OYAK partners NYK to build massive port

Dunya Executive - - BUSINESS BY LAW - SELCUK ALTUN

During a press conference in Istanbul last week, OYAK Denizcilik and Liman Isletmeleri A.S. announced they had signed a deal with Nippon Yusen Kaisha (NYK), which owns and operates 16 Ro-Ro terminals worldwide, for the development of a port aimed at the automotive sector. The OYAK Port will be built with an investment of $110 million and construction is scheduled to begin this year with completion projected for 2019. OYAK Port’s partnership structure will be 55 percent OYAK and 45 percent NYK.

The course of automot ve log st cs w ll change

The port is expected to meet the demands of Turkey’s growing automotive export market and will become a hub for international logistics traffic. The construction phase will generate 1000 jobs, according to the announcement, with permanent employment reaching 500 once the port is operational.

Built on 235,000 square meters of land in the Korfez district of Kocaeli, the port will facilitate the export and import of international automobile brands, exclusively focusing on the automotive sector with an annual handling capacity of 780,000 vehicles, making it Turkey’s top automotive-focused Ro-Ro port.

4-year search for a partner

OYAK General Manager, Suleyman Savaş Erdem, said that OYAK Port will serve as a logistics distribution center between the east and the west. The continuous growth of Turkey’s exports in the automotive sector is the main impetus behind this investment, he added. “Partnering with a powerful and reliable company like Nippon Yusen Kaisha raises the reputation of the international logistics industry,” Erdem said. “With NYK Line we will build one of the world’s largest ports. OYAK Port will be referred to as the ‘Silk Road’ of the current age in the automotive sector.”

NYK Line Automotive Group President, Koichi Chikaraish, said that the company is excited to build its 17th automotive port in Turkey. NYK has been looking for investment partners in Turkey since 2014, he added, and after two years of talks they finally sat down at the table with OYAK.

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