SOCAR Denies Rumors of Selling Container Port in Turkey

The Azerbaijani state-owned energy company SOCAR has refuted recent claims suggesting that it is considering selling its container port in Turkey. SOCAR Terminal, the largest port in Turkey’s Aegean region with a container handling capacity of 1.5 million TEU, has been a subject of speculation regarding a potential sale.

Reports by Bloomberg indicated that SOCAR Türkiye Energy was in discussions with potential buyers for the sale of SOCAR Terminal, with the intention of raising capital for the parent company, SOCAR Group. This move was purportedly aimed at financing a $7 billion expansion of SOCAR’s petrochemicals portfolio in Turkey.

However, SOCAR Terminal CEO Uygun Degirmenci dismissed these rumors in an interview with Turkish newspaper Dunya. Degirmenci clarified that the port is not up for sale and instead, investments are being made to enhance and upgrade the terminal. With a total investment of $420 million in the facility so far, SOCAR remains committed to its operations at the terminal.

Degirmenci stated, “Terminating our operations in the terminal is definitely not on SOCAR’s agenda. On the contrary, recent decisions by the company’s board of directors signal a new phase of growth through the introduction of advanced equipment and further investment in digitization to increase capacity.” He also disclosed that SOCAR Terminal is exploring collaboration opportunities with strategic partners to expand its terminal operations, demonstrating a proactive approach towards development.

In a strategic move last month, SOCAR Terminal acquired the remaining 93% stake in port operator Petlim from Turkish petrochemical company Petkim. The integration of Petlim into SOCAR Terminal represents a significant step in the evolution of the port, which was originally established in 1985 to facilitate petroleum exports.

During the previous year, SOCAR Terminal serviced 630 vessels and managed 541,000 TEUs, showcasing its operational efficiency and significance in the region’s maritime trade sector.