APM Terminals and Petkim Announce Strategic Port Development in Turkey

Rob Almeida
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February 14, 2012

Executives from Petkim Petrokimya Holding A.Åž. (“Petkim”), Petlim Limancılık A.Åž. (“Petlim”) which is 100% owned by
Petkim and APM Terminals signed a Heads of Terms agreement which outlines key terms of a definitive agreement to be negotiated and signed between Petkim, Petlim and a to be incorporated Turkish affiliate of APM Terminals for the long-term operation of Petkim Port, located in AliaÄŸa, near the city of Izmir on the Aegean Coast of Turkey.

The contract negotiations are still ongoing and further developments will be made public upon completion.

SOCAR President Rövnag Abdullayev comments,

“We announced our vision for the Petkim peninsula as a Refinery-Petrochemicals-Energy-Logistics integration. A historic
groundbreaking ceremony for the STAR refinery was held on 25 October 2011. We continue our investment projects to produce new petrochemical products and high valueadded products within Petkim. In order to meet the growing future needs of refinery and our other investments, we keep going on our power production projects. Thereby we will mostly have finished our vertical integration in Petkim Peninsula by 2015. We have taken strategic steps to execute our vision for Petkim Port as Turkey’s best logistics center in the Aegean region. Another world leading company has joined us in the Turkish market.  We welcome APM Terminals and their vast expertise in global terminal operations”.

Turkey is a very important growing market CEO of APM Terminals, Kim Fejfer, stated “Turkey is a very important high growth market which we are very pleased to enter together with SOCAR, a strong and well respected business partner. We look forward to establishing a long term presence in Turkey and are very happy with this first development.”

APM Terminals’ CEO Europe Region, Martin Poulsen, added: “Petkim’s Port’s location, its market access and natural deep water are a winning combination that will redefine Turkish ports. We are excited to partner with Petkim and tap their national scale and success to make Petkim Port a strong economic growth engine for the country and the regional economy”.

Nemrut Bay:

The logistic center for Aegean and Mediterranean markets

SOCAR Turkey President (CEO) and Petkim Board Member Kenan Yavuz said “Turkey’s port capacity is unfortunately not enough to keep pace with growing demand in one of the fastest developing economies in the world. The development of Petkim Port will provide the much needed capacity to the Aegean Region and to Turkey, attracting more foreign trade. We established Petkim Limancılık A.Åž. to improve Petkim Port and make it the largest integrated port in Turkey serving the petrochemical, container and general cargo sectors as described in our vision for the Petkim Peninsula as refinery

Petrochemical-Energy-Logistic Integration.

We plan to make AliaÄŸa, Turkey’s most strategic industrial area, the largest integrated logistics center in Turkey, through port
investments in Petkim Port and in other ports. Nemrut Bay is one of the largest logistic centers in Turkey and has the capacity and water depth for the world’s largest containers ships. Geographically, Nemrut Bay has a strong position to serve Aegean and Mediterranean industries. We plan to make Petkim Port, along with Alsancak Port, the largest integrated port and logistics center in the region and one of the world’s leading logistics centers.”

Highlights of the Heads of Terms agreement:

  • Turkey-based Petkim and Netherlands-based APM Terminals will create one of Turkey’s largest container and general cargo terminals.
  • Petkim Port offers deep water capacity and addresses commercial demands of shipping lines for more efficient market access to Turkey’s high growth market.
  • The initial investment for the container terminal is approximately USD 350-400 million with further investments depending on market demand.
  • Initial capacity of the new container terminal will be 1.5 million TEU, which is 50% more than the capacity of the current city port (Izmir Alsancak Port).
  • Further expansion can be phased based on market demand up to a maximum capacity of 3 million TEU.

The main specifications for the container terminal are:

  • Excellent access for large container vessels: 16 meter water depth alongside and in access channel. The turning basin has deep water and unrestricted access;
  • The terminal will be capable of efficiently handing vessels over 10,000 TEU capacity;
  • 700 meter quay:
    • ƒ Phase I provides 350 meters of quay in 2013;
    • ƒ Phase II extends the quay with another 350 meters (by 2014).
  • 53 hectares yard for container handling, storage, a rail terminal and related services;
  • Post Panamax STS cranes will be used;
  • 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.
  • Besides the container terminal, APM Terminals will also assume operations at the general cargo terminal. General cargo operations are expected to start by the end of 2012.

Company Information
Petkim Petrokimya Holding A.Åž (“Petkim”) is a leading Turkish Petrochemical company and essential part of the Turkish Economy. Petkim is an indispensable producer of feedstocks to Turkish industry, providing raw materials for key sectors such as construction, agriculture, automotive, electronics, packaging, textiles, paint and pharmaceuticals.

Petkim is the 12th largest company in the Istanbul Chamber of Industry and is one of the top 20 exporters in Turkey. Within the Aegean Region of Turkey, Petkim is a leading driver of the Regional Economy both directly as the 3rd largest company and by supporting numerous suppliers and associated businesses.

Petkim was originally established in 1965 with a petrochemical facility on the eastern side of Istanbul. In 1985 Petkim expanded into a more substantial complex specifically designed with state of the art technologies in AliaÄŸa, Ä°zmir.  Petkim is listed on the Istanbul Stock Market with The State Oil Company of Azerbaijan Republic (SOCAR) holding 51% of the shares in Petkim after taking part in the initial privatization in 2008 which valued the total company at over USD 4 billion.  Petkim has since experienced strong performance improvement and in the first 9 months of 2011 Petkim increased revenues by 37% over 2010 to reach USD 2.9 billion with profits up 51% to USD143 million. In the first 9 months of 2011, Petkim’s export sales  were up 73% with the USD366 million in foreign orders accounting for around 35% of Petkim’s total revenue. SOCAR continues to invest heavily in Petkim on planned maintenance, capacity and productivity improvements.

In order to give more focus to port development opportunities Petlim Limancılık Ticaret A.Ş. was established in November 22, 2010 as a subsidiary of Petkim.

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