APM Terminals and Turkey-based Petkim have 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 under a concession agreement. Operations are expected to start in 2015.
The initial investment for the container terminal is approximately US$400 million with "further investments depending on market demand". APM 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, said that the port operator sees the deal as an ideal combination of Petkim Port's location, market access and natural deep water.
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 four million. The hinterland for the port is the Aegean Region with a population of 9.6 million. With current market utilisation already at 90 per cent, 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 a 15.5-metre 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, 50 per cent more than the capacity of the current city port of Izmir, Alsancak Port.