, but under APM Terminals’ technical and operational specifications.
The initial investment for the container terminal is approximately USD 400 million with further investments depending on market demand. APM Terminals will have the right to operate the port for a period of 28 years which may be extended further.
The CEO of APM Terminals, Kim Fejfer, explains that the independent port operator sees the deal as a winning combination of 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. 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 centre.”
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 mill. The hinterland for the port is the Aegean Region with a population of 9.6 mill. With current market utilization already at 90%, the area needs more port capacity to service growth.
Container volume growth in the Izmir area is driven by a combination of Industrial manufacturing, import of consumer goods for a rapidly growing population and agricultural exports.
Petkim’s port will offer 15.5 meter water depth and an efficient access to Turkey’s high growth market. The initial capacity of the new container terminal will be 1.5 million TEU, which is 50% more than the capacity of the current city port of Izmir. Alsancak Port). The facility expects to start operations in the summer of 2015.
Petkim, through its port subsidiary Petlim, is APM Terminals’ direct partner in the agreement. Petkim is listed on the Istanbul Stock Market and produces around 3 million ton of petrochemical products annually. It owns the rights to operate Petkim Port. Petkim is a subsidiary of Socar Turkey Enerji A.S. , the State Oil Company of Azerbaijan. It provides 50% of annual Azerbaijan state income.
Press Release, February 22, 2013