The talks had been ongoing for nearly two years, with AD Ports expected to acquire a stake in the port located in the western province of Izmir. Alsancak Port, which has been operational since 1959, is currently the seventh largest port in Turkey by container volume and the thirteenth by cargo tonnage, according to the Invest in Izmir initiative.
"We pursued long negotiations with the Gulf investor, but no agreement was reached," Turkish Transportation Minister Abdulkadir Uraloglu told Bloomberg. "The goal was to find a partner to expand Alsancak Port." However, no further details were provided on why the talks ultimately failed.
This marks the second unsuccessful attempt to privatize Alsancak Port. In 2007, a consortium of investors including Hutchison Port Holdings made a $1.28 billion bid for the port, but the deal was blocked by a court, leading the investors to withdraw.
Since 2017, Alsancak has been owned by Turkey's sovereign wealth fund, TWF, and is currently operated by the national railway company, TCDD. The port has faced capacity challenges and experienced a decline in cargo traffic. In terms of container handling, volumes dropped from 390,300 TEUs in 2022 to 261,900 TEUs in the past year.
The failed negotiations are part of a broader effort by the Turkish government to attract foreign investment. Turkey opened its market to UAE investments to secure capital for critical sectors. In 2023, President Tayyip Erdogan signed agreements worth $51 billion during a state visit to the UAE, covering areas such as energy, natural resources, and defense. Trade between Turkey and the UAE continues to strengthen, exceeding $50 billion in 2024, marking an 11% year-on-year increase, according to the Turkish-Arab Economic Forum.
The entry of AD Ports would have added to the considerable investment by DP World in Turkey's port sector. DP World currently controls one of the largest container ports, Yarimca Terminal (Port of Izmit), located on the Sea of Marmara east of Istanbul, with an annual capacity of 1.15 million TEUs. Last year, DP World expanded further into the neighboring Evyapport terminal in Izmit through a merger with Evyap Group.
Alsancak Port offers a strategic location, with easy access to the Mediterranean and the advantage of not requiring transit through the Dardanelles, making it a port with significant potential.
