APM Terminals has signed an agreement with Petkim Petrokimya, a subsidiary of the State Oil Company of Azerbaijan Republic (SOCAR) for the long-term operation and development of Petkim Port.
Contract negotiations for the operation of the port, located in Turkey’s Izmir region on the Aegean Coast, are still ongoing and further developments will be made public upon completion.
The agreement is part of the company’s strategy of expanding into construction and operation of terminals in fast-developing emerging markets. APM will invest $350 to $400m in a container terminal with an initial capacity of 1.5 million teu annually, which is 50% more than the current capacity of the Port of Izmir.
SOCAR president Rövnag Abdullayev said in October 2011 the company had announced its vision for the Petkim peninsula "as a refinery-petrochemicals-energy-logistics integration. We continue our investment projects to produce new petrochemical products and high value added products within Petkim," Abdullayev added.
"Thereby we will mostly have finished our vertical integration in Petkim Peninsula by 2015 and we have taken strategic steps to execute our vision for Petkim Port as Turkey’s best logistics centre in the Aegean region."
APM Terminals CEO Europe Region Martin Poulsen said Petkim’s Port’s location, its market access and natural deep water are a winning combination.
"We are excited to partner with Petkim and tap their national scale and success to make Petkim Port a strong economic growth engine for the country and the regional economy," Poulsen said.
According to the company further investment will be phased in to bring capacity up to three million teu annually, depending on market demand. The terminal will increase to a 700 metre quay and be capable of handing vessels with a capacity of more than 10,000 teu.
First phase is expected to provide 350 metres of quay in 2013, while phase two would extend the quay by an additional 350 metres by 2014. As per the agreement, APM Terminals will have the right to operate the port for a period of 28 years with an option to extend it by four years, until 2046.
Image: APM will have the right to operate the port for a period of 28 years with an option to extend it by four years, until 2046. Photo: APM Terminals.