Turkey-Abu Dhabi joint venture talks for Izmir Port continue, sources tell Reuters

Turkey’s talks with state-controlled Abu Dhabi Port (ADP) to set up a joint venture for operating rights of the Aegean port of Izmir are continuing, two sources familiar with the matter told Reuters.

In December, Reuters reported that Abu Dhabi was interested in buying a stake to operate Izmir Port, in a possible deal that could be valued at about $500 million.

Changes in regional competition and capacity conditions delayed the closing of the deal, two sources said, adding that negotiations continued to try to finalise it.

“Turkey conducted talks with other potential buyers but decided to advance with ADP. Changing competition and capacity conditions delayed the final agreement. Negotiations continue,” the source said.

The second source said Izmir Port, which launched its operations in 1959, had strong logistic connections but needed investment.

Izmir Port, which is in the portfolio of the Turkish Wealth Fund (TWF), is among the largest ports in Turkey in terms of container volume and cargo tonnage.

The TWF said in a written response to Reuters questions that it wanted to create added value for the country and the port.

“As the Turkey Wealth Fund, we continue our work for the potential benefit of our country, in line with our goal of creating the highest added value for our country and Izmir Port and increasing the value of our assets,” it said.

ADP was not immediately available for comment. [Reuters]