DP World and Evyap Group merge port operations in Turkey to boost trade

The new business will have an annual container handling capacity exceeding two million TEUs

DP World Yarimca will now be known as DP World Evyap Yarimca as a result of the merger. Photo: DP World

Global ports operator DP World and Evyap Group have merged their Turkish operations to create a logistics business aimed at boosting trade in the country whose economy is expected to stabilise

The new company, DP World Evyap, will give the Dubai-based ports operator a 58 per cent stake in Evyapport while Evyap Group will get a 42 per cent share of DP World Yarimca.

Evyaport operates in the Izmit Bay of Izmit province while DP World Yarimca is one of the largest container terminals in Turkey.

The rebranding will also introduce DP World Evyap Yarimca and DP World Evyap Korfez as the new names for the maritime centres.

Plans to form a strategic equity partnership between the companies were first revealed in August last year.

DP World Evyap will have a combined 2,088 metres of berthing space, with total annual container handling capacity expected to exceed two million twenty-foot equivalent units (TEUs).

It is also expected to shorten operation times as DP World Evyap will gain access to advanced road and rail links.

“DP World’s vision is to lead global trade to a stronger, more efficient and sustainable future,” Sultan bin Sulayem, group chairman and chief executive of DP World Group, said on Friday.

“Our strategic partnership with Evyapport advances this strategy in Turkey.”

High-tech green cargo ship completes first voyage

00:54

The merger will bring “enhanced end-to-end solutions to our customers and the many benefits in speed and efficiency”, he added.

The shipping sector is key to Turkey's economy, which has faced a number of challenges, most notably chronic inflation, after years of unorthodox policies.

However, the economy is gaining some momentum.

S&P Global Ratings upgraded Turkey's credit rating outlook in May, citing the government's strategy of taking a more rebalanced approach to generate confidence in its economy.

Investor confidence in the country is also projected to grow after the Financial Action Task Force last month removed Turkey from its “grey list” of countries that face tighter monitoring for money laundering and terrorism financing.

Turkey's shipping sector has undergone a “significant transformation in recent years, positioning itself more effectively on the global stage”, Cihan Ergenc, president of the Turkish Shipowner’s Association, wrote in the organisation's most recent annual outlook report.

Turkey's shipping industry posted a 67 per cent growth over 2022 and 2023. The industry has continued to invest in areas such as shipbuilding, fleet management and port services to enhance its competitiveness, he said.

Meanwhile, DP World has continued to expand its footprint globally. In June, it completed a $400 million expansion project at the Port of Callao in Peru as part of its efforts to increase capacity across Latin America.

In May, DP World and the Saudi Ports Authority began construction of a logistics park in the coastal city of Jeddah, which is expected to grow the kingdom as a crucial trade centre in the Middle East.

The latest merger is expected to “bring significant economic benefits to Turkey and the wider region”, said Kris Adams, chief executive of DP World Turkey.