Turkey’s Talks with AD Ports Over Alsancak Port Collapse
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The Turkish government has confirmed that negotiations with Abu Dhabi Ports Group (AD Ports) over operating rights at the Alsancak freight and passenger port in western Turkey have fallen through.
“The aim there was to get a partner for the Alsancak port and adding capital to expand it,” Transport Minister Abdulkadir Uraloglu told Bloomberg, without providing further details on why the discussions failed.
Failed Investment Talks and Market Impact
AD Ports, which is 75% owned by the UAE state-run ADQ, trades on the Abu Dhabi Securities Exchange. Following the news, the company’s shares closed at AED 4.83 ($1.32), down 0.6% on Thursday.
Uraloglu noted that negotiations with AD Ports had been ongoing since 2023, but no discussions are currently underway with other investors.
Background on Alsancak Port and Turkey’s Investment Push
Turkey’s sovereign wealth fund (TWF) has controlled Alsancak Port in Izmir province since 2017. A previous attempt to privatize the port in 2007 was blocked by a court decision.
In July 2023, President Recep Tayyip Erdoğan toured the UAE, Saudi Arabia, and Qatar, securing $51 billion in investment deals to strengthen the Turkish economy. Reports from December 2023 indicated that AD Ports planned a $500 million investment in a new entity proposed by TWF to operate the Aegean coast port of Izmir.
Meanwhile, in August 2023, DP World Yarimca Port and Turkey’s Evyap Group signed an agreement to enhance supply services in the Marmara region.
Growing UAE-Turkey Economic Ties
Despite the setback, Turkey and the UAE continue expanding economic cooperation. In March 2023, the two countries signed a Comprehensive Economic Partnership Agreement (CEPA), aiming to quadruple bilateral trade from $10 billion in 2022 to $40 billion by 2028.
