The initial investment for the container terminal is approximately US$400m with further investments depending on market demand. The construction of the terminal is to be carried out by APMT’s partner but under APM Terminals’ technical and operational specifications.
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 4m.
The hinterland for the port is the Aegean Region with a population of 9.6m. With current market utilisation 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 m water depth and an efficient access to Turkey’s high growth market. The initial capacity of the new container terminal will be 1.5m teu, which is 50% more than the capacity of the current city port of Izmir (Alsancak Port).
Kim Fejfer, CEO of APM Terminals, 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 AS and SOCAR (State Oil Company of Azerbaijan). 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, through its port subsidiary Petlim that produces around 3m tons of petrochemical products annually, is APM Terminals’ direct partner in the agreement. It owns the rights to operate Petkim Port. Petkim is a subsidiary of Socar Turkey Enerji AS, the State Oil Company of Azerbaijan. It provides 50% of annual Azerbaijan state income.