Global port operator DP World and Turkey's Evyap Group have agreed to form a strategic equity partnership between DP World Yarimca Port and Evyap Port to improve supply chain services in the country.
Dubai-based DP World will own 58 per cent of Evyap Port while the Evyap Group will own 42 per cent of DP World Yarimca once the deal is completed, the UAE company said on Tuesday.
The new business will be named DP World Evyap Port.
“The partnership aims at enhancing and growing trade infrastructure by focusing on improving container port facilities and enhancing efficiencies in the key Marmara gateway market,” it said.
“The collaboration seeks to improve productivity, reduce turnaround times, ensure security, and broaden service offerings, benefitting Turkish trade.”
The move comes after the UAE and Turkey announced agreements and accords worth a combined $50.7 billion in July as they seek to strengthen investment ties and boost collaboration in strategic sectors.
The accords covered sectors such as infrastructure, energy, defence, technology, finance and space.
The two countries also signed a comprehensive economic partnership agreement earlier this year, which was ratified in May.
It is expected to help push bilateral non-oil trade to more than $40 billion, from about $19 billion currently, and create thousands of jobs in the two countries, Dr Thani Al Zeyoudi, Minister of State for Foreign Trade, said in May.
Turkey is the fastest-growing of the UAE’s top 10 trading partners, Dr Al Zeyoudi said.
Total UAE investments in Turkey stood at $7.8 billion by the end of 2021, spanning several sectors, such as financial services, property, transport, renewable energy, ports and logistical services.
The UAE-Turkey Cepa will “unlock the massive economic potential of Turkey as a global trade hub”, DP World said in May.
The DP World Yarimca container terminal in the Izmit Gulf is one of the largest in the country with a capacity of 1.15 million twenty-foot equivalent units (TEUs) and is capable of handling the world’s largest container ships, according to the company.
The port, in Turkey's largest industrial zone, is part of the trade corridor linking Asia, Europe and Africa.
Evyap Group currently operates Evyap Port, Turkey’s fourth biggest private port, according to the company's website.
Evyap Port's container terminal has an annual handling capacity of 855,000 TEUs and 455 metres of linear dock, providing services to main vessels that are up to 400 metres in length as well as small feeder vessels, according to the port's website.
This month, DP World said it would add about three million TEUs of container-handling capacity by the end of the year to help meet growing demand in key trade markets, including 579,000 TEUs in Yarimca.
The company, which manages about 9 per cent of the world’s handling capacity and is among the top five global ports operators, said the addition will take its total gross capacity to 93.6 million TEUs.
Its medium-term target is to reach 100 million TEUs a year, depending on demand.