On November 14, 2015, the Privatization Authority adopted new
zoning plans for the Izmir Cruise Port and Izmir Cargo Port in
preparation for their likely privatization in the first half of
2016. The privatization is expected to be through a "transfer
of operational rights."
First privatization attempt
The privatization of Izmir Port, Turkey's largest commercial
port, was first initiated in 2006 following the privatization of
the Mersin and Iskenderun ports. A consortium of
Global-Hutchison-Ege Ihracatci Birlikleri and Deutsche Bank
Infrastructure Fund, which offered USD 1.275 billion for 49 years
— the longest period permitted under the Privatization Law,
was the successful bidder. After multiple legal challenges,
however, the privatization of Izmir Port was cancelled.
Preparations for privatization
To leverage the benefits from cruise tourism and the substantial
export potential given the port's highway and rail connections,
the Privatization Authority split the port into two, creating the
Izmir Cruise Port and Izmir Cargo Port, in 2012. In spite of
this separation, the Privatization Authority is expected to
privatize both ports together to a single investor. The
Privatization Authority's specific plans will be clearer once
the tender specifications are published.
Under the Izmir Cruise Port's new zoning plan, the
developable area of the facility has been decreased by
approximately 50,000 m2, leaving a developable area of
125,000 – 130,000 m2. To increase the port's
capacity, two new piers will be added. Hotels and small shops will
be built to serve tourists, in place of the shopping mall planned
during the 2006 privatization.
The 2006 privatization tender specifications also required the
successful bidder to dredge the port. For the upcoming tender, it
is expected that Turkish State Railways will be involved in the
dredging activities, although it remains unclear whether the
investor will have any related obligations.
Given the recent return of political stability and
predictability in the Turkish market, coupled with the updated
zoning plans, we expect the privatization process to commence
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
What sectors will face the biggest challenges in 2016/2017 in the UK & Europe? This series offers industry insights, real time updates, analysis of the market and key considerations for stakeholders to emerge stronger.
It is common practice for traders, usually when they are the sellers of the goods and the charterers of a vessel, to instruct the carrier to discharge cargoes without production of the original bills of lading and to agree to indemnify the carrier against the consequences of doing so.
As you may be aware, one of South Korea's largest shipowners, Hanjin Shipping Co Ltd ("Hanjin"), has applied for court rehabilitation in Korea.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).