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November 21, 2008


Izmir Port suspension decision gets strong reactions

Turkish Daily News reported that the decision of suspension of sale of the right to operate Izmir Port to Hong Kong's Hutchison Whampoa and Turkey's Global Yatırım on March 6th 2008, has drawn mixed reactions from various bodies.

The State Council Administrative Matters Branch Committee has decided to stop the handover of the port and canceled the Supreme Privatization Board decision concerning the sale of the port, which belongs to the Turkish State Railways.

Mr Oğuz Satıcı chairman of the Turkish Exporters' Assembly has criticized the judgment harshly. He said that "We are trying to encourage international investors, but get stuck on such problems. It is impossible to understand the court decision. Both importers and exporters were waiting for a handover of the port. Such a handover would have helped the port to serve more efficiently, while cutting down costs."

On the other hand, Mr Niyazi Tuncer branch chairman of Izmir said that the decision is satisfactory. He added that" It is satisfactory not only for us but for the sake of Turkey. This port makes good money. It is not right to give it to foreigners. The workers are happy too."

Supreme Privatization Board had previously approved the transfer of the management rights of the port for USD 1.275 billion. The board approved the sale on July 3rd 2007, giving the nod to one of the year's biggest asset sales. After 8 months, the Council of State, acting upon a complaint by the Port Workers Union and the Foundation for Developing Public Institutions Management, blocked the handover.

Izmir is the leading export and container port in Turkey. The western city has been an important call destination for largest maritime lines during the last four centuries. Izmir Port is the largest container port of Turkey and the only container port in the region. The port is already shipping 38.8% of the container transportation of Turkey. The annual capacity of the port is 11 million tonnes. Yet, due lack of investment, big ships cannot dock.