The Turkish government has confirmed that negotiations with Abu Dhabi Ports Group (AD Ports) for operating rights at the Alsancak freight and passenger port in Western Turkey have come to an end.
Turkish transport minister Abdulkadir Uraloglu stated that the goal was to find a partner for the Alsancak port and attract capital to facilitate its expansion. However, no reasons for the breakdown in talks were provided.
AD Ports, which is 75% owned by the state-run ADQ and trades on the Abu Dhabi Securities Exchange, saw its share price close at AED 4.83 ($1.32) on Thursday, marking a slight 0.6% decline.
The discussions between Turkey and AD Ports began in 2023, but the minister clarified that no other negotiations are currently underway with alternative investors.
Alsancak port in Izmir province has been owned by Turkey’s sovereign wealth fund, TWF, since 2017. The port’s privatization had previously been blocked by a court ruling in 2007.
In July 2023, President Tayyip Erdogan visited the UAE, Saudi Arabia, and Qatar seeking investments to boost Turkey’s economy. During this trip, Turkey and the UAE signed deals totaling nearly $51 billion.
In December 2023, it was reported that AD Ports Group planned to invest $500 million in a new company proposed by Turkey’s sovereign wealth fund to operate the Alsancak port. Additionally, DP World Yarimca Port and Turkey’s Evyap Group reached an agreement in August 2023 to provide supply services at the Marmara gateway.
Turkey and the UAE signed a comprehensive economic partnership agreement (CEPA) in March 2023, with bilateral trade—valued at $10 billion in 2022—expected to grow to $40 billion by 2028.
