APM to develop Petkim port in Turkey

APM Terminals has signed an agreement with Petkim Petrokimya, a subsidiary of the State Oil Company of Azerbaijan Republic (SOCAR) for the long-term operation and development of Petkim Port.

Contract negotiations for the operation of the port, located in Turkey's Izmir region on the Aegean Coast, are still ongoing and further developments will be made public upon completion.

The agreement is part of the company's strategy of expanding into construction and operation of terminals in fast-developing emerging markets.

APM will invest $350 to $400m in a container terminal with an initial capacity of 1.5 million teu annually, which is 50% more than the current capacity of the Port of Izmir.

According to the company further investment will be phased in to bring capacity up to 3 million teu annually depending on market demand.

The terminal will increase a 700 meter quay, and will be capable of handing vessels with a capacity of over 10,000 teu.

First phase of the terminal is expected to provide 350 meters of quay in 2013, while phase II would extend the quay by an additional 350 meters by 2014.

As per the agreement, APM Terminals will have the right to operate the port for a period of 28 years with an option to extend it by four years, until 2046.

APM will also assume operations at the general cargo terminal, which is expected to start by the end of this year.