Türkiye, Abu Dhabi Port in $500M talks for Izmir Port joint venture

Türkiye is on the brink of a significant partnership with Abu Dhabi Port (ADP) to co-manage Izmir Port, a crucial hub in the region. However, shifting competition and capacity challenges have delayed the $500 million deal, keeping both sides at the negotiating table.

Türkiye-ADP talks

• Türkiye is in advanced talks with Abu Dhabi Port (ADP) to form a joint venture for operating rights at the Aegean port of Izmir, according to two sources familiar with the matter, Reuters reports.
• The talks, which began last year, involve ADP potentially acquiring a stake valued at approximately $500 million.
• Despite exploring other potential buyers, Ankara chose to move forward with ADP.
• ADP was not immediately available for comment.

Why it matters: Izmir Port, one of Türkiye’s largest by container volume and cargo tonnage, is a strategic asset within the Turkish Wealth Fund’s (TWF) portfolio.

Challenges

• The port’s, which launched in 1959, strong logistical connections make it vital for regional trade but require significant investment due to its aging infrastructure.

• The finalization of the deal has faced delays due to changes in regional competition and capacity conditions, as reported by sources familiar with the situation.

Türkiye conducted talks with other potential buyers but decided to advance with ADP. Changing competition and capacity conditions delayed the final agreement. Negotiations continue.

A source close to the negotiations

Turkish Wealth Fund’s perspective:

• In a written response to Reuters, the Turkish Wealth Fund emphasized its commitment to maximizing value for Izmir Port and the country. “As the Türkiye 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,” the statement read.

Looking ahead

• Both parties are working towards finalizing the joint venture agreement, with the goal of revitalizing Izmir Port through strategic investments and collaboration.