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DP World to develop 1 million-TEU terminal in Turkey

DP World to develop 1 million-TEU terminal in Turkey

   Dubai-based port operator DP World has agreed to pay $105 million to Turkish steel producer Erdemir to own, build and operate a new container terminal with a projected capacity in excess of 1 million TEUs at a greenfield site in Yarimca, Turkey.

   DP World said it will invest about $170 million for infrastructure at the new terminal. Pending regulatory approval, construction will commence next year with the terminal becoming operational in early 2008. It will be the first Turkish terminal to be wholly owned by a foreign operator.

   “We are particularly focused on developing our network of terminals in growth markets such as Europe and Asia, and we see Turkey as an exciting opportunity for our company,” said Sultan Ahmed Bin Sulayem, chairman of the Dubai Board of Ports and Free Zones.

   “When completed, this facility will give DP World a very strong platform to service our customers’ operations in Eastern Europe and the Mediterranean,” said Mohammad Sharaf, DP World chief executive officer.

   This announcement follows DP World’s recommended '3.3 billion ($5.7 billion) offer for the P&O Group, which will make DP World a top three global port operator.