Derince Port privatization tender completed with $543 mln bid

The tender for the privatization of the Derince Port in the northwestern province of Ä°zmit was completed on June 5 with a $543 million bid.

Safi Katı Yakıt Sanayi ve Ticaret won the tender, surpassing Yılport Holding and Kumport Liman. Chairman of the company, Hakan Safi, said they will build a port that “suits” Derince. The port belongs to the Turkish State Railways (TCDD) and the tender was canceled earlier this year, after bidders failed to meet the price that had been requested by the tender committee.

Six firms submitted their initial bids for the port and the tender for the privatization was opened yesterday. The highest bid in the first round was $180 million, which increased to $252 million in the second round and $302 million in the third round.

The first tender for the transfer of Derince Port’s operating rights was held in 2007, when the Türkerler Joint Venture Group was the highest bidder with $195.25 million. However, the Council of State later cancelled the tender, citing a contradiction in the land settlement plan of the area.

The privatization process restarted in October 2013, with the Privatization Administration’s announcement that it was again collecting offers.